Consumer Dynamics in Nonprofit Organizations

This study provides useful new insights on attendance behavior of theater subscribers over time. The results are described and their implications ex-plored-both for attracting subscribers and obtaining contributors. Public and nonprofit organizations are increasingly recognizing the utility of consumer research in their planning activities and in the operation of their organizations (Lovelock and Weinberg 1978). For example, DiMaggio, Useem, and Brown (1977) have recently compiled a list of 270 audience studies con-ducted by visual and performing arts organizations. However, these studies have been basically static ones (e.g., Kaali-Nagy and Garrison 1972; Nielson and Mc-Queen 1974; Heitman and Crocker 1976). Relatively little attention has been paid to how the audience is acquired, how the audiences degree of involvement changes over time, and the factors influencing these processes. For an organization to exist successfully over time, it must be concerned with (1) acquiring new users, (2) maintaining and changing usage patterns of current users, and (3) regaining former users for whom the product or service being offered is still relevant. In suc-cessfully dealing with these groups, the organization must be aware of, and adapt to, changing consumer needs, competitive activities, and environmental con-ditions. One of the most serious errors an organization can make is to assume that the strategy that launched the organization will remain appropriate over time. This is particularly true for governmental programs