The Effect of Internet Word-of-mouth on Experience Product Sales --- An Empirical Study Based on Film Online Reviews

Feixiang Zhang and Yang Yang

International Journal of Business Administration, 2016, vol. 7, issue 2, 72-78

Abstract: When purchasing experience products, more and more modern consumers are inclined to make a purchase decision through internet word-of-mouth on third-party websites. Based on a sample panel data of online movie reviews from gewara.com, this paper analyzes the impact of online reviews on movie box-office revenue from three dimensions: review volume, review scores and star reviews. The results show that the online reviews have a significant impact on movie box-office revenue. Specifically, the review volume has a significant positive impact on box-office revenue, and the impact effect shows parabola trends overtime. The impact of star review on box-office revenue mainly occurred in the first week, and the negative effect of 1 star reviews exceeds the positive effect of 5 star reviews. Management implication is proposed based the results.

Keywords: internet word-of-mouth; online review; panel data; box-office (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijba11:v:7:y:2016:i:2:p:72-78

DOI: 10.5430/ijba.v7n2p72

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