Question

Ludwick is starting a steak and potato restaurant. He spent many hours sitting in various steakhouses making notes about which cuts of beef are ordered the most, which sell-out first, which side dishes are ordered the most, and what prices are charged for each product at the different restaurants. He already knows what his break-even point will be and is now trying to determine how he will promote his shop and whether he will rely on word-of-mouth and walk-in customers, or if he should actively market his restaurant. Which of the following best describes Ludwick's activities?

1) Conducting market research
2) Analyzing competition
3) Determining marketing strategy
4) Identifying customer preferences

Answer 1

Ludwick is conducting market research, analyzing competition, and determining the marketing strategy for his new steak and potato restaurant by observing trends at various steakhouses and considering different promotional approaches.

Step-by-step explanation:

Ludwick is engaged in multiple activities that are part of establishing a new business. His observation of various steakhouses to see which cuts of beef are popular, sell out first, and which side dishes are commonly ordered, coupled with price comparisons, falls under the category of conducting market research. He is gathering data on customer behavior and market trends, which can inform his business plan and strategy.

However, determining how to promote his steak and potato restaurant and deciding between relying on word-of-mouth and walk-in customers or actively marketing his restaurant is part of determining marketing strategy. Ludwick is also analyzing competition by visiting other steakhouses to compare their offerings to what he will offer. This information is not simply identifying customer preferences but encompasses a broader analysis, so options 2 and 3 jointly describe Ludwick's activities more accurately than options 1 or 4 alone.