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Price elasticity in the performing arts: a segmentation approach

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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 1900 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.

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Change history

  • 18 September 2022

    The text “Ph” after the name of the author “Anna Maximova” in biography section has been removed

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Author information

Authors and Affiliations

  1. Department of Marketing, School of Economics and Business Administration, Saint Mary’s College of California, P.O. Box 4230, Moraga, CA, 94575-4230, USA

    Eric Kolhede

  2. College of Business Administration, California State University, Stanislaus, Turlock, CA, 95382, USA

    J. Tomas Gomez-Arias

  3. Department of Economics, School of Economics and Business Administration, Saint Mary’s College of California, Moraga, CA, 94575-4230, USA

    Anna Maximova

Authors
  1. Eric Kolhede
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  2. J. Tomas Gomez-Arias
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  3. Anna Maximova
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Correspondence to Eric Kolhede.

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Appendix 1 Model comparisons

Appendix 1 Model comparisons

Segmentation method and subgroupings

R 2

Model type

Linear

Logrithmic

Exponential

Cluster groups

 All respondents

0.887

0.820

0.898

 Cluster 1 (Intrinsics)

0.978

0.899

0.970

 Cluster 2 (Disinclined)

0.980

0.942

0.964

 Cluster 3 (Impressionables)

0.983

0.874

0.940

Frequency of attendance

 All respondents

0.843

0.780

0.909

 Infrequents*

0.964

0.937

0.975

 Frequents**

0.981

0.822

0.919

Age

 All

0.923

0.857

0.923

 34 years and younger

0.964

0.936

0.975

 Older than 34 years

0.986

0.850

0.933

Income

 All

0.942

0.869

0.877

 Annual household income of $9000 or less

0.961

0.935

0.976

 Annual household income of more than $9000

0.986

0.849

0.937

Education

 All

0.954

0.882

0.935

 Less than a bachelor’s degree

0.962

0.943

0.984

 At least a bachelor’s degree

0.986

0.859

0.932

Gender

 All

0.957

0.885

0.930

 Males

0.977

0.926

0.972

 Females

0.987

0.892

0.952

  1. *Infrequents: attend performing arts events less than 2 times annually
  2. **Frequents attend 3 or more performances annually

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Kolhede, E., Gomez-Arias, J.T. & Maximova, A. Price elasticity in the performing arts: a segmentation approach. J Market Anal 11, 523–550 (2023). https://doi.org/10.1057/s41270-022-00179-2

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