Lesson 4 : Niche VS MASS 9/9/24 Flashcards
Why is a product in a niche market likely to be quite price inelastic?
A product in a niche market is likely to be quite price inelastic since they sell targeted and specialised goods.
Why is advertising to the mass market usually more expensive than advertising to a niche market?
This is because Mass market firms have a lot more customers than niche firms since they sell their goods to consumers, nationally/internationally, whereas niche sell their products locally, meaning advertisement is only required to that specific area.
Why are consumers sensitive to price change in the mass markets?
Because there are lots of similar competing products the consumers can switch to, if the consumer doesn’t like the price change they will move over to another similar product for a cheaper price.
Why do small firms find it easier to survive in a niche marketplace?
A big firm isn’t going to enter the niche market since there isn’t enough money/profit to be made.
Why is it important to stand out in a mass marketplace?
In a mass market there is going to be a lot of competition, if you stand out with product differentiation customers will be more attracted to your product.
