Market Segmentation of Diet Nutrition Supply for the New Entrepreneurs: Case Study in Kurdistan Region of Iraq

Abstract

Despite the growing trend of healthy lifestyle and awareness about the importance of fitness among the urban population in the Kurdistan region, there is no specialized diet restaurant with high service quality in Sulaymaniyah, the second largest city of Kurdistan. This study investigates if establishing a diet food restaurant in Sulaymaniyah is a viable idea. This study also aims to identify the main segments of the market, factors affecting consumers’ opinion regarding the diet food, and their willingness to pay for diet meals. The data were collected through questionnaires from 1200 respondents. The collected data were tested for reliability and validity through Cronbach’s Alpha, exploratory factor analysis, and confirmatory factor analysis. Segment analysis was performed to test whether the need and demand for diet restaurant and willingness to pay differ across various segments based on gender, age, location, education levels, weight, body mass index, diabetics, profession, gym visitors, income level, and marital status. Analysis of variance (ANOVA) method and independent samples T test were used for this purpose. This study concludes that an untapped and potentially profitable market exists for diet food restaurants in Sulaymaniyah city; however, apart from affluent segment of the market, most consumers are price sensitive.