In which of the following situations is a niche strategy most common and successful?
A) product differentiation and mass market
B) cost leadership and mass market
C) product differentiation and narrow market
D) cost leadership and narrow market

Question

Quizplus · Accepted Answer

A niche strategy is most commonly and successfully used in a narrow market with product differentiation. This allows the company to focus on meeting the specific needs and preferences of a smaller target audience, without the pressure of competing with larger, more established firms. By offering unique and specialized products, the company can create a loyal customer base and charge a premium price, resulting in higher profits. Cost leadership may not be effective in a niche market as customers are willing to pay a higher price for a unique product.

In Which of the Following Situations Is a Niche Strategy