Companies that employ the long-tail concept of business model innovation focus on selling:

• A. a large number of niche products with relatively low demand
• B. only the most popular products with high demand
• C. goods and services at the lowest possible price
• D. products exclusively to local markets

Answer: (A)

Verified step by step guidance

1. Understand the long-tail business model concept: it focuses on selling a wide variety of niche products, each with relatively low demand, rather than just a few popular items with high demand.
2. Recognize that traditional business models often focus on high-demand, popular products to maximize sales volume, but the long-tail model leverages the aggregate demand of many niche products.
3. Identify that the long-tail model benefits from digital platforms or distribution channels that reduce costs of inventory and reach, allowing companies to profit from many small sales across diverse products.
4. Compare the options given: selling only popular products, selling at the lowest price, or selling exclusively to local markets do not capture the essence of the long-tail strategy.
5. Conclude that the correct description of the long-tail business model is selling a large number of niche products with relatively low demand.