Question
Recently, somewhat contradictory data from one independent restaurant-market intelligence firm has caused large U.S. restaurant chains, like Olive Garden, to scramble to better predict the
Recently, somewhat contradictory data from one independent restaurant-market intelligence firm has caused large U.S. restaurant chains, like Olive Garden, to scramble to better predict the dining-out behavior of consumers in the future. For example, although industry sales figures for casual dining rose over the past three months, the number of customers dining out in the same period actually declined. Management at one large U.S. restaurant chain is particularly concerned about how consumers' concerns about inflation in the next six months may alter their dining-out behavior as a result. To help better understand U.S. consumers in this regard, management is planning to conduct market research. It has developed two possible approaches to undertake the research: One is to conduct focus groups in each of the U.S. states with those who have recently dined at its restaurants. The second is to randomly survey people in the parking lot of large shopping malls in selected U.S. towns and cities. Only one of the approaches will be adopted.
Which of the two approaches do you recommend? Begin your answer with either "focus group" or "random survey," then briefly explain why the approach you recommend is superior to the other approach. Assume there is no difference in the cost of the two approaches.
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