Question

Lucy's Swimwear Boutique offers swimwear that is targeted at affluent people who can afford to buy expensive, handmade swimsuits. Which of the following approaches to market segmentation is Lucy's Swimwear Boutique using? (a) Medium market segmentation strategy O (b) Focus differentiation strategy (c) Broad high-cost strategy (d) Low market segmentation Ole) Broad differentiation strategy

Answer 1

The answers:

Lucy’s Swimwear Boutique focuses on the customers who can spend the income on expensive swimsuits, which means, the segment is focused on the customers who want high-quality products and buy the products at a premium prices. Hence, (b) – focus differentiation strategy is the correct answer.

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Exit barrier refers to the obstacle for the company to close the business. Different exit barriers are high capital investment, low return on sale of the assets, the equipment are specialized which cannot be used for other goods production, and production of one good helps the other goods production. Here, from the given options, (a) – investment in assets that are little or no value in alternative use and cannot be sold is the correct answer.