Dynamo Inc. ,a motor company,started by selling sturdy,affordable,low-maintenance motorcycles in the U.S.Initially the firm pursued a single-segment focus,and targeted the middle-income group.When the company reached the point of full market penetration of the middle-income group,it marketed to a closely related attractive segment by introducing a line of luxury motorcycles for the high-income group of consumers.Which of the following type of market segmentation strategy does Dynamo Inc.use when it targets the high-income group of consumers?
A)multi-segment strategy
B)adjacent-segment strategy
C)mass-customization strategy
D)niche-segment strategy
E)mass-market strategy

Question

Quizplus · Accepted Answer

Dynamo Inc. used an adjacent-segment strategy when it introduced luxury motorcycles for the high-income group of consumers. This means the company targeted a closely related segment that was adjacent to their initial target market of middle-income consumers.