Classical Music Consumer Segmentation Study How Americans Relate to Classical Music and Their Local Orchestras Commissioned by 15 American Orchestras and the John S. and James L. Knight Foundation INSIDE THE CULTURAL Consumer’s Mind Classical Music Consumer Segmentation Study Final Report FINAL REPORT Classical Music Consumer Segmentation Study How Americans Relate to Classical Music and Their Local Orchestras October 2002 Commissioned by the John S. and James L. Knight Foundation and 15 American Orchestras: Brooklyn Philharmonic Orchestra Charlotte Symphony Orchestra Colorado Symphony Association Detroit Symphony Orchestra Hall Fort Wayne Philharmonic Orchestra Kansas City Symphony Long Beach Symphony Association Louisiana Philharmonic Orchestra New World Symphony Oregon Symphony Association The Philadelphia Orchestra Association Saint Louis Symphony Orchestra Saint Paul Chamber Orchestra Symphony Society of San Antonio Wichita Symphony Society © 2002 Audience Insight LLC Page 1 Classical Music Consumer Segmentation Study Final Report ABOUT The Study Abstract Orchestras are adrift in a sea of classical music consumers who rarely, if ever, attend live orchestra concerts. With more than 25,000 interviews with potential classical consumers and orchestra ticket buyers in 15 cities, the Classical Music Consumer Segmentation Study offers a sweeping view of an art form in transition and an orchestra field increasingly detached from its potential customers. The study paints a detailed picture of how consumers fit classical music into their lives — listening to classical radio and recordings in their automobiles and homes, and attending live concerts in churches, schools and traditional concert venues. Roughly 10 percent to 15 percent of Americans have what might be termed a close or moderately close relationship with classical music, and again as many have weaker ties. Across the 15 study cities, approximately one if four adults are prospects (i.e., potential orchestra ticket buyers). But only half of those who express the very highest levels of preference for attending classical music concerts actually attend, even infrequently. On a tactical level, the study produced a long list of ideas for new and refined marketing strategies. Subscription marketing, the study suggests, is an increasingly dysfunctional marketing paradigm that is often at odds with the goal of attracting younger audiences. From a strategic standpoint, increasing attendance — or at least staving off a decline in attendance — may require a loosening of the definitional boundaries around “classical music” and structural changes to the concert experience that recognize the underlying values and benefits that consumers seek from listening to classical music and attending live concerts. Study Team Audience Insight LLC P.O. Box 423, Southport, Conn. 06890 Telephone 203-256-1616 Email: [email protected] Alan S. Brown, Project Director Steven A. Wolff, Principal Andrew J. Fish, PhD, Research Director Mary Beth Fenlaw, Project Manager Chris Lorway, Analyst Erik Swenson, Analyst Audience Insight is the research affiliate of AMS Planning & Research Corp. Page 2 Classical Music Consumer Segmentation Study Final Report ACKNOWLEDGEMENTS The consultants are grateful to entire study team for their support and encouragement throughout the study. Knight Foundation Staff • Penelope McPhee, Vice President and Chief Program Officer • Larry Meyer, Vice President of Communications • Lisa Versaci, Director of National Venture Fund • John Bare, Director of Program Development and Evaluation • Gary Burger, former Arts & Culture Program Director Expert Panelists Two marketing experts assisted the study team in formulating the research plan: • Joanne Scheff, Adjunct Associate Professor of Arts Management, J.L. Kellogg Graduate School of Management, Northwestern University, and Principal, Joanne Scheff Arts Management • John H. Mather, Professor of Marketing, Graduate School of Industrial Administration, Carnegie Mellon University Study Advisory Group The Study Advisory Committee provided guidance and feedback to the study team with the overall goal of keeping the study relevant to the day-to-day issues and challenges facing orchestras. The group included administrators, board members and a musician. • Ed Cambron, Dir. of Marketing and Patron Services, Philadelphia Orchestra • Julia Kirchhausen, Former Dir. of Marketing, St. Paul Chamber Orchestra • Don Roth, Past President and Executive Director, St. Louis Symphony Orchestra • Christopher Stager, Former Dir. of Marketing, Brooklyn Philharmonic Orchestra • David Tang, Associate Conductor, Charlotte Symphony Orchestra Our heartfelt thanks go to each of the current and former staff members of the 15 orchestras whose assistance and cooperation made the study possible. We are especially indebted to the Charlotte Symphony Orchestra for serving as the test site for the various methodologies. Page 3 Classical Music Consumer Segmentation Study Final Report TABLE OF Contents Introduction . 5 Key Themes And Observations . 7 Research Goals & Methodologies . 21 Research Goals & Objectives . 21 The Central Hypothesis. 21 Methodologies & Data Resources. 24 Towards A New Model Of Classical Consumers . 29 Classical Music Prospects And Market Potential . 30 Segmentation Strategy. 33 Defining A Pool Of Potential Classical Consumers . 35 Demographics Of Classical Music Consumer Groups. 37 Unactualized Affinity — The Other Half Of The Glass . 39 How Consumers Relate To Classical Music . 41 Types Of Classical Concerts Attended . 41 Venues Used For Live Concerts . 44 Consumption Of Classical Music Via Electronic Media . 45 Attitudes About Classical Music . 52 Segmentation Model: Art Form Relationship . 60 How Consumers Relate To Their Local Orchestra . 73 Social Context . 83 Initiators And Responders. 86 Other Results — Local Orchestra Relationship . 92 Segmentation Model: Local Orchestra Relationship. 95 The Prospect Universe For 15 Orchestras . 99 The Prospect Matrix . 100 Segment Descriptions . 105 Consumer Behaviors And Arts Attendance. 115 Values And Benefits Of Classical Music . 123 Report Appendix . A-1 Research Goals And Objectives . A-2 Methodology . A-6 Protocols . A-15 Focus Group Summary Reports . A-44 Data Tables . A-85 Page 4 Classical Music Consumer Segmentation Study Final Report INTRODUCTION Magic of Music has been one of the major funding initiatives of the Knight Foundation since 1994. In its first phase, nearly $6 million in grants was awarded to a select group of 12 orchestras with the overall goal of strengthening the bond between musicians and audiences in the concert hall. A number of innovative programs were designed and tested, ranging from informal performances at unusual locations to abbreviated programs and “informances” as entry points for new and younger audiences. Knight Foundation’s trustees funded a second phase for Magic of Music in December 1999, involving 15 orchestras. In addition to further work in the areas of program innovation and audience development, the second phase included a significant investment in market research. Each orchestra was required to participate in the research project in order to be eligible for a program grant. All 15 orchestras applied to participate in the research initiative, and all were granted a share of the funds necessary to participate. Each orchestra contracted separately with Audience Insight LLC to conduct a standardized program of market-specific research. To begin the research initiative and to set the stage for the local studies, Knight Foundation contracted with Audience Insight to conduct a national study of classical music consumers, which included both qualitative and quantitative components. The study is unique in scope, focus and design. More than 11,300 random sample telephone interviews were fielded in 15 markets corresponding to the areas served by the 15 orchestras (approximately 750 interviews in each market). The local surveys were preceded by a national telephone survey of 2,200 adults. In addition, 1,500 orchestra ticket buyers were surveyed by mail in each market (750 subscribers and 750 single-ticket buyers, each), yielding just over 10,000 responses. At the end of the two-year study the 15 orchestras were able to compare national results with market-area results and results for their own ticket buyers — along a wide range of variables relating to classical music participation. Thanks to a combination of resources from Knight Foundation, the orchestras and a broad array of professional expertise in marketing, market research and consumer behavior, this initiative represents the most comprehensive discipline-specific audience study ever undertaken in the United States. Page 5 Classical Music Consumer Segmentation Study Final Report KEY THEMES And Observations “Sometimes I think that people who know too much don’t enjoy things because they’re looking for the mistakes and they’re honing in on that so hard that they don’t relax and enjoy what’s going on.” — Focus Group Participant, November 2000 Orchestras are adrift in a sea of classical music consumers who rarely, if ever, attend live orchestra concerts. Roughly 10 percent to 15 percent of Americans have what might be termed a close or moderately close relationship with classical music, and again as many have weaker ties. Yet only half of those who express the very highest levels of preference for attending classical music concerts actually attend, even infrequently. Results from the Classical Music Consumer Segmentation