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How electronic word of mouth dynamically influences product sales and supplies: an evidence from China film industry

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  • Jia Chen
  • Xingtong Chen
  • Xiangrui Chao
  • Haomin Wang

Abstract

As an important part of e-commerce, online reviews play a significant role in consumers’ purchase decisions. This study investigated the dynamic effects of electronic word of mouth (eWOM) and the number of people wishing to watch a movie on movie sales and supplies in the Chinese movie market. Using a dynamic simultaneous equation system and data of 76 films, this study analyzed the interrelationships between eWOM and movie sales and supplies. Our findings showed that both the volume and valence of eWOM affected movie sales and supplies significantly. The number of people who wanted to watch a movie had an opposite effect on movie sales and supply; eWOM volume had a positive impact on movie sales and supplies; and eWOM valence had a negative impact on movie sales and a positive impact on movie supplies. The number of people who wish to watch a movie was another important variable for movie sales and supplies, and it had a negative impact on the daily movie sales but a positive impact on the daily movie supplies. This study provided a detailed explanation of these results and thus contributed to improving the efficiency of movie suppliers' utilization of online reviews.

Suggested Citation

  • Jia Chen & Xingtong Chen & Xiangrui Chao & Haomin Wang, 2022. "How electronic word of mouth dynamically influences product sales and supplies: an evidence from China film industry," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 637-656, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:637-656
    DOI: 10.1080/1331677X.2021.1931910
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    Cited by:

    1. Dr. Rana Muhammad Shahid Yaqub & Muhammad Aqeel Atif & Fawad Waseem & Ehtisham, 2023. "Unveiling The Dynamics: Exploring The Stimulus-Organism-Response (Sor) Model In The Context Of Social Media Influencer Marketing, Electronic Word Of Mouth, And Purchase Decisions, With A Focus On The ," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 427-438.

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