HomeVenture Inc.manufactures and sells a line of furniture under the brand name Elegant Lines.The firm has a 3 percent share of the U.S.furniture market,and competes with industry giants who have large economies of scale and marketing resources.However,Elegant Lines holds 65 percent of the overlooked "customized art furniture" segment,specializing in very expensive custom-designed,furniture.Each of the Elegant Lines furniture pieces is a unique piece of art.What type of market segmentation strategy is HomeVenture Inc.pursuing?
A)a mass-segment strategy
B)a niche-segment strategy
C)a large-segment strategy
D)a market-development strategy
E)a mass-market strategy

Question

Quizplus · Accepted Answer

HomeVenture Inc. is pursuing a niche-segment strategy by specializing in the customized art furniture segment, which they dominate with a 65 percent share of the market. This is a specific and focused segment, rather than a mass-market approach.