Introducing newly developed products or services to a market segment the company is not currently serving is called:
A.
product development
B.
market development
C.
market penetration
D.
diversification
E.
product proliferation
82.
As discussed in the chapter opening, Dunkin’ Donuts, Starbucks, and McDonald’s have all found ways to succeed in the branded coffee market. How have they managed to do this?
A.
They use higher-quality ingredients than do other firms.
B.
Each of the firms employs marketing strategies that take advantage of the firm’s unique strengths.
C.
They avoid opening stores near competitors’ locations.
D.
They have agreed to divide the coffee market between them, and thus can avoid competing with each other.
E.
They have competed in the coffee market for so long that their success is guaranteed.
83.
Zara is a women’s clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a “quick response” system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara’s operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established:
A.
customer loyalty.
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