Case Studies in Customer Satisfaction Research

A Marketing Success Story
by Anne Edmunds, M.Ed.
Reprinted from the Journal of The National Association of College and University
Food Services

Abstract
Many functional areas within higher education are now reaping the benefits of employing marketing techniques to improve their services to students. Vanderbilt Dining has achieved much success by effectively utilizing a variety of marketing methods, receiving the praises of both students and national organizations. Market research studies with the help of outside market research firms suggested significant changes in a cafeteria and convenience store, which were implemented. Other marketing techniques employed include an online satisfaction survey, utilization of campus publications, and celebrations involving the receipt of industry awards. Effective communication contributed to the positive outcome of a recent health inspection crisis.

Colleges invest in extensive marketing efforts to recruit students to their institution but often stop there. Once a student enrolls, often little effort is put forth to maintain the relationship with the new "customer." Like other customers, students' wants and needs must be cultivated. As college and university departments attempt to improve the overall satisfaction of their students, they are adopting the business concept of the "lifetime value of the customer." Many colleges now recognize, "each customer -- each student -- has a quantifiable value in tuition, fee, and alumni donation potential" (Hayes, 1996, p. 10). They also recognize the direct link between the perceived quality of the services offered and the future success of their institutions. Rising costs are causing educators to focus on student retention efforts. It typically costs more to recruit a new student than it does to retain a current one. It is, therefore, in the college's best interest to keep a student on-campus, rather than having to recruit another one. The worth of each enrolled student, in terms of past recruiting costs and future donor potential, substantiates a marketing investment to ensure student satisfaction.

C. Dennis Pierce, associate director of dining services at the University of Connecticut, believes college students want their dining services to use a marketing approach.

College food service today is in the business of customizing meals for a customer base that expects it all. To do that well, you'd better be an expert in the listening business. And students want to be part of the process. They want to be surveyed, they want to participate in focus groups, they want to know that they are heard. (Lawn & Schuster, 1998b, p. 38)
A marketing orientation requires listening to the needs of students and directing services to meet those needs. Students today demand a variety of dining options. Dining services must be responsive to the dynamic environment of the college campus.

The college food service industry has revolutionized since its conception in the nineteenth century (Colleges and universities, 1997). Originally, formal dining programs served students single-entree meals at the table. In the middle of the twentieth century, cafeteria style dining brought more choices. New delivery methods necessitated the accommodation of facilities. Then, students began to move off-campus, providing the challenge of marketing services to students who were no longer a captive audience. New technology continued to improve the delivery of services. More recently, third-party contract management companies have replaced self-operated dining services on many campuses.

With a constantly changing environment, the college food service industry has become consumer oriented. Today, marketing has taken center stage for college dining services. "Colleges began marketing more competitively, promoting food service programs as a point of differentiation, presenting a favorable quality of life image to prospective students" (Colleges and universities, 1997, p. 41). Food service directors who once only fed students now aid the university in improving overall student life. Their office now exists to support the educational mission of the university (Lawn & Schuster, 1998a, p. 35).

Unfortunately, some students have rated dining services second only to parking in providing the worst experience on college campuses (Noldon, 1996). To combat this widespread perception of college food service, administrators at Vanderbilt University adopted a marketing orientation, utilizing market research to successfully improve their operation on campus. In an attempt to meet the demands of its customers, Vanderbilt Dining administrators have recently made several changes in a direct response to student feedback. If sales are any indication, students appreciate what has been done to make their campus life more enjoyable.

Vanderbilt Dining operates a variety of facilities, including cafeteria-style restaurants, convenience stores, vending machines, and a catering service. According to the departments' mission statement:

Vanderbilt Dining has a passion for providing excellent food at the highest levels of quality, value, convenience, and service. Our mission is consistent with Vanderbilt's vision to enter the top ranks of research universities, and we embrace our role as builders of community and campus life. To achieve our goals and to ensure long-term stability, we will be innovative, creative, proactive, and financially self-supporting in our business endeavors.
Although they serve the entire Vanderbilt community, students are their main focus, according to Frank Gladu, director of Vanderbilt Dining (Personal communication, 1998). While faculty and staff have often asked for discounts, Gladu believes if anyone deserves a discount, it should be the students.

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