Interactive influence of genre familiarity,star power,and critics' reviews in the cultural goods industry: The case of motion pictures

Academic research pertaining to the marketing of cultural products such as Broadway shows, books, music, and movies has identified a product's genre (or type), star power, and critics' reviews as important factors influencing the market performance of an individual product. Prior research, however, has not investigated the joint influences of these factors. The current study extends previous research by empirically investigating the managerially relevant interactive influences of these factors within the context of the motion‐picture industry. For example, should producers of more familiar genre movies, such as dramas and comedies, feature popular, but expensive, stars? Real‐world data from two distinct time periods are used to test the hypotheses. The findings are consistent across the two time periods and reveal that for more familiar genre movies, star power and the valence of critics' reviews have less impact on the movie's performance in the market. In contrast, for the less familiar genre movies, stronger (vs. weaker) star power and more (vs. less) positive reviews have positive influence on the market performance. Further, for movies with less star power, the valence of critics' reviews has no impact on the performance. In contrast, for movies with greater star power, more (less) positive reviews have positive (negative) influence on movie performance. Managerial and theoretical implications, along with limitations of the findings and directions for future research, are offered. © 2005 Wiley Periodicals, 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.     

Promotional Strategies Utilized by the Film Industry

Abstract

With the average cost of a feature motion picture rapidly approaching the $100 million mark, major production studios are turning to greater use of promotions to help guarantee the success of their films. As an entertainment commodity, motion pictures offer unique challenges in terms of promotions. This article briefly reviews some of the major traditional promotional techniques as well as techniques more commonly used in the entertainment industry. The research presented in the second half of the article uses secondary data on critical reviews, awards and box office returns to determine the relationship between critical opinion and motion picture success. The results suggest that there appears to be little or no correlation between the opinion of critics and the success of a motion picture.     

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.     

The antecedents and consequences of restrictive age-based ratings in the global motion picture industry

This article analyzes one key characteristic shared by a growing number of industries. Specifically, their products and services are continuously monitored and evaluated by local third-party ratings systems. In this study, we focus on understanding the local drivers of restrictive age-based ratings in the motion picture industry and the effect of local ratings on a movie's performance at the box office. The results show that there is a significant negative relationship between restrictive ratings and opening weekend box-office performance. However, we find no significant effect with respect to cumulative box-office performance. In the second part of the study, we focus on the local regulatory system's role as a key driver of restrictive age-based ratings in the motion picture industry. Interestingly, the results suggest that the composition of the board that rates the movie plays a key role. Including pediatrics, psychology, or sociology experts in the evaluation board instead of only parents or laypeople has a strong effect and tends to lead to more lenient rating behavior. In addition, we find that larger ratings boards tend to be more restrictive than smaller ones and that industry representation is not necessarily associated with less restrictive ratings. Countries with cultures characterized as uncertainty avoidant, collective, and feminine also seem to be most lenient in their ratings. The implications of the results are discussed from both international marketing and public policy perspectives.     

The impact of advertising content on movie revenues

We analyze the contents of print ads in the motion picture industry (e.g., number of reviews quoted in the ad, the presence of a top reviewer, size of the ad, star, director, etc.). We find that external validation (a recommendation by a top reviewer) is more important to revenues than the informative content of the ad.     

The effectiveness of post-release movie advertising

Frequent new product introductions and short product life cycles lead to unusually high levels of advertising in the movie industry. We study the effectiveness of television advertisements aired after the theatrical opening of a motion picture (‘post-release advertising’). We estimate an instrumental variables, lagged effects model using a novel dataset constructed to obviate simultaneity concerns and temporal aggregation biases. We find that post-release movie advertising exhibits a high degree of heterogeneity across films, but generates substantial returns for some movies. Our findings suggest that studios may find it beneficial to experiment with higher post-release advertising budgets. Further, exhibitors may benefit from extended movie life cycles if they share post-release advertising responsibility with studios.     

Steve J. Wurtzler. Electric Sounds: Technological Change and the Rise of Corporate Mass Media

In the 1920s, a series of striking innovations in sound reproductionmade the American parlor—and movie house—noisierplaces. Improvements in audio recording fostered a new demandfor the phonograph. Millions of Americans began buying theirfirst radios, even as the infant industry struggled to establishits economic base and define its cultural mission. By the late1920s, the motion picture industry was producing talking features. In Electric Sounds, Steve J. Wurtzler     

Should sequels differ from original movies in pre-launch advertising schedule? Lessons from consumers' online search activity

Sequels have become a profitable strategy in the U.S. motion picture industry because of their strong name recognition. However, while the established positioning of a sequel may help insulate it from competing firms' advertising messages, its familiarity may cause moviegoers to be more easily satiated with advertising from the sequel. Therefore, this study examines how sequels differ from original concept movies in terms of their ad effectiveness. We focus our analysis on pre-launch periods, given these periods' importance in shaping the financial outcomes of motion pictures. We consider the weekly online search volume of a movie as a measure of consumer interest in it, and thus as an intermediate response to pre-launch advertising. We then develop a model that assumes ad effectiveness can decline, due to copy and repetition wearout, and increase, due to forgetting, over time. We find that copy wearout is greater for original movies, while repetition wearout and forgetting are greater for sequels. These findings suggest that sequels should allocate more in early pre-launch periods and less immediately before release, relative to originals, to maximize pre-launch consumer interest.     

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 dynamics of the Chinese film industry: factors affecting Chinese audiences’ intentions to see movies

This study attempts to understand the dynamics of the rapidly growing Chinese film industry by relying on a revised reason action model that uses a data-mining approach with aggregated data to examine the determinants of people’s intentions to see movies. The results show that attitude towards seeing movies indicated by online film ratings, collective norms represented by box-office performance and Academy Award win(s) significantly predict intentions to see movies. In addition, a movie’s year of release, star power, country of origin, adaptation from a novel and status as a sequel were significant predictors of aggregated intentions.     

论明星品牌与华语电影产业的对接

明星是电影产业中最为重要的创意人才之一,明星凭借其广受赞誉的演技、为观众所喜爱的性格特征,吸引众多注意力,从而具有很高的商业价值。为加速实现华语电影产业振兴与文化繁荣的双重发展目标,华语电影产业开始在明星品牌定位、明星品牌如何介入电影产品的生产、明星品牌的价值评估等三个层面积极采取有效的品牌化运作,以进一步满足电影受众／消费者的需求而获得电影市场优势,进而满足电影生产者的利益。     

Reviewing the reviewers: The impact of individual film critics on box office performance

Critics and their opinions or critical reviews play a major role in many markets. Marketing research on how critics impact product performance has so far examined an aggregate critic effect. An obstacle in studies examining the relationship of aggregate critical opinion and product sales is the close association between the intrinsic quality of a product and the aggregate opinion regarding the product. Our analysis parses out these two effects, allowing us to distinguish individual critics who are simply good at identifying products with popular appeal from those who act as opinion leaders and engender early product sales. The role of critics is especially prominent in the film business, in which one finds multiple expert opinions about each movie and where critics’ endorsements are used in advertising. In the context of the motion picture industry, our research investigates the impact of individual film critics on the market performance of movies, where specific key critics and reviewers may serve as market gatekeepers, and where various critics may have different types of impacts on product performance.

Consumer personality and lifestyles at the box office and beyond: How demographics,lifestyles and personalities predict movie consumption

While movie studios have leveraged data traditionally through demographics, there may be missed opportunities in securing further granular insights through personality and lifestyle scales. Due to the amount of hyper-competition among movies but also across platforms, marketers and advertisers may revisit consideration of how consumer personality and consumer lifestyle may aid them in predicting movie frequency consumption across genres and platforms. This study deployed a survey and collected a national randomized sample (N=301). Implications include cultivating consumer profiles and anticipating how certain personalities and lifestyles may help measure certain movie genre and movie platform consumption.     

Impact of star and movie buzz on motion picture distribution and box office revenue

This study contributes to research on the impact that consumer buzz has on movie distribution and box office success by examining the impact of buzz generated about the individual stars and about the movie itself. The results indicate that movie buzz is instrumental in boosting box office revenue throughout the theatrical release, not just in the later run, as has been suggested in previous studies. Star buzz can enhance box office receipts during the opening week and can contribute to the public's anticipation of the movie pre-release. However, early buzz can have a negative impact on revenue during subsequent weeks if the movie fails to resonate with the audiences. Model simulations reveal that, even for poorly received films, the overall impact of star buzz is positive because the initial revenue boost normally outweighs the later decline. Thus, this study empirically demonstrates the positive impact of star buzz on revenue, which helps shed light on the long-standing debate regarding the importance of star participation in the success of a movie.     

Can good marketing carry a bad product? Evidence from the motion picture industry

We examine the relative roles of marketing actions and product quality in determining commercial success. Using the motion picture context, in which product quality is difficult for consumers to anticipate and information on product success is available for different points in time, we model the effects of studio actions and movie quality on a movie’s sales during different phases of its theatrical run. For a sample of 331 recent motion pictures, structural equation modeling demonstrates that studio actions primarily influence early box office results, whereas movie quality influences both short- and long-term theatrical outcomes. The core results are robust across moderating conditions. We identify two data segments with follow-up latent class regressions and explore the degree of studio actions needed to “save” movies of varying quality. We finally offer some implications for research and management.     

Advertising industry evolution: agency creativity,fluid teams and diversity. An exploratory investigation

ABSTRACT

The advertising industry is in a state of flux, where the agency model is evolving alongside todays’ fast paced digital environment. This paper reviews the drivers of change in the industry and explores how creative advertising agencies are evolving and developing their team resources to improve the creative product using the resource based view (RBV) as a theoretical lens. The study adopted a qualitative approach using a key informant strategy with 16 interviews with Creative Directors, Chief Executive Officer’s and Heads of Planning and Account Directors. The findings suggest that agencies who embrace team functional diversity, include external stakeholders and develop team fluidity as a dynamic capability will enhance agency creativity.     

Naming strategies as a tool for communication: application to movie titles

Abstract

Product naming is regarded as one of the most important communication decisions for firms to deliver information on their new products, particularly in the case of products with unobservable attributes, such as motion pictures, music, books, and games. Despite its importance, there has been little research on “how to name a product” as a communication decision. Hence, we propose a conceptual framework to describe naming decisions as two-stage strategic decisions. The first-stage decision involves “what kind of information to be communicated via product names,” which we call the “information choice” strategy. The second-stage decision is how to express this information through product names, which we call the “expression” strategy. We applied a two-level hierarchical Bayesian model to a data set consisting of opening weekend box-office sales, names, and release dates for 393 movies released in seven countries. Our empirical study provides useful findings on movie naming. First, the information choice for movie titles significantly impacts movies’ viewership. Second, the effects of “what to choose” depend on “how to express”. Third, significant interaction effects occur between information choice strategies and product characteristics, which implies that naming strategies depend on the product’s characteristics. One particularly noteworthy finding in this study is that although it is common sense to avoid negative wording in product names in most industries, negative content in movie titles positively impacts box-office sales.     

An Empirical Investigation of Brand Equity: A Cross-Country Validation Analysis

ABSTRACT

The purpose of this article is to propose and test a model in order to better understand brand equity. The goal of this research is to identify the drivers and determine how they influence brand equity performance in the researched industry in order to develop a more effective brand strategy. Quantitative data collected are used to test a model of brand value in the context of the food industry. The findings of this research provided evidence that the customer-based brand equity model can be applied to the food industry context and be used to guide marketing activities internationally. Brand awareness has a positive influence on brand associations and perceived quality. Brand associations have a positive influence on brand loyalty. Finally, brand loyalty, perceived quality, and brand associations all have a positive effect on brand equity. This study contributes to the scarce international brand equity literature by testing the proposed model using data from a sample of consumers in two European countries.     

突发公共事件对电影行业影响的量化研究

人工收集和整理2012—2018年在中国市场上映的首轮院线电影信息数据，构建电影需求的嵌套logit回归模型，以新冠肺炎疫情为准自然实验，来量化突发公共事件对电影行业复产复工的影响。结果显示：第一，关于上映时间选择，在恢复营业后，如果所有因为疫情尚未上映的电影选择顺延上映能有效避免过度竞争的局面。第二，关于上映节奏控制，控制好未定档电影的上映节奏，保持适当的竞争能促进经济效益提升。其中，从11月份开始以每周两部的频率上映未定档电影的经济效益最佳。第三，关于上映方式选择，与线下播放相比，疫情期间选择线上播放能及时收回成本并有利于经济收益最大化的实现。研究结论为电影行业制定复产复工策略提供依据，为未来应对突发公共卫生事件提供参考。