DOI QR코드

DOI QR Code

The Effect of Electronic Word of Mouth from Different Sources on Movie Success in the Context of Video-on-Demand Services

  • Received : 2022.04.12
  • Accepted : 2022.12.05
  • Published : 2023.03.31

Abstract

Electronic word of mouth (eWOM), such as consumer ratings, reviews, and comments, is an important information source influencing consumers' behavior and purchase decisions. Prior studies about the effects of eWOM on movie success focus on box office revenue and DVD sales. As the video-on-demand (VOD) market has been growing rapidly in terms of revenue and number of users, research on movie success that focuses on this context is imperative. In addition, prior research concentrates on a single eWOM source and neglects the importance of the relative impact of different eWOM sources. Using eWOM data and movie ranking data of 111 unique movies over three months period, this research analyzes the relative impact of eWOM from internal vs. external sources and professional vs. general users on movie success in the context of VOD industry. Results suggest that eWOM from external sources has a significant impact on movie success at the VOD platform. Moreover, the general audience's opinion is more influential on movie success compared with movie critics' opinions. The findings demonstrate that eWOM from external sources and general users plays a critical role in the information search and behavior of consumers and movie success.

Keywords

References

  1. Ahmed, S., and Sinha, A. (2016). When it pays to wait: Optimizing release timing decisions for secondary channels in the film industry. Journal of Marketing, 80(4), 20-38. 
  2. Akyuz, A. (2013). Determinant factors influencing eWOM, Mediterranean Journal of Social Sciences, 4(11), 159-166. 
  3. Applbaum R. F., and Anatol, K. W. E. (1972). The factor structure of source credibility as a function of the speaking situation. Speech Monographs, 39(3), 216-222. 
  4. Baber, A., Thurasamy, R., Malik, M. I., Sadiq, B., Islam, S., and Sajjad, M. (2016). Online word of-mouth antecedents, attitude and intention to purchase electronic products in pakistan. Telematics and Informatics, 33(2), 388-400. 
  5. Berger, C. R., and Calabrese, R. J. (1974). Some explorations in initial interaction and beyond: Toward a developmental theory of interpersonal communication. Human Communication Research, 1(2), 99-112. 
  6. Borghol, Y., Ardon, S., Carlsson, N., Eager, D., and Mahanti, A. (2012). The untold story of the clones: Content-agnostic factors that impact YouTube video popularity. In Proceedings of the 18th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining, 1186-1194. 
  7. Casalo, L., Flavian, C., and Guinaliu, M. (2008). The role of perceived usability, reputation, satisfaction and consumer familiarity on the website loyalty formation process. Computers in Human Behavior, 24(2), 325-345. 
  8. Chakravarty, A., Liu, Y., and Mazumdar, T. (2008). Online user comments versus professional reviews: Differential influences on pre-release movie evaluation. MSI Reports, Working Paper Series, Report No. 08-105, 115-137. 
  9. Chakravarty, A., Liu, Y., and Mazumdar, T. (2010). The differential effects of online word-of-mouth and critics' reviews on pre-release movie evaluation. Journal of Interactive Marketing, 24(3), 185-197. 
  10. Chen, P., Dhanasobhon, S., and Smith, M. D. (2007). An analysis of the differential impact of reviews and reviewers at Amazon.com. In Proceedings of the 27th International Conference on Information Systems (ICIS-2007), Montreal, Canada. 
  11. Cheung, C. M. K., Lee, M. K. O., and Thadani, D. R. (2009). The impact of positive electronic word-of-mouth on consumer online purchasing decision. In Proceedings of the 2nd World Summit on the Knowledge Society: Visioning and Engineering the Knowledge Society, September 16-18, 2009, Crete, Greece. 
  12. Chevalier, J. A., and Mayzlin, D. (2006). The effect of word of mouth on sales: Online book reviews. Journal of Marketing Research, 43(3), 345-354. 
  13. Chiou, L. (2008). The timing of movie releases: Evidence from the home video industry. International Journal of Industrial Organization, 26(5), 1059-1073. 
  14. Chung, K., and Hwang, Y. (2012). Differential factors contributing to movie viewing on ppv service of satellite broadcasting and in the movie theater. Broadcasting & Communication, 13(2), 45-90 (In Korean). 
  15. Dellarocas, C., Awad, N., and Zhang, X. (2007). Exploring the value of online reviews to organizations: implications for revenue forecasting and planning. Journal of Interactive Marketing, 21(4), 23-45. 
  16. Duan, W., Gu, B., and Whinston, A. B. (2008a). The dynamics of online word-of-mouth and product sales: An empirical investigation of the movie industry. Journal of Retailing, 84(2), 233-242. 
  17. Duan, W., Gu, B., and Whinston, A. B. (2008b). Do online reviews matter? an empirical investigation of panel data. Decision Support Systems, 45(4), 1007-1016. 
  18. Eliashberg, J., Hui, S. K., and Zhang, Z. J. (2007). From story line to box office: A new approach for green-lighting movie scripts. Management Science, 53(6), 881-893. 
  19. Eliashberg, J., Hui, S. K., and Zhang, Z. J. (2014). Assessing box office performance using movie scripts: A kernel-based approach. IEEE Transactions on Knowledge and Data Engineering, 26(11), 2639-2648. 
  20. Eliashberg, J., and Sawhney, M. S. (1994). Modeling goes to hollywood: Predicting individual differences in movie enjoyment. Management Science, 40(9), 1151-1173. 
  21. Filieri, R., Raguseo, E., and Vitari, C. (2018). When are extreme ratings more helpful? empirical evidence on the moderating effects of review characteristics and product type. Computers in Human Behavior, 88, 134-142. 
  22. Floyd, K., Freling, R., Alhoqail, S., Cho, H. Y., and Freling, T. (2014). How online product reviews affect retail sales: A meta-analysis. Journal of Retailing, 90(2), 217-232. 
  23. FMI (2021), Video on Demand (VOD) Service Market. Retrieved from https://www.futuremarketinsights.com/reports/video-on-demand-market 
  24. Forman, C., Ghose, A., and Wiesenfeld, B. (2008). Examining the relationship between reviews and sales: The role of reviewer identity disclosure in electronic markets. Information Systems Research, 19(3), 291-313. 
  25. Ginsburgh, V., and Weyers, S. (1999). On the perceived quality of movies. Journal of Cultural Economics, 23, 269-283. 
  26. Goldenberg, J., Donald R. L., Daniella S., and Michal M. B. (2006). The role of expert versus social opinion leaders in new product adoption. Marketing Science Institute Report, No. 06-124. MA: Cambridge. 
  27. Gopinath, S., Thomas, J. S., and Krishnamurthi, L. (2014). Investigating the relationship between the content of online word of mouth, advertising, and brand performance. Marketing Science, 33(2), 241-258. 
  28. Gruenwedel, E. (2022, May 9). Report: Rotten tomatoes named best movie rating database. Media Play News. Retrieved from https://www.mediaplaynews.com/report-rotten-tomatoes-named-best-movie-rating-database 
  29. Gu, B., Park, J., & Konana, P. (2012). Research note-the impact of external word-of-mouth sources on retailer sales of high-involvement products. Information Systems Research, 23(1), 182-196. 
  30. Ho-Dac, N. N., Carson, S. J., and Moore, W. L. (2013). The effects of positive and negative online customer reviews: Do brand strength and category maturity matter? Journal of Marketing, 77(6), 37-53. 
  31. Holbrook, M. (1999), Popular appeal versus expert judgements of motion pictures. Journal of Consumer Research, 26(2), 144-155. 
  32. Holbrook, M. (2005), The role of ordinary evaluations in the market for popular culture: Do consumers have 'Good Taste'? Marketing Letters, 16(2), 75-86. 
  33. Hu, N., Liu, L., and Zhang, J. J. (2008). Do online reviews affect product sales? the role of reviewer characteristics and temporal effects. Information Technology and Management, 9(3), 201-214. 
  34. Ismagilova, E., Dwivedi, Y., Slade, E., and Williams, M. (2017). Electronic Word-of-Mouth in the Marketing Context: A State-of-the-Art Analysis and Future Directions. Springer. 
  35. Ismagilova, E., Slade, E. L., Rana, N. P., and Dwivedi, Y. K. (2019). The effect of electronic word of mouth communications on intention to buy: A meta-analysis. Information Systems Frontiers, 22(5), 1203-1226. 
  36. Jeong, H. J., and Koo, D. M. (2015). Combined effects of valence and attributes of e-wom on consumer judgment for message and product: The moderating effect of brand community type. Internet Research, 25(1), 2-29. 
  37. Karray, S., and Debernitz, L. (2017). The effectiveness of movie trailer advertising. International Journal of Advertising, 36(2), 368-392. 
  38. Kim, E., and Kim, S. (2017). Online movie success in sequential markets: Determinants of video-on-demand film success in Korea. Telematics and Informatics, 34(7), 987-995. 
  39. Kim, S. H., Park, N., and Park, S. H. (2013). Exploring the effects of online word of mouth and expert reviews on theatrical movies' box office success. Journal of Media Economics, 26(2), 98-114. 
  40. Kim, K., Yoon, S., and Choi, Y K. (2019). The effects of eWOM volume and valence on product sales: an empirical examination of the movie industry. International Journal of Advertising, 38(3), 471-488. 
  41. Lee, D., Kauffman, R. J., and Bergen, M. E. (2009). Image effects and rational inattention in internet-based selling. International Journal of Electronic Commerce, 13(4), 127-166. 
  42. Lis, B. (2013). In eWOM we trust. A framework of factors that determine the eWOM impact. Business & Information Systems Engineering, 5(3), 129- 140. 
  43. Liu, Y. (2006). Word of mouth for movies: Its dynamics and impact on box office revenue. Journal of Marketing, 70(3), 74-89. 
  44. Moon, S., Bergey, P. K., and Iacobucci, D. (2010). Dynamic effects among movie ratings, movie revenues, and viewer satisfaction. Journal of Marketing, 74(1), 108-121. 
  45. Nam, K., Baker, J., Ahmad, N., and Goo, J. (2020). Dissatisfaction, disconfirmation, and distrust: An empirical examination of value code-destruction through negative electronic word-of-mouth (eWOM). Information Systems Frontiers, 22(1), 1-18. 
  46. Ohanian, R. (1990). Construction and validation of a scale to measure celebrity endorsers' perceived expertise, trustworthiness, and attractiveness. Journal of Advertising, 19(3), 39-52. 
  47. Oh, E. H., and Chon, B. S. (2008). Determinants of film critics between online users and professional reviewers. Korea Journal of Broadcast, 22(6), 267-289. 
  48. Park, J., Gu, B., and Konana, P. (2009). Impact of Multiple Word of Mouth Sources on Retail Sales. In Proceedings of the 30th International Conference on Information (ICIS-2009), Phoenix, AZ, USA, December 15-18, 2009. 
  49. Park, J., Gu, B., and Lee, H. (2012). The relationship between retailer-hosted and third-party hosted WOM sources and their influence on retailer sales. Electronic Commerce Research and Applications, 11(3), 253-261. 
  50. Ramachandran, N. (2021). Video on demand market: Growth, trends, and forecasts (2020-2025). Webnexs Blog. Retrieved from https://www.webnexs.com/blog/video-demand-marke-growth-trends-forecasts 
  51. Valuates Reports. (2020). Video on demand (VOD) market size is projected to reach USD 88,523.67 million by 2025, September 30, 2020. 
  52. Saleem, A., and Ellahi, A. (2017). Influence of electronic word of mouth on purchase intention of fashion products on social networking websites. Pakistan Journal of Commerce & Social Sciences, 11(2), 597-622. 
  53. Statista (2020). Video-on-demand. Retrieved from https://www.statista.com/outlook/dmo/digital-media/video-on-demand/worldwide 
  54. Statista (2021). Video streaming growth worldwide: Coronavirus impact 2020. Retrieved from https://www.statista.com/statistics/1107559/video-streaming-consumption-growth-worldwide-coronavirus/ 
  55. Statista. (2022a, April 22). Netflix's global revenue 2021, by region. Retrieved from https://www.statista.com/statistics/1090098/netflix-global-revenue-by-region/ 
  56. Statista. (2022, October 19). Netflix's quarterly revenue 2013-2022. Retrieved from https://www.statista.com/statistics/273883/netflixs-quarterly-revenue/ 
  57. Stigler, G. J. (1961). The economics of information. Journal of Political Economy, 69(3), 213-225. 
  58. Sun, T., Song, T., and Huang, J. (2014). Effects of microblogging and third-party word of mouth on product sales: Empirical study based on movie box office revenue. In Proceedings of the 2014 Pacific Asia Conference on Information Systems (PACIS-2014). 
  59. Sussman, S. W., and Siegel, W. S. (2003). Informational influence in organizations: An integrated approach to knowledge adoption. Information Systems Research, 14(1), 47-65. 
  60. Tang, T., Fang, E., and Wang, F. (2014). Is neutral really neutral? the effects of neutral user generated content on product sales. Journal of Marketing, 78(4), 41-58. 
  61. Ulker-Demirel, E., Akyol, A., and Simsek, G. G. (2018). Marketing and consumption of art products: The movie industry. Arts and the Market, 8(1), 80-98. 
  62. Van den Broeck, W., Pierson, J., and Lievens, B. (2007). Video-on-demand: Towards new viewing practices? Observatorio (OBS*), 1(3), 23-44. 
  63. Wanderer, J. J. (1970). In defense of popular taste: Film ratings among professionals and lay audiences. American Journal of Sociology, 76(2), 262-72. 
  64. Whitehead, J. L. (1968). Factors of source credibility. Quarterly Journal of Speech, 54(1), 59-63. 
  65. Wilkinson, A. (2017). Rotten tomatoes, explained, Vox. Retrieved from https://www.vox.com/culture/2017/8/31/16107948/rotten-tomatoes-score-get-their-ratings-top-critics-certified-fresh-aggregate-mean 
  66. Wu, P. F. (2013). In search of negativity bias: An empirical study of perceived helpfulness of online reviews. Psychology & Marketing, 30(11), 971-984. 
  67. Xiong, G., and Bharadwaj, S. (2014). Prerelease buzz evolution patterns and new product performance. Marketing Science, 33(3), 401-421. 
  68. Zhou, W., and Duan, W. (2016). The sales impact of word-of-mouth distribution across retail and third-party websites. In Proceedings of the 37th International Conference on Information (ICIS-2016), Dublin, Ireland, December 11-14, 2016.