Not Sold Out
3-21
Managers in movie theater chains might benefit from knowing the basics of all external
environment components but may want to put a lot of emphasis on being intimately familiar with
demographics, sociocultural and economic factors of the external environment. Movie theaters
create revenue from ticket and amenity sales in their venues. High volume sales and high seat
occupancy are this main source of revenue for this industry, movie merchandise and fan articles
are secondary. Therefore, managers of movie theater chains need to know the demographic
component of the population they operate in. Age, income and family composition statistics are
vital sources of information to effectively market and select their product assortment to achieve
the highest amount of ticket sales. It is reasonable to assume that a population with a lot families
