Understanding preferences for motion pictures

Of interest in the consumer behavior field are the drivers of experiential and aesthetic consumption. This paper considers these questions in the context of the motion picture industry. Most motion picture industry studies use secondary data to elucidate a relationship between movie attributes (genre, star power, critical reviews, distribution strategy, etc.) and box-office revenues. The study gathers primary data from 225 survey respondents in New Zealand to further understand the factors influencing the purchase decision-making process of movie-going consumers. The study uses a factor-analytic approach to map the different genres in attribute space, and to understand the drivers of choice. Overall, the results show genre, movies based on true stories, critical reviews, word-of-mouth, country of origin, pricing strategy as well as star and director power significantly impact consumers' movie choices.     

When should star power and eWOM be responsible for the box office performance? - An empirical study based on signaling theory

Information asymmetry universally exists in the market transactions. In the movie industry, consumers usually have limited access to quality information before they actually watch the movie, which increases the difficulty of purchase decision. Quality signaling is regarded as an effective solution for information asymmetry. Drawing upon the signaling theory, this study identifies the two types of signals, namely internal signals (i.e., actor/actress power and director power) and external signals (i.e., eWOM volume and eWOM valence). We further empirically investigate how the two types of signals influence the box office performance in different time periods of the movie's theatrical running (i.e., opening week and later-run weeks). The moderating effect of the signaling environment (i.e., number of ongoing movies in the same period) on the relationship between the signals and box office performance is also examined. Analyzing the data obtained from 80 Chinese movies, this study finds that all signals except eWOM valence positively influence box office performance. Internal signals are instrumental in enhancing box office performance during the opening week, whereas external signal (only eWOM volume) is more influential in boosting box office performance in the later-run weeks. Our results also reveal that the signaling environment can augment the positive effect of internal signals on box office performance. Based on these findings, both theoretical and managerial implications are discussed for researchers and practitioners in establishing ways to produce, distribute and promote movies.     

Consumer evaluations of movies on the basis of critics' judgments

Moviegoers commonly use film critics as information sources. This article proposes that consumers engage in a causal analysis of the reasons behind critics' judgments and recommendations about new movies before making their own evaluations. An experimental study was conducted where critic's style, critic's predisposition toward the film director, degree of agreement between the critic's judgment and that of other critics, reputation of the critic, reputation of the film director, and critic's judgment direction were manipulated in a mixed within‐subjects factorial design. A summary movie review was constructed for each condition of the factorial design. Viewer's movie evaluations were assessed with the use of four evaluative bipolar scales. Three of the five research hypotheses were fully supported. Consistent with the predictions of attribution theory, it was found that consumers' evaluations of a new movie are more likely to follow the judgment of a film critic when this judgment does not conform to the critic's style (H1), when the judgment is inconsistent with the critic's predisposition toward the film director (H2) and when other critics' judgments show favorable consensus (H3). The other two research hypotheses were partially supported. The impact of the film director's reputation on consumer evaluations (H5) was significant only when the movie reviews were positive, whereas the impact of the critic's reputation (H4) was significant only in the case of negative reviews. The results are interpreted within the framework of attribution theory. © 1999 John Wiley & Sons, Inc.     

Star power in the eye of the beholder: A study of the influence of stars in the movie industry

Organizations employ various risk-mitigation strategies to cope with the uncertainty in marketing new products. In the motion picture industry, an important strategy is to cast star actors and actresses in movies. The ultimate box-office success, however, depends on multiple stakeholders involved with financing, making, distributing, and watching the movie. In pursuing different goals and interests, the stakeholders may look for different aspects of star power to mitigate their own risk. This paper examines how the influence of stars varies across key stakeholders in the movie market. The results show that, in general, stars have a greater impact on the stakeholders involved in the earlier stages of movie development and exhibition (where the risks are greater) than on those in later stages. Movie project financiers and exhibitors are strongly and directly influenced by star power, but news media and movie audiences are influenced less and only indirectly. Situated at the early stage of the movie “value chain,” the financiers are most concerned with stars’ past box-office performance. Exhibitors, however, are influenced by the “match” between a star’s genre participation history and the genre of a specific movie. By contrast, news media and movie audiences are influenced indirectly through the stars’ impact on earlier stakeholders and their decisions. The findings shed light on the value of employing star elements in new products, the marketing of stars, and movie promotion strategies.     

Learning to export from neighbors

This paper studies how learning from neighboring firms affects new exporters' performance. We develop a statistical decision model in which a firm updates its prior belief about demand in a foreign market based on several factors, including the number of neighbors currently selling there, the level and heterogeneity of their export sales, and the firm's own prior knowledge about the market. A positive signal about demand inferred from neighbors' export performance raises the firm's probability of entry and initial sales in the market but, conditional on survival, lowers its post-entry growth. These learning effects are stronger when there are more neighbors to learn from or when the firm is less familiar with the market. We find supporting evidence for the main predictions of the model from transaction-level data for all Chinese exporters over the 2000-2006 period. Our findings are robust to controlling for firms' supply shocks, countries' demand shocks, and city-country fixed effects.     

Delight the experts,but never dissatisfy your customers! A multi-category study on the effects of online review source on intention to buy a new product

Online reviews are a pervasive form of electronic word-of-mouth (eWOM) that potentially accelerate—or slow down—the diffusion of recently launched services in the marketplace. While empirical research largely supports the effects of online reviews on attitudinal and behavioral outcomes, less is known about the impact the source of the review—i.e., if it comes from a peer consumer or an expert—has on the recipient. Two experiments that combine reviewer- (expert, consumer), service type- (mobile package, restaurant, car repair), consumer- (level of general innovativeness), and review-related (positive, negative) characteristics reveal a challenging interaction between the review’s source and its valence: while—compared to an established baseline—a positive expert review seems more effective in increasing the recipient's intention to purchase than a review by a peer consumer, a negative consumer review lowers the recipient's intentions to a larger extent than a negative expert review. We further find effects of the consumer's innovativeness and the service category across the experiments. Our research contributes to the topical and increasing body of empirical research on the effects of involved characteristics within online reviews across several product types.     

Investigating the effect of quality of grammar and mechanics (QGAM) in online reviews: The mediating role of reviewer crediblity

Grammar and mechanics are important components of written communication and provide signals of credibility. Although past research has documented general effects of grammar and mechanics, to date, the influence of quality of grammar and mechanics (QGAM) of online reviews remains largely unexamined. Through the lens of ELM, the present research examines QGAM of a review as a peripheral cue influencing the perceived credibility of a reviewer, finding that reviews with high QGAM have higher perceived credibility and exert a stronger influence on purchase intentions. Meanwhile, reviews with low QGAM are not as credible, influencing purchase intentions less. Product type, review length, and review valence moderate these influences, such that QGAM is more important for reviews of experience goods and reviews of shorter lengths. Further, reviewer credibility fully mediates positive reviews but does not mediate negative reviews. Implications, limitations, and future research directions are discussed.     

User Reviews Variance,Critic Reviews Variance,and Product Sales: An Exploration of Customer Breadth and Depth Effects

Online user reviews constitute a new element of the marketing communication mix that can significantly affect product sales. A general consensus holds that positive user reviews valence benefits product sales, yet the effect of variance is less intuitive and current findings are mixed. We propose that user reviews variance actually constitutes a double-edged sword that can either hurt or help product sales, depending on the variance of critic reviews and other quality signals. Three complementary studies in multiple industries (movies, digital cameras, and books) with multiple methods (secondary data analysis and behavioral experiment) reveal three key insights in this setting. First, after recognizing a high variance in user reviews, many potential buyers may simply exclude the focal product from their consideration sets for fear that it does not match their needs and preferences, which is termed the customer breadth effect. Second, high user reviews variance, in combination with high critic reviews variance, can elicit a sense of uniqueness and thus enhance purchase intentions of some consumers, which is termed the customer depth effect. Third, quality signals (e.g., product cost and product extension) can strengthen the positive customer depth effect. The overall effects of user reviews variance, therefore, can be negative, insignificant, or even positive. These findings have important theoretical and managerial implications.     

The impact of text valence,star rating and rated usefulness in online reviews

The influence of text valence, star rating and rated usefulness of online reviews on review readers’ impression of the review and their positive word-of-mouth intention is tested in an experimental study (n = 431). In addition, we investigate the moderating role of review readers’ product category involvement and susceptibility to interpersonal influence on the effect of the three review components. The influence of review text valence on evaluative responses is stronger for more highly involved people and for people who are more susceptible to interpersonal influence. The influence of rated review usefulness on review impression is marginally stronger for people who are more susceptible to interpersonal influence. Star ratings do not influence evaluative responses, and their effect is not moderated by either involvement or susceptibility.     

The Differential Effects of Online Word-of-Mouth and Critics' Reviews on Pre-release Movie Evaluation

In this paper, we examine the persuasive influences of online user comments (or word-of-mouth) and of the reviews by movie critics on moviegoers' evaluation of to-be-released movies. Two distinctive features of this study are: (1) moviegoers are considered to be heterogeneous in their movie going frequency and (2) word-of-mouth and critical reviews are concurrently available, and the views expressed in the two messages are in conflict. Using three experiments with natural stimuli, we find that the persuasive effect of online word-of-mouth is stronger on infrequent than on frequent moviegoers, especially when it is negative (Study 1). The effect of negative word-of-mouth on infrequent moviegoers is enduring even in the presence of positive reviews by movie critics (Study 2). The relative influence of word-of-mouth and critical reviews are asymmetric with infrequent moviegoers more influenced by word-of-mouth, while frequent moviegoers more influenced by the reviews (Study 3). We validate this source–segment alignment through secondary data analysis.     

The effects of eWOM characteristics on consumer ratings: evidence from TripAdvisor.com

Abstract

Given the rise of online review communities, the management of consumer ratings has gained much attention in the recent years. In this study, we use data from Tripadvisor.com and examine the number of stars that a review receives. Specifically, we address how a star rating is determined by the components in the focal review as well as the preceding reviews of other consumers. Our qualitative and quantitative analyses provide interesting findings as follows. A star rating has a positive relationship with the focal review’s valence. That is, the more positive a review is, the greater number of stars a review receives. The reviews of other consumers also play a role in determining a star rating of the focal review suggesting social influence among consumers. Interestingly, a review with lengthy content leads to a lower star rating only when using smartphones. We conclude with theoretical and managerial implications.     

Consumers' identification and beyond: Attraction,reverence, and escapism in the evaluation of films

Secondary real‐world data on evaluations by the general public of the 440 movies ever nominated for the Best Picture Academy Award are used to explore the role of female/male consumers' identification with the leading actress/actor in determining judgments of motion picture excellence. Beyond identification, age‐ and gender‐based similarities with other movie components—namely, the leading opposite‐gender star, the director, and the setting—underlie other potential psychological mechanisms relevant to explaining the evaluations of films. Contrary to expectations, the findings indicate that identification with the same‐gender, same‐age leading star plays no signifi‐cant role. Conversely, younger opposite‐gender leading stars, older directors, and unfamiliar temporal settings contribute to favorable evaluations—thereby supporting the hypotheses of romantic attraction as a source of star power; reverence toward more mature directors; and an eagerness to escape from ordinary life, respectively. © 2010 Wiley Periodicals, Inc.     

A Study of Marketing Standardization and Performance of Australian,Japanese, and U.S. Firms

Given the continued importance of the globalization era, there is an ever-increasing interest in the correlation between marketing mix standardization and the firm's market performance. This issue focuses on the firm's pursuit of global markets in an environment conditional to internal and external market factors. The research examines factors on multinational firm's marketing mix (program and process marketing) from Australia, Japan, and the United States and the impact on market performance. The results are mixed providing some support for marketing standardization and profit performance.     

Emotional and the normative aspects of customers’ reviews

The goal of the current research is to investigate the link between the emotional aspects of hotel and travel organization customers' reviews and their normative (e.g., star rating) rankings. After filtering, the Yelp dataset generated 3,47,803 hotel and travel company reviews. Following the purification of user reviews, we used an unsupervised machine learning technique-based NRC Emotion Lexicon to study the relationships between various emotional aspects of reviews and their normative values (e.g., star rating) for the review. Customers express different sorts of feelings for different types of emotional aspects, forcing them to assign different stars, according to the study's findings. The study is the first to use a lexicon-based unsupervised learning approach to look into the emotional aspects of hotel and travel organization reviews and associated normative (e.g., star rating) rankings.     

Development of methodology for classification of user experience (UX) in online customer review

In e-commerce, customer feedback has become an essential source of insight into a product or service's user experience (UX). The study of UX helps to integrate customers' potential needs into the product's design. Because customer reviews in e-commerce are not structured and categorized, it is necessary to analyze UX based on customer opinions systematically. This study tries to structure UX in a product's positive/negative context through a neural network-based self-organizing map (SOM). As a result of analyzing 10,482 reviews on wireless earbuds in BestBuy, an electronic product e-commerce platform, it was confirmed that it is a suitable method for categorizing user experiences between reviews and deriving important factors. In particular, the difference in core UX elements by positive/negative context of the product was verified based on the star rating. The results of this study are expected to contribute to product improvement and business improvement that reflect customer needs by companies or designers who design products for end-users.     

Content analysis of fake consumer reviews by survey-based text categorization

As the influence of online consumer reviews grows, deceptive reviews are a worsening problem, betraying consumers' trust in reviews by pretending to be authentic and informative. This research identifies factors that can separate deceptive reviews from genuine ones. First, we create a novel means of detection by contrasting authentic versus fake word patterns specific to a given domain (e.g., hotel services). We use a survey on a crowdsourcing platform to obtain both genuine and deceptive reviews of hotels. We learned the word patterns from each category to discriminate genuine reviews from fake ones for positively and negatively evaluated reviews, respectively. We show that our All Terms procedure outperforms current benchmark methods in computational linguistics and marketing. Our extended analysis reveals the factors that determine fake reviews (e.g., a lack of details, present- and future-time orientation, and emotional exaggeration) and the factors influencing people's willingness to write fake reviews (including social media trust, product quality consciousness, deal proneness, hedonic and utilitarian consumption, prosocial behavior, and individualism). We also use our procedure to analyze more than 250,000 real-world hotel reviews to detect fake reviews and identify the hotel and review characteristics influencing review fakery in the industry (e.g., star rating, franchise hotel, hotel size, room price, review timing, and review rating).     

Managerial power: A neglected aspect of the performance appraisal interview

This field study investigated the relationships between three types of attributed managerial power (positive, coercive, and legitimate) with subordinates' perceptions of performance appraisal interview processes and their reactions to appraisal feedback. Attempts to improve job performance on the part of the subordinates were also assessed three months later by their managers. Managers perceived as high in positive power tended to be described as more participative in goal setting and less critical during the feedback interview, whereas managers perceived as high in coercive power were described as less participative. All three types of power related significantly with subordinates' reactions to the feedback. Only legitimate power, however, related to subordinates' attempts to improve job performance. Practical implications of these findings are discussed.     

Brand Appearance in Chinese and American Top-Grossing Commercial Movies: A Comparison

The study investigated different visual and audio factors of product placement in American and Chinese movies by analyzing top-grossing movies of the past decade. Forty movies were selected and analyzed. The results indicated major differences of brand appearances in Chinese and American movies. First, with respect to visual-only product placements, brands in Chinese movies were more saliently placed than those in American movies. Second, in relation to audio-only product placements, product attributes were more likely to be mentioned in Chinese movies than in American movies. Third, both leading and supporting characters were more likely to interact with brands in Chinese movies than in American movies. However, leading characters were less likely to mention a brand in Chinese movies than in American movies. Finally, no difference was found regarding supporting characters' mentioning of a brand in Chinese and American movies. Theoretical and practical implications were offered for the varying patterns observed.     

The impact of customer-generated evaluation information on sales in online platform-based markets

As the online platform-based market expands, research into the impact of consumer-accessible information in this market on performance has received significant attention in recent years. In this study, we focus on customer-generated evaluation information (CGEI). The purpose of this study is to demonstrate the effect of CGEI—both quantitative (i.e., star rating, star rating volume) and qualitative (i.e., customer review content) aspects—on actual sales in an online platform-based market. We analyze the regression of quantitative GCEI on sales and for qualitative GCEI we apply the Latent Dirichlet Allocation (LDA) topic modeling. We discover that star ratings do not always lead to increased sales, implying that star ratings and sales have an inverted U-shaped relationship. Furthermore, the results demonstrate that star rating volume has a positive effect on sales. We reveal that the review contents of product quality and added value have a positive effect on sales, whereas those of seller service have no effect on sales. This study provides some insight into how customer-generated information can increase actual sales in online platform-based markets.     

Positive versus negative comparison in advertisements: the affect priming perspective

Abstract

Comparison valence is an important element in comparative advertising. In this research, we investigated how comparison valence influences advertising effectiveness and explored the role of affect underlying such effects. The results of two studies consistently confirmed that a positive comparison elicited more favorable ad attitude and brand attitude than a negative comparison and consumers’ affective states accounted for their preference for the positive comparison. Moreover, we found some preliminary evidence suggesting that the preference for a positive message may be more remarkable in comparative advertisements than noncomparative advertisements. However, this proposition needs further validation in future research.