Which of the following is an example of a market niche?

• A. A national chain of gas stations
• B. A supermarket selling a wide variety of products
• C. A government-run postal service
• D. A bakery specializing in gluten-free pastries

Answer: (D)

Verified step by step guidance

1. Understand the concept of a market niche: it refers to a specialized segment of the market for a particular kind of product or service, often targeting a specific group of customers with unique preferences or needs.
2. Analyze each option to see if it targets a broad market or a specialized segment. For example, a national chain of gas stations serves a broad market, not a niche.
3. Consider the supermarket selling a wide variety of products: this also targets a broad market, aiming to satisfy many different customer needs rather than a specific niche.
4. Look at the government-run postal service: it typically provides a general service to the entire population, so it is not a niche market.
5. Identify the bakery specializing in gluten-free pastries: this targets a specific group of customers with dietary restrictions or preferences, making it a clear example of a market niche.