HomeVenture Inc

question 26

Multiple Choice

HomeVenture Inc.manufactures and sells a line of furniture under the brand name Elegant Lines.The firm has a 3 percent share of the U.S.furniture market,and competes with industry giants who have large economies of scale and marketing resources.However,Elegant Lines holds 65 percent of the overlooked "customized art furniture" segment,specializing in very expensive custom-designed,furniture.Each of the Elegant Lines furniture pieces is a unique piece of art.What type of market segmentation strategy is HomeVenture Inc.pursuing?

• A)a mass-segment strategy
• B)a niche-segment strategy
• C)a large-segment strategy
• D)a market-development strategy
• E)a mass-market strategy

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Definitions:

Sales Forecast

Predictive analysis of future sales based on historical data, trends, and market analysis.

Budget Committee

A group responsible for coordinating the preparation of the budget, reviewing and approving budget proposals, and monitoring financial performance.

Master Budget

A master budget is a comprehensive financial planning document that combines all of an organization's individual budgets and plans into a single, unified plan.

High-Low Method

A mathematical method that uses the total costs incurred at the high and low levels of activity to classify mixed costs into fixed and variable components.