|
Sign In to gain access to subscriptions and/or personal tools.
|
The Differing Roles of Success Drivers Across Sequential Channels: An Application to the Motion Picture Industry
Thorsten Hennig-Thurau
Bauhaus-University of Weimar, Germany
Mark B. Houston
University of Missouri-Columbia
Gianfranco Walsh
University of Koblenz-Landau, Germany
In several product categories, it is typical to release products sequentially to different markets and customer segments. Conventional knowledge holds that the roles of various product success drivers do not differ significantly across these sequential channels of distribution. The authors examine sequential distribution channels within the motion picture industry and develop a model that proposes that such differences exist between a primary (short-and long-term theatrical box office) and a sequential (video rental) channel. The authors test their model with a sample of 331 motion pictures released in theaters and on video during 1999-2001 using partial least squares. Results reveal differences in the impact of success factors across channels. For example, cultural familiarity enhances box office success but relates negatively to video rental success, and distribution intensity and date of release enhance box office outcomes but have no impact on rental revenues.
Key Words: sequential distribution channels partial least squares motion picture success cognitive categorization information economics
References
- ACNielsen. 2001. "New ACNielsen EDI Study Reveals Preferences of Movie-Goers." http://acnielsen.com/news/corp/19981022.htm.
- Basuroy, Suman, Subimal Chatterjee, and S. Abraham Ravid. 2003. "How Critical Are Critical Reviews? The Box Office Effects of Film Critics, Star Power, and Budgets." Journal of Marketing 67 (October): 103-117.[CrossRef]
- Basuroy, Suman, Subimal Chatterjee, and S. Abraham Ravid, Kalpesh Kaushik Desai, and Debabrata Talukdar. 2006. "An Empirical Investigation of Signaling in the Motion Picture Industry." Journal of Marketing Research 43 (May): 287-295.[CrossRef]
- Bettman, James R. 1973. "Perceived Risk and Its Components: A Model and Empirical Test." Journal of Marketing Research 10 (May): 184-190.[CrossRef]
- Boxofficemojo.com. 2005. "Yearly Box Office." http://www.boxofficemojo.com/yearly.
- Campbell, Margaret C. and Ronald C. Goodstein. 2001. "The Moderating Effect of Perceived Risk on Consumers' Evaluations of Product Incongruity: Preference for the Norm." Journal of Consumer Research 28 (December): 439-449.[CrossRef]
- Childs, Richard B. 1992. "Home Video." In The Movie Business Book. Ed. Jason E. Squire. New York: Fireside, 328-338.
- Chin, Wynne W. 1998. "The Partial Least Square Approach to Structural Equations Modeling." In Modern Methods for Business Research. Ed. George A. Marcoulides. Mahwah, NJ: Lawrence Erlbaum, 295-336.
- Chin, Wynne W. 2000. "Frequently Asked QuestionsPartial Least Squares & PLS-Graph. Home Page." http://disc-nt.cba.uh.edu/chin/plsfaq.htm.
- Chin, Wynne W. 2001. PLS-Graph User's Guide Version 3.0. Houston, TX: Soft Modeling.
- Cohen, Joel B. and Kunal Basu. 1987. "Alternative Models of Categorization: Toward a Contingent Processing Framework." Journal of Consumer Research 13 (March): 455-472.[CrossRef]
- Conchar, Margy P., Melvin R. Crask, and George M. Zinkhan. 2005. "Market Valuation Models of the Effect of Advertising and Promotional Spending: A Review and Meta-Analysis." Journal of the Academy of Marketing Science 33 (Fall): 445-460.[Abstract]
- Conchar, Margy P., Melvin R. Crask, George M. Zinkhan, Cara Peters, and Sergio Olavarrieta. 2004. "An Integrated Framework for the Conceptualization of Consumers' Perceived-Risk Processing." Journal of the Academy of Marketing Science 32 (Fall): 418-436.[Abstract]
- Dana, James D., Jr. and Kathryn E. Spier. 2001. "Revenue Sharing and Vertical Control in the Video Rental Industry." Journal of Industrial Economics 49 (September): 223-245.[Web of Science]
- De Vany, Arthur and W. David Walls. 1999. "Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?" Journal of Cultural Economics 23 (4): 285-318.[CrossRef]
- Diamantopoulos, Adamantios and Heidi M. Winklhofer. 2001. "Index Construction With Formative Indicators: An Alternative to Scale Development." Journal of Marketing Research 38 (May): 269-277.[CrossRef]
- Donahue, Suzanne Mary. 1987. American Film Distribution: The Changing Marketplace. Ann Arbor: University of Michigan Research Press.
- Elberse, Anita and Jehoshua Eliashberg. 2003. "Demand and Supply Dynamics for Sequentially Released Products in International Markets: The Case of Motion Pictures." Marketing Science 22 (Summer): 329-354.[Abstract/Free Full Text]
- Eliashberg, Jehoshua and Steven M. Shugan. 1997. "Film Critics: Influencers or Predictors?" Journal of Marketing 61 (April): 68-78.
- Faber, Ronald J. and Thomas C. O'Guinn. 1984. "Effect of Media Advertising and Other Sources on Movie Selection." Journalism Quarterly 61 (Summer): 317-377.[Web of Science]
- Fornell, Claes and Fred L. Bookstein. 1982. "Two Structural Equations Models With Unobservable Variables and Measurement Error." Journal of Marketing Research 18 (November): 39-50.
- Fornell, Claes and Fred L. Bookstein and David L. Larcker. 1981. "Evaluating Structural Equation Models With Unobservable Variables and Measurement Error." Journal of Marketing Research 18 (February): 39-50.[CrossRef][Web of Science]
- Hair, Joseph F., Jr., Rolph E. Anderson, Ronald L. Tatham, and William C. Black. 1998. Multivariate Data Analysis. 5th ed. Englewood Cliffs, NJ: Prentice Hall.
- Hennig-Thurau, Thorsten, Gianfranco Walsh, and Oliver Wruck. 2001. "An Investigation Into the Success Factors Determining the Success of Service Innovations: The Case of Motion Pictures." Academy of Marketing Science Review. http://www.amsreview.org/amsrev/theory/hennig06-01.html.
- Hettrick, Scott. 2001. "Raise the Rent." Video Business. http://www.videobusiness.com/072800_HETTRICK.AS.
- Horovitz, Bruce. 2003. "Sit Down Meals Give Way to Days of Grazing." USA Today. http://www.usatoday.com/money/industries/food/2003-04-23-grazing_x.htm.
- Jarvis, Cheryl Burke, Scott B. MacKenzie, and Philip M. Podsakoff. 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research." Journal of Consumer Research 30 (September): 199-218.[CrossRef]
- Jedidi, Kamel, Robert E. Krider, and Charles B. Weinberg. 1998. "Clustering at the Movies." Marketing Letters 9 (November): 393-405.[CrossRef]
- Kaplan, Leon B., George J. Szybillo, and Jacob Jacoby. 1974. "Components of Perceived Risk in Product Purchase." Journal of Applied Psychology 59 (June): 287-291.[CrossRef]
- Kirmani, Amna and Akshay R. Rao. 2000. "No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality." Journal of Marketing 64 (April): 66-79.[CrossRef]
- Krider, Robert E. and Charles B. Weinberg. 1998. "Competitive Dynamics and the Introduction of New Products: The Motion Picture Timing Game." Journal of Marketing Research 35 (February): 1-15.[CrossRef]
- Lehmann, Donald R. and Charles B. Weinberg. 2000. "Sales Through Sequential Distribution Channels: An Application to Movies and Videos." Journal of Marketing 64 (July): 18-33.[CrossRef]
- Levin, Aron M., Irwin P. Levin, and C. Edward Heath. 1997. "Movie Stars and Authors as Brand Names: Measuring Brand Equity in Experiential Products." In Advances in Consumer Research, Vol. 24. Eds. Merrie Brucks and Debbie MacInnis. Provo, UT: Association of Consumer Research, 175-181.
- Litman, Barry R. 1983. "Predicting Success of Theatrical Movies: An Empirical Study." Journal of Popular Culture 16 (Spring): 159-175.[CrossRef]
- Magiera, Marcy. 2004. "Rental Finishes Flat in 2004." http://www1.videobusiness.com/index.asp?layout=articlePrint&articleID=CA612281. Dec. 30.
- Mandler, George. 1982. "The Structure of Value: Accounting for Taste." In Affect and Cognition. Eds. Margaret S. Clark and Susan T. Fiske. Hillsdale, NJ: Lawrence Erlbaum, 3-36.
- McBride, Sarah, Peter Grant, and Merissa Marr. 2006. "Movies May Hit DVD, Cable Simultaneously." Wall Street Journal, January 4, p. B1-B1.
- Metacritic. 2001. "The Official METASCORES FAQ List." http://www.metacritic.com/about/scoring.html.
- Neelamegham, Ramya and Pradeep Chintagunta. 1999. "A Bayesian Model to Forecast New Product Performance in Domestic and International Markets." Marketing Science 18 (2): 115-136.[Abstract/Free Full Text]
- Nelson, Philip. 1970. "Information and Consumer Behavior." Journal of Political Economy 78 (2): 311-329.[CrossRef][Web of Science]
- Prag, Jay and James Casavant. 1994. "An Empirical Study of the Determinants of Revenues and Marketing Expenditures in the Motion Picture Industry." Journal of Cultural Economics 18 (September): 217-235.
- Prosser, Elise K. 2002. "How Early Can Video Revenues Be Accurately Predicted?" Journal of Advertising Research 42 (March/April): 47-55.
- Puig, Claudia. 2005. "Movies as You Like Them: Readers Sound Off on Theater Vs. Home." USA Today, July 26, p. D1-D1.
- Ratchford, Brian T. and Alan R. Andreasen. 1974. "A Study of Consumer Perceptions of Decisions." In Advances in Consumer Research, Vol. 1. Eds. Scott Ward and Peter Wright. Provo, UT: Association of Consumer Research, 334-345.
- Ravid, S. Abraham. 1999. "Information, Blockbusters, and Stars: A Study of the Film Industry." Journal of Business 72 (October): 463-492.[CrossRef][Web of Science]
- Rogers, Everett M. 1983. Diffusion of Innovations, 3d ed. New York: Free Press.
- Rust, Roland T. and Richard L. Oliver. 1994. "Service Quality: Insights and Managerial Implications From the Frontier." In Service Quality: New Directions in Theory and Practice. Eds. Roland T. Rust and Richard L. Oliver. Thousand Oaks, CA: Sage, 1-19.
- Sawhney, Mohanbir S. and Jehoshua Eliashberg. 1996. "A Parsimonious Model of Forecasting Gross Box-Office Revenues of Motion Pictures." Marketing Science 15 (2): 113-131.
- Slotegraaf, Rebecca J. and Peter R. Dickson. 2004. "The Paradox of a Marketing Planning Capability." Journal of the Academy of Marketing Science 32 (Fall): 371-385.[Abstract]
- Stone, M. 1974. "Cross-Validatory Choice and Assessment of Statistical Predictions." Journal of the Royal Statistical Society 36 (1): 111-147.
- Swami, Sanjeev, Jehoshua Eliashberg, and Charles B. Weinberg. 1999. "SilverScreener: A Modeling Approach to Movie Screens Management." Marketing Science 18 (3): 352-372.[Abstract/Free Full Text]
- Valenti, Jack. 2001. "How It All Began." http://www.mpaa.org/movieratings/about/index.htm.
- Weinberg, Charles B. 2003. "Profits Out of the Picture: Research Issues and Revenue Sources Beyond the North American Box Office." Working paper. University of British Columbia, Vancouver, Canada.
- Zinkhan, George M., Erich Joachimsthaler, and Thomas Kinnear. 1987. "Individual Differences and Marketing Decision Support System Usage and Satisfaction." Journal of Marketing Research 24 (2): 208-214.[CrossRef]
Journal of the Academy of Marketing Science, Vol. 34, No. 4,
559-575 (2006)
DOI: 10.1177/0092070306286935

CiteULike Complore Connotea Del.icio.us Digg Reddit Technorati Twitter What's this?
|
|