July 2005Marketing Strategy 1

Impromptu Survey ResultsMarketing Strategy

Summer 2005

July 2005Marketing Strategy 2

Table of Contents

Methodology 3Executive Summary 4Recommendations 7Research Findings 8Remember/Read Impromptu Flier 9Likes/Dislikes (those who remember receiving & read flier) 10Purchase Decision (those who remember receiving & read flier) 11Likelihood to Enroll (those who have not yet decided) 12Reasons for Purchase Likelihood (those who have not yet decided) 13Likes/Dislikes/Likelihood to Enroll (don’t remember/ didn’t read flier) 14Attitudinal Items 15Potential Impromptu Membership Benefits 16Pricing Indications 18Van Westendorp Pricing Model 19Potential Positioning Statements 20Overall Satisfaction 21Subscriber Status 22DSO Event Attendance 23Demographic Profile 24Appendix A-Questionnaire 26Appendix B- Verbatims 37

July 2005Marketing Strategy 3

Methodology

Data collection for the Impromptu survey was conducted between June 29th and July 8th, 2005 using Surveytime, an online data collection service provider. The data collection dates are as follows:

July 8, 2005End Data Collection

July 2, 2005Reminder Email

June 29, 2005Initial Email Invitation

DateEvent

The Dallas Symphony Orchestra provided a list of email addresses. Qualified respondents had been sent a flier describing the Impromptu program. 2,089 email invitations were sent, but about 800 were returned as undeliverable. We received 124 complete surveys, resulting in a response rate of approximately 10%.

The complete questionnaire can be found in Appendix A.

July 2005Marketing Strategy 4

Executive Summary

Roughly 6 in 10 remember receiving the Impromptu flier. Of these, 9 in 10 actually read the flier. In general, most believe that the flier’s message was clear, with only 6% indicating that the flier was not too or not at all clear. Although one-quarter cannot remember any details regarding the Impromptu program, two-thirds recall either the monthly fee/program costs or the flexibility of attendance. However, not all program details are remembered accurately. The most common misperception involves inaccurate recall of the monthly cost of Impromptu. Also, respondents are not aware that they’re able to attend a variety of DSO events with their membership, including Pops concerts and select holiday events.

Flexibility is the most frequently cited positive aspect of Impromptu. Many note that they like the fact that they can decide to attend concerts on the spur of the moment and would not have to worry about exchanging tickets should they be unable to attend. Other positive mentions include the ability to attend an unlimited number of concerts and guaranteed access to good seats.

Cost concerns are the major deterrent to purchase. Respondents cite negative aspects of the program that include high cost and the belief that they will not attend DSO events frequently enough for it to be a good value for their money. The average number of concerts that respondents predict they would attend under the Impromptu program is between 1 and 2 per month, indicating that Impromptu may be offering “too much symphony” for the average concertgoer. Also, respondents note that the program set-up fee is high, and many are reluctant to pay this up-front cost. Additionally, several are concerned that they will not be able to obtain high quality seats despite the fact that the DSO is trying to present “best available seats” as a major benefit of Impromptu membership.

July 2005Marketing Strategy 5

Executive Summary

Few have joined or plan to join Impromptu. Only four of 124 respondents state that they have already joinedthe Impromptu program. Of those who remember receiving the flier but have not yet decided whether to join the program, 4 in 10 state that they are somewhat likely to enroll. However, nearly 6 in 10 indicate that they are not too or not at all likely to join the Impromptu program. Those who do not remembers receiving the flier or did not read the flier are even less likely to join the program. After being presented with a description of Impromptuprogram offerings, nearly 7 in 10 indicate that they are not too or not at all likely to purchase a membership.

DSO classical concerts are seen as a good entertainment option. Three-quarters of respondents strongly or somewhat agree that classical music is an important part of their lives, and roughly 8 in 10 agree that DSO events are a good value for the money. More than 4 in 10 agree that they are much more likely to attend cultural outings if someone else invites them. These respondents can be classified as “responders.” A more lucrative segment for the DSO is composed of “initiators.” However, only about one-third of those surveyed show initiator tendencies, agreeing that they like to organize cultural events for their friends.

Additional membership benefits may increase likelihood to enroll. Wine tasting events, followed by architectural tours of the Meyerson and music discussions are the most popular potential Impromptu membership benefits. Many respondents also suggest access to a broader range of events, such as Pops concerts and children’s concerts, under the Impromptu program. Catered events, cocktail hours and desserts and coffee were also suggested as social activities that would allow increased interaction among DSO patrons and with DSO musicians, thereby increasing Impromptu’s value.

July 2005Marketing Strategy 6

Executive Summary

Many respondents believe the Impromptu monthly membership fee is expensive. A Van Westendorp pricing analysis reveals that the optimal price point for the monthly fee is closer to $35 a month. Many believe that they won’t be able to “get their money’s worth” at the current monthly fee of $50.

The DSO is “a premier cultural experience worth sharing.” Four possible positioning statements for the DSO were presented to respondents. The statement that respondents believe most closely matches their current perception of the DSO was the less than exciting, “A really good orchestra that plays classical music in a great hall.” However, more than 9 in 10 see the DSO as “a premier cultural experience worth sharing” (exactly, very close to, close to my perception). The Richards’ Group positioning statement seems to be the farthest of the four statements from respondents’ actual perceptions of the DSO. This statement may appeal to the music aficionado but lacks wide appeal across other customer segments.

Overall satisfaction with current DSO offerings is high. 97% indicate that they are satisfied (extremely, very, somewhat satisfied). Those who are not satisfied with DSO offerings believe DSO programming can be improved by featuring more current, contemporary artists and events.

July 2005Marketing Strategy 7

Recommendations

Based on our survey findings, we offer the following recommendations to improve the appeal of the Impromptu program.

Offer discounted monthly fees for couples and families. At the current membership fee, a couple would spend $100 per month to attend concerts together under the Impromptu program. Offering a price discount when a person buys multiple Impromptu memberships may persuade more to join. Several mentioned that the program would be beneficial for their children but does not fit in their current budget as priced.

Consider lowering the monthly fee and decreasing or eliminating the up front set-up cost. People overwhelmingly believe the flexibility that Impromptu offers is a major benefit. However, they don’t think that the program is a good value at its current cost. Many would only attend one or two concerts a month if they were to purchase an Impromptu membership, making the per-concert cost quite high.

Impromptu promotions should stress unlimited access to a variety of programs. This benefit is a huge selling point for Impromptu, but many are not aware that their membership will include access to more than just classical events.

Concern regarding seat quality is a problem. The “best available seat” benefit must be aggressively promoted,and the DSO should also be able to guarantee this benefit to alleviate some risk associated with enrollment.

Add “Impromptu member only” special events to membership perks. Consider organizing wine tasting events, architectural tours of the Meyerson, musical discussions and catered networking events exclusively for members as a way to increase perceived program value.

July 2005Marketing Strategy 8

Research Findings

July 2005Marketing Strategy 9

42% 58% YesNo

[Q1] Do you remember receiving the flier?

91%

9%YesNo

If yes…

[Q2] Did you read the flier?

% Mentioningn=65Monthly fee/Cost 34%Flexible t icket options 34%Nothing 26%Best seats in the house 17%Unlimited concerts 9%Early sign-up discount 9%Other 27%

[Q3] Please describe any details you remember about the Impromptu program.

(All mentions)

n=123 n=71

Remember/Read Impromptu Flier

July 2005Marketing Strategy 10

12%

54%

28%

4% 2%0%

10%

20%

30%

40%

50%

60%

Extremelyclear

Very clear Somewhatclear

Not tooclear

Not at allclear

[Q4] How clearly did the flier explain the benefits of the Impromptu program?

% Mentioningn=65Flexibility 51%No response/ Don't know 31%Affordability 6%Involvement with DSO / Help DSO 5%Unlimited concerts 3%Good seats 2%Other 5%

% Mentioningn=65No response 52%Cost 15%Fixed payment schedule 11%Infrequent attendance 11%Other 6%Set-up fee 5%Lower seat quality 3%

[Q5] What do you like most about the Impromptu program concept?

All mentions

[Q6] What do you like least about the Impromptu program concept?

All mentions

n=65

Likes/Dislikes (those who remember receiving & read flier)

July 2005Marketing Strategy 11

5%

95%Yes

No

If yes…

[Q7] Have you decided to become an Impromptu member?

[Q8] What are the primary reasons that you chose to become an Impromptu member?

• “Low cost, good seats. I can go to every concert of the season. My husband and I felt our children would benefit from the program.”

• “Ability to attend many great performances at a low monthly cost. Paying for tickets individually is much more expensive.

• “I’ll give it a try for a year…see if it pays off.”

[Q9] About how many times do you expect to attend DSO Classical concerts per month under

the Impromptu program?

Three

Eight

Two

n=64

Purchase Decision (those who remember receiving & read flier)

July 2005Marketing Strategy 12

5%

95%Yes

No

If no…

[Q7] Have you decided to become an Impromptu member?

0% 2%

41%44%

14%

0%

10%

20%

30%

40%

50%

Extremelylikely

Very likely Somewhatlikely

Not toolikely

Not at alllikely

[Q10] How likely are you to enroll in the Impromptu program?

n=64

n=59

Likelihood to Enroll (those who have not yet decided)

July 2005Marketing Strategy 13

Of those who are Extremely,Very or Somewhat likely…

Of those who are Not too or Not at all likely…

[Q11] Why are you likely to purchase an Impromptu membership?

• Flexibility• Increased involvement with the DSO• Music lover

[Q12] Why are you unlikely to purchase an Impromptu membership?

• High cost• Infrequent attendance• Limited to classical series (misperception)• Family/time restrictions• Current season ticket holder

Reasons for Purchase Likelihood (those who have not yet decided)

The number of concerts per month that respondents would expect to attend if they were to purchase an Impromptu membership is very similar among those who say they are likely to enroll and those who indicate they are unlikely to enroll. The maximum predicted number of concerts attended per month under Impromptu is 3.0, while the mean predicted number of concerts attended is 1.3.

July 2005Marketing Strategy 14

% Mentioningn=58Flexibility 79%Unlimited concerts 10%Best seats in the house 7%Discounts/Advanced Access 5%Affordability 2%

[Q16] What do you like most about the Impromptu program?

All mentions

[Q17] What do you like least about the Impromptu program?

All mentions

2% 2%

27%

46%

24%

0%

10%

20%

30%

40%

50%

Extremelylike ly

Very like ly So mewhatlike ly

No t to o like ly No t a t a ll like ly

[Q18] How likely are you to enroll in the Impromptu program?

% Mentioningn=58Cost 55%Infrequent Attendance 21%Set-up fee 9%Seating concerns 9%Nothing 7%No response 3%

n=59

Likes/Dislikes/Likelihood to Enroll (don’t remember/ didn’t read)

July 2005Marketing Strategy 15

9%

13%

15%

27%

30%

33%

45%

25%

29%

35%

42%

35%

46%

30%

29%

27%

20%

12%

18%

15%

14%

21%

19%

21%

17%

14%

6%

9%

12%

2%

3%

16%

9%

2%

0% 25% 50% 75% 100%

Strongly agreeSomewhat agreeNeither agree nor disagreeSomewhat disagreeStrongly disagree

[Q20] Please indicate the degree to which you agree or disagree with the following statements.

DSO events are a good value for the money

I rarely have time to attend DSO concerts.

I’m much more likely to attend cultural outings if someone else invites me.

Classical music is an important part of my life.

DSO concerts rank high on my list of entertainment options.

I’m the kind of person who likes to organize cultural events for my friends.

I like to plan my weekend activities at least one week in advance.

Attitudinal Items

July 2005Marketing Strategy 16

6%

8%

9%

9%

10%

16%

14%

9%

15%

14%

15%

17%

12%

21%

21%

30%

33%

22%

31%

34%

33%

41%

16%

29%

30%

31%

27%

13%

24%

32%

15%

25%

11%

12%

19%

0% 25% 50% 75% 100%

Book discussions

Cooking Lessons

Meet and Greets

Lunchtime rehearsals

Music discussions

Architectural tours

Wine Tasting

Extremely likelyVery likelySomewhat likelyNot too likelyNot at all likely

[Q21] The following event may be offered in combination with an Impromptu membership. If each of the following were added to an Impromptu membership, how likely would you be to become an Impromptu cardholder?

Potential Impromptu Membership Benefits

July 2005Marketing Strategy 17

[Q22] Are there any other events that would make the Impromptu program more appealing?

Potential Impromptu Membership Benefits

Broader event selection (All Seasonal, Children’s Concerts, Jazz, Organ Concerts)

Lectures/Music discussions

Catered events, wine tasting, desserts and coffee, etc.

Receptions/Meet-and-greets

Raffles

Open rehearsals

Bring a friend for free option

Ball/gala fundraisers

Featured music from different countries

Singles events

Book signings

The most popular potential Impromptu membership benefit is wine tasting, followed by architectural tours of the Meyerson and music discussions. In general, cooking lessons appealed slightly more to females, while men showed more interest in wine tasting and music discussions.

Potential Membership Benefits

July 2005Marketing Strategy 18

Pricing Indications

Price Sensitivity- Impromptu

0

10

20

30

40

50

60

$10-$15 $20-$25 $30-$35 $40-$45 $50-$55 $60-$65 $70-$75 $80

Monthly Fee

Perc

ent R

espo

ndin

g

Too Inexp

Inexp

Exp

Too Exp

Assuming an initial setup fee of $100 and a recurring monthly fee…

At what monthly fee would the Impromptu program be so inexpensive that you would doubt its quality or value and would not consider purchasing it?At what monthly fee would you consider the Impromptu program to be inexpensive, but at which you would consider buying it? At what price would the Impromptu program be getting expensive, but you would still consider purchasing it?At what price would the Impromptu program be too expensive, and you would not consider purchasing it, regardless of the benefits?

July 2005Marketing Strategy 19

Van Westendorp Pricing Model

Price Sensitivity - Impromptu

0%

20%

40%

60%

80%

100%

120%

$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80

Monthly Fee

Too Inexp Inexp Exp Too Exp

Optimal Price Point

Assuming an initial setup fee of $100 and a recurring monthly fee…

At what monthly fee would the Impromptu program be so inexpensive that you would doubt its quality or value and would not consider purchasing it?At what monthly fee would you consider the Impromptu program to be inexpensive, but at which you would consider buying it? At what price would the Impromptu program be getting expensive, but you would still consider purchasing it?At what price would the Impromptu program be too expensive, and you would not consider purchasing it, regardless of the benefits?

July 2005Marketing Strategy 20

19%

25%

33%

52%

28%

41%

40%

33%

20%

18%

19%

10%

19%

11%

7%

15%

4%

2%

1%

5%

0% 25% 50% 75% 100%

Exactly my perception

Very close to my perception

Close to my perception

Somewhat close to my perception

Not at all close to my perception

A really good orchestra that plays classical music in a great hall.

A premier cultural experience worth sharing.

The symphony everyone can enjoy.

To people who hunger for enrichment, the DSO is the entertainment experience that transforms your mind, body and soul through the power of music.

[Q27] The following four statements could be used to describe the DSO. Please indicate how closely each statement matches your perception of the DSO.

[Q28] If you were to create your own statement to describe the DSO, what would it be? (selected comments)

• A world-class group of musicians whose talent and passion for beautiful music always inspires its audience• The orchestra with the sound as big as Texas• A world-class orchestra in a world-class hall• An enriching experience that is an escape from the ordinary• A classy place where one can get carried away to a different time or place• A delight for the ears, a pacifier for the mind, an indulgence for the soul• A rewarding experience that allows time to get away from a very stressful life, relax and leave the world behind• A thoroughly satisfying entertainment experience

Potential Positioning Statements

July 2005Marketing Strategy 21

11%

57%

28%

3%

0%

10%

20%

30%

40%

50%

60%

70%

Extremelysatisfied

Very satisfied Somewhatsatisfied

Not toosatisfied

Not at allsatisfied

[Q29] How would you rate your level of satisfaction with current DSO offerings?

[Q30] What types of concert offerings would improve your satisfaction with DSO programming?

• Feature more current artists• Stretch beyond the typical offerings as the FWSO does• More music of the 20th century• Less obscure modern music• More Baroque, Classical and Romantic period music

n=124

Overall Satisfaction

July 2005Marketing Strategy 22

[Q31] Are you a current subscriber to any DSO program?

If no…50%50% Yes

No

[Q31] Have you been a subscriber to any DSO program in the past?

54%

22%

14% 10%< 1 yr. Ago

1-2 yrs. Ago

3-4 yrs. Ago5 or more yrs. Ago

[Q33] When were you last a subscriber to a DSO program?

14%

86%YesNo

n=122 n=103

n=49

Subscriber Status

Current DSO subscribers are significantly more likely to agree that DSO events are a good value for the money, that music is an important part of their lives and that DSO events are a good entertainment option than are non-subscribers. DSO subscribers also showed significantly less agreement with the statement, “I rarely have the time to attend DSO concerts.”

July 2005Marketing Strategy 23

82%

39% 49%27%

54%

0%20%40%60%80%

100%

Classicalconcert

Popsconcert

Seasonalconcert

Familyconcert

Specialevent

[Q34] Have you attended any of the following DSO events in the past year?Percent responding yes

6%12% 3%

43%36%

None1 to 23 to 55 to 10M ore than 10

[Q35] How many DSO classical concerts did you attend in the 2004-2005 season?

n=101

DSO Event Attendance

Among those who received and read the flier, people who attended 3-5 DSO classical concerts during the 2004-2005 season are slightly more likely to purchase an Impromptumembership than those who attended only 1 or 2 concerts. Those who attend more than 5 concerts a year are not likely to purchase an Impromptu membership. This is probably due to the fact that they are already DSO subscribers.

July 2005Marketing Strategy 24

1%

18% 19%26% 28%

7%

1%0%5%

10%15%20%25%30%

Under 21 21-30 31-40 41-50 51-60 61-70 Over 70

[Q36] Into which of the following ranges does your age fall?

Caucasian

African American

Hispanic

Asian

Other

[Q37] Which of the following best describes your race or ethnicity?

Single, never married

Married

Divorced

Widowed

[Q38] Please indicate your current marital status?

n=124

92%

3% 3% 2%

61%29%

7% 3%

Demographic Profile

July 2005Marketing Strategy 25

None

1 to 2

3 to 4

5 to 6

More than 6

[Q39] How many children under the age of eighteen currently live in your household?

[Q40] Please indicate your gender.

6% 10%

18%15%25%

26%Under $30k

$30k - less than $50k

$50k - less than $75k

$75k - less than $100k

$100k - less than $150k

Over $150k

[Q41] Into which of the following ranges does your annual household income fall?

72%26%

2%

n=122n=121

50% 50%50%50%Male

Female

Demographic Profile

July 2005Marketing Strategy 26

Appendix A - Questionnaire

July 2005Marketing Strategy 27

Appendix B - Verbatims