Abstract
Keywords
Introduction to Public Policy and Market Segmentation
The hospitality and tourism industry thrives in understanding and catering to diverse consumer needs, making market segmentation a critical strategic tool. Market segmentation involves dividing a broad audience into smaller, more homogeneous groups based on shared characteristics such as demographics, psychographics, behavior, and geographic location (Kotler et al., 2017). In hospitality and tourism, effective segmentation allows businesses, including hotels, restaurants, and event organizers, to tailor their offerings, enhance customer satisfaction, and optimize resource allocation (Dolnicar, 2020).
Festivals and events play a vital role in tourism by attracting visitors, stimulating local economies, and fostering cultural exchange (Getz & Page, 2019). Public policy in this domain often focuses on sustainable tourism development, economic impact, community engagement, and cultural preservation (Moscardo, 2007). Market segmentation aligns with public policy by enabling event organizers and policymakers to: (1) target the right audiences by appealing to specific groups and maximizing attendance (Tkaczynski & Rundle-Thiele, 2011), (2) enhance visitor experiences with customized marketing (Yoo & Weber, 2005), (3) promote inclusive and sustainable tourism to promote equitable access to different segments (Liburd & Becken, 2020), and (4) support local economies while aligning with regional development goals (Gibson & Connell, 2016).
The game’s design draws on empirical applications of Stakeholder Theory in festival contexts, such as Andersson and Getz’s (2008) findings on balancing commercial and community needs, and Wallace and Michopoulou’s (2023) framework for resilient stakeholder management. By simulating real-world trade-offs, for example, prioritizing policy-compliant segments (Liburd & Becken, 2020) while appealing to diverse attendees, the game transforms theoretical principles into actionable strategies. This mirrors industry practices, reinforcing how segmentation aligns with multi-stakeholder collaboration in event planning.
Market Segmentation as the Game’s Core Framework
Market segmentation is the process of dividing heterogeneous audiences into actionable subgroups (Kotler, 2022), and services as the game’s foundational pedagogical tool. The game operationalizes four key segmentation bases: (1) demographic, (2) psychographic, (3) behavioral, and (4) geographic. This aligns with Dolnicar’s (2020) assertion that effective segmentation in tourism requires multi-dimensional profiling to address diverse needs. For example, card exchanges simulate real-world trade-offs over high-income groups to meet sustainability policies (Tkaczynski & Rundle-Thiele, 2011). Whereas policy documents force students to move beyond superficial traits and consider behavioral drivers (Yoo & Weber, 2005).
Stakeholder Theory
While segmentation drives the game’s mechanics, Stakeholder Theory helps students contextualize their choices within multi-actor priorities (Freeman, 2010). Originally developed in business ethics and management, this theory posits that organizations (or events) should consider the interests of all stakeholders, ranging from primary groups like customers and investors to secondary groups such as communities and regulators, to achieve long-term success and societal legitimacy (Donaldson & Preston, 1995). Stakeholder Theory emphasizes collaborative value creation, where decisions balance competing interests through dialogue and shared objectives (Freeman, 2010).
In the contexts of tourism and festivals, Stakeholder Theory has been widely applied to address challenges such as resource allocation, conflict resolution, and sustainability. For example, Andersson and Getz (2008) analyzed how festivals employ stakeholder management strategies, such as prioritization and partnerships, to align commercial goals with community needs, such as minimizing resident displacement during large or mega events. Additionally, Getz et al. (2006) identified distinct stakeholder roles, such as co-creators and beneficiaries, in festivals, demonstrating how segmentation can clarify responsibilities, such as sponsors funding inclusivity initiatives for marginalized attendees. Lastly, Wallace and Michopoulou (2023) highlighted stakeholder theory’s role in building resilience, showing how crisis-ready festivals engage local businesses and policymakers in contingency planning.
These studies inform the game’s design by modeling how student groups must reconcile divergent stakeholder priorities, such as attendees’ preferences versus policy mandates. For instance, the card-exchange mechanic mirrors real-world trade-offs, such as a festival organizer balancing profit-driven segments, such as high-income tourists, with policy-driven segments, such as accessibility for disabled attendees (Liburd & Becken, 2020).
Critics note challenges in prioritizing conflicting interests, such as commercial versus cultural stakeholders (Friedman & Miles, 2002). The game addresses this by requiring students to justify segmentation through policy alignment, such as designing eco-friendly events to satisfy both environmental regulators and eco-conscious tourists (Byrd, 2007).
Description of the Game
Learning Outcomes
By the end of the game, students will:
Remember: Define market segmentation bases (demographic, psychographic, etc.) and policy alignment (Kotler et al., 2017).
Apply segmentation theory to event design and an event proposal for randomized attendee profiles (cards) while adhering to policy constraints.
Analyze: Evaluate trade-offs between stakeholder interests, such as profit versus inclusivity, and resolve policy conflicts using Stakeholder Theory (Freeman, 2010).
Create: Develop a feasible event plan integrating segmentation data and policy goals, such as sustainability benchmarks (Liburd & Becken, 2020).
Evaluate: Critique peer proposals using reflection insights.
Level of Education
The game is adaptable for:
Undergraduate students (Years 1–4): Focus on foundational segmentation and policy basics.
Graduate students: Extend with complex policy analysis, such as cost-benefit trade-offs, or stakeholder negotiation role-plays (Andersson & Getz, 2008).
Setup and Flow of the Game
About 60 min is needed for full gameplay. In a class of up to 40, divide students into teams of four.
Step 1: Policy Document Selection
Provide each group with one policy document (such as cultural, sustainability, or economic development). ○ ■ Promoting cultural equity, diversity, inclusion, and belonging (LA County Arts, n.d.) ■ Create the conditions required for a dynamic and sustainable economy as well as diverse work environments (Urban Strategy 2.0, 2023). ○
Step 2: Policy Review
Students skim the document to identify: ○ Key objectives (e.g., “Promote cultural equity, diversity, inclusion, and belonging”). ○ Relevant stakeholders (e.g., local artists, tourism boards).
Optional: The instructor may ask discussion questions: ○ How does the document aim to promote its traditional art forms and cultural heritage in the face of globalization? ○ How does the document aim to provide adequate funding and resources for the development of cultural infrastructure to facilitate the accessibility of cultural experiences for all citizens? ○ What does the document outline to encourage the participation of marginalized communities to ensure representation in mainstream cultural activities? ○ What does the document outline to promote cultural education to cultivate a deeper understanding and appreciation of the nation’s cultural heritage? ○ What strategies does the document employ to promote cultural diplomacy and foster international cultural exchange? ○ How does the document support emerging artists and cultural practitioners?
Step 3: Card-based Segmentation
Review market segmentation: For an upper-level student group, market segmentation should not be a new concept, but a brief review may be necessary. Define market segmentation and identify segmentation groupings (demographic, geographic, psychographic, and behavioral). Have students provide an example of each grouping. The instructor may then provide an example in the festival and events industry, where one event/festival may cater to younger generations who love music, whereas the event/festival right next to it may cater to families and children.
Card deck preparation: Take a deck of playing cards (two decks may be needed for a large class) and remove all face cards (jacks, queens, and kings) as well as aces and jokers. The instructor states that the deck of playing cards represents segmentation bases (demographic/psychographic), not just stakeholders.
Card draw: Student groups randomly select four cards to understand their attendees and provide the following information, identified in Table 1. Cards provide baseline demographics (age, income, etc.), but students must hypothesize psychographic traits (e.g., “Two of Clubs = Gen Z queer attendee valuing Tik-Tok-worthy moments”) to mirror the industry’s shift toward hybrid segmentation (Dolnicar, 2020).
Segment reimagining: For more advanced gameplay, use the enhanced card design to explicitly include psychographic and behavioral traits, identified in Table 2. Prompt by asking, “Reinterpret your cards by inventing one psychographic trait per attendee, such as King of Hearts = disability advocate who values sustainability.” This mirrors Dolnicar’s (2020) call for hybrid segmentation in tourism.
Exchanges: (1) Swap one card blindly (simulates real-world uncertainty). (2) Swap one card strategically (faces up; encourages critical thinking).
Market Segmentation Playing Card Criteria.
Enhanced Market Segmentation Playing Card Criteria for Psychographic and Behavioral Traits.
Step 4: Event Design
Groups create an event/festival suitable for their chosen target market, addressing: ○ Policy alignment (“How does your event meet inclusivity goals?”) ○ Segmentation logic (“Why target families versus solo travelers?”)
Step 5: Group Presentation
If time permits, have student groups present their event design.
Solving the Problem
To guide students in connecting gameplay to real-world applications, the author integrates a three-phase framework:
Phase 1: Problem identification. An instructor prompt includes, “Analyze your card-drawn segments, such as low-income families, disabled attendees. Which policy goal, such as inclusivity or sustainability) conflicts most with their needs? Why?”
Phase 2: Creative ideation. A student activity could be to brainstorm three solutions per conflict, such as sliding-scale pricing for low-income attendees. The instructor could provide a trade-off matrix (Table C1 in Appendix C) to evaluate options against policy criteria.
Phase 3: Feasibility testing. A student group task could be to pitch the solution to a city council (peers), who will challenge the budget/logistics.
Potential Game Challenges
While the market segmentation game offers an engaging and interactive way to teach students about aligning event planning with public policy, instructors may encounter several challenges during implementation. Students, especially those in introductory courses, may struggle to interpret dense or technical policy documents, leading to confusion about how to apply them to event/festival design. To mitigate this, the instructor can provide simplified summaries or highlighted key sections of the policy documents in advance. Additionally, the instructor can offer a guided analysis before the game begins, using a sample policy to model how to extract relevant objectives, such as sustainability or inclusivity.
Another challenge may be the overemphasis on superficial demographic traits, such as age or income, while neglecting psychographic or behavior segmentation, such as interests or values, which are equally critical in events and festivals. One strategy is to emphasize multi-dimensional segmentation and encourage student groups to create backstories for their cards.
Lastly, cultural sensitivity may arise through gameplay. When using adapted “identity” suits, students may unintentionally stereotype marginalized groups or hesitate to engage for fear of misspeaking. To mitigate this, the instructor should set ground rules for respectful discussion and provide guidelines for inclusive language. Additionally, offer examples of how to approach these segments thoughtfully. For example,
Game Extensions or Assignments
Post-game Reflection
Purpose: Deepen learning by promoting students to articulate how the game reinforced key concepts and self-address their decision-making.
Activity: After gameplay, students complete a 15-min written reflection (in-class or homework) addressing:
Stakeholder trade-offs ○ “
Policy alignment ○ “
Self-evaluation ○
Instructor adaptations: For undergraduate students, use short answer prompts with sentence starters, such as
Assessment: See Table B1 in Appendix B for a reflection rubric.
Instructor tip: Use reflections to identify knowledge gaps for follow-up lectures.
Expanded Assignment
A more robust assignment can be an individual report that identifies a public policy-focused proposal for an existing or potential event/festival, using at least one identified planning or project management framework.
Requirements: Write a report proposing an event or festival aligned with government priorities, public sector objectives, and/or related initiatives. You can base your work on an existing event or festival, or create one for this assignment. The event or festival can be located anywhere, but bear in mind the government policies you need access to. You are required to make use of an identified event planning framework. You should also draw from relevant theory, policy-related sources (including relevant policy and strategy documents, webpages, funding schemes, etc.), and information relevant to your chosen event or festival and its location. Be clear in demonstrating the policy (or policies) behind your idea. Questions to ask yourself are:
What are the objectives that you are pursuing, and how sustainable are they?
What needs are you trying to meet?
How can you show that your chosen event or festival shares objectives with public sector partners, as identified by you?
How have you chosen and applied your event planning framework, and what benefits has this brought?
Ideas could include:
A new event in line with a regional development policy or strategy,
A new strand of programming at a festival, reflecting local and/or national government priorities and objectives,
Audience development initiatives and new uses of technology,
And many more.
Evaluation of the Game as a Learning Tool
To assess the effectiveness of the market segmentation game in achieving its learning outcomes, a mixed-methods approach was employed, combining performance metrics and student feedback. The evaluation focused on three key dimensions: (1) knowledge acquisition, (2) critical thinking and application, and (3) student engagement.
Participant Profile
The participant profile includes 78 undergraduate students across 3 iterations of the game. Third-year students (62%) and fourth-year students (38%) were the representative sample sizes. Participant majors included festivals and events (65%), hospitality and tourism (25%), and intercultural business communications (10%). Lastly, the course context was a required “Planning and Public Policy for Festivals and Events” course at the author’s institution.
Assessment Methods
1. Pre-game survey ( ○ Administered immediately before gameplay ○ 5-point Likert scale ○ Sample findings: Average scores improved by 28% post-game, with the most significant gains in questions linking segmentation to policy
2. Post-game surveys ( ○ Administered immediately after gameplay ○ 5-point Likert scale and open-ended questions ○ Sample findings: 92% agreed the game “made segmentation more tangible,” while 78% reported increased confidence in interpreting policy documents. Finally, one student mentioned,
3. Instructor observations ○ Notable increase in case study discussion participation (vs. traditional lectures) ○ Common challenges observed: Most student groups initially struggled with policy jargon, and about one-quarter needed prompting to consider psychographic factors.
4. Assessment analysis ○ Reviewed 15 event proposals/designs from student groups ○ 85% successfully integrated more than two policy objectives ○ 35% struggled with feasibility trade-offs, such as cost versus inclusivity ○ About half included innovative solutions, such as quiet hours for neurodiverse attendees
This evaluation focuses on pedagogical effectiveness, not experimental research. Limitations reflect practical teaching constraints such as a single-institution sample, self-reported survey data, and no longitudinal tracking of concept retention.
Conclusion
This game-based case study demonstrates how an experiential learning activity can bridge market segmentation theory and public policy application in hospitality and tourism education. By engaging students in designing policy-compliant events for randomized attendee profiles, the game achieves three outcomes: (1) Practical skill development where students learn to reconcile stakeholder conflicts, such as attendee preferences versus sustainability policies, through hands-on problem-solving, mirroring real-world event planning challenges (Andersson & Getz, 2008), (2) Policy literacy where the game simplifies complex policy documents by requiring direct application, evidenced by 85% of student groups successfully integrating policy goals into their proposals, and (3) critical thinking growth where post-game reflections revealed improved ability to articulate trade-offs. For educators, the game offers a flexible tool adaptable to undergraduate and graduate contexts, with extensions like stakeholder negotiation role-plays or feasibility analysis. Future iterations could incorporate digital simulations, such as dynamic policy scenarios, to further enhance realism.
If you are an ICHRIE member, you can access the Teaching Notes for this case study here: https://ichrie.memberclicks.net/jhtc. If you are not an ICHRIE member, the Teaching Notes will be published in a future Sage Business Cases (SBC) annual collection: https://sk.sagepub.com/cases. For more information, please contact info@sagepub.com.
Footnotes
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