Exploring the value of online product reviews in forecasting sales: The case of motion pictures

@article{Dellarocas2007ExploringTV,
  title={Exploring the value of online product reviews in forecasting sales: The case of motion pictures},
  author={Chrysanthos Dellarocas and Xiaoquan (Michael) Zhang and Neveen Farag Awad},
  journal={Journal of Interactive Marketing},
  year={2007},
  volume={21},
  pages={23 - 45}
}
The growing popularity of online product review forums invites the development of models and metrics that allow firms to harness these new sources of information for decision support. Our work contributes in this direction by proposing a novel family of diffusion models that capture some of the unique aspects of the entertainment industry and testing their performance in the context of very early postrelease motion picture revenue forecasting. We show that the addition of online product review… 

Figures and Tables from this paper

Online Reviews as a Driver of New Product Sales

TLDR
Analyses of panel data of 332 new products from Amazon.com indicate that negative reviews affect new product sales more than positive reviews, but also in a positive way, suggesting a significant cascade effect.

An Empirical Analysis of the Impact of Online Reviews on Product Sales in the Chinese Context

TLDR
An empirical study on Dangdang Books is conducted, a research framework on correlation between product sales and aspects of online reviews is constructed, and the correction through the panel data econometric model is explored.

The Effect of Online Consumer Reviews on New Product Sales

TLDR
Analyses of panel data of 332 new products from Amazon.com over nine months reveal that the valence of reviews and the volume of page views have a stronger effect on search products, whereas theVolume of reviews is more important for experience products.

The effect of online reviews on movie box office sales

  • L. Cheng
  • Business
    Journal of Global Information Management
  • 2022
Due to the rapidly growth of social media, potential moviegoers always depend on the online reviews to make their purchase decisions. Film companies need to know what aspects of reviews will drive

The effect of Price Promotions on Online User Reviews

The aim of this research is to analyse how pricing strategies (specifically through promotional discounts) can lead to fluctuations in user review scores of products in an online marketplace. This

The Value of Online Product Buzz in Sales Forecasting

TLDR
The value of online product buzz shows especially in early sales forecasting, an area in which traditional forecasting models have substantial difficulties, and is demonstrated by a 28% overall increase in forecasting accuracy when measures ofOnline product buzz variables are take into account.

Online Reviews and Product Sales: The Role of Review Visibility

When studying the impact of online reviews on product sales, previous scholars have usually assumed that every review for a product has the same probability of being viewed by consumers. However,

Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence

TLDR
An analytical model is built that shows that a monopolistic firm is able to not only manipulate its pricing to influence online product reviews (thus influencing sales), but also adjust pricing dynamically in response to online word-of-mouth.

The impact of online reviews on exhibitor behaviour: evidence from movie industry

TLDR
This paper examines how online reviews impact on business strategies, in this case, exhibitor behaviour, through an empirical analysis of movie industry, and results indicate that the online user reviews’ rating is positively associated with the number of screens, confirming that theOnline review is influential on exhibitors behaviour.
...

References

SHOWING 1-10 OF 69 REFERENCES

Do online reviews matter? - An empirical investigation of panel data

Advertising and Expectations : The Effectiveness of Pre-Release Advertising for Motion Pictures

What is the effect of pre-release advertising on the demand for a product? And does the magnitude of that effect vary according to the quality of the good? We empirically examine these questions in

The Influence of Expert Reviews on Consumer Demand for Experience Goods: A Case Study of Movie Critics

An inherent problem in measuring the influence of expert reviews on the demand for experience goods is that a correlation between good reviews and high demand may be spurious, induced by an

Modeling Movie Life Cycles and Market Share

We examine box-office sales in the context of a market share model. This is accomplished by developing a combination of a sliding-window logit model and a gamma diffusion pattern in a hierarchical

A Parsimonious Model for Forecasting Gross Box-Office Revenues of Motion Pictures

The primary objective of this paper is to develop a parsimonious model for forecasting the gross box-office revenues of new motion pictures based on early box office data. The paper also seeks to

A Bayesian Model to Forecast New Product Performance in Domestic and International Markets

This paper attempts to shed light on the following research questions: When a firm introduces a new product or service how can it effectively use the different information sources available to

Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue

This article uses actual word-of-mouth (WOM) information to examine the dynamic patterns of WOM and how it helps explain box office revenue. The WOM data were collected from the Yahoo Movies Web

Word-of-Mouth for Movies: Its Dynamics and Impact on Box Office Revenue

Abstract This article uses actual word-of-mouth (WOM) information to examine the dynamic patterns of WOM and how it helps explain box office revenue. The WOM data were collected from the Yahoo Movies

MOVIEMOD: An Implementable Decision-Support System for Prerelease Market Evaluation of Motion Pictures

In spite of the high financial stakes involved in marketing new motion pictures, marketing science models have not been applied to the prerelease market evaluation of motion pictures. The motion

Introduction Strategy for New Products with Positive and Negative Word-of-Mouth

Existing innovation diffusion models assume that individual experience with the product is always communicated positively through word-of-mouth. For certain innovations, however, this assumption is
...