The Economic Value of Online User Reviews with Ad Spending on Movie Box-Office Sales

Lee, Young-Jin; Keeling, Kellie B.; Urbaczewski, Andrew

doi:10.1007/s10796-017-9778-7

Cited by 18 publications

(8 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Electronic word of mouth (eWOM) is defined as the dynamic and ongoing information exchange process between potential, actual, or former consumers regarding a product, service, brand, or company, which is available to a multitude of individuals and institutions via the Internet (Ismagilova et al 2017). eWOM is considered as an important source of information influencing human behaviour (Filieri et al 2018;Filieri 2015;Floyd et al 2014;Nam et al 2018;Wang et al 2015a;Yan et al 2015), significantly affecting the way consumers make purchase decisions (Baber et al 2016;Jeong and Koo 2015;Lee et al 2017;Lin et al 2018;Mauri and Minazzi 2013). In recent studies, 93% of consumers indicated that online reviews (a type of eWOM communication) significantly influence their purchase decision (Fullerton 2017;Ruiz-Mafe et al 2018;Tata et al 2019).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Electronic Word of Mouth Communications on Intention to Buy: A Meta-Analysis

et al. 2019

View full text Add to dashboard Cite

The aim of this research is to synthesise findings from previous studies by employing weight and meta-analysis to reconcile conflicting evidence and draw a “big picture” of eWOM factors influencing consumers’ intention to buy. By using the findings from 69 studies, this research identified best (e.g. argument quality, valence, eWOM usefulness, trust in message), promising (e.g. eWOM credibility, emotional trust, attitude towards website) and least effective (e.g. volume, existing eWOM, source credibility) predictors of intention to buy in eWOM research. Additionally, the effect size of each predictor was calculated by performing meta-analysis. For academics, understanding what influences consumers’ intention to buy will help set the agenda for future research directions; for practitioners, it will provide benefit in terms of practical guidance based on detailed analysis of specific factors influencing consumers’ intention to buy, which could enhance their marketing activities.

show abstract

Section: Introductionmentioning

confidence: 99%

The Effect of Electronic Word of Mouth Communications on Intention to Buy: A Meta-Analysis

et al. 2019

View full text Add to dashboard Cite

show abstract

“…It has been found that overall UGC exhibits a stronger impact than MGC on consumer purchase behaviour (Goh et al 2013) and that UGC on social media can equal the effects of large advertising spends on traditional media (Lee et al 2017). Content sharing is especially useful for service industries such as tourism as their intangible nature and lack of trialability results in consumers seeking information from a variety of different sources during the research phase and making purchase decisions heavily influenced by the information gathered (Leung et al 2013).…”

Section: Introductionmentioning

confidence: 99%

Sharing of Sponsored Advertisements on Social Media: A Uses and Gratifications Perspective

2018

View full text Add to dashboard Cite

Organisations are increasingly utilising social media to advertise to, and interact with, consumers. Sponsored advertisements embedded into targeted users' social media feeds appear less invasive than standalone advertisements but, unlike organic postings, incur financial cost. Given that friends' posts attract most attention, this research employs Uses and Gratifications theory to determine salient motivations for users' intentions to share sponsored advertisements, framed in the tourism context. Survey data was collected (n = 487) and analysis revealed altruism, entertainment, socialising, and information seeking to be significant positive drivers of intention to share tourism-related sponsored advertisements on Facebook. Notably, information sharing was found to have a negative effect, while self-expression had no significant effect. In addition, the motivations were not found to significantly differ between males and females. This study contributes to theoretical understanding of users' intentions to share sponsored advertisements within the social media environment and provides practical recommendations to help tourism marketers maximise reach.

show abstract

“…Considerable research has examined the sales impact of valence in URs, and mixed findings have been reported (see Rosario et al, 2016, for a review). Some scholars found a positive influence of valence on user choices (Chevalier et al, 2018;Cui et al, 2012;Ghose et al, 2012;Xie et al, 2016;Zhu and Zhang, 2010) and sales (Lee et al, 2019;Ye et al, 2011). This relationship has also been observed in other countries such as India (Gupta et al, 2016) and China (Zhang et al, 2016a, b).…”

Section: Sales Impact Of Different Forms Of Valence Provided By the Crowd Versus Expertsmentioning

confidence: 64%

“…The weekly sales are log transformed due to the skewness of the box-office revenue (Wang et al, 2015). We follow existing literature to identify variables that may contribute to the sales of movies (e.g., Basuroy et al, 2003;Gupta et al, 2016;Lee et al, 2019). We collect time-variant movie characteristic data, such as weekly advertisement spending (Lee et al, 2019) and the number of theaters each week for the first 10 weeks since each movie's release.…”

Section: Data Collectionmentioning

confidence: 99%

“…We follow existing literature to identify variables that may contribute to the sales of movies (e.g., Basuroy et al, 2003;Gupta et al, 2016;Lee et al, 2019). We collect time-variant movie characteristic data, such as weekly advertisement spending (Lee et al, 2019) and the number of theaters each week for the first 10 weeks since each movie's release. In addition, we collect other movie-level characteristics, including the star power, sequel, genre, MPAA rating, running time and production budget.…”

Section: Data Collectionmentioning

confidence: 99%

See 1 more Smart Citation

Investigating the effects of textual reviews from consumers and critics on movie sales

Deng

2020

OIR

View full text Add to dashboard Cite

PurposeThe purpose of this paper is to investigate the sales impact of different types of online word-of-mouth based on their source (user vs critic) and form (structured vs unstructured).Design/methodology/approachThe paper proposed a model by adopting the heuristic-systematic perspective of information processing and tested it using online movie reviews collected from Rotten Tomatoes. A unique dataset was constructed, which matched critic reviews and user reviews with metadata such as box-office sales and advertisement spending for 90 movies. Sentiment information from the textual contents of both user and critic reviews were text-mined and extracted. Data analyses were used to compare the box-office responsiveness of four types of reviews: user numeric ratings, user text reviews, critic numeric ratings and critic text reviews.FindingsCritic reviews and user reviews influence sales through different forms: while user reviews impact sales through their aggregate numeric ratings, critic reviews exert their impact through textual narratives.Practical implicationsThis study provides managerial implications to businesses on how to allocate their resources on different social media-related marketing strategies to maximize the economic value of online user-generated information.Originality/valueThe major contribution of this study is to extend the current understanding of the sales impact of online reviews to their textual aspect, as well as investigate how these textual narratives play different roles when offered by critics and users.

show abstract

The Economic Value of Online User Reviews with Ad Spending on Movie Box-Office Sales

Cited by 18 publications

References 52 publications

The Effect of Electronic Word of Mouth Communications on Intention to Buy: A Meta-Analysis

The Effect of Electronic Word of Mouth Communications on Intention to Buy: A Meta-Analysis

Sharing of Sponsored Advertisements on Social Media: A Uses and Gratifications Perspective

Investigating the effects of textual reviews from consumers and critics on movie sales

Contact Info

Product

Resources

About