The Impact of Characteristics of WOM Heterogeneity and Dynamics on Box-Office Revenues
Date Issued
2012
Date
2012
Author(s)
Shao, Kung-Hsin
Abstract
As the Internet has become more and more popular, it is now an important platform for consumers to share word of mouth (WOM). The importance of online WOM and convenience of online data collection have also attracted researchers to investigate the characteristics of word of mouth and its impact to product sales performance by using online user review. Two major indicators were considered from previous online WOM studies: the volume and the valence of WOM. Although most previous studies found that the volume of WOM has a positive impact on total product sales, WOM valence results were not as definitive. Moreover, according to the arguments of two-sided persuasion, controversial WOM often enhances consumers’ product awareness and attitude. Hence, there are two purposes of this study. First, we try to explore the real influence of WOM valence based on the theory and the empirical result. Second, we try to complement the content of WOM by discussing the influence of WOM structure.
This study collected WOM data in the motion picture industry and tried to analyze the effect of WOM from the perspectives of heterogeneity and dynamics. The final results are concluded as follows:
1.The volume of WOM has positive impact on product sales performance.
2.The influence of the valence of WOM on the product sales performance has been mixed, however, the valence of WOM has positive impact to consumption of imitators.
3.The influence of WOM structure exists, no matter to the impact on imitators, or the volume of WOM that thereafter indirectly impact on sales performance, they have all proven the influence of WOM structure, which will only outperform during the early-stage of product launch.
Subjects
word of mouth
online user reviews
two-sided persuasion
review structure
internet marketing
movie industry
Type
thesis
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