Market niching is profitable because the company ________.
A) copies or improves on the leader's products and programs, usually with much less investment
B) bears the cost of developing new products and markets, expanding distribution, and educating the market
C) knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment
D) either keeps its manufacturing costs and prices low or its product quality and services high
E) can achieve economies of scale much faster by selling the same product to the global market

Question

Quizplus · Accepted Answer

Market niching allows companies to focus on a specific target customer segment and understand their unique needs and preferences. This knowledge gives them an advantage over other firms who attempt to sell to the same segment casually. By meeting the specific needs of a narrow market, these companies can establish themselves as experts and build a loyal customer base, leading to profitability.

Market Niching Is Profitable Because the Company ________