An Analysis for Promoting the Use of Food and Beverage Outlets in Movie Theaters Based on the Latent Class Logit Model

Abstract

The number of movie theater visitors has not increased despite the increased number of movies and theaters for many reasons, including the development of video content. Consequently, considering measures for increasing the sum of money spent by visitors through marketing initiatives aimed at theatre sustainability has become necessary. Theater income comprises four main elements: tickets, advertising, movie-related products, and food and beverage income. This study aims to develop measures for increasing revenue from food and beverage sales, which does not depend on the movie itself. Specifically, we constructed an explanatory model based on the logit model to explain how the frequency of usage of food and beverage outlets was related to the satisfaction of each element of a theater experience using a questionnaire. However, the simple logit model was insufficient for explaining this relationship. Consequently, we applied the logit model considering the latent classes and identified factors increasing the number of food and beverage outlet users for each latent class. Moreover, we analyzed real-world data and demonstrated the effectiveness of our analysis.