articleMarketing ScienceMay 28, 2010Closed access

The Effects of Online User Reviews on Movie Box Office Performance: Accounting for Sequential Rollout and Aggregation Across Local Markets

PKPradeep K. ChintaguntaSGShyam GopinathSVSriram Venkataraman

University of Chicago · Northwestern University · +1 more institution

Indexed incrossref

Abstract

Our objective in this paper is to measure the impact (valence, volume, and variance) of national online user reviews on designated market area (DMA)-level local geographic box office performance of movies. We account for three complications with analyses that use national-level aggregate box office data: (i) aggregation across heterogeneous markets (spatial aggregation), (ii) serial correlation as a result of sequential release of movies (endogenous rollout), and (iii) serial correlation as a result of other unobserved components that could affect inferences regarding the impact of user reviews. We use daily box office ticket sales data for 148 movies released in the United States during a 16-month period (out…

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Topics
Keywords
  • Box office
  • Ticket
  • Aggregate (composite)
  • Variance (accounting)
  • Aggregate data
  • Big data
  • Business
  • Identification (biology)
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