Starbucks Is Known for Understanding Its Customers

question 71

Multiple Choice

Starbucks is known for understanding its customers. As such, it has developed multiple varieties of products that match the needs and wants of its different market segments. By offering everything from espresso drinks to teas to pastries, Starbucks is engaging in a(n) ________ strategy.

• A)value-based promotions
• B)market segmentation
• C)positioning
• D)operational excellence
• E)target marketing

---

Definitions:

FICA-Medicare

A federal payroll (or employment) tax contribution towards Medicare, part of the FICA taxes in the United States.

Cumulative Earnings

The total amount of net income (or loss) earned by a company over a period of time, often used to measure its financial performance.

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, which is a comprehensive federal benefits program that provides benefits to eligible American workers and their families.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and over, as well as for some younger people with disabilities.