Journal of
Media and Communication Studies

  • Abbreviation: J. Media Commun. Stud.
  • Language: English
  • ISSN: 2141-2545
  • DOI: 10.5897/JMCS
  • Start Year: 2009
  • Published Articles: 183

Full Length Research Paper

Mediating effect of word-of-mouth in movie theatre industry

Monika Rawal*
  • Monika Rawal*
  • College of Business, Southern Illinois University-Carbondale, USA.
  • Google Scholar
Jose Luis Saavedra
  • Jose Luis Saavedra
  • College of Business, Southern Illinois University-Carbondale, USA.
  • Google Scholar


  •  Received: 10 August 2016
  •  Accepted: 24 March 2017
  •  Published: 31 March 2017

Abstract

This study examines the role of word-of-mouth in the movie theatre industry. Word-of-mouth is tested as a mediator between pre-release studio actions (stars, production budget, and number of screens) and box office revenue. The results suggest that word-of-mouth fully mediates the relationship between stars and box office revenue. A partial mediation of word-of-mouth occurs in case of production budget and number of screens as pre-release actions leading to box office revenue. This study emphasizes the importance of word-of-mouth in contributing and maintaining movie revenue, and also helps movie makers to take decisions on investing on word-of-mouth after releasing a movie.

Key words: Word-of-mouth, pre-release, post-release, movie theatre industry, stars, box office revenue, product budget, number of screens.