Lucy's Swimwear Boutique Offers Swimwear That Is Targeted at Affluent

question 34

Multiple Choice

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) Broad differentiation strategy
• B) Low market segmentation
• C) Medium market segmentation strategy
• D) Broad high-cost strategy
• E) Focus differentiation strategy

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Definitions:

Wasting Asset

An asset that inexorably declines in value over time due to physical deterioration or the expiration of intangible rights.

Put Option

An option that gives the owner the right, but not the obligation, to sell an asset.

Call Option

An option that gives the owner the right, but not the obligation, to buy an asset.

Purchase Shares

The act of buying ownership stakes in a company, typically through its stock, offering potential for investment returns.