Question: NKU Dining Services realized that customer segmentation would help them better serve their students, so it embarked on a program to isolate and understand different

NKU Dining Services realized that customer segmentation would help them better serve their students, so it embarked on a program to isolate and understand different market segments. As a foundation for its research efforts, NKU dining started with secondary research from syndicated sources. It accessed the Student Monitor's Lifestyle and Media Survey, which identifies student trends and lifestyles. It also partnered with Claritas, which specializes in geodemographic segmentation. After gaining important insights from this research, they developed and administered questionnaires to thousands of students to learn more about their specific preferences in areas such as portion size, taste, brands, price, and dining atmosphere.

From this combination of primary and secondary research, NKU Dining discovered the following about its student customers.

One of the primary reasons the Sushi spot is popular is that students find it incredibly convenient to grab and go.

  • Of 529 surveyed respondents, 352 reported that they dine on campus either multiple times per day.
  • While 145 dine twice a week or less. 56 reported never having dined on campus.
  • Women are 4x more likely to prefer healthy choices than their male counterparts.
  • Those who live on campus prefer hearty meals with full menus, while those who live off campus tend to purchase snacks, drinks, or quick meals.
  • 2% of respondents reported that they were too introverted to comfortably eat in the dining areas.
  • 4% of respondents wanted NKU Dining to allow them to create their own menus for each meal they would eat on campus.

In addition, Claritas identified six unique segments: Metro Fusion, Main Streamers, Fun Express, Time Liners, Dream Catchers, and Trend Setters. Each segment has its own characteristics that influence consumers' preferences for menu items, specific brands, and meal times. Sodexho relies on this market information to customize the products and dining venues it offers to suit the specific tastes of different segments.

1. Which of the follow is the reason that NKU Dining decided to segment their market?

Group of answer choices

markets are too large to satisfy as a whole

to be competitive

to reach lucrative customers

to expand into new markets

2. Using all the information from the first question, match the examples on the left to the segmentation bases on the right.

Group of answer choices

More than 2/3 dine multiple times per day.

[ Choose ] benefit loyalty psychographc demographics

2% are too introverted

[ Choose ] benefit loyalty psychographc demographics

on campus/off campus diners are different

[ Choose ] benefit loyalty psychographc demographics

Sushi is incredibly convenient

[ Choose ] benefit loyalty psychographc demographics

3. Still using the information above, match the example from the left to the type of segmentation strategy on the right.

Group of answer choices

To reach each of the the six unique segments, NKU Dining is working on developing product offerings that meet the needs of each of these types of market segments.

[ Choose ] undifferentiated concentrated segmentation differentiated segmentation strategy micromarketing unconcentrated segmentation

If NKU Dining decided to allow every student to create their own menu

[ Choose ] undifferentiated concentrated segmentation differentiated segmentation strategy micromarketing unconcentrated segmentation

If NKU Dining had found that there was very little difference between student needs (the opposite of what they found) They might choose to build one large cafeteria and serve ONE common dish each day (much like in HS).

[ Choose ] undifferentiated concentrated segmentation differentiated segmentation strategy micromarketing unconcentrated segmentation

4. NKU Dining was able to recognize six segments that would respond favorably to its product offerings as well learn a great deal about their customers. This fulfills which of the requirements for segment attractiveness?

Group of answer choices

receptiveness

substantial

responsive

profitable

reachable

5. Based on what you have read in the case above and your knowledge from the chapter, what would NKU dining's next step be?

Group of answer choices

to create target profiles from the segmentation information.

to determine the proper pricing for the food.

to devise a communications plan to announce new restaurants.

to decide which types of food they should serve.

to uncover information to create segments.

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