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Chapter 3 Review Question Answers 1. Briefly discuss why it is important for a caterer to understand the market A caterer’s market is defined as the group of all customers in their geographic service area who have an unmet need, want or demand requiring food and beverage service. It is extremely difficult and unreasonable to expect a caterer to be able to service the entire market-range of current and potential customers who are in need of catering services. 2. Explain what is meant by a caterer carving the market. Provide examples to support your answer. The caterer must carve or segment the whole market of customers into smaller pieces or niches. Segmenting the whole market into niches requires the caterer to identify those customers who have similar needs or wants and group them together which enables him/her to decide how to best build the business to satisfy that specific group. 3. What are the key questions a caterer must answer to determine the market niche most favorable for them to pursue. Figure 3-1 in the Textbook gives the answers to this question. Answers include: What kind of food and service can be provided right now to meet and exceed the customers’ expectations? Is the caterer comfortable with specializing in chicken, steak, roast beef, prime rib or past? What level of “quality” standards can be created and maintained in both food and service? What price range will the caterer charge? How many days will the caterer want to work each week? How many hours each day will the caterer want to work? How many days each week will the caterer want to work? What kind of food preparation skills does the caterer have now? Will the menu be specialized, “limited-menu,” or will the menu be a broad menu?” What are the caterer’s culinary skills and their relationship to menu design? What kind of equipment does the caterer have?
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This note was uploaded on 10/30/2009 for the course HTM 2514 at Virginia Tech.

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