An analysis of the performing arts consumer: Developing market segments by using chi-squared automatic interaction detection (CHAID)

Performing arts organizations have long been considered as an important element to provide enjoyable and educational experiences in societies and communities. Due to the current economic climate and potential issues, most performing arts organizations have experienced revenue shortfalls and financial deficits, along with declining audiences.;The purpose of this study was to examine the performing arts market by identifying and profiling performing arts consumers. By categorizing these consumers into segments using Chi-squared Automatic Interaction Detection (CHAID) analysis (Kass, 1980), this study explored how the interactions between consumers' characteristics and art-related experiences were associated with: (1) number of tickets purchased; (2) donation activity; and (3) out-of-state and/or out-of-country performing arts attendance. Three decision trees were developed using Exhaustive CHAID, which increased the likelihood of finding optimal association between predictors and a dependent variable.;Data were collected through an online survey of E-club members of the Wharton Center for Performing Arts at Michigan State University who had purchased a ticket at least once from the Wharton Center and were on its email list. The E-club newsletter announcing the online survey and providing the link to the survey was sent to a total of 39,011 valid email addresses. Approximately 13,503 of the E-club members opened the electronic newsletter, and a total of 4,744 members responded to the survey for a response rate of 35.1% during 12 days in January--February 2007.;This study focused on the heavy consumers (those who purchased 10 or more tickets during the last 12 months), who represented approximately 30% of the performing arts market and accounted for over 50% of actual spending on tickets. The results identified important predictors of performing arts consumers, based on number of tickets purchased, and distinguished ten segments of heavy consumers. In addition, viable sub-segments from two different decision tree models were identified for 'the propensity to donate to arts, heritage or cultural organizations' and 'the inclination to travel out-of-state and/or out-of-country to attend live performances' among heavy consumers. Chi-square tests and one-way ANOVAs were conducted to examine statistically significant differences among derived segments with regard to their characteristics and behaviors toward the performing arts and cultural pleasure trips.;The results of this research support previous empirical studies indicating that socioeconomic characteristics are important predictors of consumers' behavior patterns toward the performing arts. This study provides crucial information about performing arts consumers, as well as developing a useful approach that could permit performing arts organizations to identify valuable consumers effectively. The identified target segments and their profiles will be essential in building effective communication and promotion strategies for various marketing purposes.