Multiple Choice
In competitive markets, consumers and sellers create a ___ where goods and services are exchanged.
24
views
3. The Market Forces of Supply and Demand
Competitive Markets
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the context of competitive markets, a market penetration strategy attempts to increase sales of present products among which of the following groups?
A
Existing customers
B
Unrelated industries
C
Suppliers and distributors
D
New geographic markets
Verified step by step guidance1
Understand the concept of a market penetration strategy: it focuses on increasing sales of existing products within the current market.
Identify the target group for market penetration, which is typically the existing customers who already purchase the product or service.
Recognize that unrelated industries, suppliers, distributors, and new geographic markets are not the primary focus of market penetration; these relate more to diversification, vertical integration, or market development strategies.
Conclude that the goal of market penetration is to increase usage or purchase frequency among existing customers rather than seeking new customers or markets.
Therefore, the group targeted by a market penetration strategy is the existing customers.
7:03mWatch next
Master Introduction to Supply and Demand with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Competitive Markets practice set
Problem sets built by lead tutorsExpert video explanations