Chapter 3

The Macro and Micro Environments of Hospitality

Marketing

- Economy- Society and culture- Politics- Technology- Ecology

- Competitors - Customers

Hospitality Marketing

Macro Environment

Micro Environment

The Macro Environment

Economy– Discretionary– Squeeze effect

FineDining

Theme

Family Style

Quick Service

The Squeeze Effect

The Macro Environment

Economy– Discretionary– Squeeze effect

Society and Culture– Trends– Demographics

Age CategoriesSeniors Boomers Gen X Gen Y

Born ?? - 1945 1946-1964 1965-1978 1979-1994Population 56 M 72 M 17 M 60 MCaucasian 85% 75% 69% 66%Defining idea Duty Individuality Diversity Anything goesEducation is Dream Birthright Way to get Cultural

ahead experience$ mgmt. Save Spend Hedge Spend

Demographic Changes

Age Working women Family composition

– DINKS

The Macro Environment

Economy Society and Culture Politics Technology Ecology

– Eco-efficiency

Micro Environment

Competitors– Concentration vs. fragmentation

Customers– Societal influences– Personal situations– Psychological influences

Societal Influences

Families Culture

– Subculture Socioeconomic status Reference group

– Primary reference group– Secondary reference group– Aspiration group

Personal Situations

Age Life cycle stages Psychographics

– Activities, Interests, opinions (AIO)

Psychological Influences

Perception

Exposure

Attention

Comprehension

Retention

Perception Forming Process

Psychological Influences

Perception Attitudes Personality

– Ideal self-concept– Actual self-concept

Buying Process

Problem awareness Information search

– Importance of the decision– Prior experience– Perceived risk

Types of Risk

Financial risk Social risk Performance risk

Buying Process Problem awareness Information search

– Importance of the decision– Prior experience– Perceived risk– Sources of information

Alternative evaluation Purchase decision Post-purchase evaluation

ProblemAwareness

InformationSearch

AlternativeEvaluation

PurchaseDecision

Post purchaseEvaluation

Consumer Problem-Solving Process

Problem-Solving Continuum

Complexdecision-making

Habitualdecision-making

Macro Environmental

Factors

Micro Environmental

Factors

• Competitors• Customers

– Societal Influences– Personal Situations– Psychological Influences

• Economy• Society and culture• Politics• Technology• Ecology

Characteristics of the Buyer

Buying Process

Variables Affecting Consumer Behavior