Management Information System (MIS) Practice Exam

The concept of the Long Tail refers to a focus on ________.

1. Mainstream products

2. Broad markets

3. Generic brands

4. Niche markets

The correct answer is: Niche markets

The concept of the Long Tail emphasizes the significance of niche markets, which consists of a vast array of less popular items that collectively can generate substantial demand and revenue. This idea, popularized by Chris Anderson, argues that the internet has allowed businesses to cater to these niche markets more effectively. In traditional markets, businesses primarily focus on mainstream products that have mass appeal and high sales volume. However, the Long Tail suggests that by also offering a wide range of less common items, businesses can attract customers interested in specific tastes or preferences. This approach leverages the availability of products that may not sell in high numbers individually but can collectively meet the needs of diverse consumer interests. The other choices, such as mainstream products and broad markets, relate to a strategy that prioritizes top-selling items and popular demand over the diversity offered by niche products. Such strategies may overlook valuable opportunities to engage smaller customer segments with unique preferences, which are critical for long-tail strategies.