Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Dynamic Interaction of Performance Information and Word-of-Mouth in Film Industry

영화공급사슬 내 성과정보와 입소문 효과의 동적상호작용에 대한 연구

  • Lee, Wonhee (Sookmyung Women's University, Center for Research in Economics and Management)
  • 이원희 (숙명여자대학교 경제경영연구소)
  • Received : 2015.05.06
  • Accepted : 2015.06.29
  • Published : 2015.06.30
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Abstract

When studying the film industry, researchers have seldom addressed the dynamic interaction between marketing information and word of mouth in the motion picture industry mainly because of the limitation of traditional research methodologies. This study explores integration and competition among important variables influencing on audience's choice on movie selection, particularly by using a new method of agent-based modeling including competitive environment. Decision process of moviegoer composed of transition probability based on multinomial logit model, considering marketing and box-office information, critique, and word of mouth from other moviegoers. After validating the fitness of market share among released movies, this study conducted a set of simulation experiments considering several variables such as market size, change of weight between variables, and movie performance under competition. Propositions are derived from the simulation results is also suggested for future research.

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