Although I agree that an orchestra’s main objective is to increase attendance I disagree with the assertion that reducing ticket price will increase the amount that is donated or the attendance rates. Ultimately, the orchestra should focus on producing quality programs and increasing the number of quality programs. I believe this because consumers are willing to pay as much or as little for what they perceive to be valuable. Reducing ticket prices may increase audience attendance slightly but it will not be as significant as increasing the quality of the program. With orchestra, the business thrives on producing an unforgettable experience that motivates the consumer to return.
Lange, Luksetich and Jacobs also cite that the budget amount is a constraint for most orchestras (1986). An increase in attendance and in ticket prices will lead to a significantly larger budget amount. If a consumer perceives the program as valuable, he/she will be willing to pay a higher rate to attend. I do agree that a managerial analysis is useful in helping orchestras determine areas that will aid in fulfilling their attendance goals. According to Lange, Luksetich and Jacobs, managerial analysis will “let the orchestra to better see or predict the consequences related with the alternative and the objective taken” (1986).
While I believe that increasing quality is the most important factor in increasing attendance and ticket prices—thus increasing revenue and the overall budget—the constraints of increasing quality include: attracting and retaining quality performers and maintaining quality equipment. Experienced performers are a necessary stakeholder. However, non-profit organizations may find it harder to attract quality performers because of their limitations in their ability to pay reasonably. Therefore, the real problem most orchestras face is finding quality performers that will contribute to the overall quality of the program.
References
Lange, M., Luksetich, W. and Jacobs, P. (1986). Managerial Objectives of Symphony
Orchestras. Managerial and Decision Economics, (7), 273-278
