Acknowledging the demand for healthier drinking options, a large beverage company has developed a new line of beverages with no calories and no artificial sweeteners to add to its existing product line. Which of the following approaches to market segmentation is the beverage company using?
A) Broad low-cost strategy
B) Focus differentiation strategy
C) Medium market segmentation strategy
D) Focus low-cost strategy
E) Broad differentiation strategy

Question

Quizplus · Accepted Answer

The beverage company is using a focus differentiation strategy because it is targeting a specific market segment (health-conscious consumers) and differentiating its product (no calories, no artificial sweeteners) from competitors' products.

Acknowledging the Demand for Healthier Drinking Options, a Large Beverage