Market Development Differs from Market Penetration in That Market Development

question 38

Multiple Choice

Market development differs from market penetration in that market development:

• A) involves trying to sell existing products within new markets.
• B) involves gaining additional share of existing markets using existing products.
• C) involves creating new products to serve existing markets.
• D) involves the joining of two similarly-sized companies into one company.
• E) involves entering a new value chain.

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Definitions:

Two-Stage Regression

A statistical analysis method used when there are indirect causal relationships, involving first regressing an independent variable on an instrumenting variable, then the outcome on the fitted values from the first stage.

CAPM

The Capital Asset Pricing Model, a theory describing the relationship between systematic risk and expected return for assets, particularly stocks.

Market Beta

A measure of the volatility of a security or a portfolio in comparison to the market as a whole.

Explanatory Power

The ability of a statistical model to account for the variability of a given data set, explaining how well the model represents the data observed.