The Cup Is a Small Shop in a Small Pennsylvania

The Cup is a small shop in a small Pennsylvania town with a very loyal following. It has become well known in the town as well as in many of the towns surrounding it. Consumers seem to love the homey, local feel of The Cup. As a result, The Cup would like to open a new store in one of the towns close by. It has identified a region it thinks could be profitable. It has many loyal customers who live in that town. However, the town is also home to a Starbucks store. The town is growing, and The Cup has heard rumors that a Dunkin' Donuts may open. The owner is currently evaluating the relevant market segments in the area (Step 4) . He has the following questions he wants to answer: 1. Do we have enough of a loyal following as a local shop that we can attract customers away from Starbucks?
2) With the town growing as fast as it is, will other coffee shops decide to locate there?
The owner is conducting a _____________ to evaluate relevant market segments.

A) sales estimate
B) SWOT analysis
C) cost estimate
D) competitive assessment
E) market segmentation strategy