Marketing expense and financial performance in arts and cultural organizations |
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| Authors: | Hyunjung Lee Kyoungnam Catherine Ha Youngseon Kim |
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| Affiliation: | 1. Department of Management, Marketing, and Entrepreneurship, University of Hartford, USA;2. Department of Marketing, Pacific Lutheran University, USA;3. Department of Marketing, Central Connecticut State University, USA |
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| Abstract: | Nonprofit arts and cultural organizations use marketing to sustain viability. This study uses data from the Cultural Data Project to examine the effects of marketing on revenue in arts and cultural organizations. The current analysis demonstrates that total marketing expense is positively related to total revenue. Marketing expense used for fund‐raising positively influences donation income, as intended, whereas commercial income is not affected. Alternatively, marketing expense for programs positively influences both commercial income, as intended, and donation income. The novel finding from this study is that marketing expense mainly targeting non‐donor ticket buyers not only increases commercial income but also augments donation income in arts and cultural organizations. |
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| Keywords: | arts and cultural organizations financial performance nonprofit return on marketing |
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