Movie Variables And Box Office Performance Essay

Movie Variables And Box Office Performance Essay

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2.Literature Review
A considerable amount of literature has been published exploring determinants of film’s performance over the last three decades, especially in western countries. These studies have been mainly classified into two categories: the psychological approach and economic approach. Researches including (Austin n.d.),(Becker et al. 1985), (Eliashberg & Sawhney 1994) are aimed to investigate how variables such as attitudes, values and personal traits can drive consumer’s movie watching decision while others specifically focus on the effect of financial performance (Eliashberg et al. 2006). This paper endeavors to review the extant researches using the economics approach and examine the relationship between microeconomics movie variables and box office performance (McKenzie 2015).
In general, a movie has to get through three key stages of value chains to eventually reach moviegoers: production, distribution and exhibition ((Eliashberg et al. 2006)). Hence, most factors related could be categorized based on these three stages. In 1983, Litman conducted a preliminary research on predictors of success movie and found that the production budget, star power and critical rating have positive effect on film’s success while MPAA ratings and genre have no relevance on movie performance. He also demonstrated that the release time, major distributer power and awards contribute to the eventual success. Over the last three decades, subsequent studies have centered on these variables and kept adding new influential variables such as WOM. Since the production and marketing in movie industry are so complex that contributable factors often interact intricately and can be classified into two or more groups according to the value chain(Voge...


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...ole in achieving movie success. However, all the studies mentioned above suggest that the volume valence show little or unobvious evidence to box office revenue. This is explained by the theory that the volume power is served as a principle way to increase consumers’ awareness, thus moviegoers tend to watch a movie which they have heard of most whatever the concrete content is. Consequently, this paper will put emphasis on the WOM volume rather the valence, which is difficult to be measured through extant online communities in China.
Unfortunately, other variables that are proved relevant with movie success are either not available publicly or incomplete in China movie industry. They are critic’s review, distributor power,((Litman 1983), number of screens(Elberse & Eliashberg 2003), Awards (Hennig-Thurau et al., 2007). Hence, they will not be discussed in this paper.

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