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The influence of quality signals on consumers’ online viewing behavior based on the signal authenticity and dual functions of price

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  • Ningning Cui
  • Jianyu Zhang

Abstract

Purpose - The profound impact of the COVID-19 pandemic on the film industry has underscored the growing significance of online movies. However, there is limited research available on the factors that influence the viewership of online films. Therefore, this study aims to use the signaling theory to investigate how signals of varying qualities affect online movie viewership, considering both signal transmission costs and prices. Design/methodology/approach - This study uses a sample of 1,071 online movies released on the iQiyi from July 2020 to July 2022. It uses OLS regression and instrumental variable method to examine the impact of various quality indicators on the viewership of online movies, as well as the moderating effect of price. Findings - After conducting a thorough analysis of this study, it can be deduced that the varying impacts on online movie viewership are attributed to disparities in signal transmission costs. Specifically, star influence and rating exhibit a positive effect on the viewership of online movies, whereas the number of raters has a detrimental impact. Furthermore, there exists an “inverted U-shaped” relationship between the number of reviews and online movie viewership. Additionally, within the consumer decision-making process, both price-cost and price-quality relationships coexist. This is evident as prices negatively affect online movie viewership but positively moderate the relationship between rating, number of reviews and online movie viewership. Originality/value - The research findings of this study offer valuable insights for online film producers to effectively leverage quality signals and pricing, thereby capturing market attention and enhancing film profitability.

Suggested Citation

  • Ningning Cui & Jianyu Zhang, 2025. "The influence of quality signals on consumers’ online viewing behavior based on the signal authenticity and dual functions of price," Nankai Business Review International, Emerald Group Publishing Limited, vol. 16(2), pages 239-264, January.
    • Handle: RePEc:eme:nbripp:nbri-03-2023-0022
    DOI: 10.1108/NBRI-03-2023-0022
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