1. Discuss the factors used to evaluate the usefulness of the military veteran segment.
2. Using the chain ratio method described in Appendix 2: Marketing by the Numbers, estimate the market potential for undergraduate education in the veteran market. Be sure to state any assumptions.
For-profit universities, such as Kaplan University, DeVry University, and the University of Phoenix, actively target military veterans. In fact, the University of Phoenix has more veterans enrolled than any other college. These schools rely heavily on students receiving federal financial aid, and federal law limits the proportion of for-profit university revenue that can be derived from federal aid to 90 percent. But enrolling veterans helps them stay below this threshold because the law does not count GI benefits as government assistance. With federal spending on veterans' education more than doubling to almost $10 billion between 2009 and 2010, this market is even more attractive. Kaplan University is one of the most aggressive, with a team of 300 representatives focused solely on recruiting military veterans, increasing its enrollment of veterans by almost 30 percent in just one year.