1. A company that sells organic cosmetics wants to

increase its market share and customer loyalty. It decides to

use the Ansoff matrix to identify the best growth strategy.

Which of the following options is the most suitable for the

company?

a) Market penetration: selling more of its existing products

to its existing customers.

b) Market development: selling its existing products to new

markets or segments.

c) Product development: creating new products or variants

for its existing customers.

d) Diversification: creating new products for new markets

or segments.

Answer: c) Product development. Rationale: This option

allows the company to leverage its brand reputation and

customer loyalty, while offering more value and variety to

its customers. It also helps the company to differentiate

itself from competitors and attract new customers who are

interested in organic cosmetics.

2. A restaurant chain that operates in several countries

wants to improve its customer satisfaction and retention. It

decides to use the SERVQUAL model to measure and

manage the quality of its service. Which of the following

dimensions of service quality is the most important for the

restaurant chain?

a) Tangibles: the physical appearance and facilities of the