Thesis by salma van de Ven

An insight into the constantly changing Customer Expectations of South by South Westâ&#x20AC;&#x2122;s Premium Clients A qualitative research

Name: Salma van de Ven Communication International Event, Music and Entertainment Studies 2195330 Supervisor: Arthur Kok Tilburg 09/04/2018 Fontys Academy For Creative Industries Confidential

â&#x20AC;&#x153;Blessed is he who expects nothing, for he shall never be disappointed.â&#x20AC;? Alexander Pope

Preface For my Research Internship I went to Austin, Texas and interned at South by South West, an Austin based Film, Interactive and Music Festival.â&#x20AC;&#x2039; â&#x20AC;&#x2039;This internship is part of my bachelor studies Communication International Event Music and Entertainment Studies. I was part of the Special Projects team. The main tasks of this department consisted of working together with external brands for brand activations, organizing events, keeping track of the unofficial events and safety enforcement during the festival. After participating in the company for several months, I started writing this thesis. This decision to do so later on was a conscious decision. It allowed me to really get to know the company as well as their interests and struggles prior to writing the thesis. Another important factor in this decision was that I could experience the festival prior to conducting the research, so I could take the insights from the festival with me. I observed how South by South West puts a lot of value in working on relationships with other big players: companies, festivals, events, sponsors etc. Being able to communicate with them and to create a platform where all these industry moguls come together is very important for them. So for me, coming up with a thesis that could possibly contribute to that has been a huge motivation for me. Salma van de Ven 04-2018

Management Summary This research is about the constantly changing Customer Expectations of South by South West’s Premium Clients. The broader problematics that the creative industry is facing ask for a deep understanding of the construct of Customer Expectations and that is precisely what this research strives to achieve for South by South West. To get an insight into what these Customer Expectations are, the following central research question has been developed:

Which factors influence the Customer Expectations of South by South West’s Premium Clients? The formation of this research has been influenced by, among other things, the complexity of the festival, the importance of the festival’s Premium Clients, the influence of the current Expectations Economy, and a pilot study about South by South West’s attendees and their expectations and perceived experience. The questions that arose here were: What are these Customer Expectations? What influences them for South by South West’s target group? And how can we get a grip on them? To identify those Customer Expectations and needs of South by South West’s Premium Clients semi-structured interviews were held. Qualitative research provides more in-depth insights into the complex construct Customer Expectations, and the nature of the subject and the goals of this research asked for a Qualitative Research design. In total 11 semi-structured interviews have been conducted with a selection of SXSW’s Premium Clients. These 11 respondents have been selected based on specific values, such as industry and profession. The interviews were audio recorded and then analyzed using a coding frame (Boeije, 2005). The findings are discussed in the results chapter. The main factors that are discussed are: Word of Mouth Communication, Personal Needs Premium Clients, Past Experience Premium Clients and External Communication (Expectation Transfer). Attention is paid to external factors that came up in the interviews as well as in the preliminary research. All of these factors are considered as valuable factors that influence the constantly changing Customer Expectations of SXSW’s Premium Clients. The values that were established when analyzing the data in regards to the personal needs and wants of SXSW’s premium clients, are respectively: Experience, Music, Partying, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects. These values were interpreted and used for the formation of the advice. The advice of this research provides South by South West with a set of recommendations that they can implement relatively easy, which is a prerequisite of the Expectations Economy. By implementing the set of recommendations, SXSW responds to their Premium Client’s values and needs, which helps South by South West to keep up with their target group’s constantly changing expectations. This brings them closer to their goal of building that community of creatives and professionals. 3

Digital Appendices

Appendix 1: Interview Transcripts and Color Coding Appendix 2: Coding frames of transcripts & Notes Appendix 3: Pilot Study and Quantitative Data Appendix 4: Expectations Economy & Trend Research

Index Preface Management Appendices 1. Introduction and Background â&#x20AC;&#x2039; 1.1.1 South By South West 1.2 South By South West Identity 1.3 South By South West Target Group and Demographics 1.2 Problem Analysis 1.3 Research Questions, Goals and Structure 3.1 Problem Analysis 3.2 Research Questions 3.3 Knowledge and Practical Goals 3.4 Research Relevance 3.5 Research Structure

7 7 8 10 12 14 14 15 15 16 16

2. Theoretical Framework 2.1 Definition of SXSWâ&#x20AC;&#x2122;s Premium Clients 2.2 Definition of Customer Expectations 2.3 Factors that influence Customer Expectations 3.1 Determinants 3.2 SERVQUAL Model 3.3 GAP Model 2.4 The Conceptual Model

17 17 18 19 19 22 24 26

3. Research Methodology 3.1.1 A Qualitative Research 1.2 Design & Research Methods 3.2.1 The Semi-Structured Interview 2.2 Data Collection 2.3 The Respondents 2.4 Validity and Reliability 3.3 Conclusion

27 27 27 28 28 30 31 33

4. Results 4.1.1 Introduction 1.2 Structure of the results 4.2 Results in Tables 4.3 Substantive Discussion of the Results 4.4 Summary

34 34 34 36 47 58

5. Conclusions 5.1 The Problem Statement 5.2.1 The Conclusions 2.2 The Conceptual Model Explained 2.3 The Research Question Answered 5.3 Critical Discussion

59 59 60 61 68 69

6. Advice 6.1 The Practical Goal Explained 1.2 The factors of the Conceptual Model 1.3 Word of Mouth Communication 1.4 Personal Needs Premium Clients

71 71 71 72 74

1.5 Past Experience Premium Clients 6.2 Advice 2.1 Opportunities

76 77 77

1. Introduction and Background This chapter discusses the reasons behind the formation of this research. It also elaborates on South by South West, the Research Goal, the Problem Definition and the relevance of this research for South by South West. 1.1.1 South by South West 1.2 South by South West’s Identity 1.3 South by South West’s Target Group and Demographics 1.2 Problem Analysis 1.3 Research Questions, Goals and Structure 1.1.1 South by South West “ I feel so happy with the opportunity I had to intern at SXSW. Being interested in the music industry I had been aware of the existence of the festival for several years. But I never thought I would intern for them. I knew it was a festival unlike any other. It was creative, offered panels, showcased the best unknown and known music and a whole bunch of movie premieres. I knew it would be cool and inspiring but oh my god, actually experiencing the festival was unlike anything that I had ever imagined. And they offered so much more than I expected. I went into the festival not trying to expect anything, not trying to plan anything and just go with the flow of the week. Obviously I was working a lot of the time, but I had the opportunity to go see and experience a lot. I had been interning with SXSW for a good four months before the actual festival took place. And you would think that it would have prepared me for what the festival would be like. I knew the city, a lot of the staff, the venues and a fair amount of the programming. But it was impossible to try to comprehend what it would bring me. All I can say is that you have to actually be there to understand, to understand the energy that is present at the festival! This triggered me to think about the consumers, and about how they need to be compelled somehow to actually visit SXSW, especially if they are first timers. They need to understand how crazy (in a good way) it will get and how to go about that. How can you get the right people out to the festival if they don’t know what to expect or how can you let them know that visiting the festival can bring them so much? And how do you assure your visitors that their expectations will be met, when it’s hard to actually figure out what their expectations are? Especially with presence of so so many other events. The previous paragraph portrays South by South West and its complex nature. The Storytelling shows the way SXSW is perceived by an individual, and how confusing it can be. Even if you are participating within the company itself. Getting a grip on the expectations of these first time visitors with the help of expectations management is a real problem for SXSW. This inspired me to further look into this matter. In the next paragraphs, the company South By South West and the Festival South By South West or SXSW are further described. In order to fully understand the complexity of the festival, their target group is discussed as well.

1.1.2 South by South West® (SXSW®) SXSW’s Identity The South by Southwest® (SXSW®) Conferences & Festivals offer the unique convergence of original music, independent films, and emerging technologies. Fostering creative and professional growth alike, SXSW® is the premier destination for discovery. (SXSW®, 2016) SXSW is... Conferences, Festivals and Exhibitions Content available 24/7 Designed for industry professionals and creators (vs. consumers) Inclusive Global in reach It all started in 1986 from a vision to be “a regional Music and Media Conference that projects itself as a way for everyone from musicians to publishers to writers to booking agents to get together and examine mutual problems and possibilities. “ To one of of the biggest festivals of its kind it world. “ It seems as if everyone agrees that a regional convention where music and media professionals can discuss common concerns, issues and goals is a good idea.” SXSW Today The Brand While registrants, customers, volunteers, sponsors and artists will form their own individual perceptions of SXSW, they will look to us to help them understand who we are, what we do and why it should matter to them. The Goal The purpose of SXSW is to help creative people achieve their goals The Vision The vision of SXSW is to be the most indispensable global platform for helping creative people share ideas and achieve their goals. 365 days a year we connect people to each other, developing events and content that celebrate the inter-relatedness of current and emerging topics. “We continue to push our own boundaries of unexpected discovery and inspiration.” Core Values Creativity, Loyalty, Service and Individuality In what ways are we unique? This combination of differentiators is vital to the SXSW experience, something that no one else can deliver.

The diverse range of programming The breadth, juxtaposition and inter-relatedness of content, topics, industriesâ&#x20AC;&#x201D;all in one place The diverse range of people People connected to SXSW (participants, staff, etc.) represent a wide range of geography, professions, levels of experience, talents and interests The flexible platform SXSW creates and delivers content through events and media 365 days a year The unexpected discoveries SXSW consistently delivers an experience of serendipitous moments, surprising mash-ups and inspiring ideas.

(SXSWÂŽ, 2016)

1.1.3 SXSW Target group and demographic outline This sub chapter discusses both SXSW’s visitors profile as well as the description of their target group. Visitor Profile Based on their thorough registration system SXSW has access to detailed information about their visitors. Therefor South by South West has a clear view of who their consumers are as well as which consumers they focus on. Their registrants consists mostly of business professionals who are active in the following sectors: Music, Film and Interactive. A more specific description can be found in the attachment below. 42% of the registrants find themselves in the 25-34 age group, and 32% in the 35-44 age group, as the two biggest ones. With a 30 %, the biggest share of their registrants are able to make many decisions for their respective company. The division between male and female registrants is pretty equal with a 45% share for the female registrants and a 55% share for the males. This infographic is based on the same survey that has been used for the pilot study. The main business goals for visiting the festival have also been visualized. The following goals have been identified as the main goals for attending SXSW; find new business opportunities, connect with existing clients, launch new products or services, hire talented people, invest in new companies, seek employment or contract work and seek investors. Target Group SXSW’s focus for this research is on their Premium Clients or Business to Business clients. Together with my manager at SXSW, Brad Spies, and my research supervisor, this target group was identified as the most important for South By South West. SXSW’s goal is to help creative people achieve their goals. The focus of SXSW is on the industry professionals and creatives that are of value to the festival but also are of value to other festivals, big brands, artists etc. “the bigger players out there”. The focus of this research is on that specific target group. South By South West strives to help creative people achieve their goals. Respectively their vision is to be the most indispensable global platform for helping creative people share ideas and achieve their goals. This goal to become the ultimate creative community has inspired this research. (SXSW, 2016) Community In this research the community that is referred to, regards a year round online and offline community consisting of business professionals and creatives that come together.

1.2 Problem Definition The following paragraph addresses the problem definition, which has led to the design of this research and the research questions. It consists of three sub chapters discussing the different factors, that together form the problem definition. These three components have been selected, because I consider them as very important and relevant problematics for South by South West. 1.2.1 South by South West 2.2 Pilot Study 2.3 Expectations Economy 1.2.1 South by South West The unique nature and the complexity of the festival makes it difficult for the consumer to get a grip on all that the festival entails and it influences their expectations regarding South By South West. These expectations play a vital role on different levels. They influence a consumer’s decision to attend a festival, or to not return when these expectations are not met. It might even leave the consumer dissatisfied or disappointed. So many different factors influence the experience of the festival, which makes it even harder to set the right set of expectations. One thing that I noticed after experiencing the festival was that it is so overwhelming and immersive but also so amazing and unique. It made me feel like it was impossible to prepare yourself for this experience. For me, knowing the organization and having access to inside information provided me with insights. Insights regarding unofficial events and the presence of an audience, who are not official registrants, but who do play a role in the formation of the image of South By South West. Because of this inside information however, I realized just how overwhelming it must be for their first time visitors. By combining this component with SXSW’s previously mentioned identity and goals, it became clear to me that South By South West was missing out on opportunities to reach their target group or Premium Clients as well as strengthening their community. South By South West’s complexity and the difficulty of Expectations Management have resulted in the identification of the pain point Customers Expectations, and how to identify them as well as actually meeting and hopefully exceeding them. 1.2.2 Pilot Study The identification of the pain points mentioned above, together with the request of my manager at SXSW, resulted in the conduction of a pilot study which provided insights into the actual expectations of SXSW’s visitors and on how their expectations were met in 2016. This pilot study can be found in Appendix 3. For this pilot study the raw Quantitative Data, that had been collected by SXSW with a survey after the 2016 edition of the festival, was re-analyzed. This survey had been sent out 12

to South By South West’s registrants. This data was analyzed using quantitative methods as well as qualitative methods. Customer Expectations were compared to the consumer’s perceived experience. The respondent was asked to elaborate on their choice. These answers were open answers and were analyzed by me using qualitative methods. The insights gained visualized several pain points from the registrants in regards to Customer Expectations and these insights further inspired this research and led to the formation of the Problem Definition. Results The results of the quantitative pilot study are visualized in Appendix 3. The raw data from the survey has been re-analyzed by me using the disconfirmation paradigm. This model can be applied to compare pre-purchase beliefs about a product to post-purchase beliefs formed during consumption of the product. Oliver (1980), who also discusses the disconfirmation paradigm, states the following: “disconfirmation occurs where there is a difference between expectations and perceived performance. According to whom, that satisfaction is a function of the disconfirmation of performance from expectation”. Results of the analysis Disconfirmation occurs. The disconfirmation of the expectations applies to 68,6 % of the total sample. Compared to a confirmation of expectations of 31,4 % . Regarding the disconfirmation, both positive as well as negative disconfirmation occurs. With a positive disconfirmation of beliefs of 58,4 % compared to a negative disconfirmation of 10,2 % of the total sample. Positive disconfirmation means that the experience was either somewhat better or much better than expected. Negative disconfirmation means that the experience was somewhat worse or much worse than expected. Confirmation means that the experience was about as expected. Having a positive disconfirmation is not necessarily a good thing. South By South West could be missing out on attracting a big part of their target group, because their expectations might not be good or not good enough compared to the actual offerings of the festival, which could result in them not wanting to attend the festival. Negative disconfirmation is not good either. The attendee’s expectations were not met. Which could possibly result in the attendee not wanting to return to South By South West. The results of this pilot study have also further inspired this research. 1.2.3 Expectations Economy The previously mentioned results opened my eyes for the deeper problematics that SXSW is facing in this economy: the constantly changing expectations of today's consumer, better known as the Customer Expectations. So what are these Customer Expectations and why are they so important? As a company residing in the Expectations Economy, you need to seize your consumer’s attention. Because that customer is spending their attention more and more precious. The consumer has become an experience collecting expert and only the best out there deserves their attention. And companies are putting more and more efforts in trying 13

to seize that precious attention. So in order to keep up with the constantly evolving economy and hard to please consumer, getting insights in their constantly changing expectations can become extremely valuable to a company, and in this case to South by South West. (Mason, Mattin, Luthy & Dumitrescu, 2015)(TrendWatching, 2017)(Maxwell Luthy, 2017, Webinar)(Appendix 4) So to conclude, how is a festival like South By South West supposed to keep up with their target group’s constantly changing Customer Expectations? This question resulted in the analyzation of the Expectations Economy. The Expectations Economy influences the expected and perceived service of the consumer. And those consumer’s expectations are being altered and are getting higher and higher at an ever accelerating pace. Therefor it is vital for South By South West to get an insight into which actual factors alter their consumer’s Expectations as well as their target group’s actual Expectations. The findings from the research regarding the Expectations Economy and Trend Research can be found in the appendices. (Appendix 4)

1.3 Research Questions, Goals and Structure 1.3.1 Problem Analysis 3.2 Research Questions 3.3 Knowledge and Practical Goals 3.4 Research Relevance 3.5 Research Structure 1.3.1 Problem Analysis So to summarize, the 3 factors mentioned in chapter 1.2 have shed light on the importance of identifying the customer’s expectations of SXSW’s Premium Clients. These factors together with findings from relevant literature have resulted in the formation of the problem definition and the central research question. The confirmation of the importance of the construct of Customer Expectations by several studies helped form the problem analysis. Multiple studies have identified Customer Expectations as a really important determinant to diagnose problems and it is closely linked to customer satisfaction and loyalty and can respectively lead to higher satisfaction, returning customers and customer referrals. The customer’s expectations together with their perceived experience of the service offered affect the overall satisfaction. “Customer satisfaction is achieved through an evaluation of the customer’s perceived service quality against the customer's expectations on the upcoming service quality.” ( Anderson & Liedman, 2013) Managing these expectations has been identified as a problem for South By South West. Thus providing South By South West with insights on how to get a grip on and meet these Customer Expectations so that SXSW’s Premium Client Community can be strengthened is of high value. These insights are needed to enhance the Expectations Management and to develop a strategic and practical advice on how to implement relevant consumer trends. The relevant findings from this research could be implemented and translated to possibly; the 14

company’s vision - new business concept - new products, services, experiences - marketing, advertising, strategy or PR. (Mattin, 2016). All of these findings together have led to the formation of the following research question for SXSW (SXSW, 2016):

Which factors influence the Customer Expectations of South By South West’s Premium Clients?

1.3.2 Research Questions In order to be able to realize the Knowledge Goal of this research, which is described below, the following research question has been formed:

Which factors influence the Customer Expectations of South By South West’s Premium Clients? To be able to answer the central research question the following sub questions have been drafted. These sub questions are answered with both field and desk research. -

Who are SXSW’s premium clients? (desk research) What are Customer Expectations? (desk research) Which factors influence Customer Expectations? (desk research) Which factors infl Customer Expectations for SXSW’s premium clients? (field research)

1.3.3 Knowledge and Practical Goals

Knowledge Goal: The knowledge that is developed with this research is about the complex construct of Customer Expectations and about which factors influence those Customer Expectations for SXSW’s premium clients. The focus is on really getting an insight into what these Customer Expectations are, and which factors play a relevant part when it comes to the formation of the expectations of SXSW’s Premium Clients. Practical Goal: The practical goal of this research is to provide South By South West with a set of practical communication advice and recommendations that are directly implementable, so that SXSW can keep up with the constantly changing Customer Expectations of their Premium Clients and continue to build and strengthen their community .

1.3.4 Research Relevance This study is considered relevant because it provides South by South West with a theoretical insight into the constantly changing Customer Expectations of their target group. It also provides them with an insight on how to get a grip on these Customer Expectations and on which factors influence those constantly changing Customer Expectations. This research also provides SXSW with a practical relevance. The trend research and the research regarding the Expectation Economy shed light on the way innovations, basic needs and drivers of change can be used to understand the core of any consumer trend, in order to implement them in a way so that their target groupâ&#x20AC;&#x2122;s changing expectations can be met and/or exceeded.(Mason, Mattin, Luthy & Dumitrescu, 2015)(Appendix 4) This know-how can be implemented on different levels. Such as: SXSWâ&#x20AC;&#x2122;s vision, in new business concepts, or in the shape of new products, services or experiences as well as in their marketing, advertising or PR offerings. 1.3.5 Research Structure The research design has been set up as follows. The next chapter provides an insight into the construct Customer Expectations, discussing several theories and insights. The third chapter discusses the research methods that have been used for this thesis. Which consists of the in-depth interviews. The chapter Results shows the findings of the qualitative research. These insights together have led to the conclusion, where the central research question is answered. These insights are then used for the formation of the recommendations.

2. Theoretical Framework 2.1 Definition of SXSW’s Premium Clients 2.2 Definition of Customer Expectations 2.3 Factors that influence Customer Expectations 3.1 GAP Model 3.2 SERVQUAL Model 2.4 The Conceptual Model

This chapter discusses the findings from literature that are identified as important and that support this research. A framework is formed around the complex construct of Customer Expectations. The knowledge gathered is used to answer the first research questions. Subchapter 2.3 discusses the different components that together form Customer Expectations as used in this research. I consider these specific components as the most relevant and useful for practical application. SXSW is a festival that finds itself in a fast-pace, highly competitive and always changing economy. Therefor a unique combination of components is necessary. In order to obtain a complete view of Customer Expectations also consult Appendix 4 for a review of the Consumer Trend Model. This model sheds light on a modern approach regarding Customer Expectations and the relevant Consumer Trends. The Conceptual Model that has been designed in subchapter 2.4 will clarify the connections between theories and concepts used in this chapter. Due to the journey of this research, the formation of some of the theories was the result of the empirical cyclus. 2.1 Definition of SXSW’s Premium Clients The South by South West conferences and festivals are designed for industry professionals and creators vs consumers. S XSW’s focus for this research is on their Premium Clients or Business to Business clients. This focus is on industry professionals and creatives that are of value to the festival but who are also of value to other festivals, big brands, artists etc. “the bigger players out there”. South By South West strives to help creative people achieve their goals. Respectively their vision is to be the most indispensable global platform for helping creative people share ideas and achieve their goals. This goal to become the ultimate creative community inspired this research. (SXSW, 2016) This ultimate creative community consists of a selection of creatives, artists, professionals from the key companies, peer festival companies, innovative people, tech people etc.

2.2 Definition of Customer Expectations This chapter defines the construct of customer expectations and relevant theories from literature and previous studies are discussed. 2.2.1 Definition of Customer Expectations Several theories address the construct of Customer Expectations, and those theories can be perceived in multiple ways. First a broad explanation of the concept will be given. And then the several theories that address Customer Expectations will be discussed and compared to each other. A broad explanation of the construct is: “Customer Expectation is what the customer expects of a service according to available resources and is influenced by cultural background, family, lifestyle, personality, demographics, advertising, experience with similar products and information available online.” (Shanin, 1990) After submerging myself into several studies concerning Customer Expectations, I found out that most studies focus on the construct of service quality, rather than focusing on Customer Expectations. Service Quality can be defined as the extent to which a service meets customers needs or expectations (Shanin, Lewis and Mitchell, 1990; Dotchin and Oakland, 1994; Asubonteng et al., 1996; Wisniewski and Donnelly, 1996 ). In order to get an insight into the gap between customer expectations of service and perceived service, an understanding of these two constructs is needed. The focus of these studies however is on customer expectations specific to service. The researched customer expectations of service and the perceived service quality, and the insights deriving from this research are used to define possible GAPS. It was also used to define the GAP between SXSW’s visitor’s expectations and perceived experience. Paying attention to possible GAPS and striving to meet expectations is of great importance when trying to understand your consumer and their customer expectations as well as the perceived service, as stated by Shanin et al: “If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction occurs” (Shanin, Parasuraman et al., 1985; Lewis and Mitchell, 1990). Both Shanin, Parasuraman et al and Lewis and Mitchell address the satisfaction and dissatisfaction theory. The most common method for measuring service quality is the SERVQUAL method which is elaborated on below. According to Edvardsen et al. (1994), in their experience the starting point in developing quality in services is analysis and measurement. Which has also been stressed by Shanin. Another source, Gronroos (1984) explains customer satisfaction as the following; “Customer satisfaction is a result of customer expectations of a service as well as the service process.” He, however also stresses the importance of understanding the influence of customer expectations on customer satisfaction, as well as the influence of the company on those expectations of the service. This was also stated by Coye (2004) and Robledo (2011) who 18

explains how to manage these influences of the company. These opinions have been identified as important for this research.

2.3 Factors that influence Customer Expectations The next couple of paragraphs discuss determinants or factors that influence customer expectations as explained by several theories. This chapter starts with discussing 3 relevant theories from previous studies and then dives deeper into the following subjects in the following subchapters: 2.3.1 Determinants 3.2 SERVQUAL Model 3.3 GAP Model 3.4 Consumer Trend Model

2.3.1 Determinants Only a few of the theories found in literature are discussed below, as they are considered to be the most relevant for this study. Because of the specific outlook on Customer Expectations and the quickly changing Expectations Economy, only several seem adequate for this specific research. The first theory that explains the concept of customer expectations in this chapter is the Expectation and Satisfaction theory by Shanin (1990). The other theories that are discussed in the introduction of this chapter are discussing the effect of past experiences as well as the influence of communication on customer expectations. The following division has been made: 1. The Expectation and Satisfaction Theory 2. The effect of Past Experiences on Expectations 3. Communication as a determinant 1. The Expectation and Satisfaction Theory This theory was first explained in the late 1980’s by psychologists and marketing professionals and has been used in a lot of studies ever since. According to Shanin (1990) the purpose of this theory is to evaluate the expectations of consumers and their post-purchase satisfaction. This theory has been mostly used to improve overall customer satisfaction. Smith and Houston (1982) stated that service satisfaction is related to confirmation or disconfirmation of expectations. This has been based on the disconfirmation paradigm, according to which satisfaction is related to the size and direction of the disconfirmation experience where disconfirmation is related to the person’s initial expectations.

(Churchill and Suprenaut 1982) So a customer’s expectations of a service or product are compared to that perceived service or product. When the actual perceived service is better than expected, a positive disconfirmation takes place. But when the actual perceived service is worse than expected, a negative disconfirmation takes place which will most likely result in a disappointed consumer. When expectations are met a confirmation takes place. According to Oliver (1980), who also discusses the disconfirmation paradigm, disconfirmation occurs where there is a difference between expectations and perceived performance. According to whom: “that satisfaction is a function of the disconfirmation of performance from expectation”. This model can be applied to compare pre-purchase beliefs about a product to post-purchase beliefs formed during consumption of the product. Westbrook and Reilly (1983) also state that the extent to which post-purchase beliefs disconfirm their pre-purchase counterparts is theorized to be principal determinant of their satisfaction/dissatisfaction. (Westbrook and Reilly, 1983). Again the focus of this study is about establishing the disconfirmation/confirmation rather than satisfaction/dissatisfaction. 2. The effect of Past Experiences on Expectations Another theory that has been taken into consideration for this research is the effect of past experiences on expectations. A reason for this is, that for a festival like SXSW the factor of the visitor being a first time visitor or someone who has previously visited the festival, should be taken into consideration as well because their expectations may differ significantly. Paul (2012) examines the involvement of the experience driven mental process in the creation of customer expectations. As shortly explained in the introduction, meeting or exceeding customer expectations leads to a high degree of satisfaction, and failure to do so leads to dissatisfaction which is also stated by Walker (1996) and Paul (2012). The key to success in any market is to manage those expectations. (Paul, 2012; Schurter & Towers, 2006). Customer’s experiences are widely researched in several studies. The construct of past experiences is one of the main influencers of customer expectations (Anderson & Sullivan, 1993; Robledo, 2001) Someone who also discusses the construct of past experiences as an influencer on customer expectations are Anderson & Liedman, according to whom there are three different dimensions along which the customer expectations constantly reform. These dimensions consist of the level fuzziness, implicitness and unrealism. The customer expectations here are influenced mainly by previous experience and according to them, the less knowledgeable the customer is, the more fuzzy, implicit and unrealistic the expectations might be. Important here is to guide the customer through an educational journey and have a continuous identification of the customer’s changing expectations. (Anderson & Liedman, 2013) Berry, et al (2002) and Lewis & Heakel (1999) both state that the Customer experience is the customers’ internal and subjective response to a service. It’s the ‘take-away’ impression or 20

perception created during the process of using, maintaining, and disposing of a product or service (Berry, et al., 2002; Lewis &Heakel, 1999) Paul (2012), Hsiehy & Yuan (2010) state that customer expectations are defined as the customer’s wants, of that what a company should offer.( Paul, 2012; Hsiehy & Yuan,2010 ). Whereas Tyron (1994) describes expectations as; “the anticipations of future consequences based on prior experience, current circumstances, or some other source of information.” But Arnold and Reynolds (2003) state the following; “Customer expectations are the inner standard beliefs and attitude by which customers judge the products and services.” As the experience changes and time passes so do the expectations. (Paul, 2014) . Robledo (2001) has also identified past experience as a main source of expectations.

3. Communication as a determinant In the book Festivalbeleving (2012) by van Vliet, the importance of communication is discussed in the formation of Customer Expectations. He also discusses other factors that influence the consumer’s decision making process. And he stresses the importance of identifying community needs and building online communities. According to Brussee & Hekman, as stated in the book “ Festivalbeleving ” factors that influence the consumer’s choice to attend a specific festival are motivation ( based on previous experiences), the value that the festival has for the consumer, their attitude towards the festival, the consumer's’ personality or mentality and their expectations. According to the book these expectations are formed based on the communication, either by the organization or other consumers. This communication is very important for the experience of the consumer. (Brussee & Hekman, 2009) (van Vliet, Festivalbeleving, 2012) The Digitalization, and the changes that it brings along also influence these communication displays. It has changed the roles between consumer and producer, festival organisation and visitor, and has resulted in a state of stimulated interactivity. The consumer has adopted the role of receiver and sender, and is able to influence other consumers’ opinions by sharing content (photos, videos, blogs, reactions etc.). Brussee and Hekman (2009) also state that the complexity of the current media landscape as a result of the interactivity provides the organization and consumer with several opportunities. The consumer wants to be constantly updated while visiting a festival, and requires a 24/7 access to content. According to Hazelaar (2010) it’s important for organizations to focus on building online communities and use social media so that they can provide their consumers with opportunities to interact. Hazelaar (2010) also stresses the importance of an online community and the value and involvement that it can bring to visitors. (Burns, 2009; Hazelaar 2010) (van Vliet, Festivalbeleving, 2012) This was confirmed by Ten Tije (2010), he stated that the option of interactivity on the website of a festival increases the experience of the consumer. It also increases the intention to return to the website and the intention to make use of it. (van Vliet, Festivalbeleving, 2012). As described in the book by van Vliet, the value of adding interactive functions was questioned by Chung’s study, which showed that visitors don’t nearly use all of a website’s interactive functions. 21

The importance of mouth to mouth communication has also been widely discussed in previous studies. (van Vliet, Festivalbeleving, 2012) “Results indicate that the most common source of festival information was personal through word-of-mouth across all visitors groups.” (p. 55). (Weiler et al., 2004; Dodd et al., 2006; Martin, Bridges & Grunwell, 2006; Slack, Rowley & Coles, 2008; Smith, 2008).

2.3.2 The Service Quality Gaps Model Another theory that has also been widely discussed and might be found relevant for this research is the Service Quality Gaps Model by Zeithalm, Parasuraman & Berry (1990). It has been designed to map and identify the five major gaps that organizations face when intending to meet their customer’s expectations of the customer experience. ( A. Parasuraman, VA Zeithalm and LL Berry, The Journal of Marketing, 1985 ) This model is used because it stresses the importance of really understanding your Customer’s Expectations. It can be used to establish possible GAPS, as well as a structure to implement changes to all layers of the company that are of importance to meeting your Customer’s Expectations. Designed to get an insight into the construct Quality, the Service Quality Gaps Model also sheds light on the construct Customer Expectations, by focusing on the gap between customer expectations and perceived quality. The writers state that Quality is a Comparison between Expectations and Performance. “Service quality is a measure of how well the service level delivered matches customer expectations. Delivering quality service means conforming to customer expectations on a consistent basis”. (Lewis and Booms 1983) ( A. Parasuraman, VA Zeithalm and LL Berry, The Journal of Marketing, 1985 ). This is in line with the previously designed model by Gronroos in 1982. In this model he states that consumers compare the service that they expect with perceptions of the service they receive in evaluating service quality. In order to understand the construct of service quality, it’s important to know that there are two types of of service quality according to Gronroos; “technical quality, which involves what the customer is actually receiving from the service, and functional quality, which involves the manner in which the service is delivered.” (Gronroos, 1982) ( A. Parasuraman, VA Zeithalm and LL Berry, The Journal of Marketing, 1985 ) The model summarizes the nature and determinants of service quality as perceived by consumers. The foundation consists of the set of gaps. An explanation of the model and the 5 gaps follows next.

As can be seen in the model, there are 5 gaps that make up the quality gaps model. These 5 gaps are; - The Customer Gap; The Gap between Customer Expectations and Customer Perceptions - The Knowledge Gap; The Gap between Customer Expectations and Management Perceptions - The Policy Gap; The Gap between Management Perception and Service Quality Specification - The Delivery Gap; The Gap between Service Quality Specifications and Service Delivery - The Communication Gap; The Gap between Service Delivery and External Communications The Customer Gap Which is the difference between customer expectations and customer perceptions. Keeping in mind the construct that has been used to define Customer Expectations in the previous chapter, it stands for; the service or product that the customer expects according to available resources and is influenced by cultural background, family, lifestyle, personality, demographics, advertising, experience with similar product or the actual product and available online information. The Customer Perceptions are totally subjective and based on 23

the customer’s interaction with the product or service in question. Kasper et al states that perception is derived from the customer’s satisfaction of the specific product or service and the quality of service delivery. The Customer Gap can be identified as the the most important gap. And in order to focus on closing this gap as much as possible a customer oriented strategy, where delivering a quality service for a specific product should be based on a clear understanding of the target market, should be implemented. An understanding of your customer’s needs and and expectations plays a vital role with closing that gap. The Knowledge Gap Stands for the gap between what the customer expects of the service provided and the company's’ vision on what those perceptions are. When a Knowledge Gap exists, it could be that companies are trying to meet the wrong or non-existing consumer needs or expectations. The Policy Gap Kasper et al states that this gap is the result of the management’s incorrect translation of the service policy into rules and guidelines for employees. Not having the right tools, skill set or knowledge can result in a failure to translate the consumer expectations into specific service quality delivery. The Delivery Gap The focus of this gap is on the performance of the employees. According to Kasper et al in the case of a Delivery Gap, the company may specify the service required to support consumers but have subsequently failed to train their employees, to put good processes and guidelines in action. Which results in employees being ill equipped to manage consumer’s needs. (A. Parasuraman, VA Zeithalm and LL Berry, 1985 ,The Journal of Marketing )

2.3.3 The SERVQUAL-model The Model described above is has been further developed by the designers of the initial model in 1988. This model is also known as The SERVQUAL-model , and has been widely implemented and discussed by other researchers. “The essence of the SERVQUAL model is that quality is defined by the difference between the service that the customer expects and the service that the customer experiences or perceives. (Smidts, 1994, p. 166). When the service doesn’t meet the customer’s expectations, a Gap is formed.” (Smidts, 1994, p. 166) Research states that the customer bases their expectations of the service on the information that they receive from other customers, personal needs, previous experiences and on the external communication of the company. (Bakker, 1999, p.875) Parasuraman et al discussed 10 key categories that consumers use to evaluate service quality. “ The research conducted by Parasuraman et al revealed 10 dimensions that consumers use in forming expectations about and perceptions of services, dimensions that transcend different types of services.” (A. Parasuraman, VA Zeithalm and LL Berry, 1985 ,The Journal of Marketing ) These 10 key categories were labeled “service quality determinants” (A. Parasuraman, Zeithalm & Berry, 1985 )These 10 categories were later brought back to 5 service quality determinants. 24

Tangibles; the tangible aspects of the service and service provider which include; physical facilities, appearance of personnel, tools or equipment used to provide the service, physical representations of the service and other customers. Reliability; involves consistency of performance and dependability, the firm should perform the service right the first time and that it should honor its promises. Responsiveness; concerns the willingness or readiness of employees to provide service. It involves timeliness of service. Assurance; (including competence, courtesy, credibility and security) Knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy; (including access, communication, understanding the customer). Caring and individualized attention that the firm provides to its customers.

(Parasuraman et al, A conceptual Model of Service Quality, p. 47) (Smidts, 1994, p. 166) ( Shahin , p4)

Summary As can be seen in the previous sub chapters, several theories have been developed over the years concerning customer satisfaction. The Customer Expectations often play a vital part in these theories. The focus however is often not on Customer Expectations. For that reason these theories, models and determinants are used for this research but are often altered and used as inspiration. The gap that has been established in the Pilot Study has been established using The Expectation and Satisfaction Theory by Smith and Houston (1982). A Conceptual Model has been designed, inspired by and based on the Service Quality Gaps Model, which also sheds light on the construct Customer Expectations, by focusing on the gap between customer expectations and perceived quality. The focus of this research however is not on all of the GAPS, so the model has been modified. And because this research focuses on multiple factors that influence SXSW’s premium client’s expectations, multiple sources have been taken into consideration. The knowledge gathered from these theories is needed for the formation of the actual research design, as well as topic list for the in-depth semi structured interviews. Research regarding the Expectations Economy, Consumer Trends and how they influence SXSW’s target group along with their expectations has also been taken into consideration an can be found in Appendix 4.

2.4 Conceptual Model This model has been designed for this research, as has been strongly based on the Service Quality Gaps Model by Zeithalm, Parasuraman & Berry (1990),which can be found in the previous chapter.This model’s focus however is on the Customer Gap. This decision to leave out the other gaps is because of the actual relevance for SXSW as well as time constraints and limitations regarding accessible information.

3. Research Methodology This chapter discusses the research methodology for the conducted research. With the data gained the central research question is answered. An explanation and motivation is given for the choice to conduct semi structured interviews. It also discusses the design of the research, research methods and data analysis methodology. 3.1.1 A Qualitative Research 1.2 Design & Research Methods 3.2.1 The Semi-Structured Interview 2.2 Data Collection 2.3 The Respondents 2.4 Validity and Reliability 3.3 Conclusion

3.1.1 A Qualitative Research The research conducted is a qualitative research. The conceptual model as described in 2.4 acts as the guideline for this research and research methodology. The research consists of the analysis and the execution of 11 semi-structured interviews with SXSW’s premium target group which consists of yet existing and not (yet) existing premium clients. The goal of these interviews is to identify the underlying wants, needs and expectations as well as the unmet customer expectations of SXSW’s Premium Clients. It also dives into the premium client’s past experiences and the way their expected service of SXSW was influenced by Word of Mouth Communication by others. These components have been visualized in the Conceptual Model.

Motivation The choice for a qualitative research design is based on multiple motives. For starters the situation of South By South West is considered so complex that in-depth information is necessary. Besides that the goal of the research is getting a grip on human thoughts, experiences and the meaning behind those thoughts and experiences. It is also more important to find out what influences customer expectations for SXSW’s premium clients rather than measuring it. The results from this research are of an interpretative nature instead of based on facts and focuses on the meaning behind that what is found. The qualitative research is used to answer the research question and to get an in-depth view of the case within its real life context. 3.1.2 Design and Research Methods The semi-structured interview is used to get a grip on the GAP that was established in the Pilot Study. (Appendix 2) It also strives to get a grip on those factors that influence the expected service and the perceived service for South By South West’s premium clients. Eventually all the factors that are visualized in the conceptual model should be answered.

By using multiple sources and different research methods, better known as triangulation, the quality of the research increases as well as the internal validity. It also sheds light on the several aspects of the research by looking at it from different angles. And by using a Deductive and a Inductive theory the quality of the research is also increased as stated by Verhoeven (2007). For this reason additional research was conducted and can be found in the Appendices. “In collecting data, the main idea is to “triangulate” or establish converging lines of evidence to make your findings as robust as possible.” (Judith L Green, Gregory Camilli, 2012) “Thus, by using different sources for data as well as different methods for gathering data the researchers aim to gain a holistic view of the phenomenon and establish accurate causal relations.” (Judith L Green, Gregory Camilli, 2012) For the definition of the research and the research question the previously mentioned Pilot study was conducted. The results of this research showed a GAP between expected service and perceived service, which further inspired the design of this research. So by using a quantitative research method, data was collected in the broad sense and then, to get more in-depth data qualitative research is carried out. In order to create the theory models and the research questions, new found empirical information has been used and vice versa. This can be seen in the Conceptual Model.

3.2.1 The Semi-Structured Interview The structure of a semi-structured interview for this research meant that a conversation took place between one respondent at a time and the researcher. Some of the benefits from this type of interview are that in-depth and detailed information can be gained. As well as the fact that the subject of interest can be addressed in multiple ways so that you can make sure that you get the information that is needed. Often answers from the respondent inspire new questions. The respondent also has the opportunity to add information and is encouraged to speak freely and openly, which often leads to more valuable and spontaneous information. For the duration of the interview, a topic/question list was used to give the interview some direction. The interviews took place over the phone and were recorded and later typed out, this eliminates the room for misinterpretation and data loss. It also limits subjectivity and increases the validity of the interview. (Taylor & Bogdan, 1998) (Verhoeven, 2007) 3.2.2 Data Collection The semi-structured interviews have been held with a selection of participating individuals who are considered to be part of SXSW’s already existing but also possible future premium clients. This is the case, because a selection has been made of individuals who have previously attended the festival and individuals who have not yet attended the festival. As they are both part of SXSW’s target group.

These respondents were selected based on the following criteria; line of business/ industry, function, previous attendance and the respondents have also been selected from a bigger unit based on availability and accessibility. The 11 semi-structured phone interviews that were then recorded, were analyzed using the coding frame mentioned in ( Appendix 1) and in ( Appendix 2). The values gained from the analysis give a deeper meaning to the expectations and needs of the premium clients. In a way that can then become actionable data which can then be applied and used to anticipate their target group’s needs and identify the factors that influence their expectations. Operationalisation The topic list and questions for the semi-structured interview were formed based on the data and theories that were collected in the Theoretical Framework. The different theories inspired the different topics. The factors that were mentioned as influencers of Customer Expectations inspired the questions. So a framework was formed to develop the topic list and questions for the semi-structured interview. This framework on which the topic list was based increases the interviews’ validity. (wetenschap.infonu, 2011). Topic List and Questions All the respondents were asked a couple of identical questions, as well as some questions specific to their situation and field of work. Besides that, the respondents were also asked questions that were a reaction to their previous answers, so that more in-depth information could be gathered. This is a well-known technique when conducting a semi-structured interview. (Verhoeven, 2007) As can be seen in the Conceptual Model, the focus of the semi-structured interview is on getting an insight into the respondent’s personal needs, past experiences as well as the information provided to them by others. This has been used as a framework for the topic list. The topic list consisted of 3 segments; - Introduction: where the subject of the research is explained as well as the structure of the interview and some background information. The respondent is also told to feel free to add information when wanted and to talk freely. Once again permission is asked for the recording and the use of the respondent’s name. - Topics: The topics were discussed in a logic order, to enhance the natural flow of the interview. As can be seen in (Appendix 2) As previously discussed, the topics and questions used were based on the theories from the Theoretical Framework. A bit more general questions were asked in the beginning and led to more specific questions in the end. - Closure: When it felt like all the information needed had been shared, the interview was ended by thanking the respondent for their time and quickly summarizing some of the insights that they had shared to confirm interpretation. After an introduction of the topic, and a description of the structure of the interview to the respondent, they were asked for their approval to be audio recorded. Explaining the format of the interview to the respondent allowed them to talk freely and openly.

3.2.3 The Respondents As described above the respondents were selected based on specific criteria. A brief description of the respondents follows. The power of these interviews lies within the quality selection of these premium clients (respondents) instead of the sample size. Each of them can be considered a valuable relation to SXSW and a premium client of South by South West. -

Alberto Milagro - Investment manager and Operations Manager in a multi family office. My main task is invest the money of my clients in different types of investments and markets. We invest in festivals and like to believe that by doing that we invest in the success of a festival.

Rahul Badesra - Head of Strategy & Planning | partnerships at Guestlist4Good, Guestlist4Good LLP, World's first Entertainment-for-Good social enterprise. Sunburn India.

Ricky Berrin - CEO and founder of Revolver, that works in the virtual reality space. And we do two things, we do production and 360 videos and we also build software in the space. And we have an app that we are building, essentially an aggregator for the best 360 content.

Jessica Humphreys - marketing coordinator for the collegiate sports division of WME|IMG. I ideate, develop, and price out proposals for brands to leverage our network of collegiate sports assets on a national platform basis.

David Mullet - Founder and CEO of a tech start-up that captures reality and represents it to teleport people and understand spaces in new ways.

Brandon Brown - “CEO of a digital Marketing agency that works with mostly clients in the live entertainment industry. So companies like LiveNation and music venues that they own and operate. We manage those venues’ social media communities and help with their digital marketing efforts. And we also do the same for numerous festivals, artists as well as a few other industries unrelated to entertainment. And I am also a touring musician, and kind of like the internal band manager and I do all the business and I am kind of like the road manager for the time being.”

Tiffanie Stanard - I am an entrepreneur, I own a brand enhancement firm called “Prestige Concepts” and a technology and media company called “Stimulus”.

Ronald van Berkel - Project Manager for several international conferences among which Amsterdam Dance Event, Eurosonic, Buma Music in Motion, InJazz and Buma NL.

Ryan Lopez - Assistant to the chairman of BadBoy Records. Office of Sean Combs, Bad Boy Entertainment. Basically my day-to-day can range from A&R of music and 30

meeting with producers. Also I deal with archival content. So anything from past producers to past artists, I am in charge of all of the older assets. Essentially I am just a liaison between him and his brands. -

Albert Collell - I am a CEO and founder of a startup that does electrical longboards based in Stockholm. We want to launch a product for commuters, and provide a new and different way of commuting.

Benjamin Sid - So I am the creative director of a company called Plumpot, which runs a music festival that’s been happening in the break and beacons in Wales for 15 years called The Greenman Festival. And my main role for them is as the curator of the music and the cinema, curation of such organizing the program, booking all the bands and ensuring that I am going to collate a lineup that is going to sell the festival out. And the festival is a 20.000 capacity festival. It’s a good, very manageable style festival.

3.2.2 Validity and Reliability In order to increase the internal validity and the reliability of the research certain decisions have been made, as described below. Reliability To increase the reliability of the qualitative research, conscious decisions were made. The interviews were recorded to minimize data loss and to provide the option to replay the conversations. Another choice that has been made to increase the reliability of the research is the use of a structure and the same topic list for each of the interviews. The respondents were also given an introduction on the topic and constructs so that they all possessed the same basic information. Sample Strategy The respondents were selected based on purposive and convenience sampling. Respectively purposive sampling is used to select only relevant premium clients from SXSW’s target group. This sample group has also been selected to represent the target group as much as possible in a realistic way. Attention was paid to SXSW’s top 10 types of businesses attending SXSW, which can be found in chapter 1.4. The technique convenience sampling is used to select the premium clients that are accessible and available to be interviewed. (Bryman, 2008). The limitation of this method however is that it’s not a representation of the entire population. But because of time constraints and respect for people’s privacy as well as SXSW’s policy, the database was not used nor accessible to contact respondents for interviews. Most contacts came from a personal network of acquaintances but a distance with the subjects was still present. Respondents were asked if they would like to remain anonymous and they were told data would only be shared with professionals. They were also given an introduction about the goal of the research, as they were initially contacted to be interviewed.

Representation Another factor that has to be taken into consideration when conducting an interview with a sample group is the representation of the total population in that sample group, which has been briefly touched upon above. This representation is the extent to which the sample group represents the total population. In this case the total population exists of the Premium existing and not-yet existing clients of SXSW. Due to time constraints and limited access to an existing network of premium clients the sample is not as big as it could have been. However the strength of this sample lies within the quality of the respondents. Where a good division of industries is represented. And where respondents who truly are of importance to South by South West have been selected. Data Processing & Analysis The process of qualitative analyses is a complex one, where a continuous process of observation, analyzation and reflection takes place. Everytime after reading one interview, all the other interviews were consulted as well. Until the feeling of saturation was reached on a theoretical level, where all of the relevant data was collected. It was a continuous process. So after completing the interviews, formal analysis was applied to the audio recordings and the written notes that had been collected during each interview. These transcribed interviews were digitized. The transcription means that every word was typed out, word by word. This way all the details are being taken into consideration, and the chances of misinterpretation are decreased. The full transcripts can be found in the attachments. In order to increase the validity of the interviews, respondents were frequently asked to confirm statements that they had given previously. The method used for the analysis was an open coding one, where keywords were selected. As well as keywords, discussions were also identified and used for the next step of coding. So after transcribing all the interviews, the coding process was started. Coding The interviews were analyzed using a coding frame (Boeije, 2005). First codes were given to each interview and segment. Later these codes were organized in coding frames. For the codes, both pre-set codes or guidelines were used as well as emergent codes. Important as well as relevant statements were selected from the interviews. These statements or answers were then coded. Similar codes were then put in the same category and these categories make it easier to share the insights gathered from the interviews in a clear overview, which makes it easier to compare them to each other and to the theories from the theoretical framework. The coding process consists of three phases. Respectively open coding, axial coding and selective coding. These 3 phases are constantly in motion with each other. Open Coding: certain labels were linked to text fragments. The results from this can be found in (Appendix 2) Axial Coding: By comparing the codes that were attached to the text in the previous step, new and overarching codes are created and compared to each other.

Selective Coding: by combining the main categories, connections can be made with the previously gathered data in the Theoretical Framework. Theories Used By using theories that have been discussed in the Theoretical Framework, structure and meaning is given to the data. The goal is to identify points of tension and/or clusters. (Appendix 4, Mason, Mattin, Luthy & Dumitrescu, 2015) “This tension can be best identified by understanding customer expectations and by looking for gaps between what customers want-both now and in the future- and what they are currently being offered.” (Appendix 4 , Mason, Mattin, Luthy & Dumitrescu, 2015) For the analyzation of the interviews, the coding frame consists of a combination of these elements. The selection of the code words was also inspired by the Fundamental Trend Elements (Appendix 4, Mason, Mattin, Luthy & Dumitrescu, 2015) but were then adjusted to fit the context of this research. These Fundamental Trend elements helped identify the underlying consumer needs. The Fundamental Trend Elements are respectively: Entertainment, Relevance, Excitement, Connection, Honesty, Fairness, Self-improvement, Social Status, Social Interaction, Creativity, Love, Simplicity, Recognition, Identity, Freedom Security, Transparency. For example, the fundamental trend element Entertainment has been divided into music, art, panels, film etc. because of the nature of this research. Besides bringing structure to the interview with codes, important statements were also grouped.

3.6 Conclusion The analysation of the semi-structured interviews helps getting a grip on what the Customer Expectations are for South By South West’s premium clients. It also sheds light on what this means for the organization. It gives the organization a direction on how they can improve certain aspects and on what they could implement to meet their premium clients’ constantly changing Customer Expectations. The next chapter shows the results of the semi-structured interviews. Meaning is given to the data gained by combining it with findings from the Expectation Transfer. (Appendix 4)

4 Results This chapter describes the data that was gathered with the semi-structured interviews. This data is analyzed by linking it with theories and constructs that were previously discussed in the Theoretical Framework of this research paper. Extra meaning is given to the data by combining it with data from the research regarding the Expectations Economy which results in the Expectation Transfer. (Appendix 4)The transcripts, coding frames and summaries can be found in the attachments. (Appendix 2) 4.1. Introduction Structure of the results 4.2 Results in Tables 4.3 Substantive Discussion of the results 4.4 Summary

4.1 Introduction 4.1.1 Structure of the results The in-depth interviews were conducted throughout May 2017. So all interviews took place within a month. Besides that, all of the interviews took place over the phone and were recorded. The reason for choosing phone interviews was that 10 of the respondents live abroad. The respondents were confronted with several topics in order to identify the underlying customer needs and expectations. All of the respondents were contacted prior to the actual interview with an introduction of the topic and the question if they would be willing to participate. During the interview all of the respondents were once again reminded about the topic. The ones who had not attended the festival yet, were given a short introduction about South By South West. The data gained from these interviews is used to answer the central research question:

Which factors influence the Customer Expectations of South By South West’s Premium Clients? The following main subjects were discussed during the interviews, however some of the subjects were relevant to a specific respondent based on their industry, needs and knowledge. The respondents were asked about the following topics: - Their values when attending a festival - Their takeaways, both existing and envisioned - Their motives for attending a festival - Their expectations, both existing, previous and future - Their needs/ wants when attending a festival (expectations of a festival) - Their experience, or perceived experience - Their goals for the future - Their opinion on South By South West 34

For the construct of Customer Expectations a division has been made between on the one hand, what the consumers’ expectations are of the festival prior to visiting it and on the other hand what the consumer expects of SXSW in the sense of what they think that SXSW should offer them. “Expectations” has been used to identify what the consumer thinks that SXSW should offer them. And “Prior Expectations” has been used to identify that what the consumer expects the festival to be like, or what the consumer expected the festival to be like in the past. The total of respondents was 11.

Respondent

Industry

Existing premium client

Alberto Milagro

Investor

Rahul Badesra

Festival

Ricky Berrin

Film & Tech - Virtual Reality

yes - 4 time attendee

Jessica Humphreys

WME|IMG

yes - 5 time attendee

David Mullet

Tech - Virtual Reality

yes - 2 time attendee

Brandon Brown

Music & Entertainment Marketing - Artist

yes - 4 time attendee

Tiffanie Stanard

Entrepreneur in Tech & Media two time SXSW speaker

yes - 2 time attendee

Ronald van Berkel

Festival

Ryan Lopez

Artist Representative - A&R to P.Diddy

Albert Collell

Entrepreneur - Product Design

Benjamin Sid

Creative Director of The Greenman Festival

yes - 4 time attendee

After conducting the interviews, they were transcribed and and analyzed. The analyzation happened based on guidelines by Boeije, H. (2005). The interview was then categorized based on recurring subjects and keywords. A summary of the findings gained from the interviews is given per selected keyword or subject. Both the keywords and subjects were found relevant based on data described in the chapter Theoretical Framework of this paper and the Trend Canvas both by (Appendix 4, Mason, Mattin, Luthy & Dumitrescu, 2015) For the keywords and subjects (codes), both pre-set codes or guidelines as well as emergent codes were used. The emergent codes add an element of surprise and lead to more interesting insights. During the coding process notes were also written down simultaneously. 35

4.2 Results in Tables Due to the amount of information in the transcripts of the interviews the results of the analyzation have also been visualized in a table, using the codes that were inspired by The Fundamental Trend Elements.(Appendix 4) The first step was linking these codes with fragments from the interviews using different colors. This step can be found in the attachments (Appendix 1). The next step was using shorter “codes” or “fragments” and categorizing them based on the context. Which can be seen in the respective table in (Appendix 2). The tables with respective codes and groups will follow to visualize the findings. The key factors that were established during the interviews are respectively; Experience, Music, Party, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects. These factors will each be analyzed and categorized individually below in tables. EXPERIENCE Independent Codes

Stated By Respondent

Main Codes

“Coming together of all the important aspects in one” Motives

1-7

7 mentions of experience in regards to motives

“Complete Experience (art, performance, gastronomy)” Motives

1-7

6 mentions of experience in regards to values

“New Experiences” - Values

1 - 2 - 11

4 mentions of experience in regards to wants

“Experience” - Motives

3 mentions of experience in regards to expectations

“5 Dimensional Experience” Wants

2 mentions of experience in regards to prior expectations

“ Immersive Experience” Wants

3 mentions of experience in regards to the experience overwhelming

“New Experience” Expectations

“Overwhelming” - Experience

3 - 7 - 11

“Overwhelming” - Prior Expectations

“Good Experience” Expectations

“Experience as much as possible” - Prior Wants

4 - 11

“Experience provides so much value to a company”- Values

“Big and diverse” - Motives

“Overall experience is influenced by unofficial events” - Prior Expectations

8/ 8

“Not being taken out of the VIBE” - Values

“Experience always takes over everything” - Values

“Paying for the experience” Motives

“Good experience”Experience

OFFERINGS - MUSIC Independent Codes

Stated By Respondent

Main Codes

“Opportunity to see multiple artists at once ” - Motives

1 - 11

9 mentions of music in regards to motives

“Getting to know new Music”Expectations

1 - 2 - 10

10 mentions of music in regards to expectations

“Getting to know new Art” Expectations

1-4

6 mentions of music in regards to values

“Getting to know new Film” Expectations

2 mentions of music in regards to prior expectations

“Best Performances” - Values

1 mention of music in regards to wants

“Type of Music” - Motives

1 - 2

1 mention of music in regards to experience

“Interesting mix “(Film, Music, Comedy) - Motives

“Music was different than Expected” - Prior Expectations

“Best Performances” Expectations

“Music”- Motives

“Line-up” - Motives

“Relevant Line-up” - Values

“New Line-up every year” Expectations

2-9

“Musical journey” - Wants

“Music” - Values

2-8

“New Music”- Motives

4 - 11

“Live Music, Good & Bad Parties- Prior Expectations

“Amazing, good music” Experience

“having the right line-up is the main thing - Values

“Discovery of music and film” Values

“Cutting edge of everything musically” - Expectations

PARTY Independent Codes

Stated By Respondent

Main Codes

“More parties than expected”Experience

5 mentions of party in regards to experience

“Best place to meet people mostly at industry parties” Experience

5-7

2 mention of party in regards to values

“Love the aspects parties of SXSW” - Experience

“Great to strengthen relationships at”- Experience

“Quality time, attending concerts and extra events” Values

6 - 11

CONNECTIONS Networking - community - friends 38

Independent Codes

Stated By Respondent

Main Codes

“Networking” - Expectations

1 - 7 - 8 - 10

10 mentions of connections in regards to Values

“New friends” - Expectations

1 - 10

10 mentions of connections in regards to Expectations

“Relationship Driven” - Motives

2-5

22 mentions of connections in regards to Motives

“Existing friends” - Motives

2-5

6 mentions of connections in regards to Takeaways

“Business Driven” - Motives

“Most valuable are the network opportunities” - Motives

3 - 3 - 7 - 8 -10 - 11

“Networking” - Takeaways

“New business relationships” Takeaways

3-3-3

“Community” - Values

“Community” - Motives

“Relevant, high impact people” - Experience

“Exchanging/ Sharing ideas”Values

“Network with potential clients” - Motives

6-6

“Network with existing clients” (Main) Motives

6-6

“Most valuable is the facetime with (primary) clients” - Values

6-8

Building close friendships from work connections is priceless”Values

“Importance of meeting people during down time” Expectations

3-6-7

“Best place to meet people while walking around or having a drink” - Experience

“New useful contacts” Takeaways

8-8

“Big community base in Austin”- Motives

“Building within that artist community” - Motives

“Meet people” - Motives

9 - 10 - 11

“That the festival attracts the right people” - Expectations

“That the festival promotes networking activities etc to meet relevant people” - Values

“Strengthening Relationships”Motives

“Organized Industry related meetups”- Values

7 - 10 - 11

SELF PROMOTION Independent Codes

Stated By Respondent

Main Codes

“Promoting company” Motives

9 mentions of Self Promotion in regards to Motives

“Promoting Diversity” (women in tech) - Motives

“Create visibility at each other’s events as a business” Motives

“Promoting Dutch Musical Rights abroad.” - Motives

8-8

“Motives would always be work related” - Motives

“Performance would be a motive” - Motives

“Exposure for new artists” Motives

“And I think SXSW is the real platform to build.” - Motives

INNOVATING Independent Codes

Stated By Respondent

Main Codes

What is new in Fashion Takeaways

1 - 10

4 mentions of Innovation in regards to Takeaways

Something new & Exciting Needs

1 mention of Innovation in regards to Needs

“What’s New” - Motives

6 mentions of Innovation in regards to Motives

“What’s New” - Expectations

4 mentions of Innovation in regards to Expectations

“What’s New” - Takeaways

2 mentions of Innovation in regards to Values

“Innovation” - Values

“New developments” - Motives

“Upcoming trends”- Motives

6-6

“The game plan is always do new things” - Motives

“New Trends” - Expectations

“What’s new in design” Expectations Actionable Takeaways

10 10

“See and observe consumer behaviour” - Motives

“Discovery of things that you haven’t read about before” Values

“Cutting edge of everything” Expectations

CULTURAL Independent Codes

Stated By Respondent

Main Codes

“Getting to know new cultures” - Takeaways

1 mention of Culture in regards to Takeaways

“Cultural Experiences” - Prior Expectations

1 mention of Culture in regards to Prior E xpectations

“Good experience being in Texas” - Experience

1 mention of Culture in regards to Experience

“SXSW brings the culture of Austin, the culture of the

1 mention of Culture in regards to Motives

people, welcomed with open arms; community base” Motives

SELF IMPROVEMENT/ PERSONAL Independent Codes

Stated By Respondent

Main Codes

“Get new perspectives” Takeaways

3 mentions of Self Improv in regards to Takeaways

“Feeling like a richer, fresher person” - Values

1 mention of Self Improv in regards to Values

“Trying to become an expert (VR) - Takeaways

3 - 10

2 mentions of Self Improv in regards to Experience

“Learn and start new (personal) ventures” - Experience

3 mentions of Self Improv in regards to Future Goals

“Becoming an expert”Experience

6-6

1 mention of Self Improv in regards to Motives

“Providing other attendees with value” - Future Goals

2 mentions of Self Improv in regards to Goals

“Becoming a speaker” - Future Goals

“2 x Speaker at SXSW” Motives

“Host something next year, grow, or collaborate” - Future Goals

“I want to be an innovator” Goals

“I want to be the best, produce the best” - Goals

LEARN Independent Codes

Stated By Respondent

Main Codes

“Learn” - Takeaways

1-4

2 mentions of Learning in regards to Takeaways

“Learn from other festivals” Expectations

1-8

4 mentions of Learning in regards to Expectations

“Learn" - Motives

4-6

2 mentions of Learning in regards to Motives

“Learn” - Expectations

1 mention of Learning in regards to Values

“Learning + educational aspect 2nd most valuable” - Values

1 mention of Learning in regards to Prior Expectations

“From an educational standpoint, most of the takeaways are from secondary interests” - Experience

1 negative mention of Learning in regards to Future Goals

“Trying to soak up as much knowledge as possible” - Prior Expectations

“Already possess a lot of the knowledge” - Experience

“Actionable Knowledge” Future Goals/Hopes

“Learn about design” Expectations

INSPIRATION Independent Codes

Stated By Respondent

Main Codes

Know how to organize Takeaways

1-1-8

4 mentions of Inspiration in regards to Takeaways

“Inspiration” - Motives

3 mentions of Inspiration in regards to Motives

“Inspiration” - Expectations

2 mentions of Inspiration in regards to Expectations

“Integrate trends ( in marketing efforts)” - Motives

2 mentions of Inspiration is regards to Experience

“Looking for good moderators, topics, sponsor activations” Experience

“Bands to book myself” Motives Actionable Takeaways

“Discovery, music, film, meeting people, relationships ” - Values

“Be inspired by other companies, SXSW should be that inspiration” - Expectations

“Also show me, how not to do certain things; branding etc.” Experience

AUTHENTICITY Independent Codes

Stated By Respondent

Main Codes

“Authenticity” - Values

3 mentions of Authenticity in regards to Values

“Being too branded/ sponsored” - Values

8 - 11

FUN Independent Codes

Stated By Respondent

Main Codes

“Different options to enjoy” Values

3 mentions of Fun in regards to Values

“I love going to the parties” Values

3 mentions of Fun in regards to Motives

“Having a great time” - Values

2 mentions of Fun in regards to Expectations

“Fun” - Motives

4-5

1 mention of Fun in regards to Takeaways

“Fun” - Expectations

4-4

“Fun Memories” - Takeaways

“Wouldn’t go just for the pure enjoyment” - Motives

ORGANIZATION Independent Codes

Stated By Respondent

Main Codes

Best in organization Expectations

1-1

5 mentions of Organization in regards to Expectations

“Easy accessible Content” Motives

1 mention of Organization in regards to Motives

“Better System for VR” -

5 negative mentions of

Future Expectations

Organization in regards to Future Expectations

“Messy, Long lines” - Future Expectations

3-4

“More purposeful activations”Experience

“ Educate better on complete offerings” - Future Expectations

“Transportation could be better”- Future Expectation

“Expect the hospitality and accreditation to be good” Expectations

“Hospitality should be great, such as info@, info packages, welcoming, touchpoint basically” - Values

“I am always paying attention to the organizational aspects because that’s what I do for ADE” - Expectations

“How to motivate your staff so that the hospitality is really good” - Expectations

1 mention of Organization in regards to Experience

PRICE Independent Codes

Stated By Respondent

Main Codes

Good prices - Motives

1 mention of Price in regards to Motives

“I have accomplished my main reasons for going and spending money to go.” Takeaways

1 mention of Price in regards to Takeaways

“Expensive to go there, far” Motivations

1 mention of Price in regards to Motivations

Stated By Respondent

Main Codes

QUALITY/ CONTENT Independent Codes

“Best Music Quality” Expectations

2 mentions of Quality in regards to Expectations

“Niche area of panels” Motives

3 mentions of Quality in regards to Motives

“Quality Content outside of official programming” - Motives

2 mentions of Quality in regards to Wants

“I want to listen to the best people, talking about the most interesting things” - Wants

4 mentions of Quality in regards to Prior Expectations

“ Beginner - Advanced panels” -Wants

6 mentions of Quality in regards to Experience

“VR content”- Motives

“High Quality Content” - Prior Expectations

5-5-5

“Boring Talks”- Prior Expectations

“Good VR content” Experience

“Panel content has become less challenging” - Experience

“Content is already available online 24/7” - Experience

6 - 11

“As years pass, it’s less and less about expecting to learn a lot from panels.” - Experience

6 - 11

“Really cool sponsor activations”- Expectations

“Good and extra attention/ care for artists, paying attention to details” - Expectations

“The Core business is the conference” - Values

PHYSICAL ASPECTS Independent Codes

Stated By Respondent

Main Codes

“New Physical Aspects” (venue, decor, lasers) - Value

1 mention of Physical Aspects in regards to Value

“New Physical Aspects”

1 mention of Physical Aspects

(venue, decor, lasers) - Future Wants

in regards to Future Wants

“Good venues” - Experience

5-5

“Good restaurants” Experience

3 mentions of Physical Aspects in regards to Experience

4.3 Substantive Discussion of the results As previously mentioned, the respondents were given a short introduction about the goal of this research, this introduction can be found in Appendix 1. The respondents who hadn’t previously visited South By South West were given a short introduction about the nature of South By South West, although all respondents were already familiar with the festival. The respondents who had previously visited the festival were asked about their first time experience. Decisions have been made while keeping the goal of the research in mind: getting an insight into their personal needs, past experiences and what their expectations are and what they are based on. And as mentioned in the previous paragraph the key factors that were established during the interviews are respectively: Experience, Music, Party, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects. This subchapter discusses the results and findings of the interviews in more detail. The statements from the eleven interviews will be compared to each other based on the key factors mentioned above. The First-time Experience After the introduction the respondents were asked about if they had previously attended SXSW and what their thoughts were on the first time attending. All of the respondents individually stated that the experience was overwhelming, and that they didn’t know what to expect. David Mullet for example stated the following: “Honestly I didn’t really know what to expect.” Which was also stated by Benjamin Sid: “First time that I went to SXSW the first thing I remember was that I really didn’t know what to expect. Because I was quite fresh, I was green to the music industry. And then I got there and then it was obviously overwhelming the sheer scale of how many shows there are and how much music there is. It’s phenomenal. So it was mainly that I wanted to see bands, because I book a lot of international bands.” Ricky Berrin agrees with the other respondents and states: “I would say that it’s definitely very overwhelming the first year. And then you just start figuring out that you just need to decide that you can’t go to everything and you just need to start figuring out, you know, what best suits your interests.” Jessica Humphreys points out that over time you will start to understand the festival better: “ It's still just as massive as ever but it seems as if the festival is more purposeful with it's activations, showcases, branding, etc. It used to just feel like chaos, but this is also due to the fact that throughout the years I have come to 47

better understand all of its inner workings.” Even the respondents who hadn’t been to SXSW yet, also expected it to be overwhelming. Ronald van Berkel stated the following: “ I am expecting an overwhelming amount of events and invites. I also expect it to be big and quite time consuming to navigate.” Reasons to visit a festival Then all of the respondents were asked to specify their reasons for visiting a festival in general as well as for SXSW specifically, in order to get an insight into their underlying needs and motivations. The answers varied from getting to know new art forms such as the music, art and film, to networking, learning about new trends and innovations or just to enjoy themselves. These responses were then attached to main categories such as motives, wants, values, experience, expectations and prior expectations. These motives, values and wants were then categorized as well as their perceived experience and expectations.This can be seen in the tables in the previous sub chapter. As for the statements, several respondents mentioned the importance of offering the best in music, as part of their motivation for visiting a festival. One thing that stands out however, is that respondents all have multiple reasons to visit a festival. Rahul Badesra states the following: “Mostly music, experience is one thing that drives me so a combination of experience and music works the best. And obviously a good line-up.” In regards to this respondent Rahul Badesra also mentioned that an experience has to bring him the following: “Something new and exciting that I have not seen until today, something that holds my attention to a longer span of time.” Jessica Humphreys also looks for new things when it to visiting a festival: “I am looking for inspiration, learning about new things (trends, bands, etc) and fun. Brandon Brown shares Rahul and Jessica’s view on learning about new trends and innovations, but also shares Ricky and David’s values when it comes to networking. He stated: “I go to hopefully learn about any new developments or upcoming trends in the industry in which we work. So primarily social media and digital marketing, but also just in the music industry in general, seeing what the trends are and how we can potentially integrate them into our marketing efforts for our clients. And then also I go to network with potential clients and to spend time with existing ones.” Ricky Berrin especially values the networking opportunities : “So for me especially in the space I am in, especially since I am in a company that borders with the film stuff and the tech stuff it’s a pretty valuable conference to be at. I think as good as the programming is, most of the value I get out it actually happens outside of the convention center. The network opportunities, come from sponsored business events, more informal meetings, dinners etc.” David Mullet shares Ricky Berrin’s thoughts on the importance of networking, as well as Ronald, Albert Collell and Benjamin Sid. David Mullet stated: “To stay focused on the emerging Virtual Reality content community, and build relationships with both talent and clients. And also to have fun and see my friends.” Ronald van Berkel also values networking when deciding to go to a festival. He states: “ What I would like to get out of visiting a festival really is just useful new contacts.” And Albert Collell states the following in regards to networking: “My expectations when going to a festival would definitely be to meet people, networking with people and to learn about trends and design.” Benjamin Sid’s focus now is on networking, but used to be just getting into the unknown: “ And then it was kind of 48

the meeting people, and strengthening relationships. So networking with both British agents, managers, labels and everyone that travels over there.” Networking opportunities are a commonly shared value among the attendees and is touched upon later on in this chapter. Alberto Milagro, who hasn’t visited the festival yet, mentions the value of a complete experience as one of the most important factors to visit a festival : “Another important thing of festivals, they are a complete experience that even include interactive art, performances and different food and drinks.” Tiffanie Stanard has more specific reasons for attending South By South West: “This year I focused on my technology company stimulus, and talking about women in technology, branding, marketing and how to put yourself out there and to really be a women in tech.” Ryan Lopez, who comes more from an Artist manager point of view states the following in regards to specific reasons to visit SXSW: “I feel like a lot of people, or even artists that I know that aren’t signed . A lot of people go out there for that opportunity and just build within that artist community. So I think as far as new artists they are always going to have them be attracted to SXSW.” Experience The construct of the overall experience was mentioned as an important motive, value and personal need (wants) by most of the respondents. Experience was also mentioned several times as an expectation of the festival itself. Alberto Milagro and Tiffanie Stanard both individually stated that they are looking for a “Complete Experience with art, performances and gastronomy when attending a festival, which in the case of SXSW is an actual motive to visit the festival, since they are offered a complete experience. Rahul Badesra also stated that he is looking for an “Immersive, new and 5 dimensional Experience” when making the decision to attend a festival. Another factor that was mentioned several times in regards to the experience of the festival was the unique VIBE that SXSW has. Ronald van Berkel stated: “It’s important to stay in that VIBE from the moment that you land, and that everything goes smoothly. Then it’s not such a big deal if the music for example isn’t that good, but those moments are crucial if you ask me.” Where it is important to respondents not to be taken out of this vibe. In the end you are paying for the experience. On the other hand, one of the respondents mentions the negative effect of the unofficial events on the overall experience. This problem was briefly touched upon in the introduction as well. Jessica Humphreys mentioned the following in regards to this: “The non badge holders that aggregate around the festival footprint sometimes cheapen the experience. Hearing gunshots is never fun when you're just trying to see a cool band or film.” Music The music itself was mentioned by all the respondents in their individual interviews. A good offering of music, and a good line-up was mentioned by all of the respondents as a motive to visit SXSW, but at the same time good music and a good line-up is one of the expectations when attending a festival. The personal needs and wants of the respondent play a vital here. They want to be exposed to the best performances, get to know new music and be taken on a musical journey as stated by the respondents. Alberto Milagro names “best performances” as one of the three main values when attending a festival. Ronald van 49

Berkel also believes that good music and a good lineup are the factors that make a festival great, and Ryan Lopez agrees: “I think the line-up is everything. Because if you have the right line-up for a festival that is going to be the main thing.” When asked about his motives for visiting a festival Rahul Badesra states: “Mostly music, experience is one thing that definitely drives me. So a combination of experience and music works the best. And obviously it has to be a good lineup of artists definitely. So those are the three main factors that drive me.” David Mullet’s expectations were met in regards to the music, which he described as amazing good music. And Benjamin Sid’s reasons for valuing the music has to do with more specific needs: “ It was mainly that I wanted to see bands, because I book a lot of international bands, I book a lot of north American bands. So kind of an opportunity to see these new bands perform. And as a music lover it was that was kind of my prime thought.” Brandon Brown mentions the importance of music as part of the unique mix that is South By South West: “That week of nonstop quality time, attending panels together, attending concerts and the extra events. And you know just everything that we experience in Austin because of SXSW is worth it for me because that relationship from a business standpoint provides so much value to our company.” Tiffanie Stanard shares this thought with Brandon Brown, and praises South By South West for its unique mix: “It offers a little bit of everything I love, which is tech blending with media and music. I don’t know many conferences that have all of that entwined.” Ricky Berrin mentions the function of music in another way. For him the value of the music lies within the informal and open atmosphere to meet new people. He stated: “I met a lot people, I love going to the parties, I have a great time. I definitely party and I love that aspect of it. Although I think that’s also business related haha, if you can party with an investor or whatever, your relationship becomes much better.” And for Jessica Humphreys the music also generates another important value which is fun. She stated: “I want to have a lot of fun with my friends while listening to music.” For certain the respondents the music is a goal on its own and for some others it is about the power of music and what it can bring you. In regards to expectations about the music year after the year, the respondents state that the line-up has to be relevant and new each year. Basically it has to be; “Cutting edge of everything musically”. Party The amount of parties at South By South West unimaginable and was often also experienced as just that. Where David Mullet states: “There were more parties than expected”. The parties heavily influenced the overall experience of the festival according to the respondents. The subject of the parties and the importance of them was brought up by the respondents themselves and individually. This down-time provides the attendees with so much value. These parties create great opportunities to meet people, in a relaxed way. Alberto Milagro, Brandon Brown, Ronald van Berkel and Benjamin Sid all stated that this quality time, attending concerts and extra events are very valuable to them. Also Ricky Berrin states: “It is great to strengthen relationships at.” David Mullet and Tiffanie Stanard agree and state the following: “The best place to meet people is mostly at industry parties”. Ricky Berrin mentions the importance of parties several times during the interview. This statement of him definitely shows the relevance: “I definitely party and I love that aspect of it. 50

Although I think that’s also business related haha, if you can party with an investor or whatever, your relationship becomes much better.” Connections As briefly touched upon before the nature of SXSW perfectly lends itself to making new connections, networking, building a community and just meeting or being with your friends. The atmosphere at South By South West and the unique Austin vibes create a very comfortable and open environment for meeting new people. All of the respondents mention the importance of meeting new people, or networking specifically at SXSW due to its unique nature, in their individual interviews. They also mention that networking and meeting new friends is part of their expectations when visiting a festival but more specifically to South By South West. As well as their motives for visiting South By South West, which are often business driven as stated by Rahul Badesra. Attending SXSW makes them feel part of a community, which is said to be a personal value as well as a motive to visit the festival. Several respondents stated the following in regards to their motives to attend: “The most valuable are the business opportunities”. This can be with potential clients, or existing clients as stated by Brandon Brown. Something that is pretty unique to SXSW is the presence of so many relevant and high impact people, and the right people as said by David Mullet and Albert Collell. And getting to meet those people during down time is of great value to Ricky Berrin, Brandon Brown and Tiffanie Stanard. Tiffanie also states the following: “The best place to meet people is while walking around or having a drink”. However Albert Collell also said the following in regards to values: “That the festival promotes networking activities etc to meet relevant people”. Ricky Berrin shares similar thoughts:“I think as good as the programming is, most of the value I get out it actually happens outside of the convention center. The network opportunities, come from sponsored business events, more informal meetings, dinners.” This is backed by Tiffanie Stanard, Albert Collell and Benjamin Sid who would value more organized Industry related meetups. According to Brandon Brown the opportunities at SXSW are priceless: “Building close friendships from work connections is priceless.” Personal Enrichment One of the mega trends mentioned by the authors of Trend Driven Innovation in their Trend Canvas (Mason, Mattin, Luthy & Dumitrescu, 2015) in the search for Self Improvement. Consumers are constantly looking for brands that help them be the best versions of themselves. The consumers have become experience collecting masters, which has made them become more and more precious with spending their attention. Which they only want to spend on truly personalized companies that truly help them with their self improvement or that help them connect with other people that help them and help them live by their values. In a way this need for personal enrichment was also mentioned by most of the respondents when they were asked about personal values that they could link to the experience and visiting South By South West. This is also the case for Rahul Badesra, who states: “I am a big fan of music and experience all the time, and I am always looking for something that I value and the more I get it the more I feel a richer and a fresher person. I think that counts the most for me.”

This goes as well as another respondent, Ricky Berrin, who stated the following in regards to personal goals for visiting SXSW: “I am like trying to be sort of an expert in the virtual reality space, so I want to be able to go in there and like listen to the best people talking about the most interesting things. And if I can do it all in one day that would be great. I almost don’t want it to be beginner panels. Because that’s nothing interesting for me. So I want to make sure that they have the best people.” Of course the specifics for personal enrichment are unique to each respondent. Ronald van Berkel, who is also active in the festival industry states the following: “What is important when attending SXSW, especially when you are both mobilizing the music industry is firstly creating a visibility for yourself as well as finding contacts that are relevant for you as company or individual. And secondly increasing your own knowledge on organizing a successful conference where SXSW has a leading role and serves as a success story. And finally, and probably the most important one for ADE, is promoting national acts (musical rights) that are promoted by bringing them along and having them perform at ADE hosted events during SXSW.” Other motives that were mentioned in regards to Personal Enrichment were: learning and starting new personal ventures, becoming an expert, wanting to provide value to other attendees, hosting an event of their own, becoming a speaker, being an innovator and simply wanting to be the best and produce the best. Innovation Another factor that was mentioned often was innovation. A majority of the respondents showed that they expect to be exposed to innovations and learn about what’s new. These innovations and the “what’s new” applies to several genres and industries. They are expecting to hear about the upcoming trends and leave the festival with actionable takeaways as stated by Albert Collell: “Learning about things that I didn’t know yet, hearing about new products in the market. Looking at what all the trendy people are wearing and what they are buying etc. That helps with the creativity in creating my future products.” As the theories about the Expectations Economy already address, today's consumer is almost impossible to satisfy, and expectations are rising through the roof. As Benjamin Sid stated: “I expect South By South West to offer the cutting edge of everything.” Who on top of that wants SXSW to offer them: “Discovery of things that you haven’t read about before.” Benjamin Sid also touches upon a possible struggle for South By South West when it comes to innovation: “SXSW is an innovation festival. You want to hear about things first at SXSW. And I think they do that really well. But in this day and age obviously you can see everything all the time. It’s available just at the press of a button. And you know, just tapping into news feeds, notifications etc. it’s all just there.” Nowadays so much is available online at the press of a button. Jessica Humphreys mentions innovation as one of the three values she is looking for when visiting a festival. And Brandon Brown states that this is what he goes to SXSW for: “A few different reasons, I go to hopefully learn about any new developments or upcoming trends in the industry in which we work.” Innovation is also important to Ryan Lopez, who believes: “I think the game plan is to always try to, you know, do new things.”

Culture Some of the respondents also mentioned to be attracted to the festival because of the cultural experience that it has to offer. Alberto Milagro states he wants to leave the festival with new takeaways, and that one of his motives to visit a festival is to get to know new cultures. David Mullet expects visiting Austin, Texas and SXSW to provide him “Cultural Experiences”. Ryan Lopez also mentions the importance of the unique culture Austin has to offer as a motive to visit the festival. “SXSW brings the culture of Austin, the culture of the people, where you are welcomed with open arms. It’s totally a community base.” Learning All respondents talked about their need to learn something. Whether it was learning from the Interactive segment, the sessions or just learning from another festival. Once again today’s consumer is taking the educational aspect for granted. They expect the best, and expect to leave the festival with new and actionable knowledge. In this case some of the respondents also hope to learn from South By South West as stated by Alberto Milagro, Benjamin Sid and Ronald van Berkel. Jessica Humphreys also wants to learn something: “Like I said I want to leave feeling inspired, with new knowledge that will help me and have a lot of fun with my friends and listening to music.” And Albert Collell wants to learn about design and “about things that I didn’t know yet.” According to Brandon Brown learning and the educational aspect are the second most valuable factors when visiting SXSW. However there was also some criticism about the learning aspect. Brandon Brown states the following: “Lately I think that the past couple of years that I have gone, for our industry specifically, so social media related to music industry clients, I feel like the content of the panels hasn’t been as challenging or cutting edge. I don’t know if that’s a fault of the conference itself or just because we are in that world, you know, working every single day so we are already so in touch with, you know all the updates and kind of the cutting edge of social media and the tactics being used that I don’t feel like I leave a lot of panels with actionable takeaways.” He continues: “Yes so I find that, from an educational standpoint most of, anything I really learn or take away are from secondary interests.” Inspiration Getting inspired is another very important factor that attracts people to South By South West. Each respondent wants to get inspired by something different. Alberto Milagro and Ronald van Berkel for example, mentioned that they hope to get actionable takeaways and know how about organizing a festival which they can then apply at their own jobs. Another way that Ronald van Berkel looks for inspiration is in content: “Because I do production, and programming myself I am always looking for good moderators, topics, bands and sponsor activations.” He continued with: “An expectation when visiting a festival is to be inspired by other companies, and SXSW should be that inspiration.” Others state to visit the festival for inspiration. Getting inspired has become an expectation as well. Inspiration is one of the values that Jessica Humphreys mentions when it comes to visiting a festival. And Brandon Brown wants to get inspired when it comes to integrating trends and marketing efforts. And Benjamin Sid want to get inspired in regards to music offerings. He wants to find bands that he could book himself.

Authenticity A noteworthy thing that was mentioned by respondents, is the value of authenticity and being able to offer an authentic experience as a festival. Jessica Humphreys talks about authenticity being one of her personal values when attending a festival. While Benjamin Sid and Ronald van Berkel, who are also active in the festival industry, question the authenticity of South By South West. According to them the festival is too branded/sponsored. Benjamin Sid states: “It’s just kind of the struggle with maybe making it too branded or not too branded. The antivisist is kind of the opposite of what we do as Greenman, because we are completely unsponsored.” He continues: “ A mcDonald's stage, that is awful.” Fun Respondents showed a sincere appreciation for fun and enjoyment at festivals as well as SXSW. Having fun is seen as a motive as well as an expectation of South By South West. Although Ryan Lopez stated that it wouldn’t be enough to just go for the pure enjoyment. It is however still an expectation. What makes South By South West so special is the perfect combination of fun and business. The fun atmosphere creates an environment that makes is easy to connect with people. Jessica Humphreys sees fun as one of the three key values when it comes to visiting a festival. She stated: “Like I said I want to leave feeling inspired, with new knowledge that will help me and have a lot of fun with my friends and listening to music.” And David Mullet also named fun as a reason to visit the festival: “To have fun and see my friends.” Organization There are some definite expectations when it comes to organization. And there is some criticism too when it comes down to this factor. Alberto Milagro mentioned that he expects SXSW to offer the best in organization. Some of the respondents look for inspiration when it comes to the organization of a festival ( as previously mentioned) Ronald van Berkel mentions the following: “I am always paying attention to the organizational aspects because that’s what I do for Amsterdam Dance Event.” He continues with: “Hospitality should be great, such as info@, info packages, welcoming, touchpoint basically.” And Ricky Berrin sees the easy accessible content as a motive to visit the festival. He also expects SXSW to improve their line management and VR systems in the future. Jessica Humphreys notes the following in regards to something that the festival could improve organization-wise: “As far as the SXSW consumer is concerned, SXSW has got to do a better job at educating them on all that is out there. If you're not an avid fan of stuff, and just have a badge then I can bet that you have no clue about some stuff that you would probably be interested in going to, and then you'd have missed out and not gotten the full value of the badge.” Price Price is briefly touched upon as a determinant for visiting South By South West. In general Alberto Milagro sees good prices as a motive to go to a festival. Price is also mentioned in regards to getting worth for your money, and being able to take away what you wanted to. It’s an expectation. In this case Brandon Brown stated: “I have accomplished my main reasons for going and spending money to go.” One of the respondents mentioned the price of SXSW, in combination with the travels etc. as a reason not to go there. Ronald van 54

Berkel said: “The most relevant for not having visited the festival yet is basically that it is far away, and expensive because of that.” Quality/ Content Another factor that was mentioned by the respondents is the quality of the offerings. Respondents note that they expect the best in music, as well as high quality content. Ronald van Berkel states the following when it comes to expectations about quality and content: “I expect really cool sponsor activations” as well as “Good and extra attention/ care for artists. I also expect them to pay attention to details.” He continues with: “The Core business is the conference.” Respondents also mention the quality as a motive to attend SXSW, as well as more specifically the VR content. Ricky Berrin mentions the niche area of panels as a motive. As for wants, he states: “I want to listen to the best people, talking about the most interesting things.” Something that multiple respondents mentioned in regards to what they want, is the availability of panels for beginners as well as advanced levels of panels. After attending the conference for several years, attendees are less satisfied with the quality of the panels based on the fact that they already possess a lot of the information. Brandon Brown and Benjamin Sid share this thought. state the following; “As years pass, it’s less and less about expecting to learn a lot from panels.” Brandon Brown’s interests have shifted, as his level of expertise grew of the years, and the festival’s level didn’t. He mentioned: “It’s less about going into a panel expecting to learn a ton of new information. Now it’s more about the benefits outside of that.” It definitely has become harder to keep up with the consumers’ ever accelerating expectations regarding the quality of the offerings. And this quality is often taken for granted. David Mullet even goes as far as saying that he expected boring talks prior to attending the festival. Physical Aspects Respondents briefly touch upon the physical aspects of South By South West. Rahul Badesra mentions that he values and expects new physical aspects each year such as the venue, decor, lasers etc. in order for him to return. So in his case the physical aspects are a requirement. David Mullet talks about his experience at South By South West, where he enjoyed and values the good venues and good food. South By South West Something that stood out during the analyzation of the interviews were the statements regarding the unique nature of South By South West. Which means that South By South West comes with its own unique set of expectations. Respondents state that it has become this conference that you just have to be at. All the respondents seem to agree about the unique offerings of the festival. Ricky Berrin actually believes that: “It has become this conference that you have to be at if you are in this business.” David Mullet also sees that the unique character of South By South West makes it a festival that you just have to be at: “It’s just a unique flavor. Different. Different people. Different kind of events here. Just a lot of great stuff, I mean Boston is (fight n heart) , Sundance is Film so SXSW is pre seemingly bigger, more hectic, more chaotic, kind of everything together and more spread out.” The unique combination also brings Tiffanie Stanard to South By South West: “It’s a unique combination. It’s blending media, tech and music.So there are not many conferences that bring everything that I love into one place.” Ronald van Berkel, who hasn’t visited the 55

festival yet, is still able to name the USP of South By South West: “What makes a festival really good is the fact that other people from the industry are attending as well and a relevant lineup.” Benjamin Sid seems to be thinking the same, as he states: “Meeting people, and strengthening relationships so networking. With both British agents, managers, labels and everyone that travels over there. It’s like strange because you can be based in the UK, and obviously it’s a HUB for the industry, but you don’t meet everyone back home. But everyone will travel to somewhere because you are just kind of in this industry.” There were also some ideas about what South By South West’s role is. Benjamin Sid said the following about what he thinks SXSW’s role is: “I want to be an innovator, I want to be better than anyone else. I am competitive. I want to ensure that the quality of what we produce, is the best. And it’s important to look at other companies. You can’t just look inwardly, you have to find inspiration elsewhere. And I think that’s what SXSW should be, an inspiration. And inspiration in not only positive directions but negative direction as well.” Alberto Milagro who also hasn’t visited South By South West stated that his expectations of a certain festival change each year: “So each year my expectations change based on what other festivals do and offer.” Business & Downtime As touched upon before under the value parties, the mixture of business and pleasure is often what the respondents see as most valuable. Most of the respondents mentioned that networking in some way is the most valuable factor or value for them. The combination between downtime and business creates the perfect opportunity for them to meet new people or strengthen existing relationships. Ricky Berrin is one of the respondents who strongly feels that way: “I definitely party and I love that aspect of it. Although I think that’s also business related haha, if you can party with an investor or whatever, your relationship becomes much better.” He shares these thoughts with Brandon Brown, who states: “That week of nonstop quality time, attending panels together, attending concerts and the extra events. And you know just everything that we experience in Austin because of SXSW is worth it for me because that relationship from a business standpoint provides so much value to our company.” Tiffanie Standard also spontaneously mentioned the importance of this unique combination. “I normally expect a lot networking throughout the entire day from the different workshops and forums that you would attend, to even at night time when you are just meeting up in the lobby or just going for drinks, and you never know who you are going to meet. That’s what I like about festivals because all corporate and kind of big wigs are comfortable and in regular clothes, so you never know who you are speaking with.” She continues with: “I think that’s the best thing about festivals, that even though you are kind of calming down at night time you still have the opportunity to meet so many nice people.” Ronald van Berkel also especially values this aspect of South By South West: “In the end it’s all about the music, you are still working and networking at night, but in a fun way.” And Benjamin Sid seems to agree: “It’s just those opportunistic moments where you get invited to something. And often the best relationships are formed over a beer. That’s what SXSW is great for.”

Changing Expectations Respondents talked about the way that their expectations change each year, and how they would like South By South West to evolve with them. For example Brandon Brown, who feels like compared to the first years of visiting the festival, now he already possesses a lot of the information that is being offered. The level of the sessions are not challenging enough anymore for him. “Yes, definitely. I feel like my expectations have changed as I matured” So he feels like his role within the festival has changes as well, where he feels he could be able to share his knowledge with others at this moment. He states: “I know that I could maybe help people who have the expectations that I had maybe 5 or 6 years ago. Leave with some new knowledge by being the one who is sharing that knowledge.” Tiffanie Stanard also alters her expectations after having visited the festival twice, as a speaker. She states: “I think it’s always when you are a new company there and you have been a couple of times, it’s best when you bring people to you versus you going to them. Because it’s great when you get to meet people but to really control your messaging and your brand at a big conference it’s always best for you to plan something vs. you just kind of, you know, randomly speaking to people.” The changing expectations are personal to each respondent. Visiting South By South West multiple years in a row goes hand in hand with some personal growth. Brandon Brown also talks about how attending SXSW has changed for him over the years. “My schedule is a lot looser but as fruitful generally. Whereas in the beginning you are trying to plan everything out, which exhausts you.The first couple of years I went to the panels, but now not as much and it has become more about the music. The first couple of years I attended the panels and SXSW is an innovation festival and you want to hear things first at SXSW, but obviously everything is already available at the press of a button all the time.” Ronald van Berkel approaches a more general mindset and states the following: “You have to be different in the sense that you have to be better each year. You are showcasing that what is happening in the industry at that moment which means that you have to be the hippest, newest, coolest innovative, music etc.” Specialized Network Events Something that the respondents definitely want are specialized networking events. Tiffanie Stanard specifically suggests South By South West the following: “I guess, is the only thing when you are going to a festival you wanna try to make as much as possible, you want to meet as many people as possible. So maybe figure out ways to do more specialized networking events for certain types of people that are looking for certain types of things. And hosting certain types of happy hours.” And Albert Collell agrees: “It’s important that the festival promotes networking, activities etc.to meet the relevant people.” Benjamin Sid talks about his experience at a industry Barbecue during the festival in 2016. “I think to have pre arranged gatherings, I think that is a really nice idea. Because you can often know someone’s name, but you can’t put a face to a name. So it maybe accelerates the meeting process. You are thrown into a situation and it’s helping business. I think in the end of the day, putting people together is aiding business. So I think it was helpful, when I was at that specific meetup, I did meet people from around the UK festivals who I hadn’t met 57

before and we are still in touch now and when we are at showcases and industry things, you know we look out for each other when we meet up. So that’s a valuable thing. So it’s more of a kind of relaxed basis, you know it’s some hospitality and a BBQ, and it’s good. Yea it’s great. I would always see the benefits and positive side of that.”In addition to that he said: “I think having these industry related meetups is good for everyone. There is knowledge to be shared and far easier to share knowledge in person. That’s how I find it, rather than tapping on a device. I would much rather speak to someone face to face. And so much gets lost in the digital world too.”

4.4 Summary As can be seen above, a lot of information was shared about the wants and needs of South By South West’s target group. Information was also shared about the influence of previous experiences and about the information that the Premium Clients already possessed. The key values that were established with the semi-structured and in depth interviews are respectively: Experience, Music, Party, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects.

5. Conclusions This chapter discusses the findings of the research by connecting all of the aspects of the Conceptual Model together. These conclusions are supported by the theories from the Theoretical Framework as well as by the data from preliminary research about the Expectation Economy and Trend Research. (Appendix 4) By doing this meaning is given to the results from the previous chapter. 5.1 The Problem Statement 5.2.1 The Conclusions 5.2.2 The Conceptual Model Explained 5.2.3 The Research Question Answered 5.3 Critical Discussion

5.1 Problem Statement South by South West is an Austin based multi day event that focuses on Film, Interactive and Music. Their goal is to connect industry professionals and creatives, and help them achieve their goals. Their vision is to be the most indispensable global platform for helping creative people share ideas and achieve their goals. “365 days a year we connect people to each other, developing events and content that celebrate the inter-relatedness of current and emerging topics.” - (SXSW, 2015) In order to do so it is vital for South By South West to keep up with their Premium Clients’ constantly changing expectations, which include their personal needs, wants and goals. Keeping up with your consumer’s constantly changing expectation in the current economy has proven to be a substantial problem for festivals and organizations. Previous studies have also stressed the importance of getting a grip on your customer’s expectations for multiple reasons. In addition, I suspected a possible GAP between what SXSW’s consumers expected and what they perceived when attending the conference. Which resulted in the conduction of a pilot study. This GAP was indeed established. And this GAP that was established between the expected service and perceived service of SXSW’s attendants in the pilot study, further supported the formation of this research. A knowledge goal and a practical goal were formed. The knowledge goal of this research was constructed as follows: The knowledge that is developed with this research is about the complex construct of Customer Expectations and about which factors influence those Customer Expectations for SXSW’s premium clients. The focus is on really getting an insight into what these Customer Expectations are, and which factors play a relevant part when it comes to the formation of the expectations of SXSW’s Premium Clients.

5.2.1 The Conclusions The data gained with this research has shown that several factors influence the Customer Expectations of South By South West’s premium clients, and some of them more so than others. It has also shown that not all factors that are used in existing models from literature, are relevant for South By South West. The main factors are visualized in the Conceptual Model that was designed for this study. The conclusion in this chapter has been formed based on the values linked to the factors that influence the Customer Expectations of South By South West’s Premium Clients. However the actual effect of these factors on Customer Expectations is not measured. It’s merely a guideline for South By South West to get a grip on their Premium Clients’ constantly changing expectations.The focus is on really getting that insight into what these Customer Expectations are, and which factors play a relevant part when it comes to the formation of expectations for SXSW’s Premium Clients, as described in the knowledge goal of this research. The central Research Question is answered here:

Which factors influence the Customer Expectations of South By South West’s Premium Clients? The Central Research question is answered by elaborating on every aspect of the Conceptual Model step by step. Because all of these different aspects together form the answer to the central research question. They also realize the Knowledge Goal of this research. As previously mentioned, the Conceptual Model is heavily inspired on the Service Quality Gaps Model by Zeithalm, Parasuraman & Berry (1990) and its theories. The different components of the Conceptual Model are all discussed separately below.

5.2.2 The Conceptual Model Explained

1. 2. 3. 4. 5. 6. 7. 8.

Word of Mouth Communication Personal Needs Premium Clients Past Experience Premium Clients External Communication (Expectation Transfer) Expected Service Perceived Service Customer Expectations Premium Clients Community

1. Word of Mouth Communication The influence of actual Word of Mouth Communication is not easy to measure. And for this research, the factor that is looked at closely in regards to word of mouth communication is the presence of very important and relevant industry people at South By South West. Basically all the important industry people can be found in Austin, Texas during South By South West. And individuals whose line of business aligns with the offerings of South By South West, are often already familiar with the festival. Especially within the United States, but also internationally. When talking about the Premium Clients of SXSW, a lot of 61

individuals that work in the festival, music or event industry have definitely heard of South By South West before. One of South By South West’s strengths is that, even in an economy with an abundance of festivals and events, there is no event like South By South West. And the information that the target group might receive from others, most likely is in regards to this fact. Which doesn’t mean that the nature of SXSW would be clear, but all you know is that you just have to be there. A few quotes confirming these beliefs are shown below, although even more quotes can be found in the attachments. “It has become this conference that you have to be at if you are in this business” - Ricky Berrin (2017) “It’s just a unique flavor. Different. Different people. Different kind of events here. Just a lot of great stuff.”- David Mullet (2017) “Because our clients are spread out among different cities and states and we are based in Nashville. You know, we are not in the same cities that they are, so when you can come together at an event that’s relevant for both sides it’s kind of a win-win for everyone” Brandon Brown (2017) “Spending time with a client, agency or relationship that I can accomplish as soon as I show up in Austin for the Conference.” - Brandon Brown (2017) “What makes a festival really good is the fact that other people from the industry are attending as well and a relevant line-up” - Ronald van Berkel (2017) “It’s all about meeting people, and strengthening relationships, so networking. With both British agents, managers, labels and everyone that travels over there. It’s like strange because you can based in the UK, and obviously it’s a HUB for the industry, but you don’t meet everyone. But everyone will travel to somewhere because you are just kind of in this industry.” - Benjamin Sid (2017) “It’s such a kind of personable industry, music ,it’s all about relationships.” - Benjamin Sid (2017) “What I realize is that for me , if all I did was hang out with our main representative at Live Nation, that alone is worth the price for me because he “well he has been a speaker on a panel” but that facetime with him and the value of that relationship, which just now is a very personal friendship, is priceless for a company. And whether or not he is a client, I would still want to be friends with him. But that week of nonstop quality time, attending panels together, attending concerts and the extra events. And you know just everything that we experience in Austin because of SXSW is worth it for me because that relationship from a business standpoint provides so much value to our company. - Brandon Brown (2017) The factors mentioned above definitely ramp up Customer Expectations in regards to the network opportunities at South By South West. It also makes SXSW unique and not like any other festival. As seen in the interviews, the respondents already have a lot expectations 62

about the music, sessions and quality of SXSW’s offerings. These factors are taken for granted, and not too much time is spent on questioning the quality of these for a festival of SXSW’s nature. But the concentration of relevant industry people at SXSW is so powerful that this is what people communicate to each other. You just have to be there! To conclude, it seems like Word of Mouth communication has created quite a buzz about the network opportunities at SXSW. 2. Personal Needs Premium Clients As stated in the Theoretical Framework, Berry, et al (2002) and Lewis & Heakel (1999) both state that the Customer Experience is the customers’ internal and subjective response to a service. It’s the ‘take-away’ impression or perception created during the process of using, maintaining, and disposing of a product or service (Berry, et al., 2002; Lewis & Heakel, 1999). Paul (2012), Hsiehy & Yuan (2010) state that Customer Expectations are defined as the customer’s wants, of that what a company should offer.( Paul, 2012; Hsiehy & Yuan,2010 ). The authors of Trend Driven Innovation also acknowledge the importance and influence of personal needs on Customer Expectations or Expected Service. (Appendix 4, Mattin 2017) This was confirmed by the outcomings of this research. In order to establish the wants and needs of SXSW’s Premium Clients interviews were conducted. The factors that have been established during the analyzation of the interviews as important values for SXSW´s Premium Client’s Customer Expectations are respectively; Experience, Music, Partying, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects.

Several of these factors are similar to the basic human needs, wants and desires as established by (Appendix 4 -Mason, Mattin, Luthy & Dumitrescu, 2015). SXSW Premium Clients

Trend Driven Innovation

Experience Music

Entertainment

Partying

Social Interaction

Connections

Connection

Self Promotion

Social Status, Recognition

Innovation

Creativity

Culture

Identity

Self Improvement

Learning

Self Improvement 63

Inspiration

Creativity

Authenticity

Honesty

Fun

Excitement

Organization

Self Improvement/ Security

Price

Fairness

Quality Physical Aspects

All of these wants, needs and expectations are considered as valuable factors to identify the constantly changing Customer Expectations. These factors have been established based on an interview method where keywords that were mentioned during the in-depth interviews were acknowledged. Several values or keywords were used in a different context. These were then compared to each other. Factors that were mentioned by all respondents were interpreted as more important. For that reason the focus of the results of these interviews is on those factors or values. After the analyzation process, the following conclusions can be made based on interpretations. All the respondents have different backgrounds and work in different industries which makes it difficult to say the same about each individual and generalize them. All of them have different main motivations for attending South by South West, different tastes in music etc. What they have in common however is that fact that attending South by South West is not just for pleasure. It’s business related, whether that is while working for a company or for self promotion, going to South By South West comes with a set of goals for each individual. The value or factor that was mentioned by all of the respondents, and often labeled as being the most important is networking. Which is one of SXSW’s most valuable assets. The fact that everyone attends the festival to make new connections or to strengthen existing ones supports this valuable and influential factor. The way in which a consumer is able to network, meet new people and fulfill that personal need at South By South West is most likely one of the biggest influencers of the premium client’s expectations. Other wants, needs or goals that really stood out were the complete Experience, having a good Line-up, Self-Improvement and the unique combination of Business and Downtime. These factors are also acknowledged by the writers from Trend Driven Innovation, separately from this research. 3. Past Experience Premium Clients The effects of past experiences on Customer Expectations are also researched with the in-depth interviews. Respondents discuss the effect of previous visits to SXSW on their expectations of the festival each year. The effect of past experiences on the expected service and perceived service is also mentioned in the Theoretical Framework. Which states 64

that the construct of past experiences is one of the main influencers of Customer Expectations. (Anderson & Sullivan, 1993; Robledo, 2001) Several Respondents state that the attendance of previous editions of South By South West, as well as other festivals have altered their expectations of SXSW, or of what they feel South by South West should offer. A few of those statements are portrayed below: “I feel like my expectations have changed as I matured. From a business standpoint but also from a personal standpoint, as I become more “sort of” an expert in our industry. So my expectations the first one or two years that I attended were more like trying to soak up as much knowledge as possible and then maybe a little networking. Whereas now, because I feel like I have a lot of the knowledge that I need to efficiently run our company and provide a high level of service to our clients, now that expectation has shifted more towards future business needs.” - Brandon Brown (2017) Brandon Brown also stated: “I know that I could maybe help people who have the expectations that I had maybe 5 or 6 years ago. Have them leave with some new knowledge by being the one who is sharing that knowledge.” - Brandon Brown (2017) This shows that as the consumer matures over the years, so do their expectations. Brandon Brown also implies that attendees who haven’t yet attended SXSW, or have attended the festival only once or twice might have the same expectations as he did when he went to SXSW for the first time. He also implies that the offerings should mature with the attendees. There should be a wide selection of panels and sessions for each level of maturity, such as beginner, advanced, superior etc. Something else that can be said about the other is respondents is that they feel like each year something new and challenging should be added to the Festival’s offerings. Ronald van Berkel, Benjamin Sid (2017) “You have to be different in the sense that you have to be better each year. You are showcasing that is happening in the industry at that moment which means that you have to be the hippest, newest, coolest innovative, music etc.” - Ronald van Berkel (2017) “My schedule is a lot looser but as fruitful generally. Whereas in the beginning you are trying to plan everything out, which exhausts you.The first couple of years I went to the panels, but now not as much and it has become more about the music. The first couple of years I attended the panels and SXSW is an innovation festival and you want to hear things first at SXSW, but obviously everything is already available at the press of a button all the time.” Benjamin Sid (2017) Having visited other festivals also seems to have had an effect on the expectations of SXSW’s Premium Clients, as Alberto Milagro stated: “So each year my expectations change based on what other festivals do and offer.” - Alberto Milagro (2017) 65

All of these factors make it reasonable to say that the determinant of Past Experiences indeed can be interpreted as a factor that influences the Expectations of South By South West’s Premium Clients. 6. External Communications to Premium Clients Different types of Premium Clients obviously have different types of expectations, values and so on. So even when the target group is already narrowed down and focused on premium business professionals, it is difficult to keep everyone's needs met. The more important however it is, to get a grip on everyone’s needs and expectations. This will allow decisions to be made consciously. Keeping in mind the needs that it will fulfill and especially whose needs and expectations, it will hopefully meet and surpass them. Keeping this in mind is especially important because each consumer is different and also has different wants, needs and goals. Besides that they also have a different group of people around them, that might share their opinions on South By South West with them. Each individual’s set of previous experiences is also unique. The Expectation Transfer, when (other) innovators set new customer expectations and change what consumers will expect, is also personal but should definitely be taken into consideration when trying to determine the Customer Expectations. (Appendix 4) The previous chapters portray a lot of examples of respondents stating the influence of other innovators. Which consists of other companies and festivals in this specific research. The following list shows the other festivals that respondents were comparing South By South West to. What could be interpreted from the data gained is that these innovators most likely influence the Customer Expectations of South By South West’s Premium Clients. The factor of external communication, or better yet the Expectation Transfer should for that reason definitely be taken into consideration when looking looking at the formation of Customer Expectations among SXSW’s target group. Festival

Stated By Respondent

Sundance

3-5

Ultra Miami

Amsterdam Dance Event

2-8

Art Basel Miami

VR Conferences San Francisco, LA, NYC

The Great Escape

8 - 11

Primavera Sound

Sonar

IMS

Coachella

9 66

Glastonbury

5. Expected Service Expected Service in this research is seen as THAT, what a consumer expects a service to offer them as well as THAT what a consumer expects the experience to be like. As can be seen in the value set used to code the interviews. The interpretation of the data shows that both the Expected and Perceived Service of SXSW’s Premium Clients are influenced by the following factors; Word of Mouth Communication, Personal Needs of the Premium Clients, Past Experiences of the Premium Clients and the External Communication to the Premium Clients. 6. Perceived Service Perceived Service it THAT what a consumer experiences. Customer experience is the customers’ internal and subjective response to a service. It’s the ‘take-away’ impression or perception created during the process of using, maintaining, and disposing of a product or service (Berry, et al., 2002; Lewis & Heakel, 1999) As the conceptual model shows, both the expected service as well as the perceived service form the Premium Client’s Customer Expectation. When this is a positive, and when the customer is left feeling satisfied, South By South West can get closer to building their community. And by doing this also inspiring their Premium Clients to keep coming back to their conference. 7. Customer Expectations Premium Clients A few things that can be taken away from the in-depth semi-structured interviews is that it seems that customer expectations mature and evolve on different levels. That goes for the changing expectations in regards to visiting the same festival each year as well. So South By South West’s offerings compared to their offerings of the previous year. It seems that the respondents expect that the company keeps increasing the quality year by year, as several respondents confirm. This is also stated by Mattin et al. (2015). Another way that the customer expectations evolve is based on the premium client’s personal growth and development. “I feel like my expectations have changed as I matured. From a business standpoint but also from a personal standpoint, as I become more “sort of” an expert in our industry. ” Brandon Brown 8. Community The way that the Conceptual Model is interpreted is that when all of the factors that together form the Customer Expectation, are positive, it will lead to community building. When the expectations of SXSW’s Premium Client’s are met of even exceeded, it will hopefully trigger them to come back to the conference repeatedly. Where they will be welcomed year after year as part of the community that South By South West strives to build. This community is 67

already experiences by some of the respondents. As Ryan Lopez stated in regards to the community: “The one thing I think that SXSW does is bring a culture of just Austin, and the culture of the people it’s like everyone feels like open arms with everything. You go to all these open houses and everyone is just like that. You know it’s just a real big community base.” He even specified a community for artists: “I feel like a lot of people, or even artists that I know that aren’t signed , a lot of people go out there for that opportunity and just build within that artist community. So I think as far as new artists they are always going to have them be attracted to SXSW.”

5.2.3 The Research Question Answered Which factors influence the Customer Expectations of South By South West’s Premium Clients? To summarize and answer the central research question as clearly as possible the following knowledge has been developed by the conduction of this research. And that knowledge that has been developed is the answer of the knowledge goal of this research. The knowledge that will developed with this research is about the complex construct of Customer Expectations and about which factors influence those Customer Expectations for SXSW’s premium clients. Key here is to really get an insight into what these Customer Expectations are, and which factors play a relevant part when it comes to the formation of expectations for SXSW’s Premium Clients. The construct Customer Expectations that is used throughout this research is easily defined as the customer’s wants, of that what a company should offer. The reality is that it consists of multiple factors that form the Customer Expectations together. These factors that influence the formation of the Customer Expectations of South By South Premium Clients are respectively; the personal needs of the Premium Client, the p ast experiences of the Premium Client, the Word of Mouth Communication that reaches the Premium Client and the Expectation Transfer that the Premium Client is exposed to. These factors are then linked to specific values that make up these personal needs. The interpretation of the data gathered from the semi-structured interviews resulted in the identification of the following key values; Experience, Music, Party, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects.

5.3 Discussion This sub chapter discusses the limitations of this study and provides the reader with a critical review of the research. As often is the case with research papers, several limitations have arisen while conducting this research. The Qualitative Research One thing that should be taken into consideration when reading this research, is the way that the data gained with the semi-structured interviews should be interpreted. Given the size of the sample group. The goal is not to generalize the findings of this research for the entire target group, and interpretations are only applicable to South by South West. The sample group was carefully and intentionally formed based on certain requirements that the respondents possessed. For that reason the sample size was limited, which might have an effect on the validity of this research. The way that the sample group was formed, was a selection from a personal network of so-called industry professionals. Those industry professionals fit the requirements of a Premium Client for South by South West. Another thing that was taken into consideration is the methodological analyzation. Which means that the analyzation of the semi-structured interviews was based on the researcherâ&#x20AC;&#x2122;s interpretation of the information, which might create some subjectivity. However by using coding techniques by Boeij (2009), and analyzing all the interviews the same way using the same coding frame, the effects of the limitations are hopefully minimized. To limit data loss, literature and frameworks are used to measure that what needs to be measured. But because there is not one existing models that measured that what needs to be measured for the purpose of this research, limitations apply. Another factor that was taken into consideration with the interpretation process in relation to this, is that due to the different expertise levels of the respondents, some of them were presented with different additional questions. Having different data makes it harder to compare to the other interviews. Keeping in mind that the more a keyword is mentioned, the more meaning was interpreted. But due to the different backgrounds of the subjects, that is made more difficult. The fact that the interviews were held during a certain time, and the findings gained from these interviews are a portrayal of one moment in time, should also be taken into consideration. Repeating this research would increase the reliability of the research. And again, for this research method, one real model that researches all that is needed for this research doesnâ&#x20AC;&#x2122;t exist. This made the interpretations of the findings harder. In regards to the actual semi-structured interviews a few suggestions can be made for future reference. For convenience, and with a bigger budget, the interviews could preferably take place in person rather than on over the phone. The fact that all the interviews took place over the phone was however better for the interpretation of the data.

Factors that were taken into consideration with the interpretation of data Using a model to identify the underlying needs and wants of the consumer is difficult because of the fact that certain aspects were not mentioned might have been because; - 1 The respondents already assume that a certain need/want is already part of a company structure/strategy and addressing this might be considered unnecessary - 2. As stated by the writers of Trend Driven Innovation (Appendix 4), sometimes we need to let the consumer know what they want, before they actually know that they need it. - 3. Literally asking the respondents for their need or certain factors might only result in a â&#x20AC;&#x2039;socially desirable response, thatâ&#x20AC;&#x2122;s why an open structure was used, where respondents were encouraged to speak freely, rather than asking them about certain values. Theoretical Framework Looking back at the research, certain aspects of the Theoretical Framework should also be taken into consideration. In regards to the Service Quality Gaps Model by Zeithalm, Parasuraman & Berry (1990), several other studies and papers have acknowledged the importance of these finding. Of course some limitations were found but the model is generally well received. The Interviews When looking back at the semi-structured interviews, something can be said about the interpretation of the data gained. The interview structure would not need to be repeated every time that South By South West tries to get a grip on the changing expectations of their Premium Clients. The reason for that is that the answers to the research question concern the underlying basic human needs and expectations of their target group. These main factors are not very sensitive to change. They give South By South West an insight and shed light on what they should focus on. Instead SXSW could keep focusing on the Expectations, in order to keep up with new innovations and trends.

6. Advice Now that the Customer Expectations of South by South West’s Premium Clients have been identified, this chapter will translate these findings and the answer of the Central Research Question into a set of recommendations consisting of a practical advice for South by South West. The results from the interviews and the Expectation Transfer are combined to form the set of recommendations. 6.1 6.1.2 6.1.3 6.1.4 6.1.3 6.2

The Practical Goal Explained The factors of the Conceptual Model Word of Mouth Communication Personal Needs Premium Clients Past Experience Premium Clients Advice

6.1 The Practical Goal Explained This research has shown that several factors and key values influence the constantly changing Customer Expectations of South by South West’s Premium Clients. This chapters strives to provide SXSW with a practical communication advice that responds to the most important key values and pain points. The Practical Research Goal was formulated as follows: The practical goal of this research is to provide South by South West with a set of practical communication advice that is directly implementable, so that SXSW can keep up with the constantly changing Customer Expectations of their Premium Clients and continue to build their community. By doing that, South by South West’s Premium Client’s Expectations can be met, so that the Premium Client community can be strengthened and SXSW gets closer towards reaching their vision of being the most indispensable global platform for helping creative people share ideas and achieve their goals. Key here is to obtain know-how on how to deal with the constantly changing Customer Expectations of SXSW’s premium clients within the current Expectations Economy. (Appendix 4) The previous chapter looked closely at the Conceptual Model and the key values that stood out from the interviews. 6.1.2 The factors of the Conceptual Model The 3 factors of the Conceptual Model leave room for innovation and could create opportunities for South By South West. The factors Word of Mouth Communication, Personal Needs of Premium Clients and Past Experience of Premium Clients are combined with the findings from the External Communication ( Expectation Transfer, Appendix 4) ,the key values and the most important trends from the Trend Canvas to create opportunities.

6.1.3 Word of Mouth Communication As described in the chapter Conclusions, one of South by South West’s biggest strengths is their uniqueness, or better said their USP’s. There is no festival exactly like them, no one that offers the same mix of Film, Music and Interactive combined with the unlimited possibilities to network, which are made easier by the special Austin vibes. Like South by South West states: “In what ways are we unique? This combination of differentiators is vital to the SXSW experience, something that no one else can deliver.” (SXSW, 2015) So yes there is an unlimited amount of festivals and events out there, but there is none quite like SXSW. During the festival there is an abundance of the most important and relevant industry people. This what their strength is, and this is what the Word of Mouth communication should be about. Especially since WOM communication is one of the factors that has been established as a relevant influencer of Customer Expectations. An advice to South by South West here is to to get a grip on those Customer Expectations by communicating their USP’s to their Premium Clients, so by being the festival that you just have to be at, and being the place where you can meet the most important and influential people. “South by South West, you know you just have to be here” To give the WOM- Communication about the presence of literally every important industry person that you have ever wanted to meet a boost, why not give the Premium Clients more to talk about. Obviously it is very hard and unlikely to directly influence the WOMcommunication. The best way to influence it though is by facilitating more network opportunities. And to provide the Premium Clients with more opportunities to meet the best people out there at the best events. Important here is to keep the tone of the meet-ups casual and authentic, which means staying close to those chill Austin vibes. At the same time this means beating one of SXSW’s pitfalls: The danger of SXSW is that a lot of the networking events might as well take place outside of the official SXSW programming. So in order to tackle that problem they need to re-invest time and money in offering better quality, more authentic and super unique networking opportunities. Mind the following: “Often the best relationships are formed over a beer. That’s what SXSW is great for. I think having these industry related meetups is good for everyone. There is knowledge to be shared and it is far easier to share knowledge in person. That’s how I find it, rather than tapping on a device. I would much rather speak to someone face to face. And so much gets lost in the digital world too.” - Benjamin Sid and “It is important that the festival promotes networking, activities etc. to meet the relevant people” - Albert Collell. So provide the Premium Clients with the best opportunities to meet people. Tiffanie Stanard also wishes that SXSW would put even more effort in creating those opportunities: “ Figure out ways to do more specialized networking events for certain types of people that are looking for certain types of things. And hosting certain types of happy hours.”

Creating Network Opportunities A recommendation to positively influence this factor is to provide the Premium Clients with the best network opportunities. A lot of these networking events have started to fall out of SXSW’s reach, which makes them more and more interchangeable and less valuable to their Premium Clients. This is because third parties are hosting these events more and more often. By integrating the STATUS TEST trend (Appendix 4), Premium Clients can receive exclusive invitations to network events by proving their worth. Like for example by completing their profiles on the SXSW app, linking their LinkedIn accounts to their SXSW accounts, and by showing off their strengths and skills. These events would be promoted by South by South West in collaboration with other brands. This is the case, because it is part of their business strategy and the way that they host most events. The interpretation of the data gathered from the in-depth interviews showed the need for this initiative. Additional Concept: Buddy-Up As a response to the complexity of the conference that is South by South West, where first-timers do not know what to expect, are overwhelmed and might need some guidance this concept has been developed and strives to do just that. The idea behind this concept is to provide (first-timers) with the opportunity to link up with other first-timers or more experienced attendees. When acquiring a badge for South by South West, a lot of information is required from the registrant. So signing up for the buddy system can happen simultaneously to registering for SXSW or later by email notification, since the organization already has the email addresses of the registrants at their disposal. Signing up for the buddy system will enter the registrants in an online database where they would be asked to make a profile, add their industry and interests in regards to music and panels. This extra feature could be added to the existing SXSW app. The app would provide the members of the buddy system with suggestions of who to connect with, as well as suggestions of which panels, parties, shows and meet-up the member could go to based on their interests as well as interests and saved events of members with similar interests. This buddy system could also be used to just ask questions to other members or just suggest events through the app. No obligations. It would however only be available for Premium Clients. To tackle even more pain points, this APP can be used for multiple reasons. In this case it could create a solution to some of the Premium Client’s other pain points, such as wasting time waiting in line to get into music venues or sessions. This is where another trend comes in. PERSPECTIVE SHIFTS (parent mega trend is Pricing Pandemonium) (Appendix 4) “Playfully repositioning your product or service in order to offer perspective shifts that shock customers into a radically new appreciation of the value you’re offering.” So instead of valuing “waiting in line” as something negative, sell it to consumers as something positive. Sell waiting in line as very valuable time to network. With the simplicity of adding a feature to the app which enables registrants who are waiting in line at the same venue/location to connect with each other simply by turning on their app. Starting a conversation on the app and then taking it to face to face communication, or just recognizing someone and then walking up to them to have a chat. This way the perspective about 73

waiting in line could be changed from negative into positive and from wasted time into valuable time to network. I mean, what else can you do? As for the specifics of the app, think HAPPN ( a dating app where every time you cross paths with another happn member in real life, their profile shows up on your timeline! On every profile, you can see the number of times you've encountered this person. And if you don't want to see a person on happn anymore, you just have to click on the “X” (Cross button) using GPS locations to connect people to each other, showing a member’s profile with interests, industry and who they would like to connect with. It also has special features for Premium Clients (Selected as Premium Clients by SXSW). Making it possible for them to select the option ALL REGISTRANTS or PREMIUM CLIENTS. This is also where another trend comes in. The Status Test makes them prove their worth to SXSW and will leave them feeling more satisfied. Not only is this useful during South by South West, but it also enables Premium Clients to really connect with each other 365 days a year. Which is part of SXSW’s vision as stated by them: “The vision of SXSW is to be the most indispensable global platform for helping creative people share ideas and achieve their goals. 365 days a year we connect people to each other, developing events and content that celebrate the inter-relatedness of current and emerging topics.” 6.1.4 Personal Needs Premium Clients This subchapter dives in deeper into the Premium Client’s personal needs. And as established in the conclusion of this research, the main wants, needs and goals or “key values” of SXSW’s premium clients are Experience, Music, Partying, Connections, Self Promoting, Innovation, Culture, Self Improvement, Learning, Inspiration, Authenticity, Fun, Organization, Price, Quality and Physical Aspects. By focusing on an important selection of the factors and combining them with current trends and their underlying motivations new opportunities can be created for South By South West. Only a few of these factors will be discussed. Something that applies to today’s consumer and SXSW’s Premium Clients, as stated in Trend-Driven Innovation (Appendix 4): “ As material abundance becomes the norm, the drive to become their highest ideal of themselves becomes the key motivator of behavior.” Which means that making decisions regarding new products, services and experiences becomes inextricably linked to identity and self-improvement on a physical, mental, emotional and spiritual level. So answering to these needs will leave the Premium Client feeling more satisfied and will also motivate change on a personal level. South By South West already spends time focusing on being aware. One of their products is their Me Convention for example, which takes place in Germany. A lot of their programming is also about social subjects. But it doesn’t let the Premium Client leave with a sense of self-improvement.

Advice to South by South West here is to add some level of interactiveness where the Premium Client is asked to participate somehow. Organization Looking at the determinant of organization there seems to be a lot of unused opportunities. Everything is very well arranged at South By South West. But just putting in that little bit of extra effort in some aspects could create a lot of extra value for their Premium Clients. Ronald van Berkel, one of the interview respondents, really noted the importance of organization. Especially for people who work in the same industry, because they know what to look for. He states the following: “What I find really important is hospitality in the broadest sense. I believe just that makes the difference, and that’s also how I have been educated in my field of work. This means providing good information, sending out the right info packages, welcoming people the right way and all of this while not taking people out of their vibe. Just making sure everything is going well. That way, if you end up seeing a band that’s not great, wouldn’t really matter, because those touch points are crucial.” - Ronald van Berkel (2017) He also talks about the importance of really good artist care, in the end it’s all about the details and the care for your Premium Clients. While interning at SXSW I noticed that the important speakers were asked to go check-in for their sessions in the green room, where they were greeted by “young” volunteers. The extra care that they could have provided these Premium Clients with, was missing. The opportunity that arises here is to strengthen SXSW’s identity. This has resulted in a concept for South By South West. Concept: “The People of South By South West” A lot of Premium Clients go about their days during South By South West without encountering any of the people of the organization.They run into a lot of volunteers overseeing everything but that is not the same. Obviously within the music industry a lot of people know each other. And a lot of Premium Clients that work in the festival industry know some people of the organization, but that only concerns a small fraction of the Premium Clients. This concept is all about giving the organization a face and answering to the consumers needs, values and expectations of being exposed to a very good organized event, and being satisfied with the touchpoints that they encounter. This is important especially for the Premium Clients. It makes the Premium Clients feel more appreciated when they are welcomed by a person from the organization, who actually knows who they are, and gives them that extra bit of care. So in order to satisfy the Premium Clients and meet or surpass expectations SXSW’s staff should be assigned to welcoming speakers and Premium Clients. Suggested is to also organize a meetup possibly called “The People of South By South West”, so that the Premium Clients have the chance to connect with the organization, and make the experience more authentic and personal.

6.1.5 Past Experience Premium Clients The interpretation of the results of this research showed that the past experience of Premium Clients definitely influences the Premium Client’s Expectations. One of the factors that was discussed in the conclusion was that, as the consumer matures over the years so do their expectations. The panels should therefore still attract people who have already visited the festival multiple times The level of the panels should still challenge and entice them. The way this could be done is by combining this “problem” with a trend from the trend canvas. Status Test is a trend that was predicted for 2016, and which is expected to live a long life. 1- Status Tests Status Tests have proven themselves in 2016, and are expected to grow more this year, and the ones to come. The Theoretical Framework discusses the trend in more detail. Parent mega-trend:status seekers — The relentless, often subconscious, yet ever-present force that underpins almost all consumer behaviour. STATUS TESTS aren't about setting sky-high prices or limiting distribution, they're about giving customers a platform to prove themselves. Do it well and they'll feel satisfied and grateful. So in order to have more satisfied, grateful and challenged Premium Clients , STATUS TESTS are recommended. Offering an array of panels based on the knowledge of the consumers, means that they have to prove themselves in order to attend the most exclusive panels. The more advanced a panel is, the more should be asked of the Premium Clients. So for a very advanced panel with for example a big shot who works for “Apple” or a big Artist Manager, Artist, Actor etc, make the consumers prove their worth by sharing their goals and values with SXSW, sending in questions or sharing their knowledge on the subject prior to the actual session/panel. This way South By South West is providing their customers with a platform to prove themselves. And where all of their attendees can attend panels at their level of expertise. At the same time this would solve another problem that SXSW is dealing with, the fact that people all tend to go to the same panels, have to wait in line for hours and then end up not getting in.

6.2 Advice So to summarize, the practical goal of this research is to provide South By South West with a set of practical communication advice that is directly implementable so that SXSW can keep up with the constantly changing Customer Expectations of their Premium Clients and continue to build their community. The subchapters of 6.1, dive deeper into that set of recommendations. The advice for South By South West is to implement that set of recommendations to their best efforts. Besides that it is recommended that South By South West uses the trend canvas and the key values that were established with this research for future use and the creation of creative concepts to keep meeting their Premium Client’s constantly changing expectation. A list of pain point that South By South West could focus on is discussed below. 6.2.1 Opportunities Some relevant pain points that were established during this research are shared below. By sharing these pain points South By South West has a “starting kit” of relevant factors, pain points and relevant trends that they can start with. And which they could then use to strengthen their community of Premium Clients. -

Communication; there was a lot of unclarity about the offerings. It could be very overwhelming, and respondents stated that this has made them miss out on a lot of content based on the mere fact that they just didn’t know about it at the time. Waiting in line was a real problem for a lot of attendees, especially if they ended up not getting in. An opportunity for SXSW could be using Artificial Intelligence AI of the trend Beneficial Intelligence. Using AI to anticipate the number of attendees per panel could really help keep a lot of their Premium Clients more satisfied. This anticipation could be made by using AI to track how many people have saved a specific session on their account or by having them check a box “attending”. And then think about notifications being sent through the app about the expected and maximum amount of attendees. So solving a problem by looking at tech through the lens of basic human needs to make their lives easier. Also, offering the attendees who couldn’t attend the panels that they really wanted to see an exclusive link with the video of the panel, would probably make them feel better. Too much content, and you can’t go to everything so offering Premium Members access to online content and video material of the sessions.

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