1. Recently American Express, Visa and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, and movie popcorn and candy have been targeted as growth areas for credit card usage. This is an example of __________ on the part of the credit card companies. (Points : 1)

Question

1. Recently American Express, Visa and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, and movie popcorn and candy have been targeted as growth areas for credit card usage. This is an example of __________ on the part of the credit card companies. (Points : 1)

market penetration.
market development.
product development.
diversification.
product dissemination
i think it amarkety penetration

Answer 1

market penetration

Definitions (2)
1. Increasing market share of an existing product, or promoting a new product, through strategies such as bundling, extensive advertising, lower prices, or volume discounts.

2. Measure of the extent of a product's sales volume relative to the total sales volume of all competing products, expressed as a percentage. Formula: Sales volume of a product x 100 ÷ Total sales volume of all competing products.

Answer 2

You are correct! This is an example of market penetration on the part of the credit card companies. Market penetration is a strategy in which a company aims to increase its market share within existing markets by promoting and selling existing products. In this case, American Express, Visa, and MasterCard are targeting the small-ticket end of the credit card market, specifically encouraging the use of their credit cards for purchases like fast food meals and movie popcorn and candy. Their goal is to increase their market share in this particular segment and encourage more consumers to use their credit cards for these types of purchases.