ITPEC IP April 2020 Question 88

Source exam: ITPEC IP April 2020Topic: Business Strategy Management

ITPEC IP April 2020 — Question 88 of 100

A long-tail strategy offers a very broad range of low-demand products whose combined sales can be substantial. An online store can economically list niche items with few individual sales opportunities because shelf-space and distribution constraints are lower than in a physical store.

Answer (d)

Why not others:
- stocking only strong sellers focuses on the short head of demand

- emphasizing queues and limited availability is scarcity promotion

- paying bloggers a share of referred sales is affiliate marketing

Key rule: The long tail earns aggregate revenue from many niche products rather than relying only on a small number of hits.

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