Question

Amazon.com has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of
A.
geographic diversification.

B.
product diversification.

C.
vertical integration.

D.
horizontal integration.

Answer 1

Answer: Product diversification

Explanation:

Product diversification is the expansion of the original market for a particular product. Product diversification strategy increases the sales that is associated with a product line and is also useful for a business which has been having

declining or stagnant sales.

Product diversification allows for more options and variety for goods and services, boost a company's brand image and increases a company's profitability. Product diversification can also be used by a firm to protect itself from competitors.

Answer 2

Answer:

B) product diversification.

Explanation:

In marketing, product diversification refers to expanding the markets where a product or product line is being sold, i.e. the company is trying to enter new markets with the same products it already offers.

In this case, Amazon is trying to enter the college bookstore market by offering its services through specific college websites. If they had actually purchased brick and mortar bookstores in colleges, then it would have engaged in vertical integration (something similar to Whole Foods).