The Dynamic Effect of Word of Mouth－Take American Movies as Examples
Date Issued
2008
Date
2008
Author(s)
Lin, Ting-Chun
Abstract
We live in a generation of fast economy and the tastes of the consumer are highly changeable. All enterprises want to catch the appetite of the consumers, giving them the best and the most suitable product. Meanwhile, in the generation that the information circulate so fast, consumers’ decisions are affected by the “word-of-mouth” and “word-of-mouse”. Movie and the entertainment industry are especially affected by these information flows. Comparing with the durable goods, entertainment industry provides the products with the characteristics of changing speedy and short product life cycle. Therefore, the movie publishers are willing to know what the consumers really want and what really have impact on their choice. The database of this research is American website: IMDB (www.imdb.com). I collected the top 30 selling movies in America during the year 2006 and the information and critics of the movies on the website for research purpose. The research models are Bass Diffusion model and linear regression. Among the Bass Diffusion model, there are the prototype and the revise type of it. The revise model changes the imitation factor q. And the linear regression is the combinations of the movie independent variable with the box office on the current week and the variation rate of movie box office. Under these models, the research examines whether there’s a movement of movie word-of-mouse, and what kinds of independent variable will have the positive effect on the box office on the current week and the variation rate of movie box office. In light of the research results, hoping to find out the marketing meaning of the movie industry and also having contribution to the further research.
Subjects
movie
WOM
dynamic effect
Bass diffusion model
linear regression
Type
thesis
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