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Can good marketing carry a bad product? Evidence from the motion picture industry

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  • Thorsten Hennig-Thurau
  • Mark Houston
  • Shrihari Sridhar

Abstract

We examine the relative roles of marketing actions and product quality in determining commercial success. Using the motion picture context, in which product quality is difficult for consumers to anticipate and information on product success is available for different points in time, we model the effects of studio actions and movie quality on a movie’s sales during different phases of its theatrical run. For a sample of 331 recent motion pictures, structural equation modeling demonstrates that studio actions primarily influence early box office results, whereas movie quality influences both short- and long-term theatrical outcomes. The core results are robust across moderating conditions. We identify two data segments with follow-up latent class regressions and explore the degree of studio actions needed to “save” movies of varying quality. We finally offer some implications for research and management. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • Thorsten Hennig-Thurau & Mark Houston & Shrihari Sridhar, 2006. "Can good marketing carry a bad product? Evidence from the motion picture industry," Marketing Letters, Springer, vol. 17(3), pages 205-219, July.
    • Handle: RePEc:kap:mktlet:v:17:y:2006:i:3:p:205-219
    DOI: 10.1007/s11002-006-7416-0
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    11. Jun Pang & Angela Xia Liu & Peter N. Golder, 2022. "Critics’ conformity to consumers in movie evaluation," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 864-887, July.
    12. Brianna JeeWon Paulich & V. Kumar, 2021. "Relating entertainment features in screenplays to movie performance: an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1222-1242, November.
    13. Gazley, Aaron & Clark, Gemma & Sinha, Ashish, 2011. "Understanding preferences for motion pictures," Journal of Business Research, Elsevier, vol. 64(8), pages 854-861, August.
    14. Xu, Yingying & Liu, Zhixin & Ortiz, Jaime, 2018. "The relationship between media bias and inflation expectations in P.R. China," Research in International Business and Finance, Elsevier, vol. 45(C), pages 402-412.
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    17. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.
    18. Belvaux, Bertrand & Mencarelli, Rémi, 2021. "Prevision model and empirical test of box office results for sequels," Journal of Business Research, Elsevier, vol. 130(C), pages 38-48.
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