Consumer preferences for multiplexes

7/27/2019 Consumer preferences for multiplexes

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Marketing Research

Assignment

A Study Of

Consumer Preference for Multiplexes

Submitted by

Govind V

NO.23

S4 MBA

Submitted by

Govind V

NO.23

S4 MBA

Submitted to

Ms.Sobha Menon

MBA Dept.


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Index

Contents Page No.

1.Introduction 3-5

2.Research summary 6-7

3.Data Analysis 8-22

4.Findings and Conclusion 23-24


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Introduction

Multiplex

The origin of multiplex movie theatres traces its roots back to the 1930s,

although the concept truly did not begin to take root until the mid-1960s.

In December 1947, Nat Taylor, the operator of the Elgin Theatre in Ottawa,

Canada, opened a smaller second theatre ("Little Elgin") next door to his first

theatre. It wasn't until 1957, however, that Taylor decided to run different

movies in each theatre, when he became annoyed at having to replace films thatwere still making money with new releases. Taylor opened dual-screen theatres

in 1962 in Place Ville Marie in Montreal, Quebec, and at York dale Plaza in

Toronto, Ontario, in 1964.

In 1937, James Edwards twinned his Alhambra Theatre in the Los Angeles area

by converting an adjacent storefront into a second "annex" screen. While both

screens would show the same feature movie, one would also offer a double bill.

It did not convert to showing different movies on both screens until some time

after Taylor.

In 1963, AMC Theatres opened the two-screen Parkway Twin in Kansas City, a

concept which company president Stan Durwood later claimed to have come up

with in 1962, realizing he could double the revenue of a single theatre by adding

a second screen and still operate with the same size staff. Also, the shopping

center structure where the Parkway was located could not support a large

theatre, so two small theatres were built to avoid that issue, and at first both

theatres played the same film. AMC followed up on the Parkway Twin with afour-screen theatre in 1966 and a six-screen theatre in 1969.

A multiplex is a movie theatre complex with multiple screens, typically six, ten,

or more screens. They are usually housed in a specially designed building.

Sometimes, an existing venue undergoes a renovation where the existing

auditoriums are split into smaller ones, or more auditoriums are added in an

extension or expansion of the building.
http://en.wikipedia.org/wiki/Movie_theaterhttp://en.wikipedia.org/wiki/Movie_theater


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In the earlier days of movie-going, audiences were accustomed to sitting in

lavish movie palaces, complete with velvet plush chairs and an in-house

organist. In the late 1970s, the multiplex concept came into being. Theatre

owners realized they could reap more profit from a single building showing

several movies at one time than from one building showing one movie. Movies

were not released as often as in previous decades either, so showing several

different movies kept audiences from becoming bored.

The first multiplexes showed perhaps four movies at once, and were considered

quite innovative. Then, the six, eight and ten-theatre businesses became more

common. The single-movie theatres were often forced to close, or reinvent

themselves as performing arts centres or classic or independent movie houses.

This did have the added benefit of making independent movies more widelyavailable, but was still hard on the proprietors, since their profit margins are

smaller.

As time went on, this type of theatre was often considered a major anchor at

large shopping malls with big box stores. Large chain restaurants are also often

recruited for these kinds of shopping centres, along with other retailers, creating

a one-stop shopping experience.

The multiplex has also moved far beyond the classic popcorn and candyconcessions. Some theatres now serve full meals and have open bars in VIP

lounges. They have installed stadium seating so every customer has an

unobstructed view of the screen. The new theatres are also likely to have a state-

of-the-art surround sound system, digital projection, and a host of other

technological goodies designed to enhance the viewing experience. Customers

can often buy their tickets at an outside kiosk, using credit or debit cards,

without ever having to stand in line. Online ticket sales are even available, so

customers can either print out their tickets for a particular show time, or pickthem up at the counter or kiosk. The idea has blossomed into the megaplex as

well, which may involved theatres with over 20 screens in one building.

While the multiple screen idea has essentially taken over modern movie-going,

the drawback is that most of these theatres are part of large corporations that

have contracts with the major studios to run certain films.

The multiplex is a good place to see a popular movie on the big screen. They

make the most of technological advances in filmmaking and film projection andusually allow the audience to see the films under the ideal circumstances.


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The single theatres have lost the most in this multiplex run in India. Most of the

population is able to afford the multiplexes and hence these theatres are flocked

only by the lower middle class which seldom cares to watch a movie. It has

been noticed that these single theatres have started to feature Tollywood or

other Indian language movies rather than Bollywood or Hollywood Movies.

Globe Theatre, Kolkata is one of the most popular theatre featuring classics,

English documentary or Hollywood movies and used to be populated by

distinctive crowd. However, the number of movie-watchers at these theatres has

declined at a steady pace and now visiting these halls, one can witness

numerous empty seats. Individual theatres are in the verge of closing down as

the intensity of loss cannot be borne for long in comparison to the cost incurred

in putting up a movie and maintenance expenses.

The first multiplex that emerged in my city Kolkata was Inox (PVR Cinemas)

at the Forum Mall, Kolkata. Since then it has been witnessed the coming of 89

Cinemas, Fame, Big Cinemas (Adlabs) and now the IMAX. 89 Cinemas has

been acquired by Inox last year and now we have three Inox multiplexes in the

city scattered in different zones. The Indian population has been attracted to

bollywood in the days of Dilip Kumar and Raj Kapoor. Catching one glimpse of

their favourite movie stars is the fulfilment of one of the most important dreams

for many Indians. Movie stars visit these multiplexes in order to promote theirmovies and thereby fulfilling many such dreams. No wonder these multiplexes

are flocked by people all the time while the individual theatres are running out

of business.PVR Cinemas has branched to PVR talkies for the small town

business under this separate brand name. Multiplex constitute 2%-3% of the

total number of individual halls however the range of movies that the feature at

one time and the convenience that they offer has won over hearts and has gone

beyond the metros. Real estate players such as DLF have invested crores in

Multiplex business with the surety of it flourishing now and in the long run.With the advent of multiplexes it is not only prosperity of cinema but also of the

business profitability factor.

Currently two multiplexes are operating in Cochin which are Cinemax located

in Oberon mall and Q Cinemas located in Gold Souk Grande mall. There are

couple of other multiplexes coming up in kochi which are PVR Cinemas at Lulu

mall and Cinepolis at Central mall. One multiplex is under construction by the

Confident Group as well.


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Defining the research problem

In the current scenario there is a shift seen in the behaviour of movie goers.Customers have become aware of multiplexes and are keen to try them out.

Rush in the single screens have been reduced a bit and a considerable increase

in viewers at multiplexes have taken place. This research is conducted to find

out what is the reason for this shift from single screens to multiplexes by the

customers.

Objectives of the study

To find out why/whethercustomers prefer multiplexes over singlescreens To find out whether a multiplex or a single screen is desirable to go for a

movie in cochin.

To find out what are the factors that attract customers towardsmultiplexes

To review the customer perceptions about multiplexes and its facilities To find out how frequently customers visit multiplexes

Limitations of the study

The number of respondents was restricted to 50. No personal interaction with the respondents were possible Study was conducted in a limited time period

Research methodology

The research methodology used in this research was questionnaire survey

among the samples. Both primary data, collected from the survey, as well as

secondary data is being used in the study for the data analysis and for arriving at

the findings and conclusions.


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Research design

The research design used in this study was the framework of descriptive

research. The study aimed at studying different behavioural aspects of the

customers to arrive at the findings . The main objective of the study was to findout the factors which caused customers to prefer multiplexes over single

screens.

Sampling design

The sampling design used in this study was convenience sampling design.

Population that were selected as samples were according to the convenience for

data collection. Samples which were present in close contact were taken for

survey. The total number of samples were 50.Age group targeted were 22 -30.

Questionnaire

Questionnaire was primarily designed to collect quantitative figures as well

qualitative data in the forms of opinions and ratings of the customers.

Data Collection

The primary data were collected through questionnaire survey. Questionnaires

were distributed online through facebook as well as through emails. Googleforms was the platform for preparing the questionnaire.


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Data Analysis

1)

Do you watch newly released

movies?

No. %

Yes 50 100

No 0 0

100%(50 no.s) of respondents have answered that they watch newly released

movies. The age group of the respondents that were selected was between 18

and 25.Most of the people in this age group love movies .Increased pocket

money and income enables them to watch newly released movies. Also, the

movies that are being released these days is catering to different tastes of

different segments in this age group. All these factors has contributed towards

motivating people to watch new movies.

yes


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2) How often do you watch such movies?

No. %

Once in a month 24 48

1-3 times a

month 17 34

More than 3 times

a month 9 18

24 respondents have answered that they watch movies once in a month,17others have answered that they watch 1-3 times a month and 9 have answered

that they watch more than 3 times a month. Major part of the respondents

were students. Since they have limited money for spending they watch movies

once in a month or twice in a month. Those respondents, who are students,

with a high amount of pocket money can afford to watch upto 3 times a

month. Some part of the respondents have regular income which enables

them to watch movies more than 3 times a month.

Once in a

month

1-3 times a

month

>3 times a

month


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3)

Which was the platform in which you watched a new

movie?

No. %Multiplex 27 54

Single screen 23 46

D2H 0 0

27 respondents have answered that they watched a new movie in a multiplex

and 23 of them have answered that they watched a new movie in a single

screen. None of the respondents have seen a movie in a D2H platform.Multiplexes are new entrants into the cochin city. They are the bases of modern

film viewing. These days most of the young people have turned into this phase

just like in Bangalore ,Hyderabad, Mumbai etc. Majority of todays young

generation prefer multiplexes. Yet another part of young people still prefer

going to single screens. Cost may be the factor that is still causing some people

to view in single screens. None of the respondents prefer watching in a D2H.In

a D2H platform viewers have to pay to watch a movie in a prefixedtime, which

Multiplex

Single screen


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may be inconvenient for young people. This factor may have led them for not

choosing it.

4)

Which is the factor you give top priority to while choosing where to go

for a movie?

No. %

Comfort 18 36

Convenience 16 32

Ambience 6 12

Cost factor 10 20

18 people looks at comfort while viewing movie. They look for seating comfort

and other facilities while watching a movie.16 people choose their place of

viewing according to convenience. Convenience may refer to ease of access and

related factors.6 people have chosen ambience as their criteria. The environment

of cinema viewing must be well set, colourful and attractive for those

respondents.10 people have responded that they look at the cost while going to

watch a movie. They look at their financial resources and choose a location

which they can afford and is cost effective. They may be the group with limitedamount of money to spend.

Comfort

Conveneince

Ambience

Cost factor


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5)

Have you seen a movie in a

multiplex?

No. %

Yes 50 100

No 0 0

All of the respondents have seen a movie in a multiplex atleast once.

Multiplexes have been successful in attracting people to try out their cinema

viewing. The facilities, picture quality and safety assurance may be the factors

that have made the young people think about switching their film viewing to

multiplex.

Yes


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6)

How do you rate the facilities of

multiplexes?

No. %Excellent 23 46

Good 17 34

Fair 8 16

Satisfactory 2 4

Poor 0 0

23 respondents have responded that facilities of the multiplexes are excellentand is therefore highly satisfied.17 respondents have answered that facilities are

good and is therefore almost highly satisfied.8 people have answered that the

facilities are fair and therefore is moderately satisfied.2 respondents are of the

opinion that facilities are satisfactory and is fulfilling the basic expectations.

Excellent

Good

Fair

Satisfactory


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7)

How do you rate ticket charges of

multiplexes?

No. %High 24 48

Moderate 26 52

Low 0 0

24 of the respondents are of the opinion that ticket rates of multiplex are on the

high side.26 people have responded that ticket rates of the multiplexes are

moderate. None of the respondents are of the opinion that ticket charges arelow. The economical class or the silver class of the multiplex costs Rs.120 to

Rs.150.The gold class of the multiplex costs around 300 Rs. Gold class refers to

the premium class of the multiplex, whereas silver class refer to normal class.

Rates of the ticket vary according to the time of the show. Rate is low for the

morning shows and rate increases for later shows.

High

Moderate


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8) How do you rate the comfort of

multiplexes?

No. %Excellent 22 44

Good 17 34

Fair 8 16

Satisfactory 3 6

Poor 0 0

22 respondents have rated the comfort as excellent.17 people have answered

that comfort is good.8 people have responded that comfort is fair and 3 have

responded that comfort level is satisfactory. Comfort combines factors of

seating comfort and cooling conditions etc. Almost all multiplexes provide

comfort according to basic expectations. Therefore customers get the what they

expect or more than what they expect.

Excellent

Good

Fair

Satisfactory


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9)

Do you think multiplexes are more well set up than single

screens?

No. %Yes 50 100

No 0 0

Cant tell 0 0

All respondents are of the opinion that multiplexes are well set up compared to

single screen. The multiplexes are more ambient and are having luxurious

interiors than single screens. The traditional single screens just consist of acinema hall and a cafeteria. Whereas multiplexes make it more attractive to the

customers by providing additional facilities like food court.

yes


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10)

How often do you use food court facilities of

multiplexes?

No. %

Regularly 7 14

Very often 14 28

Often 12 24

Rarely 11 22

Never 6 12

7 respondents regularly use food court facilities of multiplexes as they have a

considerable amount of money to spend on their visits. 14 respondents veryoften uses this facility, they use this facility almost every time they visit a

multiplex. 12 people just often uses this facility, they do not use this in their

every visit.11 people rarely use this facility. 6 people never uses food court

facility as they may have only a limited amount of money to spend and they just

go for film viewing.

Regularly

Very often

Often

Rarely

Never


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11) How much are you willing to spend on multiplexes per visit?

No. %

300-400 Rs. 21 42

400-500 Rs. 12 24

500-600 Rs. 8 16

600-700 Rs. 7 14

More than

700 Rs. 2 4

21 respondents are ready only to spend 300-400 rs. on a visit. They are onlyready to pay for ticket charges and any other minor additional cost.12 people are

ready to spend 400-500 rs.,8 people are ready to spend 500-600 rs. and 7 people

are ready to spend 600-700 rs. People coming under bracket of 400 to 700 rs.

are ready to spend a considerable amount of money on a visit. They spend on

meals as well as ticket charges.2 people are ready to spend more than 700 rs.

one a visit. They make use of the food court facilities and are able to pay for

their partners ticket at times. They are capable of using premium class facilities

of multiplexes.

300 - 400 RS

400 - 500 RS

500 - 600 RS

600-700 RS

> 700 Rs


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12)

Where do you prefer to go for a movie in

cochin? No. %

Cinemax 21 42

Q Cinemas 23 46

Other single screens 6 12

21 people prefer to watch a movie in cinemax,23 people prefer watching in Q

Cinemas and 6 people prefer watching movies at single screens within the city.

From this we can understand that Q Cinemas is the most desired location in

Cochin to watch a movie. They are successful in satisfying the customers better

than any other movie houses. Facilities, comfort and neatness that Q Cinemas

provide is of premium class. The second most preferred location is Cinemax.

They are also plying to the basic standards of multiplex and is also desired by

customers in large numbers. Yet another small group of customers prefer single

screens due to some other factors.

Cinemax

Q cinemas

Other

single

screens


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13)Which other multiplex chains are youfamiliar with?

No.

PVR Cinemas 50

INOX movies 38

Fun Cinemas 24

Cinepolis 27

Satyam cinemas 12

The most known multiplex chain to customers are the PVR Cinemas. It has just

opened in Cochin and is gaining popularity. The INOX movies and Cinepolis

stand just next to the popular list of multiplexes to PVR Cinemas. Fun cinemasand Satyam cinemas are also known to some respondents. This data reveals that

respondents have also visited other multiplex chains outside Cochin.

0

10

20

30

40

50

60

PVR Cinemas INOX movies Fun Cinemas Cinepolis Satyam

Cinemas


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14)

Is there any other factor which you think is a limitation of

multiplexes?

No. %

Inconvenient location 9 18

Show timings 22 44

Cost 15 30

None 4 8

9 people are of the opinion that inconvenient location is a limitation of

multiplexes. They find that location is difficult to reach from their place. 22

people considers show timings is another limiting factor. Show timings is

different for multiplexes comparing to the show timings of single screens.

Respondents may find it difficult to adjust their schedule according to this. The

second major group, ie 15 respondents, consider cost to be another major

limitation of multiplexes.4 respondents do not find any major limitations.

Inconvenient

location

Show Timings

Cost

None


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15)

Will you accept if there is a reasonable rise in multiplex

charges?

No. %

Yes 29 58

No 8 16

Cant tell 13 26

29 respondents have answered that they can adjust to reasonable price changes

in charges. As the other costs of multiplexes are rising corresponding rise in

ticket charges can also be seen. They are confident that the rise in charges can

be met by their income level. 8 respondents have answered that they cannot

adjust to anymore rise in the charges of multiplexes.13 respondents are of the

opinion that they have not thought what they will do if the charges of

multiplexes rise.

Yes

No

Cant tell


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Findings and Conclusions

It has been observed major chunk of young generation is watching newly

released movies these days. Highly stylized movies and their genre are now

more appealing to the young generation. Most of the people view new movies

between the frequency of one to three times a month. This is a proof that young

generation have become more attracted towards movie entertainments. Through

this survey it has been found that most people prefer to go to a multiplex for

watching a movie since it produces a premium class of movie experience, even

though some of them prefer to go to a single screen due to their personal

reasons. Comfort and convenience is the two main important factors that people

look into while going for a movie. The cost factor and ambience is only

secondary factors. Through this survey it has been understood that almost all

young people have experienced going to a multiplex at least once. This shows

the popularity that multiplexes have got among young people inducing them to

go there. Facilities of multiplexes are rated as excellent by most of the young

people. At least all of the people agree that facilities are up to the standards

expected by the people or exceeds that. The ticket charges of the multiplexes are

rated between high and moderate. This is evident from the fact that multiplexes

charge for their tickets based on facilities that they provide which is higher than

single screens. One half of the population consider it fairly high and another

half consider it as moderate. All of the population is satisfied with the comfort

of the multiplexes. The seating comfort and cooling conditions that the

multiplexes provide is of excellent standards and none of the population has a

disagreement with that. Multiplexes also stand ahead of single screens in the

case of interiors and ambience. Multiplexes posses luxury interiors and facilities

like food court and play areas which makes it well set up than single screens.

The food court facilities are also been used by the customers often. Most of the

people buys food stuff from food courts very often or at least rarely. Even

though people with considerable amount of disposable income uses them

frequently. There are also people who never use food court facility since they

are new towards multiplexes, but may use it gradually. Majority of the

population spends between rs.300500 in multiplexes. This shows that young

people are more interested in watching the movie and buying small eatables.

However some people can afford more than that who uses premium class

facilities of multiplexes like buying big meals and sitting in premium classes.


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From the survey conducted it has been observed that Q Cinemas is the most

desired multiplex to go in cochin. Standing behind Q Cinemas is Cinemax,

which is the second most desired location. Both multiplexes provide almost

same and excellent facilities. But people are more favouring Q Cinemas. The

services quality of Q Cinemas may be better than Cinemax which may be the

factor making it the most desired location, Another few people are still loyal

towards single screens, Cost may be the only factor for that reason. Other than

multiplexes in Cochin the most popular multiplexes are PVR Cinemas and

INOX Movies.PVR Cinemas and Cinepolis are the newest multiplexes to enter

Cochin. The limiting factor of multiplexes that most of the people consider is

the show timings. The people are not used to the show timings of multiplexes

unlike single screens. The cost is another equivalent factor which is considered

widely as a limitation. Location is not much of a drawback except for some.

From the survey it has been understood that most of the people are willing to

pay a reasonable price hike in multiplex charges. They are ready to go along

with changes in modern film viewing. But, there are people who are not willing

to adjust to further hike in charges which may change if the disposable income

also rises.

On the whole we can summarize that the facilities, comfort and experience that

multiplex give to customers is well above single screens. Other than this factorsmultiplexes ensures security and safety for families which is now a concern in

Cochin city. A multiplex visit give added value to a customer in addition to film

viewing. It is evident from the study that customers are starting to switch over

to modern film viewing from traditional ones which indirectly makes

multiplexes superior to single screens.

It can be recommended that there must be proper financial planning while

choosing multiplexes. Any person with average income who falls under middle

class or above can afford to view in multiplexes. But it is strongly

recommended that additional facilities of the multiplexes should only be used

when they have surplus money to spend, otherwise a considerable part of the

income will be consumed. Taking a large group to multiplexes is also not

advisable. Multiplexes are advisable for families or any other small group of

individuals.


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References

Web sites;

http://theviewspaper.net/the-multiplex-business-in-india/

http://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.html

http://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-

revenue-share-from-producers-distri.html

Books;

Marketing research,An applied orientationNaresh K Malhotra, Satyabhushan

Dash
http://theviewspaper.net/the-multiplex-business-in-india/http://theviewspaper.net/the-multiplex-business-in-india/http://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://theviewspaper.net/the-multiplex-business-in-india/

Consumer preferences for multiplexes

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