Customer loyalty in the performing arts

Transcription

1 Customer loyalty in the performing arts Paper presented at the 17 th International Colloquium in Relationship Marketing, organised by Maastricht University, September Author Pieter de Rooij NHTV Breda University of Applied Sciences (Academy for Leisure) P.O. Box DX Breda - The Netherlands +31 (0) [email protected] Summary Customer loyalty in the performing arts is different from many other sectors. The different possibilities of loyalty to various entities and specific characteristics of this sector, contribute to the different development of customer loyalty. This literature study shows the consequences of these differences for the determinants of customer loyalty in the performing arts and gives insight into the different roles of these determinants in customer loyalty development. Key words: customer loyalty, performing arts, determinants 0. Introduction In the past few decades, the themes of customer loyalty and relationship marketing have received a great deal of attention, both in the academic world and in the industry. The use of loyalty strategies may result in customers developing a loyal attitude and displaying loyal behaviour. Also in the performing arts customer loyalty and relationship marketing have received attention (Garbarino and Johnson, 1999; Garber et al., 2000; Hume, 2007; Ngobo, 2005; Petr, 2007; Rentschler et al., 2002). Relationship marketing can contribute to audience development policies and may be an answer to the decreasing dependency on governmental budgets and the fierce competition in the battle for the consumer s leisure time and money. The development of customer loyalty in the performing arts differs from the development of customer loyalty in other sectors. As a result of uncoerced choices and intrinsic motivation, leisure activities may lead to an intense involvement (Csikszentmihalyi, 1990). Furthermore, visits to the performing arts is a form of hedonic, experiential and symbolic consumption (Hirschman and Holbrook, 1982) and choice processes have specific characteristics (Boorsma, 1998). Moreover, given the artistic goals, the product cannot easily be adapted to consumers demand (Kotler and Scheff, 1997). Because customer loyalty development differs from other sectors, it is interesting to find out the consequences for the determinants which are relevant for this development. This paper is a literature review and the purpose is twofold: 1. To describe the differences of the performing arts sector from other sectors, contributing to the different customer loyalty development in the performing arts 2. To explore the consequences of these differences for the determinants of customer loyalty in the performing arts. 1

2 Insight into these consequences is not only interesting for the performing arts itself, but also for other (cultural) hedonic services. In the first section the qualities of the performing arts sector, that are conducive to the different customer loyalty development, are further explored. Specific determinants influencing this development are addressed in the second section. In the third section the implications are described. 1. Different customer loyalty development in the performing arts Oliver (1999, p. 34) defines loyalty as a deeply held commitment to re-buy or repatronize a preferred product or service consistently in the future, thereby causing repetitive same brand or same-brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior. The development of customer loyalty in the performing arts is different from the development of loyalty in many other sectors. The performing arts have various qualities that are conducive to the different development of customer loyalty. The performing arts are part of the leisure sector. Customer loyalty in the leisure sector is achieved in part because of the uncoerced character of leisure activities (Stebbins, 2005), which triggers intrinsic motivation in consumers (Csikszentmihalyi, 1990). This intrinsic motivation may lead to involvement in a certain activity, possibly resulting in commitment to the supplier or service provider (Kyle et al., 2006). Furthermore, whereas in the case of utilitarian consumption practises, consumption lead to a surfeit of consumption, this is not the case in cultural consumption (Passebois and Aurier, 2004). Art consumption can be addictive and an increase in a consumer's present consumption might increase her future consumption (Throsby, 1994). Moreover, the nature of customer loyalty in the performing arts is complex. Customers can be loyal to different entities like a theatre accommodation or festival as a provider of performing arts, a specific performer, a genre or the performing arts as a leisure activity. In addition, there are various loyalty indicators like buying individual tickets, subscriptions or being a friend or member of a theatre. The meanings of all these various forms of connections vary across theatres. Furthermore, visits to the performing arts are a specific form of consumption. It is a form of hedonic, experiential consumption in which emotions play a key role (Hirschman and Holbrook, 1982). This means that customer value is not so much utilitarian in nature, but it is hedonic in nature (Addis and Holbrook, 2001). Moreover, satisfying the subjective emotional goals is a crucial element in determining customer s value. Furthermore, consumption in the performing arts is symbolic. For some visitors attending the performing arts is an affirmation of certain values and it might express a certain identity (Boter, 2005; Kolb, 2001). Choice processes with regard to experiential products have specific characteristics which complicate decision-making (Boorsma, 1998). Hedonic choice behaviour is heterogeneous and strongly dependent on the specific situation (Boter, 2005). Moreover, the service cannot be observed before the performance takes place, resulting in an uncertainty about the outcomes. Moreover, products are chosen in an affective way and not by extended cognitive information processing (Goossens, 2001). The continuous renewed supply of products with short shelf lives and a constrained availability, further complicates decision-making (Boter, 2

3 2005). Therefore, the consumer has to deal with risks and uncertainties (Abbé-Decarroux, 1994) requiring intuition in decision-making processes (Urrutiaguer, 2004). Another quality of the performing arts sector is that many organisations are subsidised and have to balance several objectives: artistic, educational, social and financial. This means that the performing arts product cannot be adjusted to meet the customers needs just like that. The purpose of many performing arts organizations is to expose an artist to the widest possible audience, rather than to produce a product that the market demands (Kotler and Scheff, 1997). In conclusion, it can be said that customer loyalty development in the performing arts is different from other sectors. Some characteristics of the sector present opportunities for the development of customer loyalty, whereas other characteristics pose constraints. 2. Determinants of customer loyalty in the performing arts Given the different character of customer loyalty development in the performing arts, it is interesting to find out the consequences for the determinants which are relevant for customer loyalty development in this sector. In this paragraph, previously described elements which contribute to the different character of customer loyalty development are connected with specific determinants of customer loyalty in the performing arts. Motivation and involvement Due to the uncoerced character of leisure activities, intrinsic motivation is important in developing customer loyalty. Motivations are goals and values which drive behaviour (Slater, 2007). They are supposed to have a strong effect on customer loyalty in the performing arts (Andreasen, 1991; Ngobo, 2005). People have different bundles of motives at different times for engaging in the performing arts. The behaviour of an individual in a given situation may require a consideration of many motives, often interacting to facilitate or inhibit each other (Caldwell, 2001). In the performing arts we can distinguish following consumption motives: aesthetics, cognitive stimulation, transcendence, reduction, communion, distinction and enjoyment (Boter, 2005; Caldwell, 2001). Like stated before, intrinsic motivation may lead to involvement. Cultural involvement reflects people s beliefs about cultural participation (based upon Iwasaki and Havitz, 2004). It is an unobservable state of motivation, arousal or interest towards cultural activities or associated products (based upon Havitz and Dimanche, 1998). A study by Scheff (1999) points out that interest in a specific production, repertoire or performer is by far the most important reason for a single ticket buyer to purchase a ticket. Furthermore, a lack of interest or uncertainty of interest in the plays was found to prevent single ticket buyers or occasional subscribers from being regular subscribers (Johnson and Garbarino, 2001). Having no interest in the performing arts and preferring to do other things is a main reason for Dutch visitors not to attend the performing arts (TNS Nipo, 2008). Satisfaction Customers can express loyalty to different entities, like the performer or the theatre accommodation as a distributor of performances. In this respect, some authors stress that satisfaction with the performance is a very important or the most important attribute for customers to visit the performing arts again (Currim et al., 1981; Davis and Swanson, 2009). However, it should be noted that performances are artistic products which cannot always be easily adjusted to customers needs. Many authors also refer to the importance of satisfaction 3

4 with elements of the theatre as an accommodation, like staff (Davis and Swanson, 2009), seating (Ryans and Weinberg, 1978), accessibility (Johnson and Garbarino, 2001) or facilities (Colbert et al., 1998). It is possible to maximize customer satisfaction with these elements, without damaging the artistic or educational value. Mutual investments and variety- and novelty-seeking Performing arts consumption is experiential in nature. It can be viewed as a form of production since the product is defined through its interaction with customers (Puhl et al, 2008). Because one of the trends in the performing arts is spectator s need to be actively involved (Puhl et al., 2008), it is expected that the concept of mutual investments and reciprocity (Morais et al., 2004) is a relevant determinant to be taken into account. Consumers can play an active role in the aesthetic experience (Pulh et al., 2008). Furthermore, Holbrook and Hirschman (1982) refer to the importance of variety- and novelty seeking in experiential consumption. This need may be a reason for customers to show heterogeneous choice behaviour and to behave disloyal. However, the influence of mutual investments and varietyseeking on customer loyalty in the performing arts, has received only little attention. Social influences and customer communities Given the symbolic character of consumption, social influences play an important role in loyalty development (Addis and Holbrook, 2001). Performing arts attenders might feel that significant others expect them to attend performing arts (Andreasen and Belk, 1980). Theatre is a form of communication not only between the performers and the audience, but also among audience members (Kolb, 2001). Moreover, consumers seek shared experiences (Puhl et al., 2008). Because customers social ties with other customers play a role in developing a loyal relation with the service provider, performing arts organisations should facilitate customer communities where these social ties can be strengthened (Morais et al, 2006). Hereby the constraints to participate can be reduced and the costs of switching to a different provider can be increased. Information provision, the certainty factor and competition Decision making processes in the performing arts are complicated by various factors described earlier. Given the situation that consumers have to deal with risks and uncertainties in their choice processes, information provision becomes very important. Because it is difficult for some consumers to get a clear view of the supply of performances, they find it hard to choose from this abundance (Research voor Beleid, 2008). For quite some customers the information is unsatisfactory, many performers are unknown and they miss proper reviews (Theater Netwerk Nederland, 1994; Petr, 2007). Due to the constrained availability of services, the information should not only be qualitatively good, but it should also be timely. The certainty factor plays a dual role. This role is negative for the consumers who do not (frequently) attend the performing arts: they are uncertain of the outcomes of the offerings (Arts Council, 2008) or they are uncertain to use the tickets which have been bought in advance (Johnson and Garbarino, 2001). The role of the certainty factor is positive for many subscribers. Firstly, because some need a level of personal discipline to encourage them to attend regularly (Boyle, 2007). Secondly, because of the risk of scarcity they want to have a guaranteed ticket in a good seat (Ryans and Weinberg, 1978). The continuous renewed supply of products and constrained availability does not only complicate decision making, but it also enlarges the problem of increased competition in the battle for the consumer s leisure time 4

5 and the budget he wishes to allocate to this (Pulh et al., 2008). Marketers have to attract customers attention repeatedly with products with a reduced life span, in a market where in principle the number of competing leisure alternatives is infinite. Moreover, this marketing process is hampered by low marketing budgets in the cultural sector. Cultural competence Because performers want to reach artistic and educational goals, consumption of performing arts performances requires a substantial mental activity on the part of the consumer (Hirschman and Holbrook, 1982). Enjoyment relies on the aesthetic sensibility of the consumer (Caldwell, 2001), which might put some consumers off. Cultural competence is related to the mental capacities and resources (skills to interpret cultural symbols) to enjoy cultural activities (Stokmans, 2005). According to Verhoeff and Ganzeboom (1991) and De Haan and Knulst (2000) the cultural socialization of the parental environment is of more importance as a determinant compared to education. Because each visit expands the expertise and sharpens visitors senses (Passebois and Aurier, 2004), cultural competence is not only a determinant, but is also a consequence of customer loyalty. 3. Implications Customer loyalty development in the performing arts is different from many other sectors. The different possibilities of loyalty to various entities and specific characteristics of this sector, contribute to the complexity of customer loyalty development. This literature study shows the relevance of several determinants and gives insight into the different roles of these determinants in customer loyalty development. Future research might give further insight into customer loyalty to different entities and quantitative research techniques can be used to measure the influence of several determinants on customer loyalty. Since motivations influence the way in which experiences are defined, (Hume et al., 2006) it is important to understand motivations, so performing arts organisations can design appropriate programs and increase loyalty. Given the lack of attention for the influence of mutual investments and variety-seeking on customer loyalty in the performing arts, research into this area will contribute to further understanding. Furthermore, it is interesting to find out strategies to influence the certainty factor, which plays a divergent role for different customer segments. Although this paper addresses customer loyalty in the performing arts, other sectors providing hedonic services like sports and tourism or providing hedonic cultural services specifically like museums or film, might benefit from ideas put forward in this paper. Many determinants which play a role in customer loyalty development in the performing arts, are likely to be relevant for these services as well. 5

6 References Abbé-Decarroux, F. (1994), The perception of quality and the demand for services; empirical application to the performing arts, Journal of Economic Behavior and Organization, volume 23, pp Addis, M., Holbrook, M., (2001), On the conceptual link between mass customization and experiential consumption: an explosion of subjectivity, Journal of Consumer Behaviour, volume 1, no. 1, pp Andreasen, A., Belk, R. (1980), Predictors of attendance at the performing arts, Journal of Consumer Research, volume 7, no. 2, pp Andreasen, A. (1991), Expanding the audience for the performing arts, National Endowment for the Arts, Research Division Report number 24, Washington Arts Council England (2008), What people want from the arts, downloaded at 21st February 2009, Boorsma (1998), Kunstmarketing, Hoe marketing kan bijdragen aan het maatschappelijk functioneren van kunst, in het bijzonder van toneelkunst in Nederland, proefschrift, Rijksuniversiteit Groningen Boter, J. (2005), Market structures in arts and entertainment, PhD thesis, Vrije Universiteit Amsterdam Boyle, S., (2007), Single serve or package deal? A study of regular attendees to symphony orchestra concerts, International Journal of Nonprofit and Voluntary Sector Marketing, volume 12, number 2, pp Caldwell, M. (2001), Applying general living systems theory to learn consumers sense making in attending performing arts, Psychology & Marketing, volume 18 (5), Colbert, F., Beauregard, C., Vallée, L. (1998), The importance of ticket prices for theatre patrons, International Journal of Arts Management, volume 1, no. 1, pp Csikszentmihalyi, M. (1990), Literacy and intrinsic motivation, Deadalus, 119, 2, pp Currim, I., Weinberg, C., Wittink, D. (1981), Design of subscription programs for a performing arts series, Journal of Consumer Research, volume 8, pp Davis, J., Swanson, S. (2009), The importance of being earnest or committed: attribute importance and consumer evaluations of the live arts experience, Journal of Nonprofit and Public Sector Marketing, volume 21, number 1, pp Garbarino, E., Johnson, M. (1999), The different roles of satisfaction, trust, and commitment in customer relationships, Journal of Marketing, volume 63, number 2, pp

7 Garber, L., Muscarella J., Bloom, P., Spiker, J. (2000), Consumer based strategic planning in the nonprofit sector: The empirical assessment of a symphony audience, Journal of Nonprofit & Public Sector Marketing, vol. 8 (1), pp Goossens, C. (2001), Marktonderzoek naar hedonistische consumptie en productervaringen, in Ontwikkelingen in het marktonderzoek, jaarboek 2001, Marktonderzoekassociatie, Uitgeverij de Vrieseborch, Haarlem Haan, J. de, Knulst, W. (2000), Het bereik van de kunsten, Een onderzoek naar veranderingen in de belangstelling voor beeldende kunst en podiumkunst sinds de jaren zeventig, SCP, Den Haag Havitz, M., Dimanche, F. (1998), Leisure involvement revisited: conceptual conundrums and measurement advances, Journal of Leisure Research, volume 29, number 3, pp Hirschman, E., Holbrook, M. (1982), Hedonic consumption: Emerging concepts, methods and propositions, Journal of Marketing, vol. 46, Summer, pp Holbrook, M., Hirschman, E. (1982), The experiential aspects of consumption: Consumer fantasies, feelings, and fun, Journal of Consumer Research, vol. 9, September, pp Hume, M., Mort, G., Liesch, P., Winzar, H. (2006), Understanding service experience in nonprofit performing arts: implications for operations and service management, Journal of Operations Management, vol. 24, pp Hume, M., Mort, G., Winzar, H. (2007), Exploring repurchase intention in a performing arts context: who comes? and why do they come back?, International Journal of Nonprofit and Voluntary Sector Marketing, vol. 12, number 2, pp Iwasaka, Y., Havitz, M. (2004), Examining relationships between leisure involvement, psychological commitment and loyalty to a recreation agency, Journal of Leisure Research, vol. 36, no. 1, pp Johnson, M., Garbarino, E., (2001), Customers of performing arts organizations: Are subscribers different from non-subscribers?, International Journal of Nonprofit and Voluntary Sector Marketing, vol. 6, no. 1, pp Kolb, B. (2001), The decline of the subscriber base: A study of the philharmonia orchestra audience, International Journal of Arts Management, volume 3, number 2, pp Kotler, P., Scheff, J. (1997), Standing room only, Strategies for marketing the performing arts, Harvard Business School Press Kyle, G., Mowen, A., Absher, J., Havitz, M. (2006), Commitment to public leisure service providers: A conceptual and psychometric analysis, Journal of Leisure Research, vol. 38, no. 1, pp Morais, D., Dorsch, M., Backman, S. (2004), Can tourism providers buy their customers loyalty? Examining the influence of customer-provider investments on loyalty, Journal of Travel Research, vol. 42, February, pp

8 Morais, D., Kerstetter, D., Yarnal, C. (2006), The Love triangle: Loyal relationships among providers, customers and their friends, Journal of Travel Research, vol. 44, pp Ngobo, P. (2005), Drivers of upward and downward migration: An empirical investigation among theatregoers, International Journal of Research in Marketing, volume 22, pp Oliver, R. (1999), Whence consumer loyalty?, Journal of Marketing, vol. 63, special issue, pp Passebois, J., Aurier, P. (2004), Building consumer / arts institution relationships: an exploratory study in contemporary art museums, International Review on Public and Non Profit Marketing, vol. 1, number 2, pp Petr, C. (2007), Why occasional theatregoers in France do not become subscribers, International Journal of Arts Management, vol. 9, number 2, pp Pulh, M., Marteaux, S., Mencarelli, R. (2008), Positioning strategies of cultural institutions: A renewal of the offer in the face of shifting consumer trends, International Journal of Arts Management, volume 10, number 3, pp Rentschler, R., Radbourne, J., Carr, R., Rickard, J. (2002), Relationship marketing, audience retention and performing arts organization viability, International Journal of Nonprofit and Voluntary Sector Marketing, volume 7, number 2, pp Research voor Beleid (2008), Wat kan er beter in de podiumkunsten?, Onderzoek naar knelpunten en oplossingen in de bedrijfsvoering, Een onderzoek in opdracht van VSCD, Zoetermeer Ryans, A., Weinberg, C. (1978), Consumer dynamics in nonprofit organizations, Journal of Consumer Research, volume 5, number 2, pp Scheff, J., (1999), Factors influencing subscription and single-ticket purchases at performing arts organizations, International Journal of Arts Management, volume 1, number 2, pp Slater, A., (2007), Escaping to the gallery : understanding the motivations of visitors to galleries, International Journal of Nonprofit and Voluntary Sector Marketing, volume 12, May, pp Stebbins, R.A. (2005), Choice and experiential definitions of leisure, Leisure Sciences, 27:4, pp Stokmans, M. (2005), MOA-model of audience development: Some theoretical elaborations and practical consequences, paper presented at the International Conference on Arts and Cultural Management, pp. 1 11, downloaded 1 st January 2009, 8

9 Theater Netwerk Nederland (1994), De vergeten theaterbezoeker, of het publiek is ook maar een mens, Amsterdam Throsby, D., (1992), The production and the consumption of the arts: A view of cultural economics, Journal of Economic Literature, volume 32, number 1, pp TNS Nipo (2008), Marktbeschrijving Podiumkunsten 2007, Amsterdam Urrutiaguer, D. (2004), Quality judgements and demand for French public theatre, Journal of Cultural Economics, volume 22, pp Verhoeff, R., Ganzeboom, H. (1991), Cultuur en publiek, Multidisciplinaire opstellen over de publieke belangstelling voor kunst en cultuur in Nederland, SISWO, Amsterdam 9