Expenditure-based segmentation of visitors to Aardklop National Arts Festival

Abstract

Competition in the festival market has important implications for South African arts/cultural festivals. To assist a festival to remain sustainable, market segmentation is an effective tool to divide existing and potential markets into homogenous groups based on meaningful characteristics. The aim of this article is to segment visitors (by using visitor expenditure as segmentation method) to one of South Africa's largest arts festivals, namely the Aardklop National Arts Festival held annually in Potchefstroom in the North West province. A questionnaire survey (N 01 671) was conducted annually at the festival and data from 2005 to 2008 were analysed. In the results four expenditure segments were identified and the analysis confirmed significant differences in socio-demographic and behavioural variables/ characteristics between these different expenditure groups. Managerial and marketing implications are consequently proposed for the festival organisers.

Who are the big-spending beachgoers and what is important for them?

“…Therefore, the purpose of expenditure segmentation is motivated by the following reasons (Botha et al 2011;Saayman & Saayman 2006, 2018Wilton & Nickerson 2006) Although studies on expenditure patterns among visitors and tourists have been valued by planners, marketers and business managers, studies on expenditures remain limited (Jang et al 2004;Shani et al 2010;Soteriades & Arvanitis 2006). Such data not only provide a good input in market segmentation, but can also lead to increased revenue.…”

“…Based on the literature, the first attempt at expenditure-based segmentation was done by Pizam and Reichel (1979), who used the 1972 U.S. Consumer Expenditure Survey in which they identified two categories of spenders, namely little and big spenders. Since then, a variety of spender categories have been identified, for example light, medium and heavy spenders (Craggs & Schofield 2009;Mok & Iverson 2000;Shani et al 2010;Spotts & Mahoney 1991); low, medium and high spenders (Dixon et al 2012); low and high spenders (Kruger, Saayman & Saayman 2010b;Saayman, Saayman & Joubert 2012); and low, medium, high-medium and high spenders (Botha et al 2011).…”

“…Firstly, they travel specifically or primarily to visit the specific destination or an event (Botha et al 2011;Craggs & Schofield 2009;Mehmetoglu 2007:213;Saayman & Saayman 2006:220).…”

“…Fifthly, the frequency of visits or participation indicates that high or big spenders are those who visit or participate more frequently (Botha et al 2011;Dixon et al 2012;Saayman & Saayman 2018;Shani et al 2010;Wang 2004). However, Alegre and Juaneda (2006), Jang et al (2004), Kruger et al (2010a), Lee et al (2006) and Oppermann (1996) found firsttime visitors to be the higher spenders than repeat visitors.…”

Segmenting nonprofit stakeholders to enable successful relationship marketing: a review

“…Three papers cover socio‐demographic segmentation exclusively. Botha and Slabbert () use age to group visitors of a South‐African arts festival; Stafford and Tripp () add income and gender in their analysis of community theatre patrons; Galbraith and Siguaw () investigate different Asian communities in California and profile their arts consumption.…”