Accessory dwelling units, or ADUs, are small structures built on a residential lot as an accessory use to the primary home. They may take the form of above-garage apartments, tiny homes, in-law units, backyard cottages, and more. Accessory dwellings are an old concept that is getting new life thanks to companies like FabCab. FabCab offers two distinct models of accessory homes, each available in small, medium, or large floor plans.

Other companies are taking a different approach to ADUs. N2Care designed the MEDCottage, a high-tech unit designed as an alternative to a nursing home. Dubbed the Granny Pod, the MEDCottage is a mobile medical dwelling equipped with devices that monitor vital signs, cameras and sensors to alert caregivers to falls, defibrillators and first aid supplies, and other safety features. MEDCottage pricing begins at $125,000, but nursing home care can cost upwards of $50,000 a year. To offset some of the price, N2Care will buy back the units when they are no longer needed.

The FabCab is choosing between two different areas of equal population. The first area is in a downtown area and the second area is in a largely residential area. FabCab decided to go with the second area because there would be a much larger number of customers in the residential area than in the downtown area. FabCab used the geographic variable of _______.

climate

geodemographic segmentation

city size

market density

Assessment question

N2Care has one product, the MEDCottage, that is prefabricated and pre-equipped with medical equipment used by nursing homes. N2Care is utilizing a(n) _______ targeting strategy.

undifferentiated

differentiated

concentrated

homogeneous

Assessment question

N2Care is marketing its MEDCottages to senior citizens and their family members. In addition, the company must consider the family life cycle stage of consumers purchasing MEDCottages. N2Care is primarily using _______ segmentation.

demographic

psychographic

behavioristic

geographic