1. Can you say which segmentation variable is the most relevant for expensive restaurants? 2. Looking at...

Question:

1. Can you say which segmentation variable is the most relevant for expensive restaurants?

2. Looking at the data across activities, which variables are the most relevant?

3. Explain the statistical test that is reported.

A study involving 158 families, selected randomly from a large New England city, was designed to help The Seafood Grotto, operators of several fine seafood restaurants, to determine who their customers were. Four segmentation variables were explored: age, income, social class, and life‐cycle stage.

Social class wasdetermined using Warner’s Index of Status Characteristics, which uses the variables of occupation, income source, house type, and dwelling area. Life cycle was based on four categories: under 40 without children, under 40 with children, 40 and over with children in the household, and 40 and over without children in the household.

Each segmentation variable was correlated with frequency‐of‐use descriptions of various entertainment activities, ranging from about once a year to more than once a week, and with a variable that simply noted whether the selected entertainment activities were used during the past year. Using Table 19.8, answer the following questions.

Table 19.8 Correlation Coefficients for the Use/Nonuse and Frequency of Use of an Entertainment Activity Use/nonuse Frequency of use Social Life Social Life Entertainment activity Income class Age cycle Income class Age cycle Bowl -.08 -.155 .28 .38 .12 -.04 .35 .25 Movies .25 .01 .38* .46° -.14 .35 -.44b