March 2017

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

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...

Author(s): Monika Rawal and Jose Luis Saavedra