Conference Tsourvakas George Exploring Word-of-Mouth Communications For Movies Tsourvakas George-Aristotle University of Thessaloniki Veglis Andreas-Aristotle University of Thessaloniki Emmanouelides Christos-Aristotle University of Thessaloniki Overview Introduction Background Literature Creating WOM inputs for movies The effects of WOM outcome for movies Research Model Methodology Results Discussion and Managerial Implications Conclusions Introduction WOM is an interpersonal communication for products and services without a commercial scope (Arndt 1967) WOM is the most influential source in marketing communication (Day 1971; Sheth 1971) Background Literature (I) Why WOM communication is important? Consumer reduces risk Consumer gains time WOM communication is related to services quality Movies are intangible services Background Literature (II) WOM The number of people coming in touch Positive/negative ex-ante information they exchange or ex-post purchase information (Anderson 1998; Bone 1995; Buttle 1998) Hypothesis (A) Tie strength and social networks (Brown & Reingen 1987) and also the frequency of communication between them (Duhan et al. 1997; Goldenberg et al. 2001) create WOM H1: Moviegoers are more influenced by WOM from strong tie relations than from weak Hypothesis (B) Intrinsic or extrinsic characteristics of the products or services create WOM (Wirtz & Chew 2002) H2: Some film characteristics generate WOM among moviegoers Hypothesis (C) Opinion leaders create WOM (Katz & Lazarsfeld 1955; Chaney 2001) H3: Movie critique creates WOM among moviegoers than its absence. Hypothesis (D) Intensity of satisfaction creates WOM (Anderson 1998; Bowman & Narayandas 2001) H4: WOM is more likely to be developed by satisfied moviegoers rather than by non-satisfied Research Model for WOM for Movies INPUT OUTPUT Tie Strengths Negative Film Characteristics WOM Positive Critiques Methodology Questionnaire: Self-report Sample: 168 randomly selected students cinemagoers Structure: Recall the last movie 2. Information sources 3. Movie characteristics that influence 4. Number of persons they got information 1. Information Sources about the Movie before Viewing Source Frequency Ranking Friends Relatives Strangers Trailers Critics Ads Other 73.2 14.3 3.6 72.0 56.0 64.3 4.2 23.2 3.6 3.0 11.3 11.9 17.3 0.6 21.4 4.2 0.6 25.6 17.3 17.9 0.6 23.2 2.4 0.0 26.8 20.8 20.2 1.8 67.9 10.1 3.6 63.7 50.0 55.4 3.0 Base: All valid responses, N=168 (%) of times (%) of (%) of (%) of (%)of stated as times times times times source Ranked Ranked Ranked Ranked 1st 2nd 3rd 1st to 3rd Factors Affecting Decision to View the Movie (I) Frequency of stated importance (%) Some what imp. Not imp. at all Don’t know/ Don’t ans. Most Imp. Very imp. Modera tely imp. Friends Relatives Strangers 24.4 40.5 16.1 7.1 7.1 4.8 100.0 64.9 2 4.8 14.3 11.3 11.9 36.7 19.0 100.0 19.1 12 1.8 4.2 8.9 19.6 45.8 19.6 100.0 6.0 13 Trailers 31.0 32.7 20.2 6.5 5.4 10.1 100.0 63.7 3 Critics Ads 25.0 32.1 20.2 6.5 8.3 7.7 100.0 57.1 5 20.8 25.0 21.4 10.7 8.9 13.1 100.0 45.8 8 Factor Base: All valid responses, N=168 Very/ Total most Rank imp. Factors Affecting Decision to View the Movie (II) Frequency of stated importance (%) Not Some imp. what at imp. all Don’t know/ Don’t ans. Most Imp. Very imp. Modera tely imp. Production Direction 12.5 20.8 17.9 12.5 16.1 20.2 100.0 33.3 10 25.6 29.2 12.5 10.7 7.7 14.3 100.0 54.8 6 Scenario 20.2 32.1 15.5 9.5 6.5 16.1 100.0 52.3 7 Acting 26.2 39.9 13.1 4.2 5.4 11.3 100.0 66.1 1 Theme Music 35.1 28.6 13.1 5.4 4.2 13.7 100.0 63.7 3 13.7 22.0 16.1 14.9 15.5 17.9 100.0 35.7 9 Origin 15.5 15.5 17.9 13.7 22.6 14.9 100.0 31.0 11 Factor Base: All valid responses, N=168 Very/ Total most Rank imp. Base: All valid responses, N=168 Factors Affecting Decision to View the Movie Discussed More Often Factor % of times Ranked 1st Ranking % of % of times times Ranked Ranked 2nd 3rd 11.3 9.5 29.8 24.4 % of times Ranked 1st to 3rd Production Direction 15.5 16.1 36.3 70.2 Scenario 20.2 17.3 13.1 50.6 Acting 19.6 22.0 16.7 58.3 Theme 11.9 10.7 29.8 52.4 Music 7.7 4.8 4.8 17.3 Characteristics of the Movie Discussed more Often after Viewing % of times Ranked 1st Ranking % of % of times times Ranked Ranked 2nd 3rd 5.4 6.0 21.4 12.5 % of times Ranked 1st to 3rd Production Direction 11.3 16.7 22.6 50.6 Scenario 16.1 19.0 19.6 54.8 Acting 20.2 22.0 16.7 58.9 Theme 8.3 18.5 38.1 64.9 Music 10.1 4.2 4.2 18.5 Base: All valid responses, N=168 Factor Discussion These findings support H1 that moviegoers are more influenced by strong tie relations. H2 that films characteristic actors and directors create WOM among moviegoers ex-ante. Discussion H3 was not supported by the data collected. There is no significant relationship between critique and WOM Discussion There is a highly significant statistical relationship (x2=15.16, p-value<0.001) between satisfaction and WOM generation ( H4 ) WOM is more likely to be developed by satisfied moviegoers rather than by non-satisfied Managerial Implications 1. Movie producers could invite families to go to see movies or might sponsor culture events 2. Promotion methods could follow movie characteristics like early advertising & participation of the movie to festivals 3. Movie writers, stars and directors could give press conference or interviews before film comes to cinema rooms Conclusion WOM communications play a pivotal role in entertainment and cultural industries Future Research: Investigating WOM into more comprehensive and macro model.