Cultural variations in the use of marketing signals: a multilevel analysis of the motion picture industry

Abstract

Movies are experiential products that include a myriad of cultural cues, and their box office performance varies across countries with different cultural backgrounds. The profusion of studies on the motion picture industry notwithstanding, this aspect has been largely ignored in the literature. Drawing on signaling theory, this study examines how a country’s cultural fabric moderates the impact of movie-related signals on the opening weekend box office performance. We test our hypotheses using a multilevel model and a comprehensive dataset of 1,116 movies released in 27 countries between 2007 and 2011. Results reveal that the impact of star power on box office performance is amplified in high uncertainty avoidance and indulgent cultures, while it is attenuated in high power distance cultures. Moreover, the positive relationship between sequels and performance wanes in individualist cultures. Movies with high production budgets perform better in culturally open countries, while critics’ reviews are more instrumental in high uncertainty avoidance cultures.