When Starbucks Extended Its Brand into Coffee Drinks and Ice

question 136

Multiple Choice

When Starbucks extended its brand into coffee drinks and ice creams to reach customers who did not use its brand, it was using a(n) ________ strategy.

• A) geographical-expansion
• B) new-market segment
• C) market-penetration
• D) larger package size
• E) increased frequency

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Definitions:

Price Ceiling

Government-imposed maximum legal price.

Price Floor

Government-imposed minimum price (used almost exclusively to keep agricultural commodity prices up).

Productivity

Output per unit of input; efficiency with which resources are used.

Acre of Land

A unit of area used in the United States and the United Kingdom, equivalent to 43,560 square feet.