The spending behaviour of attendees to a music festival in South Africa
Metsi, Phatshimo Innocantion
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The Diamonds and Dorings Music Festival (hereafter referred to as Diamonds and Dorings) is an annual Easter Jazz Festival, which the Sol Plaatjie Municipality in Kimberley (Northern Cape Province) together with the Department of Tourism host annually. The festival occurs since 2001 and has celebrated its 14th year in 2015. The aim of the festival is to boost the financial state of the Northern Cape Province and to bring together music lovers from all ages. Festivals such as Diamonds and Dorings are used as a strategy to increase attendee numbers and associated spending which would boost the economy of the host city and Northern Cape Province. These festivals are also used to boost the Northern Cape Province’s reputation as a tourists and events destination. The festival attracts mostly the Black Diamond market, a term coined to describe South Africa’s black middle class. In a festival context, the Black Diamonds can be regarded as a niche and emerging market, which is growing in the South African economy. Unfortunately, to date, limited research has focused on the needs and spending power of this market at music festivals in South Africa. To fill this gap, the purpose of this study was to determine the spending behaviour of these attendees to Diamonds and Dorings by firstly applying expenditure-based segmentation and secondly by identifying the determinants of spending. It is imperative that the organisers know how much money festival attendees spend and which factors influence higher spending as this knowledge can lead to a greater economic impact to the host city and province. To achieve the purpose, a thorough understanding of the relevant literature was obtained and a attendee survey was conducted at the festival during 2015. A total of 367 questionnaires were administered and included in the statistical analyses. Various statistical analyses were performed. Descriptive statistics were used to profile the respondents. After that, two exploratory factor analyses identified the attendees’ motives to attend the festival, and the attendees’ evaluation of the festival, respectively. By applying expenditure-based segmentation, respondents were segmented into high, medium and low spending segments based on their total spending. An analysis of variance (ANOVA) with effect sizes and Chi-squared tests were used to identify any statistically significant differences between the three expenditure segments at Diamonds and Dorings. The results showed that the high spenders could be distinguished from the medium and low spenders based on their spending behaviour, motives to attend the festival, province of residence, accommodation used during the festival and the marketing mediums where respondents heard about the festival. To identify the determinants of spending, Spearman’s rank order correlations were firstly used to identify the statistically significant variables to be included in the regression analysis. The variables that had a significant relationship with spending included the number of tickets purchased, province of residence (Northern Cape), the spending components (tickets, accommodation, food, drinks, retail, shopping, transport, CDs, souvenirs and parking), being a local resident and staying with family and friends, whether respondents would attend the festival again, media sources, jazz hip-hop and reggae as preferred music genres, escape as a motive to attend the festival and the festival evaluation factors namely, general management and affordability and venue and technical aspects. Based on the identified variables as per Spearman’s rank order correlations, the linear regression analysis identified the determinants of attendee spending. The significant determinants of spending included a higher number of tickets purchased, all spending components, being a local resident, staying with family and friends, staying in a guest house or B&B and hearing from the festival on the radio. This means that these determinants have a significant influence on respondents’ behaviour to spend more money when attending the festival. Marketers and organisers of Diamonds and Dorings could therefore focus on these determinants in order to influence higher spending at the festival in future. This research made a significant contribution to the current literature on festival attendees in South Africa. For the first time, the profile and spending behaviour of the Black Diamond music market were analysed. The results showed that this niche market has significant spending power. Based on the results, recommendations could be made in terms of marketing and management on how to increase the attendees’ spending at Diamonds and Dorings. The latter is not only important to the marketers and organisers of Diamonds and Dorings, but also to other similar festivals in the country aimed at attracting this lucrative market.