When one of the largest theater operators in America sets out to survey the movie-going public, fewer than ten questions can provide enough data to help mold this entertainment corporation’s future.
For American Multi-Cinema (AMC), the Kansas City, Missouri-based theater company, just eight or nine questions are used for some of its in-theater marketing research. Typically, customers entering the theater are handed small “bend-back” cards and asked to bend back the appropriate tabs to answer the survey questions.
“It’s a cost-effective way to implement the survey,” says Peggy Brockschmidt, director of financial planning for AMC. “One advantage is that we don’t need to hand out pencils or other materials at the theater.”
AMC operates 267 theaters, with a total of 1520 screens, in 28 states. It surveys 35 theaters each year, receiving an average of 1000 responses per theater to represent its circuit.
When the in-theater surveys are collected, the information is keypunched by an outside firm, sent to AMC on magnetic tape, and downloaded to disk. “Once the data is on our DEC VAX 8600, I read it, label it, and put it into an SPSS-X file. We use the files from then on because they are faster and have all the labels the way I want them,” Brockschmidt says.
SPSS-X, the data analysis software package AMC uses, is available from SPSS Inc., the Chicago-based maker of statistical analysis, data management and presentation graphics software for mainframe, minicomputer and microcomputer environments.
The first survey
Four years ago, when AMC developed its first survey, it worked with an outside consultant to review demographic characteristics relevant to its marketing research. Now, senior management from AMC’s financial planning, marketing, operations, and training departments discuss, refine, and implement the surveys.
“When we’re planning a survey, I’m already thinking about how to set up the data files and what types of initial frequencies, breakdowns, and crosstabs I will want to run,” Brockschmidt says.
By the time the data gets keypunched and back to AMC, the initial analysis is produced in about a half an hour. “We’re able to turn things around very quickly,” Brockschmidt says.
The first data analysis run uses the frequencies procedure to allow Brockschmidt to view the data in summary fashion, check that it is keypunched correctly, and see what general trends may exist in the responses.
Crosstabs are used to look at some of the relationships that occur. “The software feature I like to use most frequently when I’m looking at demographic characteristics is the break-down procedure,” Brockschmidt says.
This procedure allows her to group survey respondents by specific variables. By converting the age, sex, and movie-going frequency information to an index, AMC can look at averages across theaters or performances.
Demographic profiles can then be used to compare a particular “walk-in”—a time-of-day/day-of-week combination, comparing, for example, a Friday night audience to a Sunday matinee one.
One general rule in the industry that was confirmed by an analysis is that the later in the day the film program begins, the younger and more male the audience is. For instance, a matinee has a higher concentration of older women, and the evening or midnight show has more younger males.
“Although this simple example confirms what theater managers will tell you, to quantify it and see how consistent it is across surveys and across theaters can be amazing. Our results confirm that the patterns we’re seeing in this survey match up with what we’ve seen reported elsewhere,” Brockschmidt says.
Additional demographics such as primary activity (student, employee, retired, etc.) and family income are also sought. This information complements a broader range of questions which may vary from time to time.
Video usage
In its latest survey, AMC posed a number of questions about video usage. The goal was to find out if there are differences between people who watch videotapes on VCRs and those who attend movies. Interestingly, the survey indicated that no correlation existed between video usage and movie attendance—it wasn't positive, it wasn't negative.
"What I think it indicates, and this is confirmed by a number of people in the industry, is that VCRs are primarily a substitute for television watching. Once you've made the decision to stay in, the question is 'Are you going watch network television, cable channels, or rent a video?'"
Another trend AMC found was that video usage is much higher at a younger age (12-14 years) and declines gradually, with the 50-plus group showing extremely low usage. Brockschmidt feels this indicates two things. First, 12 to 14 year-olds, since they are less mobile or because parents won't let them go out, can still easily rent a movie. Second, the low usage in the over 50 group, may be attributed to older people's limited interest in or involvement with high-technology items. Conversely, younger people have grown up with computers, video games, and other home entertainment items, and are very familiar with VCR technology.
Additionally, the AMC survey confirmed another interesting industry statistic—that there's been a return of the older audience to the movies. This is demonstrated by the popularity of such films as Wall Street and The Last Emperor, which do not have a teen-age orientation, but which have done extremely well.
"I think that it's partly because of the age of the country's population," Brockschmidt says. "But also, moviemakers are starting to realize that there's an older audience that will come to the right kind of picture. And we're starting to see that in terms of the proportion of the audience that's in the 35-plus group."
In-house research
After the first survey, AMC brought its market research functions in-house. And although research was one of the driving factors behind its decision to use SPSSX, AMC also produces financial reports by theater, by market, and by division (on attendance, revenue, expenses, and so forth.) The software performs subtotals very quickly, and the same report can be easily sliced several different ways to help reveal significant trends. But AMC also installed the software for its general report writing capabilities, data manipulation features, and its ability to combine and merge files.
As audiences, movies, and technology change, AMC's marketing research programs help it to keep in touch with its customers. In some of its previous studies, AMC has requested information about the relative importance of price vs. convenient location vs. the particular film being seen. It has asked about eating habits before and after a film, and about what media customers use to inform themselves about what to see.
"From a corporate standpoint," Brockschmidt says, "the major goal is to achieve a better understanding of our customers, so that we can develop a marketing strategy that meets the customers' needs and wants, and thereby improve the results on the bottom line. You can't really separate marketing strategy from company profitability."