Understanding Mass and Niche Markets

What is the primary focus of a business operating in a mass market?

• Targeting a specific customer group

• Targeting as many customers as possible

• Focusing on luxury products

• Focusing on local markets

Which of the following is a characteristic of mass market products?

• Limited availability

• Mass production

• Niche advertising

• High production costs

What is a key advantage of operating in a mass market?

• Lower competition

• Limited customer base

• Economies of scale

• Higher profit margins per unit

Which of the following is a disadvantage of mass markets?

• Limited growth opportunities

• Standardized products

• Low competition

• High profit margins

What defines a niche market product?

• Is available everywhere

• Targets a broad audience

• Meets specific customer needs

• Is mass-produced

Which of the following is an advantage of niche markets?

• Widespread availability

• Higher customer loyalty

• Mass media advertising

• Lower production costs

What is a common disadvantage of niche markets?

• Low production costs

• Limited customer base

• High competition

• High economies of scale

How can a business benefit from operating in both mass and niche markets?

• By focusing only on niche products

• By ignoring mass market opportunities

• By leveraging the advantages of both markets

• By reducing product variety

What is an example of a product that operates in both mass and niche markets?

• A generic brand of cereal

• A luxury sports car

• A local handmade soap

• Nescafe's Dolce Gusto range

What strategy does Nescafe use to succeed in both mass and niche markets?

• Reducing advertising efforts

• Targeting both broad and specific customer needs

• Offering a single product line

• Focusing only on mass production