What does the term 'Captive Market' refer to?

What does the term 'Captive Market' refer to?

• A. A popular entertainment venue with multiple options
• B. A group with plenty of food options available
• C. A group with limited food choices, often due to location
• D. A market with abundant competition in food services

Answer: (C)

The term 'Captive Market' refers specifically to a group with limited food choices, often due to location. This concept commonly applies to scenarios where consumers are constrained in their options, such as in hospitals, prisons, or remote industrial sites. In these situations, the consumers have few alternatives available, leading them to rely on the limited choices presented to them. For instance, if a restaurant is located in a remote area without other dining establishments nearby, it captures a market of consumers who do not have the option to choose from multiple restaurants. Understanding this concept is critical in hospitality and service management, as it influences pricing strategies, menu development, and customer marketing approaches targeted at these specific populations.

The term 'Captive Market' refers specifically to a group with limited food choices, often due to location. This concept commonly applies to scenarios where consumers are constrained in their options, such as in hospitals, prisons, or remote industrial sites. In these situations, the consumers have few alternatives available, leading them to rely on the limited choices presented to them.

For instance, if a restaurant is located in a remote area without other dining establishments nearby, it captures a market of consumers who do not have the option to choose from multiple restaurants. Understanding this concept is critical in hospitality and service management, as it influences pricing strategies, menu development, and customer marketing approaches targeted at these specific populations.