Research Article
The Effect of Online Review Characteristics on Movie Revenue: A Comparison between Korea and the United States
1 Korea University
Published: January 2020 · Vol. 49 No. 6 · pp. 1575-1594
DOI: https://doi.org/10.17287/kmr.2020.49.6.1575
Full Text
Abstract
Companies are trying to improve the effectiveness of electronic word-of-mouth (eWOM) in markets with diverse cultural backgrounds. A few researchers have analyzed the cultural dimension that moderates the effectiveness of the eWOM, but there is a limitation that the cultural dimension is limited to the cultural dimension of Hofstede such as individualism-collectivism and avoidance of uncertainty. In particular, the discussion of cultural differences for eWOM variance is limited. Against this background, this study analyzed the role of cultural characteristics to moderate the effects of eWOM characteristics in the film industry. For empirical analysis, review data and sales data were collected for the film industry in Korea and the United States, and finally 10,371 data were analyzed by OLS regression analysis. In addition, a robustness test was conducted through the propensity score matching method. As a result of the analysis, the positive effects of eWOM characteristics were found to be reinforced in Korea compared to the United States.
