Kruzan unveils student spending study

With a Bloomington small business as his backdrop, Mayor Mark Kruzan revealed Monday the results of a recently completed survey tracking IU students' local spending and shopping habits. He also announced a new partnership between the campus, the city and the Small Business Development Center to help revitalize downtown.\n"IU students, particularly those who are new residents in our downtown, represent a market in waiting," Kruzan said during a press conference in front of Bloomington Bagel Company's newest branch on Morton Street.\nKruzan called the survey's findings "another piece of the puzzle to implement economic vitality" downtown. The results of the survey will provide information to Bloomington small businesses, particularly those businesses downtown that can be directly affected by student spending, the mayor said. \nTen percent of the IU population now resides downtown, Kruzan said.\n"We believe this is the most comprehensive detailed analysis of students ever done on their spending habits and perception," Brian Kleber, director of the SBDC, said.\nKleber said the results of the survey are an important resource, which will enable local small businesses to understand how they can meet the demands of the IU student population.\nSeventy students, working with SBDC, surveyed 487 students from varying demographics earlier this year as part of two marketing-research classes in the Kelley School of Business.\nAccording to the survey, and not surprisingly, Kleber said, students spend more money on food and drinks per week than any other item. Half of students responded that they spent money on food and drinks at least one to three times per week. Of those, 66 percent purchase fast-food or pizza, 45 percent purchase food at a restaurant and 48 percent say they purchase drinks at bars.\nMore than half of students said they are satisfied with businesses in Bloomington, including an 85 percent satisfaction rate with bars and restaurants. More than half of students said they are familiar with most of the businesses in the city, and 84 percent of students rely on word-of-mouth to learn about businesses.\nGeographically, students often make their purchases at businesses located on the east side, the survey reported. While variety, cost and competence factored in to student spending decisions, convenience was the most frequently cited reason for where students choose to spend their money.\nRon Walker, director of economic development for Bloomington, said he saw the survey as a chance for businesses and the city to improve the quality and quantity of services.\n"Bloomington businesses now have new information to help them do what they do better," Walker said.\nWalker said one way the city can act as an advocate for small businesses is to provide information services for them. Walker said this study will help them meet that objective and move from "economic viability to economic vitality." \nKruzan drew connections between Monday's survey release and the downtown investment plan he announced last week. The $60,000 investment plan will conduct focus groups, meetings and interviews with local merchants and business owners to better understand the needs of downtown.\nIn addition to highlighting the survey, Kruzan said the city will also establish a partnership between SBDC and the Kelley School to conduct a follow-up survey on local student spending and shopping set for this spring. The two surveys will be available at no cost for local small businesses by summer 2005.\n"All of this is an opportunity, for employers and employees, and for job creation," Kruzan said. "Their success is our success."\n-- Contact senior writer Tony Sams at ajsams@indiana.edu.