WHEN MCDONALD’S INTRODUCED YOGURT PARFAITS, ENTRÉE SALADS, AND FRU...

23. When McDonald’s introduced yogurt parfaits, entrée salads, and fruit to offer their current customers

more healthy options, the company was engaging in a _____ strategy.

a. vertical integration

b. market penetration

c. diversification

d. product development

e. market development

ANS: D

Product development stimulates new sales to existing markets. Since the question states the items are

for the firm’s customers, they are aimed at existing markets (buyers).

PTS: 1

REF: 27

OBJ: 02-3

TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy

MSC: BLOOMS Level III Application