Once Starbucks Established Its Presence in Thousands of Cities Internationally

question 15

Multiple Choice

Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs and high-speed wireless access.

• A) product-development
• B) market-penetration
• C) diversification
• D) market-development
• E) conglomerate

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Definitions:

Discount Period

The time frame in which a discount is offered for prompt payment of an invoice, encouraging early payment by customers.

Shrinkage

The loss of inventory that can occur from theft, damage, or errors in the counting or recording of stock.

Purchase Allowance

Purchase allowance is a reduction in the purchase price, granted by the seller to the buyer, often due to defects in goods or discrepancies in the order.