Achieving Price and Customer Attraction Advantages through Specific Targeting

Targeting a specific customer segment can provide a business with price and profitability advantages in an environment of price suppression. By tailoring products or services to meet the needs of a specific group, a business can attract customers more effectively than trying to appeal to everyone. This can be exemplified by the success of Costco, which caters to large families with modest incomes, offering products in bulk quantities that are not attractive to a broader customer base.