Determinant Factors and Customer Segments in Live Music Concert Venue Selection
Author : Tugba Tugrul
Abstract :Most studies on music consumption have focused on music festivals. Although live music concerts are also planned events like music festivals, they have distinct characteristics. For example, live music performance events typically feature a single performance and are highly dependent on the venue. To better understand consumers’ selection of live music concert venues, it is essential to consider all aspects of the service experience, not only the musical performance element. Therefore, the aims of this research are twofold: to identify the factors perceived as important in selecting live music concert venues, and to define distinct consumer segments based on these factors. 424 adults participated in the online survey, with a mean age of 25 years (SD = 7.23 years). The 24 determinants for live music concert venue selection were derived from previous studies (Bitner, 1992; Frasquet et al., 2001; Kim and Tucker, 2016; Richardson, 2014; Sit et al., 2003; Sit and Merrilees, 2005; Tubillejas-Andrés et al., 2020). The importance level of each determinant variable was measured using a five-point Likert scale. These variables were first subjected to PCA using Varimax rotation with Kaiser Normalization. The results revealed the presence of four selection factors (staff service, show quality, price and atmosphere) with eigenvalues values exceeding 1, communalities above .30 with inter-item correlations above 0.30 (Field, 2013), accounted for at least 60% of the total variance (Hair et al., 2009), have at least three items with a loading greater than 0.40 (Field, 2013; Hair et al., 2009). These four factors explained 60.93% of the total variations. Then, a two-step procedure was followed to identify the customer segments. To obtain the initial cluster seeds, the hierarchical clusters analysis (HCA) was conducted using Ward’s Euclidean distances method. Final clusters were then determined using non-hierarchical K-means clustering, based on factor scores derived from PCA. The first cluster accounted for 5 % of the sample and had low importance scores on each of the four factors. There are 225 customers (53%) in the second cluster. Compared to other clusters, atmosphere (e.g., interior design and lightening and large exterior zone/garden) and price (e.g., food, alcoholic beverages and concert ticket) factors were more important to these customers. These customers also evaluated the importance of staff service (e.g., approaches of the security staff, sufficiency of the security service and speed of the service) to be low. The third cluster constituted the 42% of the sample and rated the highest importance of service staff factor, perceived show quality factor (e.g., sound quality, performer’s appeal and visibility) and to be important but atmosphere and price factors were lower in perceived importance. ANOVA analyses showed that these differences among the distinctive clusters were significant [Fstaff service (2, 421) = 30,521; Fshow quality (2, 421) = 199,188; Fprice (2, 421) = 24,292; Fatmosphere (2, 421) = 188,957, p < 0.05]. This study contributes to literature by adding the financial value dimension to the performing arts venue value model (Mencarelli, 2008). Additionally, the findings indicated the presence of three distinct consumer segments in the live music servicescape, formed based on the importance given to four key service experience factors.
Keywords :Service experience, music consumption, perceived value, segmentation, venue.
Conference Name :International Conference on Economics and Business Management (ICEBM-24)
Conference Place Brno, Czech Republic
Conference Date 29th Nov 2024