Jakub Žofčák – Jan Evangelista Purkyně University, Pasteurova 1, Ústí nad Labem, ZIP code: 400 96, Czech Republic
DOI: https://doi.org/10.31410/EMAN.2020.295
4th International Scientific Conference – EMAN 2020 – Economics and Management: How to Cope With Disrupted Times, Online/Virtual, September 3, 2020, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-30-1, ISSN 2683-4510
Abstract:
The paper analyzes the determining factors affecting Czech film attendance in the years
2003–2017 and places this topic into the context of the information asymmetry faced by film-goers.
Using the regression (OLS) model and a unique population-level dataset (415 observations), the hypothesis
of a positive relationship between film attendance and audience rating is confirmed. The increase
in audience ratings by Czech-Slovak Film Database website’s users by one percentage point is, ceteris
paribus, associated with an increase in attendance by 1.8%. Factors which have proven to determine
film attendance also include: specific genres; film sequels; casting of a popular actor, actress or director;
the personality of the director Zdeněk Troška; the Czech Lion Awards; and a premiere in certain
years. In the decision-making process of a viewer who faces information asymmetry one can rely on
these determinants as economic signals and on viewer ratings as information from an intermediary.
Keywords:
Film, Experience good, Signaling, Information asymmetry, User rating, Decision-making
process.
REFERENCES
Akerlof, G. A. (1978). The Market for „Lemons”: Quality Uncertainty and the Market Mechanism.
Uncertainty in Economics, 235–251. https://doi.org/10.1016/B978-0-12-214850-
7.50022-X
Basuroy, S., Chatterjee, S., & Ravid, S. A. (2003). How Critical are Critical Reviews? The
Box Office Effects of Film Critics, Star Power, and Budgets. Journal of Marketing, 67(4),
103–117. https://doi.org/10.1509/jmkg.67.4.103.18692
Basuroy, S., Desai, K. K., & Talukdar, D. (2006). An Empirical Investigation of Signaling in
the Motion Picture Industry. Journal of Marketing Research, 43(2), 287-295. https://doi.
org/10.1509/jmkr.43.2.287
CFTA. (2018). Ceny České filmové a televizní akademie za rok 2018 [Online]. Retrieved December
31, 2018, from https://www.filmovaakademie.cz/cz/ceny-cfta/2018
CSFD. (2018a). Návod k použití [Online]. Retrieved December 31, 2018, from https://www.csfd.
cz/navod-k-pouziti/
CSFD. (2018b). Nejoblíbenější tvůrci [Online]. Retrieved December 31, 2018, from https://www.
csfd.cz/tvurci/statistiky/?expand=fanclub#highlight-chart-fanclub-3-1572
De Vany, A., & Walls, W. D. (1999). Journal of Cultural Economics, 23(4), 285–318. https://doi.
org/10.1023/A:1007608125988
Dellarocas, C. N., Awad, N., & Zhang, X. (M.). (2004). Using Online Reviews as a Proxy of
Word-of-Mouth for Motion Picture Revenue Forecasting. Ssrn Electronic Journal, 1–32.
https://doi.org/10.2139/ssrn.620821
Desai, K. K., & Basuroy, S. (2005). Interactive influence of genre familiarity, star power, and
critics’ reviews in the cultural goods industry: The case of motion pictures. Psychology
and Marketing, 22(3), 203–223. https://doi.org/10.1002/mar.20055
Elberse, A. (2007). The Power of Stars: Do Star Actors Drive the Success of Movies?. Journal
of Marketing, 71(4), 102–120. https://doi.org/10.1509/jmkg.71.4.102
Eliashberg, J., & Shugan, S. M. (1997). Film Critics: Influencers or Predictors?. Journal of Marketing,
61(2), 68–78. https://doi.org/10.2307/1251831
Křišťálová lupa. (2018). Výsledky [Online]. Retrieved December 31, 2018, from https://kristalova.
lupa.cz/2018/vysledky/
Levin, A. M., Levin, I. P., & Heath, C. E. (1997). Movie Stars and Authors as Brand Names:
Measuring Brand Equity in Experiential Products. Advances in Consumer Research, 24,
175–181.
Moon, S., Bergey, P. K., & Iacobucci, D. (2010). Dynamic Effects Among Movie Ratings, Movie
Revenues, and Viewer Satisfaction. Journal of Marketing, 74(1), 108–121. https://doi.
org/10.1509/jmkg.74.1.108
Nelson, R. A., & Glotfelty, R. (2012). Movie stars and box office revenues: an empirical analysis.
Journal of Cultural Economics, 36(2), 141–166. https://doi.org/10.1007/s10824-012-9159-5
Pangarker, N. A., & Smit, E. Vd.M. (2013). The determinants of box office performance in the
film industry revisited. South African Journal of Business Management, 44(3), 47–58.
Sawhney, M. S., & Eliashberg, J. (1996). A Parsimonious Model for Forecasting Gross Box-Office
Revenues of Motion Pictures. Marketing Science, 15(2), 113–131. https://doi.org/10.1287/
mksc.15.2.113
Sochay, S. (1994). Predicting the Performance of Motion Pictures. Journal Of Media Economics,
7(4), 1–20. https://doi.org/10.1207/s15327736me0704_1
Terry, N., Butler, M., & De’Armond, D. ‚A. (2011). The Determinants of Domestic Box Office
Performance In the Motion Picture Industry. Southwestern Economic Review, 32, 137–148.