Hoyts Cinemas And Consumer Experience
Dr Arthur Russel, a Melbourne dentist and an accomplished musician, originally started Hoyts Cinemas. He started Hoyts Pictures Pty. Ltd after he began showing programs of short pictures at an old leased hall on Saturday nights. Shortly before his death at the end of World War I, the company had expanded into the Melbourne suburbs and Sydney. In 1926, a merger took place between the interest of Hoyts Pictures Pty. Ltd., Electric Theatres Pty. Ltd and Associated Theatres Pty. Ltd. The new entity became know as Hoyts Theatres Limited. By 1932 Twentieth Century Fox had secured a major shareholding in the company and in August 1982, Twentieth Century Fox sold Hoyts to a group of businessmen. In 1985 the Fink family purchased Hoyts and became the sole owner. Over the years since then, Hoyts has expanded worldwide and has become one of the top-ten cinema chains in the world. Hoyts is now privately owned by Consolidated Press Holdings and has over 1500 screens worldwide. Hoyts Cinemas are an important part of Australia’s entertainment industry. As of February 1999 Hoyts had 268 screens nationwide with plans to have 50 further screens added each year over the next five years (Cave 1999). In Perth, there are currently 8 major
Sensory experience occurs in pre-consumption as soon as customers first arrive at a Hoyts’ multiplex. The availability of free parking, the bright colours inside the multiplex, the lights, posters, televisions and carpets all appeal to the customer’s sight as the music playing popular songs appeals to their hearing. The aroma of popcorn appeals to their sense of smell urging customers to buy a ticket, some popcorn and a drink. The sound of the computer games pushes for the customers to spend money on playing some computer games. The emotional experience of customers as they enter the multiplex is a feeling of awe at the sheer size of the place often followed by a feeling of excitement at the anticipation of being entertained. The consumer can then only think that the movie itself will be as great as the surroundings and so the consumer will buy a ticket. The length of the line, the friendliness of the sales staff, the choice of movies available and movie screening times will also affect the customer’s pre-consumption experience, as does the politeness of the usher on the way to the cinema. Upon buying a ticket to their preferred movie, customers will most likely give in to the smell and bright, eye-catching food stand and buy popcorn, lollies and a drink and then play some computer games to pass the time until the movie starts. Hoyts complexes with multiple screens at each. Hoyts’ main competitor in the Australian Cinema Industry is Village Roadshow/Greater Union Cinemas. As of February 1999, they had 463 screens nationally with plans to implement 137 new screens over a five-year period (Cave 1999). Greater Union currently has 4 major complexes in Perth with a total of 36 screens. The area of differentiation between Hoyts and Greater Union is very small as both currently offer similar promotions, similar services and a similar consumer experience. Hoyts also has a number of smaller competitors in the Perth Cinema market. These include Luna Cinemas in Leederville and Northbridge, Cygnet Cinemas in Como, Windsor Cinema in Nedlands, the Paradiso in Northbridge a! Hoyts could expand its theatres and offer customers even more choice by offering screening times at meal times where the ticket purchased includes a meal in the theatre. Theatres could be made to have tables next to the seats and orders could be placed for a meal before the commencement of the film. Customers would then receive their meal during the film and could enjoy the experience of eating and watching a latest release movie at the same time. Offering the customers this option will give them more choice and it will increase their consumption experience of the cinema by appealing to their senses. The wider choice this will give the consumer when choosing which movie and session to go to will also increase their pre-consumption experience and the food offered with their ticket purchase may further satisfy the customer and so enhance their post-consumption experience. Cinemas could offer certain screening times with the option of waiters in the theatre. The waiters could bring the patrons the orders that they placed at the counter before entering the cinema and then bring them any other food or beverages that they may want during the film and so increase the consumption experience. Hoyts could justify charging a slightly higher price for this service as the multiplexes are so large with multiple screens, there would be little trouble accommodating for people who do not wish to have the services available and for those who do. This would offer more choice to the consumers and therefore increase their pre-consumption experience. Each consumer’s post-consumption experience would also be enhanced, as their satisfaction of their purchase would be greater with the introduction of this extra option.
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Approximate Word count = 2559
Approximate Pages = 10 (250 words per page double spaced)
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