Marketing Challenges and Strategic Responses of Art Galleries

Abstract

This study introduces and empirically validates the Structural Marketing Vulnerability Model (SMVM), integrating resource-based theory, dynamic capabilities, institutional theory, and legitimacy theory. Using an explanatory sequential mixed-methods design, we surveyed 57 respondents across 19 art galleries in Baguio City, Philippines, and complemented quantitative findings with qualitative interviews. Exploratory factor analysis identified five critical dimensions of vulnerability—digital capability deficit, financial resource constraint, institutional support limitation, market fragmentation, and legitimacy exposure—explaining 72.4% of variance in marketing challenges. Confirmatory factor analysis confirmed strong reliability and validity, while structural equation modeling demonstrated that marketing vulnerability accounted for 68% of variance and mediated 54% of differences in sustainability outlook.

Results highlight that digital capability deficits are the most prominent drivers of vulnerability, followed by financial and institutional constraints. Market fragmentation and legitimacy exposure further exacerbate sustainability risks by limiting demand reliability and stakeholder recognition.