ISCAP International Week, May 2012
 Cultural events
 Public information
 Seppo Suominen
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HAAGA-HELIA University of Applied Sciences
31 July 2017
Cultural events?
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BALLET/DANCE/OPERA
CINEMA
THEATRE
SPORT EVENT
CONCERT
PUBLIC LIBRARY
HIST MONUMENTS
MUSEUMS/GALLERIES
TV/RADIO PROGRAMME
READ A BOOK
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HAAGA-HELIA University of Applied Sciences
31 July 2017
ARTISTIC ACTIVITIES
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PLAYED MUSIC INSTR
SUNG
ACTED
DANCED
WRITTEN
HANDCRAFTS
PHOTOGRAPHY/FILM
OTHER VISUAL ARTS
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 cultural events can be classified based on the typical
spectator group: theatre and opera (usually elder highly
educated women), cinema (usually younger), sport
(usually younger men with lower educational level)
 some statistics concerning these groups
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 information in newspapers can be statistics (e.g.
football league, winning percentage, etc.), critical
reviews (for films, opera performances) in the
newspapers but also in social media (web, facebook)
when it is more considered as word-of-mouth
 since the quality of a cultural event is known after the
performance, the good is classified as experience good
and not as search good (what consumers can value
before the purchase decision)
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HAAGA-HELIA University of Applied Sciences
31 July 2017
Information:
 Advertising: serves as a tool for transmitting
information from producers to consumers about
differentiated brands and therefore reducing the search
costs and also increasing welfare
 Advertising may convey hard facts, vague claims or
favourable impression of a product
 The informational content of advertising depends on
whether consumers can determine the quality of that
product before buying.
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HAAGA-HELIA University of Applied Sciences
31 July 2017
Search goods and experience goods
 If the consumer can value a product’s quality by
inspection before buying it, the product has search
qualities or the product is a search good
 However, if the consumer must consume the product to
determine its quality, the product has experience
qualities or the product is an experience good (Nelson
1970).
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 Advertising provides direct information about the
characteristics of products with search qualities, their
main attributes can be determined by visual or tactile
inspection (e.g. clothes) or by a test drive or trial (car).
 Experience goods must be consumed before its quality
can be determined (e.g. processed foods, software
programs, and gymnastic exercises).
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 Nelson (1974) argues that producers of high-quality
experience goods can spend more money on
advertising because first-time consumers are more
likely to be satisfied with the quality and will make
repeat purchases, than with low-quality experience
goods.
 When buying search goods consumers do not depend
on information received through producers’ advertising
since they receive that information by inspection or
trial.
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 So the effects of advertising vary between search
goods and experience goods and there is more
intensive advertising with experience goods.
 Producers (distributors, importers) can use other means
to signal about the quality of their products, not just
advertising but also product labelling or branding,
reputation, guarantees or expert ratings.
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 A brand name that carries a certain reputation can
attract more customers
 But when a large proportion of sales are generated by
customers that do not repeat their purchases – like
tourists – the reputation of a shop matters less, since
few customers are familiar with the shop’s reputation
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HAAGA-HELIA University of Applied Sciences
31 July 2017
 Consumers obtain information through guarantees or
warranties, therefore producers of high-quality products
can reveal plausible information that their products are
of high quality.
 Consumer groups or industry groups, even government
may provide information in the forms of standards or
certification
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HAAGA-HELIA University of Applied Sciences
31 July 2017
Word-of-mouth
 Word-of-mouth (WOM) has a powerful effect on movie
admissions
 WOM as the cumulative number of screens since its
release
 WOM measured as cumulative viewership
 WOM is more trustworthy than advertising or critical
reviews since it comes from other moviegoers.
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HAAGA-HELIA University of Applied Sciences
31 July 2017
Critical reviews
 Critics could act as opinion leaders (influencers) who
are considered as more experienced and with having
more knowledge on the quality of movies
 The impact of critical reviews has been found positive
in many studies.
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HAAGA-HELIA University of Applied Sciences
31 July 2017