1. Chapter 3
The Macro and Micro
Environments of Hospitality
Marketing

2. Macro Environment
- Economy
- Society and culture
- Politics
- Technology
- Ecology
Micro Environment
- Competitors
- Customers
Hospitality Marketing

3. The Macro Environment
Economy
– Discretionary
– Squeeze effect

4. The Squeeze Effect
Fine
Dining
Theme
Family Style
Quick Service

5. The Macro Environment
Economy
– Discretionary
– Squeeze effect
Society and Culture
– Trends
– Demographics

6. Age Categories
Seniors Boomers Gen X Gen Y
Born ?? - 1945 1946-1964 1965-1978 1979-1994
Population 56 M 72 M 17 M 60 M
Caucasian 85% 75% 69% 66%
Defining idea Duty Individuality Diversity Anything goes
Education is Dream Birthright Way to get Cultural
ahead experience
$ mgmt. Save Spend Hedge Spend

7. Demographic Changes
Age
Working women
Family composition
– DINKS

8. The Macro Environment
Economy
Society and Culture
Politics
Technology
Ecology
– Eco-efficiency

9. Micro Environment
Competitors
– Concentration vs. fragmentation
Customers
– Societal influences
– Personal situations
– Psychological influences

10. Societal Influences
Families
Culture
– Subculture
Socioeconomic status
Reference group
– Primary reference group
– Secondary reference group
– Aspiration group

11. Personal Situations
Age
Life cycle stages
Psychographics
– Activities, Interests, opinions (AIO)

12. Psychological Influences
Perception

13. Perception Forming Process
Exposure
Attention
Comprehension
Retention

14. Psychological Influences
Perception
Attitudes
Personality
– Ideal self-concept
– Actual self-concept

15. Buying Process
Problem awareness
Information search
– Importance of the decision
– Prior experience
– Perceived risk

16. Types of Risk
Financial risk
Social risk
Performance risk

17. Buying Process
Problem awareness
Information search
– Importance of the decision
– Prior experience
– Perceived risk
– Sources of information
Alternative evaluation
Purchase decision
Post-purchase evaluation

18. Consumer Problem-Solving
Process
Problem Information Alternative Purchase Post purchase
Awareness Search Evaluation Decision Evaluation

19. Problem-Solving Continuum
Complex Habitual
decision- decision-
making making

20. Variables Affecting Consumer Behavior
Macro Environmental Micro Environmental
Factors Factors
• Economy • Competitors
• Society and culture • Customers
• Politics – Societal Influences
• Technology – Personal Situations
• Ecology – Psychological Influences
Characteristics of the Buyer
Buying Process