Question

Some firms find it attractive to target "niches" because:

a. Firms can gain a competitive advantage by ‘specializing’ on serving the more narrowly defined needs of customers in niches
b. Customers in niches tend to possess more variation in wants, needs, and demographic characteristics making it that much easier to develop marketing programs that will fit the requirements of at least some customers in the niche.
c. There are more potential customers in niches
d. More competitors exist resulting in higher levels of demand.
e. Niches are typically larger and, therefore, attract more competitors

Answer 1

a. Firms can gain a competitive advantage by ‘specializing’ on serving the more narrowly defined needs of customers in niches

Step-by-step explanation:

• A market niche is a subset of the market on which the product is focused and it defined the features and is aimed at the price range and production quality and the demographics that it intends to target. Unlike the mass audiences, the niche has a smaller audience and is targeted by the essential and specialized set of narrowly defined customers.