Which of the following is the best example of product development?
A. American Express increased advertising expenditures to encourage customers to use the card when they went out to dinner, not just for shopping.
B. To reach new customers, Taco Bell opened new retail outlets in airports, office buildings, zoos, and hospitals.
C. Suave boosted sales by introducing a new line of shampoo products.
D. Nintendo purchased Cover Girl and expanded into cosmetic products.
E. None of the above are good examples of product development.
Answer: (C) Product development deals with offering new or improved products for current or present markets; thus, (C) is correct. (A) is incorrect because American Express is trying to penetrate the market by attempting to increase current product usage. (B) is not correct because Taco Bell is expanding its market with a current product and are therefore attempting market development. (D) is incorrect because Nintendo is taking a whole new product into an entirely new market or attempting new venture strategies. (E) is not the best choice because there is a correct answer.