Can good marketing carry a bad product? Evidence from the motion picture industry

Thorsten Hennig-Thurau (), Mark Houston () and Shrihari Sridhar ()

Marketing Letters, 2006, vol. 17, issue 3, 205-219

Abstract: We examine the relative roles of marketing actions and product quality in determining commercial success. Using the motion picture context, in which product quality is difficult for consumers to anticipate and information on product success is available for different points in time, we model the effects of studio actions and movie quality on a movie’s sales during different phases of its theatrical run. For a sample of 331 recent motion pictures, structural equation modeling demonstrates that studio actions primarily influence early box office results, whereas movie quality influences both short- and long-term theatrical outcomes. The core results are robust across moderating conditions. We identify two data segments with follow-up latent class regressions and explore the degree of studio actions needed to “save” movies of varying quality. We finally offer some implications for research and management. Copyright Springer Science + Business Media, LLC 2006

Keywords: Motion pictures; Product quality; Marketing actions; Structural equations modeling; Latent class regressions (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (25)

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DOI: 10.1007/s11002-006-7416-0

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