Question

Total population: 39,404 Average household income: $121,000 Average household expenditures: $81,000 In their 20s and 30s: 53% White collar employment: 73.3% Bachelor's degree or higher: 79.1% Married: 49.3% Households without children: 78%

Answer 1

Answer:

This is the full question:

Before Caffè Gustoso's owners can develop a marketing plan for the new store, they need to decide how to expand.

To keep the market expansion manageable, they have decided to limit the potential locations to the Chicago suburbs. However, they don't know which suburb to target.

The profile of Caffè Gustoso's current downtown customer is as follows:

Total population: 39,404

Average household income: $121,000

Average household expenditures: $81,000

Age range of customers: 53% In their 20s and 30s

Type of employment: 73.3%White collar employment:

Education level: 79.1% Bachelor's degree or higher:

Family status:  Married: 49.3% Households without children: 78%

The owners have collected data on three potential markets presented in the market analysis report shown here and want your feedback.

Which of the Chicago suburbs is the best target for Caffè Gustoso's planned market development?  Deerfield, Aurora or Naperville.

And the correct answer is:

Naperville, IL

Explanation:

The following information for the 3 suburbs is taken form US Census

                        Average

                        Household                                            

                        Income         Median Age  %Married  %W/O Kids Race

Naperville       $105,585       35                   70%          55%             76% White

Aurora               $63,967       32                   54%          53%             56% White

Deerfield        $107,194         40                   73%           56%             95% White

The suburb that fits the average customer is Deerfield, for the following reasons:

• The average household income of the Caffe Gustoso's customer is $121,000, and the average household income in Naperville is $105,585, a bit less, but not by a lot.
• 49% of the customers are married, in Naperville, 70% of people are married. The difference is significant, but in Deerfield more people are married (73%), and in Aurora, the percentage of married people is close (54%), but the average income is not ($63,967 vs $121,000).
• The average customer is in his 20s and 30s, and the median age in Naperville is 35, still in the 30s.
• 78% of customers do not have children, and in Naperville 55% of people have children, however, the figures are practically the same for the three suburbs so this is inconsequential.
• 73.3% of customers are white, and 76% of people in Naperville are white, an almost 1:1 correspondence.