The interactive impact of online word-of-mouth and review helpfulness on box office revenue

Abstract

PurposeWhile a number of studies examined the eWOM (online word-of-mouth) factors affecting box office, the studies on the impact of review helpfulness on box office are lacking. The purpose of this paper is to fill the void in previous studies and further extend prior work regarding eWOM and box office. In order to explain the interaction effect of helpfulness with other variables on product sales, this study posits that review characteristics such as number of reviews, review rating, review length interact with review helpfulness to have an influence on box office. Further, as the studies that have examined whether eWOM factors are significant in box office performances for the international markets other than US are lacking, this study is targeting Korean markets to validate the effect of eWOM on box office.Design/methodology/approachThis study used publicly available data from www.naver.com to build a sample of online review data concerning box office. The final sample of the study included 2090 movies.FindingsThe results indicated that in cases when the review is helpful, the number of reviews and review length are more greatly influencing box office. Review rating, review extremity, and helpfulness for reviewer are important determinants for review helpfulness.Practical implicationsManagers can concentrate on the review rating and review extremity of online customer reviews in the design of online sites for movies. The design of user review systems can follow the direction that promotes more helpfulness for online user reviews based on an enhanced understanding of what drives helpfulness voting.Originality/valueGiven that previous studies on the effect of review helpfulness on box office are lacking, it contributes to eWOM literature by investigating the impact of review helpfulness on box office revenue.