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.
