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The Impact of Violent Content on Pricing of Media Products
Authors:Hooman Estelami  Nicholas n Estelami
Institution:1. Fordham University, New York, New York, USA;2. Frontiers of Distance Learning in Business, White Plains, New York, USA
Abstract:Although considerable research exists on the impact of exposure to violence on individual and group behavior, existing research has not examined how violent media are valued by consumers, specifically as it relates to the pricing and promotion of media products. In this study a total of 960 monthly price observations for video games and DVD movies were collected. Pricing data for the month of product launch as well as the months following the launch were compiled and subjected to ANOVA and regression analyses, to determine the role of violent content on both new and pre-owned prices. Consistent with the theoretical framework presented, the results indicate that violence can systematically impact prices, but the impact depends on the medium. In the video game market violent content contributes to a faster rate of price depletion, while in the DVD market it helps new product prices appreciate post-launch. The article concludes with a discussion of the implications of the findings for managers, public policy advocates, and researchers.
Keywords:media  Promotion  pricing  violence
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