Samantha Runs a Store That Exclusively Sells Handmade Vegan Cosmetics

question 103

Multiple Choice

Samantha runs a store that exclusively sells handmade vegan cosmetics. The store has a wide range of products manufactured by different companies. The store is relatively small in size and Samantha did not have to invest a lot in it. She knows that only a small segment of customers buy such products and she exclusively focuses on them. Which of the following can be inferred from the scenario?

• A) Samantha runs a wholesale store.
• B) Samantha uses a niche strategy in the retail industry.
• C) Samantha uses a cost leadership strategy in the service industry.
• D) Samantha uses a product differentiation strategy in the manufacturing industry.
• E) Samantha uses a market penetration strategy in the manufacturing industry.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.

Demand

The volume of goods or services consumers are prepared and able to buy across a range of prices within a certain timeframe.

Increase

To increase or cause to increase in magnitude, quantity, intensity, or scope.

Alfred Marshall

A prominent British economist known for his work in microeconomics and for developing the concept of price elasticity of demand.