When Starbucks Introduced Its Tazo Tea Line to Bring in New

question 117

Multiple Choice

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

• A) market-penetration
• B) new-market segment
• C) geographical-expansion
• D) niche identification
• E) blue-ocean

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Definitions:

MRC

Marginal Revenue Cost, NO.

Pure Competition

A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers.

Market Price

The current price at which a good or service can be bought or sold in the open market.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor or capital.