KOREASCHOLAR

To lead a movie to success, managers must understand why consumers buy tickets. Some go to the movies due to trailers or movie posters, others watch movies triggered by their friends’ recommendation. Using Bass (1969)’s terms, we may categorize the former type of consumers into innovators who are influenced by external factors such as advertisements and media reports. We may label the latter type as imitators who are affected by internal factors such as word-of-mouth (WOM). Consumers in the digital era, regardless of their motivation types, easily obtain information related to movies through webpages or social networking services. Therefore, marketers should focus on how online information influence the diffusion of products.
Additionally, each country has a unique cultural background, thereby resulting in different consumer behavior. Based on the prior arguments, we expect that the US movie market would show higher innovation effect and lower imitation effect compared to the Korean movie market. Opposite to the hypothesis, there are no significant differences in the innovation effect between the two markets. However, as expected, the imitation effect of US is significantly lower than that of Korea. In both markets, the advertising level and the publicizing level do not show any significant effect on the innovation effect. However, the two variables have significant and positive effect on the market potential. As predicted, the gender and the age heterogeneity of WOM are revealed to affect the imitation effect in the hypothesized direction. Product availability, measured with the number of screens, has a positive relationship with the innovation effect in the US market and with the market potential in both markets. Lastly, seasonality shows a positive association with the imitation effect in the US market and with the market potential in the Korean market.
The current research tries to explore key differences in the diffusion patterns of movies between the US and Korean markets by applying Bass diffusion model. Further, this study aims to discover the factors that bring about the innovation and the imitation effects in both markets. By employing data available online, the current study could provide practical implications on how to manage information delivered through online channels.

• Youseok Lee(Seoul National University, Republic of Korea)
• Kyoung Cheon Cha(Dong-A University, Republic of Korea)
• Sang-Hoon Kim(Seoul National University, Republic of Korea)