Question

Hooters, Inc.: A Macro-Marketing Evaluation

All economies must have a macro-marketing system. The economies may take many forms, but all must have some way of deciding what and how much is to be produced and distributed by whom, when, and for whom.

Our macro-marketing system is basically a market-directed economy. The key decisions are made fairly automatically and democratically, through the micro-level decisions made by individual producers and consumers. Together these individual decisions determine the macro-level decisions and provide direction for the whole economy.

Does our macro-marketing system work in an efficient and fair way that achieves our social objectives? This question is very subjective, and we usually analyze the performance of our marketing system in terms of how well it satisfies consumer needs, as consumers see them. But remember, not all consumers have the same needs!

The marketing concept suggests that a firm should try to satisfy the needs of some consumers (at a profit). But, what is "good" for some producers or consumers may not be "good" for society as a whole. This is the "micro-macro dilemma." It means that in running our macro-marketing system some compromises must be made to balance the needs of society and the needs of individual producers and consumers. Making these compromises and still protecting individual freedom of choice is not easy. This exercise will help you understand the difficulty of resolving micro-macro dilemmas.

In this exercise, please read the mini-case and answer the questions that follow.

Founded in 1983, Hooters of America, Inc. is the franchiser of over 455 locations spread throughout forty-four states in the United States and twenty-eight countries and territories worldwide. The company employs more than 25,000 people, of which 17,000 are Hooters Girls.

While often credited with popularizing the concept of "hot wings," Hooters is also known for the costumes of its female employees. According to the company's website, "The element of female sex appeal is prevalent in the restaurants, and the company believes the Hooters Girl is as socially acceptable as a Dallas Cowboy cheerleader, Sports Illustrated swimsuit model, or a Radio City Rockette."

Over the years, the company has faced several sexual harassment lawsuits and in 1991, the Equal Opportunity Employment Commission initiated an investigation into the hiring practices of the company. While the investigation was ultimately discontinued, many consumers argue that the company exploits beautiful women. The terms "demeaning" and "degrading" were used by members of the general public when CEO Coby Brooks went undercover in an episode of Undercover Boss. While those terms were disturbing to him, the arguments certainly were not new and, as the company website states, "To Hooters, the women's rights movement is important because it guarantees women have the right to choose their own careers, be it a Supreme Court Justice or Hooters Girl."

Yet, many persist in their perception that the company basically exists to take advantage of a woman's economic vulnerability and a man's stupidity. Since the airing of the Undercover Boss episode, some minor protests have occurred at the opening of new Hooters sites. In the extreme, some consumer groups have petitioned to have the store openings blocked. In a down economy, some see such protests as a problematic due the potential jobs that would be lost.

2.

value:
3.00 points

1-How does the "sex appeal" format of Hooters affect society's views of women?

A-Reflects existing social values in the short run

B-Does not reinforce these values in the long run

C-Focuses on unsubstantiated wants

D-Forces men to behave as dummies

E-Forms societal values which did not exist before

3.

value:
3.00 points

2-What parties would NOT be negatively affected by the successful blocking of a new store opening?

A-Hooter’s Girls

B-Hooter’s shareholders

C-Consumer groups

D-CEO Coby Brooks

E-Current customers

4.

value:
3.00 points

3-If Hooters of America attempted to completely redesign its brand based on the criticisms of some consumers to become a more wholesome, family-oriented business, what would be its best overall strategy?

A-It should rely on word-of-mouth and social media to show consumers how it has changed.

B-It should raise prices and make it harder for consumers to choose.

C-New advertising could suggest that consumers will not need to be manipulated into buying Hooters products.

D-Hooters would need to develop a new competitive advantage.

5.

value:
3.00 points

1-Sex appeal has a very strong influence in advertising and promotion. Critics of Hooter’s advertising likely believe which of the following statements?

A-Hooter’s advertising reduces economies of scale in marketing.

B-Hooters uses clever ads to manipulate men into buying its products.

C-Women are economically empowered through Hooters advertising.

D-Advertising lowers Hooter’s prices and thus harms society.

E-Hooter’s advertising has a positive effect on the economy.

6.

value:
3.00 points

6-Marketing systems are evaluated on the macro level for _______ and on the micro level for ________.

A-general profitability; how individual firms gain or lose profits

B-how consumer needs are satisfied; overall effect on society

C-overall effect on society; how consumer needs are satisfied

D-overall effect on the global market; limited effect on the U.S. market

Answer 1