Nearly every market can be further refined or divided, by the particular needs and preferences of its constituents. Some of the most common ways to define a niche are based on:

* Price (e.g. luxury, moderate, discount)

* Demographics (gender, age, income level, education level)

* Level of quality (premium, handmade, economical)

* Psychographics (values, interests, attitudes)

* Geographics (residents of a certain country, city, or even neighborhood)

Choosing to focus on a niche is a strategic business decision to serve a certain customer base better than competitors who target the larger market.