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Segmentation of Cinema Audiences: An Exploratory Study Applied to Young

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Article  in  Journal of Cultural Economics · February 1999

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 Journal of Cultural Economics 23: 257–267, 1999.
257
© 1999 Kluwer Academic Publishers. Printed in the Netherlands.

Research Note

Segmentation of Cinema Audiences:

An Exploratory Study Applied to
Young Consumers

MANUEL CUADRADO and MARTA FRASQUET

Departamento de Dirección de Empresas, Universidad de Valencia, Avda. dels Tarongers s/n,
46022 Valencia, Spain

Abstract. The cinema exhibition sector in Spain, as well as in the rest of Europe, is a dynamic
sector characterised by the present growth of multiplexes and consumer demand after a long period
of decline. These changes make it relevant to analyse the cinema attendees’ profile from a market-
ing perspective. To this end, we have developed an exploratory study on segmentation applied to
the young cinema attendees. Doing so, we have found three different groups according to benefits
sought in their going to the cinema and other demographic and behavioural variables. On the basis of
information as such, specific marketing objectives could be set and more efficient strategies designed
and implemented.

Key words: cinema, segmentation, multiplexes, benefits sought, audience, marketing strategy

1. The Cinema Exhibition Sector in Spain

The cinema exhibition sector in Spain has undergone significant changes in the last
thirty years, in a similar way to what happened in other European countries. There
was a dramatic drop in the size of cinema audiences, cinema screens, box-office
receipts and patronage per person from the sixties to the late eighties. Audiences of
403 million in 1965 declined over the years to some 85 million in 1989 (Figure 1).
Cinema revenues in real terms decreased by 59 per cent, the patronage from eleven
times to twice a year per person (Fernández and Baños, 1997) and there were 2,322
cinema closures in only ten years, from 1980 to 1990. However, since the beginning
of this decade the trend has reversed. Thus, the number of cinema attendees is
growing at an increasing rate and the number of screens has followed a similar
pattern with more than 600 cinemas opened since 1990.
The recovery in audience numbers and screens has been accompanied by qual-
itative changes, mainly the expansion of cinema multiplexes. Table I shows the
increase in these cinemas over the last four years. In 1996 the proportion of cinema
screens in multiscreen cinemas was 63 per cent, an increase of 16 points over 1992.
258 MANUEL CUADRADO AND MARTA FRASQUET

Figure 1. Evolution of cinema attendees and cinema screens in Spain.

Table I. Increase in multiscreen cinemas in Spain

Multiscreen Screens Revenuesa Attendees

cinemas

1992 213 853 18,600 –

1996 350 1505 40,883 74,864,045
a In millions of pesetas.
Source: Ministerio de Cultura, (1993) and Ministerio de Edu-
cación y Cultura (1997).

Furthermore, in 1996, multiscreen cinemas obtained 74 per cent of the total box
office receipts and 72 per cent of cinema audiences.
The multiplexes in Spain, according to the product life cycle, are in the growth
stage, as indicated by the growing acceptance of this format by consumers and
the investment plans of the main multinational operators in the Spanish market
(Gil, 1996; Rawsthorn, 1997). This means competition starts to be significant for
this type of cinema, and becomes even more menacing for the other types, mainly
traditional cinemas with only one screen. For this reason, we firmly believe in the
necessity of developing a demand-side analysis, from a consumer perspective, in
order to provide information as a basis for the design of marketing strategies to
better meet consumer needs and stimulate attendance. To achieve this, knowledge
of the existence of different groups of attendees in the market is fundamental, so
we have developed a segmentation analysis.

2. Cinema Audience Segmentation

The increasing competition in today’s markets has led companies to pay more
attention to consumers’ needs and wants. Doing this they have realised that no mar-
ket is homogenous but there are “distinct groups of consumers that have different
needs, characteristics, or behaviour who might require separate products or market-
SEGMENTATION OF CINEMA AUDIENCES 259

ing mixes” (Kotler, Amstrong and Wong, 1996). This proposition is the core idea of
market segmentation. Segmenting a market allows the design and implementation
of more efficient marketing strategies for both consumers and organisations. Once
the market is segmented the company can target the parts of the market that it can
serve best rather than trying to compete in an entire market and set the competitive
positioning for the product (Kotler, Amstrong and Wong, 1996).
One of the most important decisions when segmenting a market is deciding
on the segmentation variable that will be used to identify different groups of con-
sumers. Among these variables there is the benefits sought variable, which is of a
subjective nature and relates to consumer behaviour. This approach is the closest
means to identifying consumer segments on bases directly relevant to marketing
decisions (Hooley, Saunders and Piercy, 1998).
There have been several attempts to segment the audience in the cultural field,
e.g. Belk and Andreasen (1980), Peterson (1980), Pick (1980) and Hodgson (1992)
have classified the audience according to its frequency of attendance; Strang and
Gutman (1980) and Walshe (1992) have used as segmentation variable the attitude
or interest towards the arts; whereas the benefits sought variable has been used by
Kelly (1987) and Mayaux (1987) to define segments in this field. According to
Nantel (1993) this variable is the one that better describes consumer behaviour in
the arts.
Bearing all this in mind we have used the variable “benefits sought” to segment
cinema audiences on the basis that people may have various reasons for attending
the cinema, such as entertainment or education. Also, we have employed other
behavioural variables, e.g. frequency of attendance and demographic variables to
describe the groups identified within the audience.

3. Cinema Attendees Empirical Survey

3.1. OBJECTIVE AND RESEARCH QUESTIONS

The general aim of this study is to profile young cinema audiences according to
demographic, socioeconomic and behavioural characteristics and in doing so it
attempts to answer the following research questions:
1. Is it possible to identify groups of consumers based on their reasons for
attending the cinema? In other words, is it possible to segment the audience
according to the benefits sought in cinema attendance?
Should the answer to this be affirmative, we will pose the following questions
in relation to the groups identified:
2. Are their cinema attendance habits different?
3. Do they place different values on cinema characteristics?
4. Do they have a different demographic profile?
260 MANUEL CUADRADO AND MARTA FRASQUET

3.2. METHODOLOGY

The target population in this survey are young cinema-goers (14–35 years). The
choice of this study group is based on the fact that they represent the bulk of cinema
attendees (80–85 per cent) according to cinema managers and coinciding with the
conclusion of a previous survey (Carabaña et al., 1991).
The sample is formed by young cinema attendees in Valencia, the third
province1 in Spain according to number of cinemas, attendees and cinema reven-
ues. Also, this province is representative of the evolution of this sector in Spain. The
sample comprises 505 individuals and is a judgement sample, a non-probabilistic
method whose key feature is that population members are purposively selected to
serve the research aims. According to Churchill (1995), judgement samples can be
used productively at the early stages of research. That is the case here as we are
developing an exploratory study in order to analyse the feasibility of segmenting
the audience according to the benefits sought in cinema attendance. Bearing in
mind that the sample is not random, the researchers made efforts to ensure its
representativeness sampling individuals in different strata according to variables
such as age and sex in a proportion similar to that of the population.
The information was collected through a structured questionnaire answered un-
der the supervision of field workers. In order to design it, interviews with cinema
managers and two focus group meetings with regular cinema-goers were held.
Then a pilot questionnaire was tested among 80 university students leading to a
final version containing four parts: cinema attendance habits, reasons for cinema
attendance, evaluation of cinema attributes, and demographic and socioeconomic
variables. The final questionnaire was directed to those individuals who attended
the cinema more than four times a year, considering that they would provide more
accurate information for our main objectives.
The data was processed using univariate, bivariate and multivariate statistical
techniques (Norusis, 1993). Univariate analysis of the data provided a first impres-
sion of the distribution of the variables in the sample. The multivariate technique of
cluster analysis was used to group the sample components. The grouping variables
were fourteen different reasons for going to the cinema. The cluster analysis results
were validated using stepwise discriminant analysis, as several authors advise (e.g.
Dillon and Goldstein, 1984). In order to characterise the cluster components, the
variable “belonging to the cluster” was cross-tabulated with the set of behavioural
and demographic variables included in the questionnaire. Using chi-square and
ANOVA tests, differences among the groups were detected.

3.3. ANALYSIS OF RESULTS

Descriptive analysis of the data shows a strikingly high frequency of cinema attend-
ance. As can be seen from Table II, 43.2 per cent of the sample go to the cinema at
least once every fifteen days.
SEGMENTATION OF CINEMA AUDIENCES 261
Table II. Frequency of cinema attendance

Percentage Cumulative percentage

More than once a week 1,4 1,4

Once a week 14,7 16,1
Twice a month 27,1 43,2
Once a month 26,3 69,5
Eight times a year 18,8 88,3
Four times a year 11,7 100,0
Total 100,0

With respect to other basic aspects of attendance behaviour, it is interesting to

point out that over half of the sample, 57.2 per cent, go to the cinema with friends,
only 3.6 per cent go with relations and an insignificant 0.8 per cent go alone. The
weekend is the time of the week when 61 per cent attend the cinema and the evening
performance is almost twice as popular as the afternoon performance (51.6 per cent
compared to 28.3 per cent). The car is the most common means of transport to the
cinema, used by 64.3 per cent; this may be related to the proliferation of cinemas
in out-of-town shopping centres.
In order to group individuals according to the underlying reasons for going
to the cinema, we used Ward’s method as a first approximation to the optimum
number of clusters, as suggested by Punj and Stewart (1983). Then the k-means
method was applied examining different grouping possibilities. The ANOVA test
confirmed that the three-group solution was the most suitable one as it produced
more differentiated and consistent clusters. Table III shows the final cluster centres
for the three groups, which are the means of the fourteen benefits sought used as
grouping variables in the cluster analysis, that could have a value between 1 and
5. Thus, the figures in the table illustrate the degree of differentiation among the
groups according to this segmentation criteria. These differences were statistically
significant (p = 0.000) as the ANOVA results indicated. Finally, discriminant
analysis showed that 94.81 per cent of cases had been correctly grouped by the
cluster method.
The results of the cluster analysis are interpreted as follows: group 1 comprises
individuals who go to the cinema mainly to enjoy themselves and cultivate social
relations. Group 2 is characterised by not evaluating any of the motives proposed
very highly; it is below group 1 for all of them, but above group 3 in the vari-
ables “boredom”, “friends”, “partner”, “good time” and “laugh”. Group 3 can be
associated more directly with the cinema buff; when compared with group 1 the
evaluation for the variables “director” and “cultivate” is higher and there is not
such emphasis on having a good time or being with friends or a partner. Therefore
there are three groups of cinema-goers which we have called: social, apathetic and
262 MANUEL CUADRADO AND MARTA FRASQUET

Table III. Final cluster centres

Cluster: Relieve See my favourite Be with friends Learn about Share an

boredom actors a subject interest

1 Social 3,6092 3,6264 4,2701 3,2644 3,6782

2 Apathetic 3,0368 2,6471 3,3603 1,9338 2,1029
3 Buff 2,3547 3,1337 2,9884 2,9244 3,4012

Cluster: Cultivate my See work of Have something Become more Raise spirits
interest director to talk about interesting

1 Social 3,5862 3,0172 2,3391 1,3391 3,7241

2 Apathetic 2,2132 2,2979 1,5441 1,1029 2,1471
3 Buff 3,8663 3,3605 1,5814 1,1337 2,5465

Cluster: Be with my Have a good time Have a laugh Feel emotions

partner

1 Social 4,0977 4,6552 4,0977 4,1839

2 Apathetic 3,0000 4,3382 3,4485 2,7868
3 Buff 2,4767 4,1221 3,1744 3,8953

cinema buff, and which make up 36.1 per cent, 28.2 per cent and 35.7 per cent of
the sample respectively.
The results of cluster and discriminant analysis allow us to reply affirmatively
to the first research question: there are groups of consumers which can be dif-
ferentiated according to the different benefits sought in cinema attendance. The
next step was to discover the answer to the questions about the degree and type
of differentiation between the groups. To this end we cross-tabulated the variable
“belonging to the cluster” with other variables in the questionnaire.
Concerning habits of cinema attendance, Table IV contains those variables that
were statistically different among the groups, according to the levels of significance
of the chi-square statistic. Analysing this information we observe that the members
of group 3 are the most regular cinema-goers with a high percentage (22.6 per cent)
going to the cinema at least once a week. Although it is more common to go to the
cinema at the weekend, group 3 is different from the other two in that a greater
percentage chose another day of the week. Again for group 3, a higher proportion
chooses the film before the cinema.
Related to the various types of cinemas that a consumer can visit in Spain,
we obtained their market share for the total sample2 and also for each of the
clusters identified. Significant differences can be observed among the groups in
the attendance to shopping centre multiplexes, multiplexes not in shopping centres
(not dubbed) and films theatres (Table V). In this sense, socials and apathetics
SEGMENTATION OF CINEMA AUDIENCES 263
Table IV. Group differences: cinema attendance habits

Cluster percentage
Total 1 2 3 χ2
percentage of Social Apath. Buff

Cinema attendance frequency

More than once a week 1,4 0,6 2,3
Once a week 14,7 10,3 11,0 20,3
Twice a month 27,1 28,2 23,5 29,7 28,47c
Once a month 26,3 30,5 22,1 25,6
Eight times a year 18,8 21,3 25,0 12,8
Four times a year 11,7 9,2 18,4 9,3

Day of the week

Weekday 14,8 9,8 15,6 19,3
Weekend 61,7 68,4 66,7 50,9 15,41c
Either 23,5 21,8 17,8 29,8

Priority film/cinema
Film 87,7 85,6 84,6 92,4 5,44a
Cinema 12,3 14,4 15,4 7,6

a Signif. <0,1; b Signif. <0,05; c Signif. <0,01.

Table V. Market share of different cinema types

Total Cluster percentage

percentage 1 2 3 F
of Social Apath. Buff

Shopping centres multiplexes 41,13 45,17 44,12 34,59 5,0176c

Multiplexes not in shopping centres (dubbed) 24,94 25,46 23,75 25,35 0,1766
Multiplexes not in shopping centres (not dubbed) 6,00 2,07 4,04 11,59 19,3844 c
Free standing cinema 18,00 18,45 17,65 17,82 0,0516
Cinema showing re-released films 8,40 7,87 9,71 7,88 0,5969
Film theatre 1,81 1,03 1,18 3,12 3,8776b

a Signif. <0,1; b Signif. <0,05; c Signif. <0,01.

choose shopping centres multiplexes more frequently than cinema buffs. The lat-
ter group exhibits a greater tendency to attend multiplexes showing films in the
original language and film theatres.
Concerning the evaluation of cinema characteristics, the results of the F test
shows the existence of significant differences between the groups for all except
one of the variables (Table VI). On a general level there is a tendency to give high
264 MANUEL CUADRADO AND MARTA FRASQUET

Table VI. Group differences: evaluation of cinema characteristics

Total Cluster percentage F

percentage 1 2 3
of Social Apath. Buff

Ease of access 4,21 4,32 4,15 4,14 2,02

Free parking 3,61 3,80 3,51 3,48 2,97a
Advance ticket booking 2,86 3,11 2,57 2,86 7,82c
Promotions/price reductions 3,99 4,15 3,79 3,98 4,29b
Frequent film releases 4,04 4,29 3,81 3,97 9,61c
State of repair 4,20 4,41 4,13 4,20 5,03c
Comfortable seats 4,49 4,63 4,40 4,42 4,95c
Screen size 4,16 4,29 4,01 4,16 3,85b
Sound and image quality 4,69 4,78 4,56 4,70 6,39c

a Signif. <0,1; b Signif. <0,05; c Signif. <0,01.

importance to the technical characteristics (seats, screen, sound and image) and low
importance to peripheral services such as free parking or seat reservations, standing
out the social group for being more demanding in terms of cinema facilities and
services.
The three groups are also significantly different in the demographic and so-
cioeconomic characteristics considered (Table VII). Group 1 is mainly young and
therefore has a lower educational level. In terms of income, a greater percentage of
those in group one considers their income to be medium, whilst group 2 appears to
be slightly below it. The percentage of women to men is strikingly high in group 3.
This group is also differentiated by the fact that it comprises a greater percentage
of urban residents.
After examining the differentiating characteristics for each segment, it is then
possible to draw up a profile of the typical member of each group, integrating all
the aspects considered.
The social type has strong and diverse motives for going to the cinema. Those
individuals consider the cinema a form of entertainment, a reason for going out, be-
ing with friends or partner and even an interesting topic of conversation. This runs
in parallel with the fact that this group mostly goes to the cinema at the weekend
and the shopping centre is mainly the chosen place for leisure, where they can find
parking facilities, promotions and high standards of projection. Those individuals
are young and frequent attendees who travel to the capital to find cinemas adapted
to their preferences.
The apathetics do not possess an especially strong motive for going to the
cinema, perhaps this type would go to the cinema to accompany others with clearer
motivations. Like the social type, this individual mostly visits multiplexes in shop-
SEGMENTATION OF CINEMA AUDIENCES 265

Table VII. Group differences: demographic and socioeconomic characteristics

Cluster percentage χ2
Total 1 2 3
percentage of Social Apath. Buff

Age
14 to 17 years 17,6 31,0 11,8 8,7
18 to 21 years 39,6 40,2 43,4 36,0 47,26c
22 to 25 years 25,5 20,7 23,5 32,0
26 to 35 years 17,2 8,0 21,3 23,3
Studies
FP (technical college) 10,2 9,8 11,8 9,3
BUP (secondary) 19,5 5,1 3,5 9,8 35,77c
COU (“A” levels) 24,7 21,3 19,8 22,0
University 58,1 46,0 61,8 67,4
Income level
High 0,6 1,8
Medium-high 20,9 21,6 20,6 20,5
Medium 64,6 72,5 58,1 62,0 23,90c
Medium-low 11,1 5,8 16,9 11,7
Low 2,7 4,4 4,1
Occupation
Student 74,9 83,9 73,5 66,9
Part-time worker 7,5 5,2 10,3 7,6 17,96c
Full-time worker 17,0 10,3 16,2 24,4
Unemployed 0,6 0,6 1,2
Sex
Male 36,9 34,9 52,2 26,7 21,61c
Female 63,1 65,1 47,8 73,3
Residence/cinema attendance
Capital/capital 54,1 46,5 51,5 63,7
Province/capital 29,0 34,3 30,1 22,8 12,11a
Province/either 8,8 9,9 8,1 8,2
Province/province 8,1 9,3 10,3 5,3
a Signif. <0,1; b Signif. <0,05; c Signif. <0,01.
266 MANUEL CUADRADO AND MARTA FRASQUET

ping centres. They go to the cinema less frequently than the other two groups and
are not as young as the socials. Males are prevalent in this group.
The cinema buff appears to be really interested in the cinema in itself. Thus, this
individual goes to the cinema because s/he is fond of it and is not much interested
in social, leisure or entertainment aspects. These are the more frequent attendees,
going to the cinema during the week more than the other groups. The cinema buff
attends multiplexes showing films in the original language and film libraries more
than the others and is not so keen on multiplexes in shopping centres. Finally, these
individuals are older, most of them women and urban residents.

4. Conclusions
The situation of the cinema exhibition sector in Spain is characterised by both an
increase in supply, through the expansion of multiplexes, and an incipient recovery
of demand. This expansion, and the subsequent stronger competition, has led us to
analyse the demand side from a marketing perspective, considering the conveni-
ence of studying the consumer in this field. An appropriate way of doing so, that
we have considered in this study, is through a segmentation approach based on the
benefits sought by consumers in their going to the cinema.
In doing so, we have found three differentiated and consistent groups of at-
tendees: the social, the apathetic and the cinema-buff. In spite of the exploratory
nature of this study the authors think that these results can be useful for cinema
managers. In this sense, managers can decide which group or groups are their target
market. They should know that the more profitable groups are the cinema buffs and
the socials; the former because of their higher attendance frequency and the latter
because of their higher propensity to spend money on peripheral services.
Marketing objectives could be set to increase cinema loyalty or cinema at-
tendance during the week, which are low. To this end, marketing segmentation
strategies could be developed appealing to the different benefits sought, for ex-
ample by offering attractive leisure and catering facilities to attract the social type
or by following the film tastes of the cinema buff type. Also, the effectiveness of
promotion and communication strategies could improve by adapting them to the
profile of the target group.
Moreover, different types of cinemas have, according to our data, various de-
grees of attractiveness for the different groups. Shopping centre multiplexes have
a wide appeal and so they could follow a differentiated segmentation strategy. On
the other hand, multiplexes showing films in the original version might be better
advised to follow a focused or niche strategy as they seem to be more attractive for
a particular and well-defined segment, namely, the cinema buff.
 SEGMENTATION OF CINEMA AUDIENCES 267

Notes
1. Valencia is a Spanish province whose capital is also called Valencia.
2. From Table V can be seen that multiplexes obtained a 72.07 per cent market share for our total
sample, with those in shopping centres constituting 41.14 per cent. It is important to note that
the first figure coincides with the percentage of audience that, according to the Ministerio de
Educación y Cultura (1997), attracted multiplexes in 1996.

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