The effectiveness of movie trailer advertising

Prior to a movie release in theaters, trailer advertising provides valuable information that can help viewers and investors form expectations about the movie's future success. While previous research has looked at the financial implications of movie advertising budgets, the effects of trailers' creative characteristics on abnormal returns have not yet been investigated. Using a sample of movie trailers, results from our event study and cross-sectional analysis show that the appeal of the movie plot revealed in the trailer, the number of scene cuts and the inclusion of violent, sexual, or humorous scenes influence the movie's abnormal returns. However, the use of special effects in the movie trailer does not impact investors. Results also suggest that investors react more strongly to first than to follow-up trailers released for the movie, and that early release of the first positively impacts the movie's returns.     

Do Web Users Care About Banner Ads Anymore? The Effects of Frequency and Clutter in Web Advertising

This study investigates the effects of frequency of exposure to banner ads and ad clutter in web pages upon online users’ psychological responses. In a 7 (frequency 1 through 7) × 2 (clutter vs. non-clutter) between-participants factorial experiment, participants (N = 250) were randomly assigned to one of fourteen news websites, each with 20 separate pages of news stories and animated banner ads downloaded from various websites. Results indicated that frequency of exposure is a powerful psychological cue affecting users’ memory, attitudes, and behavior. However, contrary to expectation, banner clutter does not lead to negative effects on recall, attitudes, and behavior. Negative impact of banner clutter was significant only on ad recognition.     

Buzz marketing for movies

In today's dynamic entertainment environment, movies are struggling to stay afloat and remain profitable. Challenges such as piracy, digital theft, competition, overlapping movie campaigns, media fragmentation, and audience saturation are forcing marketers to stretch their film budgets and make every dollar as effective as possible. With more and more entertainment options crowding peoples' lives, marketers must search for innovative ways to reach movie audiences. By breaking through the daily clutter and noise, and capturing peoples' attention to the point that talking about a movie becomes an enjoyable experience to share, buzz marketing is one such promotional posture that drives audiences to theaters. In order to achieve success with buzz marketing, however, marketers must recognize the role it plays in the context of movie differentiation strategies to support the company's overall approach. To that end, this article analyzes buzz marketing as it pertains to six movie differentiation strategies (differentiation with cosmetic movie features, differentiation to reach market segments, growing a movie segment, positioning to support the movie image, positioning to extend the movie image, and differentiation via non-traditional channels) and offers steps for its successful implementation.     

Sex,spies and celluloid: Movie content preference,choice, and involvement

This study empirically tests the congruity between movie‐content preference and choice on television, video, and at the cinema; and the impact of consumer involvement on this relationship. The results support the need to treat preference and choice differentially. Media type added little in way of explanation of changes in preference–choice congruence. Involvement with movie choice was found to vary by medium, yet correlational analysis showed that it did not unequivocally change the nature of preference–choice congruence. Nonetheless, further enquiry into the role of involvement is warranted before it is dismissed as irrelevant in the choice of leisure media products. © 2002 Wiley Periodicals, Inc.     

Fashion's role in visualizing physical and psychological transformations in movies

Using visual narrative art, this study looks into the images of cinema costumes and investigates how the fashion and styles in the movie reflect both the main characters' psychological changes and their identity-forming processes. This study analyzes the transformative effect of fashion (movie costume), the development of individual characters, and social and other situational influences on the heroine in the movie Pretty Woman (1990). Pretty Woman's underlying theme is derivative from three classic fairy tales: Cinderella, Pygmalion, and Beauty and the Beast. Such fairy tales in movie dramas are archetypal enactments representative of deep emotional and physical transformations audiences wish to experience. Watching protagonists' wardrobe changes and emotional transformations enables viewers to identify/self-recognize the storylines and catharses in the movies and often to achieve virtually the same experiences and emotional highs—outcomes which are the modern equivalent to Aristotle's “proper pleasure.”     

An investigation into online atmospherics: The effect of animated images on emotions,cognition, and purchase intentions

While prior research on animation effects focused on Web advertising, this article focuses on online retailing and identifies animated images as an important online atmospheric cue. Using an extended Stimulus-Organism-Response (SOR) model, this article explores animation effects on emotional and cognitive processes. Across two studies, the findings show that compared with static images, animated images elicit greater pleasure, which in turn induces more favorable website attitudes, and lead to higher purchase intentions. Further, this serial mediation effect holds across different types of products. These findings, from the perspective of online atmospherics, deepen our understanding of animation effects on consumer approach-avoidance responses.     

The community dynamics of entrepreneurship: The birth of the american film industry, 1895–1929

This paper provides insight for practitioners by exploring the collective process of entrepreneurship in the context of the formation of new industries. In contrast to the popular notions of entrepreneurship, with their emphasis on individual traits, we argue that successful entrepreneurship is often not solely the result of solitary individuals acting in isolation. In many respects, entrepreneurs exist as part of larger collectives. First and foremost, there is the population of organizations engaging in activities similar to those of the entrepreneurial firm, which constitute a social system that can affect entrepreneurial success. In addition, there is also a community of populations of organizations characterized by interdependence of outcomes. Individual entrepreneurs may be more successful in the venturing process if they recognize some of the ways in which their success may depend on the actions of entrepreneurs throughout this community. Thus, we urge practitioners and theorists alike to include a community perspective in their approach to entrepreneurship. We also suggest that one way of conceptualizing the community of relevance might be in terms of populations of organizations that constitute the value chain. For example, in the early film industry a simple value chain with three functions—production, distribution, and exhibition—is a convenient heuristic for considering what populations of organizations might be relevant. As we show in our case study of that industry, a community model offers insights into the collective nature of entrepreneurship and the emergence of new industries.Our basic thesis is that the role of entrepreneurship in the creation of new industries can be conceptualized in terms of the dynamics of a community of organizational populations. At least three implications of this view may be important for practitioners. First, the kind of widespread and fundamental economic and social change that has often been linked with entrepreneurship requires a variety of behaviors. While most definitions of entrepreneurship have recognized that entrepreneurship requires the introduction of innovation, they have tended to ignore the importance of behaviors that subsequently support that innovation. To encompass these important behaviors, we believe that a broad definition of entrepreneurial behaviors is justified. To capture this, the framework of entrepreneurial behaviors that we develop includes the variety of behaviors that are important to the success of a collective process of entrepreneurship. We believe that recognition of a variety of different behaviors that are important to the success of the entrepreneurial process can help practicing entrepreneurs to understand more fully the complex dynamics of new industry creation. In terms of our framework, the range of behaviors of potential importance to entrepreneurship includes all of the following: creating a firm that innovates, creating a new business that imitates the practices of others, innovating within an existing business, and imitating by creating change in an existing business. In addition, we recognize that the kinds of innovative change that support entrepreneurship in the context of new industry creation are not narrowly technological; other kinds of product and service changes as well as administrative innovations may also be relevant.Second, entrepreneurship in one part of the community often creates the opportunity for entrepreneurial activity elsewhere in the community. For example, the founding of movie palaces did not begin until feature length films appeared. The challenge for entrepreneurs is to recognize these opportunities and act on them. Third, and related, the long-term success of entrepreneurial behaviors in one population of the community frequently requires that supportive entrepreneurial behaviors occur in other populations in the community. For example, the success of feature length films was hastened by the development of distribution organizations to replace traveling shows and localized markets. Their success was also hastened by the movement away from nickelodeons towards larger, more comfortable exhibition outlets, such as theaters and show palaces. When the interdependence among populations in the community is stated this way, another challenge to entrepreneurs becomes clear: the facilitation and encouragement of supportive behaviors in other populations.We are not the first to propose that the community is important, but we contribute to this idea by showing in a specific context how various types of behaviors interact and ultimately promote entrepreneurship throughout the community. Our contribution for practitioners is twofold. We would urge practitioners to consider the variety of behaviors necessary to create, reinforce, and maintain fundamental and widespread change. Further, we would suggest that practitioners consider how activities in a broad community of organizations can set the stage for entrepreneurship and have a high impact on its ultimate success or failure. Thus, we would suggest that practitioners who seek to innovate should search broadly for opportunities and understand the importance of relations with businesses elsewhere in the community. The success of their entrepreneurial efforts may depend on the occurrence of supportive entrepreneurial changes in those businesses as well. Their ability to do this will be enhanced by a broad understanding of entrepreneurial behaviors and sensitivity to the opportunities that their entrepreneurial behaviors may create for others.     

A train of thought in product experientiality: Working memory,distraction, and inconsistencies in cue order effects

The sequence of informational cues and the level of distraction have an impact on the judgment of a product’s quality and preference. Two quasi-experimental studies (N_total = 340) investigate the influence of the force behind the processing of these cues – working memory (WM). Previous research found that, in the presence of a distractor, high WM individuals are more able to recall the initial cue, and thus derive their product judgment from the initial strong cue. Study 1 contradicts these findings and raises important methodological questions regarding the conceptualization of strong and weak cues. Specifically, commonly accepted strong cues (e.g., product reputation) might not influence consumers as expected. Additionally, in a sequence of product evaluation with high vs. low degree of experientiality, study 2 reveals that consumers tend to show a primacy effect that is stronger for higher levels of WM capacity. Moreover, in a sequence of assessing low vs. high degree of experientiality products, consumers reveal stronger recency effects, thus showing that WM reinforces this recency effect. Our findings have important implications for marketers by suggesting that consumers with high WMC are more able to process complex stimuli and retrieve previously presented information on a product quality. These consumers also have a higher tendency to retrieve more information from product scenarios with a high degree of experientiality.     

An empirical investigation of director selection in movie preproduction: A two-sided matching approach

This paper examines how movie producers recruit directors in the preproduction phase as mutual choices in a two-sided matching model. It conceptualizes that movie attributes and filmmaker characteristics determine the matching outcomes (“who directed which movie”) and in turn indirectly affect movie box office. We exploit a dataset of 4,807 feature films from 1990 to 2010 to examine empirically the complementarities between the movie/producer side and the director side in terms of movie budget, filmmaker track records and social relations. A series of simulations suggest that social relations facilitate positive assortative matching. Further simulation analyses are conducted to quantify the financial implications of movie–director mismatches, as well as the indirect effects of production budget and producer characteristics. The simulation results show that: a) the financial implications of having a mismatched director can be substantial; and b) the indirect effect of production budget and producer characteristics affect movie box office in an interactive manner. These findings can help filmmakers to better understand the financial impacts of movie–director choices and make more informed decisions at the early phase of preproduction.     

Animation attracts: The attraction effect in an on‐line shopping environment

Two studies examine the attraction effect—an inconsistent choice behavior typically observed when consumers are presented with two products (target and competitor), both good for different reasons, and a worse “decoy”—in the context of online consumer decisions with different product displays (animated or static). The experiments, with different participant populations, show that the attraction effect in an online shopping environment depends on the animation format of the products. Experiment 1 (with Italian participants) suggests that the attraction effect is eliminated when target and competitor are both animated and is accentuated when the target is animated and the competitor is static, regardless of whether the decoy is animated or static. Experiment 2 replicates this animation/attraction effect in the United States, where on line shopping is more common than in Italy. The paper concludes with theoretical and practical implications for on line shopping. © 2006 Wiley Periodicals, Inc.     

AROUSAL,MEMORY, AND IMPRESSION-FORMATION EFFECTS OF ANIMATION SPEED IN WEB ADVERTISING

Animated advertisements on the Web come in a variety of shapes, sizes, and colors; they also animate at different speeds. Although recent studies have shown animated ads to be more effective than still ads, the role played by the rate of motion in animated ads has been neglected. An experiment was designed to address this issue by focusing specifically on the physiological and psychological effects of animation speeds in Web ads. Hypotheses derived from motion effects, excitation transfer, limited capacity, and vividness effects theories were tested via a mixed-design experiment wherein participants (N = 47) were exposed to both slow-paced and fast-paced animated ads in one of two sequences (fast then slow, or slow then fast). Arousal was monitored during reception, while memory, conation, and impression formation were measured via a postexposure paper-and-pencil questionnaire. Results indicate that animation speed is a psychologically significant variable. Theoretical and practical implications are discussed.     

What women want: Creation of a luxury brand

South Korea was first introduced to luxury brands in the 1990s. Since then, a great interest in luxury products, or myungpoom, and foreign products, called waejae, has developed. Despite the strong preference for fashion products from the United States and Europe, Sang A, a brand founded by a woman born and raised in Korea, is recognized as a myungpoom in Korea. This new luxury brand is also known for its designer handbags in the United States and is quite successful in both countries. In a comparative study of Sang A and the internationally well-known luxury brand Jimmy Choo using literary research, Internet research, field research, and interviews with Sang A bag consumers, I identified several key elements of success for the two brands: niche market targeting, storytelling, a ‘hungry attitude,’ high prices but accessible discounts, thorough management of distribution channels, and image-making through star power. This article implicates that Korean consumers have complex desires that go beyond simply wanting foreign goods.     

Movies

ABSTRACT

The movie has been with us in a variety of forms for over a century. During that time the movie as an artefact has played a number of roles from pure entertainment to political propaganda to a way in which we preserve or pass down memories. The movie moves. Getting its name from the innovation of having moving pictures, with the first film showing a horse galloping as the camera recorded a series of stills in quick succession; the movie is about physical motion, but also about emotional provocation and films have always been implicated in the market, in creating market demand and marketing ideology. So, movies show moving pictures and they serve to move us emotionally. This paper reflects on the development of the movie as a storytelling device, the role that they play in our lives, and why the movies can be viewed as a marketplace icon.     

The preference for scarcity: A developmental and comparative perspective

Human adults often show a preference for scarce over abundant goods. In this paper, we investigate whether this preference was shared by 4‐ and 6‐year‐old children as well as chimpanzees, humans’ nearest primate relative. Neither chimpanzees nor 4‐year‐olds displayed a scarcity preference, but 6‐year‐olds did, especially in the presence of competitors. We conclude that scarcity preference is a human‐unique preference that develops as humans increase their cognitive skills and social experiences with peers and competitors. We explore different potential psychological explanations for scarcity preference and conclude scarcity preference is based on children's fear of missing out an opportunity, especially when dealing with uncertainty or goods of unknown value in the presence of competitors. Furthermore, the results are in line with studies showing that supply‐based scarcity increases the desirability of hedonic goods, suggesting that even as early as 6 years of age humans may use scarce goods to feel unique or special.     

East–West Differences in “Tricky” Tactics: A Comparison of the Tactical Preferences of Chinese and Australian Negotiators

How do Eastern and Western perceptions of “tricky” or ethically ambiguous negotiation tactics differ? We address this question by comparing 161 Chinese and 146 Australian participants’ ratings of the appropriateness of different types of negotiation tactics. We predict that their differing cultural values (e.g., individualism/collectivism, importance of face) as well as their different implicit theories of how negotiation ought to be conducted (i.e., mental models, such as captured in The Secret Art of War: The 36 Stratagems) will be salient in their perceptions of tactics. Examining 24 tactics falling into eight categories, we found that overall the Chinese respondents saw these tactics as more appropriate than did the Australian respondents. There were, however, differences across categories of tactics. Chinese participants rated tactics related to the 36 stratagems as significantly more appropriate than did Australian participants, including diverting attention, misrepresenting information and making false promises. In some cases, the Chinese also saw feigning positive feelings/emotions as more appropriate than did the Australian participants, while an Australian preference for feigning negative feelings/emotions was partially supported. The implications of these findings for practitioners are discussed, along with opportunities for future research.     

A Content Analysis of Animation and Animated Spokes-Characters in Television Commercials

Abstract

This study employed content analysis to examine animation and animated spokes-characters in television advertising. The majority of spokes-characters observed in this study were humans, animal personifications, or product personifications. Characters were more likely to speak for the product than provide visual demonstration although they did both in more than half the cases. There were far more non-celebrity than celebrity spokes-characters, and a large majority of them were male. Significant differences were found in the use of animation across dayparts, program types, product classes and product categories. Although no increase was evident in the use of animation since the last study was completed, there was evidence to suggest that the role of animation has been changing in the past decade. Findings indicate that animated spokes-characters are being used more often to present high involvement products to adult audiences.     

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.     

Attention-Grabbing Power of Branded vs. Unbranded Packaging

Abstract

The aim of this study is to investigate the impact of branding on consumer attention and the role that gender and product expertise play in shaping consumer preference. An eye-tracking experiment revealed that branded containers and plants attracted consumers’ initial attention and held their attention longer than unbranded containers and plants. Female consumers tend to use brand as a central cue in information processing, while males use brand as a peripheral cue. The presence of branding also influences perceived product attractiveness. This study reinforces the information-seeking theory by providing empirical support for the selectivity model.     

How consumers form product quality perceptions in absence of fixed posted prices: Interaction of product cues with seller reputation and third-party reviews

The uncertainty about product quality has increased in online settings, and consumers' often use multiple product cues to assess product quality. The authors have tested the simultaneous effects of multiple product cues in Pay-what-you-want (PWYW) online settings. PWYW lacks posted prices and allows buyers to decide the prices. This paper investigates how consumers process multiple cues of varying diagnostic nature simultaneously and form product quality perceptions. Specifically, study 1 examines the interactions among seller reputation, online product presentation, and external reference price and study 2 examines the interaction effect of third-party reviews and online product presentation and the external reference price. The results add to the theoretical domain by suggesting that consumers' online cue processing behaviour is much more complicated than previously presented in the literature.     

DEMAND THRESHOLD,ZERO EXPENDITURE AND HIERARCHICAL MODEL OF CONSUMER DEMAND

Consumer expenditure surveys often show households reporting zero consumption of some commodities. Three reasons for this are recognized in the literature: (i) infrequency of purchase, (ii) a strong brand preference for differentiated products and (iii) misreporting. However, sometimes the number of households reporting zero consumption is seen to decline with income. To capture this phenomenon, which does not fall into any of the categories mentioned above, we propose a hierarchical preference structure and identify a class of recursive utility functions representing this structure. An empirical illustration based on Indian consumer expenditure data is provided.