Market segmentation and Selection Attributes of Fine-Dining Consumers

Abstract
Purpose - Fine-dining Restaurant is newly emerging trend in Korea. Nevertheless, performance of the business is not profitable. In order to increase the competitiveness of business for better performance, managers of the business have to learn more about their customers. By applying the concept of market segmentation and selection attributes, this study reveals the characteristics of customers and their selection attributes for eating out. Design, data, and methodology - Customers were divided into two different group, aggressive customers and normal customers based on their attitude toward eat-out. About Five hundreds sixty respondents have been participated in survey. Factor analysis, Cluster analysis, and T-test have been applied to analyze data. Result - The results showed that customers in aggressive group are younger and richer. They used to be more frequently enjoying eat out, and spending more money for food. Meanwhile, selection attributes for fine-dining restaurants have been classified into six factors such as ‘quality’, ‘service’, ‘reputation’, ‘comfortability’, ‘cost-effectiveness’, ‘accessibility’. Customers in aggressive group have been more sensitive to quality of food, while customers in both group did not consider the price as critical element when they select fine dining. Conclusions - In order to continue the growth of fine dining, both of repeated visiting of loyal customers and emerging of new customers are required for better performance. Fine dinning managers have to remember that not only quality of food, but also other factors such as accessibility would be crucial consideration of their customers.