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

Author

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  • Feixiang Zhang
  • Yang Yang

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.

Suggested Citation

  • Feixiang Zhang & Yang Yang, 2016. "The Effect of Internet Word-of-mouth on Experience Product Sales --- An Empirical Study Based on Film Online Reviews," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 7(2), pages 72-78, March.
    • Handle: RePEc:jfr:ijba11:v:7:y:2016:i:2:p:72-78
    DOI: 10.5430/ijba.v7n2p72
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