Article
Kolhede, E. et al. Price elasticity in the performing arts... 08.20.2022.pdf
Journal of Marketing Analytics
(2022)
Abstract
Our article examines price sensitivity between subsegments of performing arts consumers. This study contributes to the literature in two ways: first, by the more comprehensive manner in which performing arts consumers are segmented and, second, by comparing subgroups along all elasticity regions (i.e., elastic, unitary and inelastic) of a performing arts demand curve. Structured surveys were administered to nearly 1,900 subjects. This study distinctively enriches segmentation analyses by analyzing the price sensitivity between cluster segments defined by psychographic variables and their expectation of marketing mix offerings, yielding three segments of intrinsics, disinclined and impressionable performing arts consumers. .We find that price appeals should be primarily directed at intrinsics, a segment of consumers least drawn to performing arts events and with the greatest price sensitivity. PAOs should seek to maintain the greater price inelasticity among intrinsics and impressionables with differential approaches. In targeting intrinsics, PAOs must meet the higher quality expectations these patrons have of the organization’s core artistic product. Price inelasticity among impressionables can be achieved through targeted programming and advertising efforts to these consumers, a group more susceptible to the influence of external factors affecting buying behavior.
Keywords
- Pricing · Elasticity · Market segmentation · Motivators · Psychographic · Marketing mix · Performing arts
Disciplines
Publication Date
August 20, 2022
Citation Information
Eric J. Kolhede, J.T. Gomez-Arias and Anna Maximova. "Kolhede, E. et al. Price elasticity in the performing arts... 08.20.2022.pdf" Journal of Marketing Analytics (2022) Available at: http://works.bepress.com/eric-kolhede/24/