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Marketing models of entertainment products Ho, Yiu Chung
Abstract
Television broadcasts of major events like the Super Bowl command extremely high advertising rates. It is important to evaluate the value created by this advertising tactic. The first essay develops a marketing model that illustrates a direct and an indirect effect path created by Super Bowl TV advertising in the movie industry. First, via the direct path, Super Bowl advertising directly increases initial theatrical demand for a movie. Second, through the indirect path, Super Bowl advertising first encourages more exhibitors to screen a movie, then this increased exhibition rate in turn increases initial box office revenue. Four variants of the marketing model are explored in the attempt to capture the non-linearity of the two paths and other control variables' effects. Three main results are obtained. First, Super Bowl advertising is demonstrated to affect opening box office revenues positively. Second, this positive effect occurs mainly through the indirect path, establishing the mediating role of movie exhibitors. Third, compared to other TV advertising efforts, Super Bowl advertising appears less effective if both efforts are evaluated at the same initial level. However, at current spending levels, Super Bowl advertising can still be justified. Many entertainment service providers serve customers according to pre-announced schedules, and the timing factor can be as important as price and service quality in determining consumer demand. The second essay develops three demand models to characterize the effects of different service start times in a multiplex movie theater context. The models address two recurring issues, namely the confounding of product quality and time preference in aggregated sales data, and the difficulty of distinguishing between cannibalization and market expansion. Meaningful results are obtained by applying the models to two data sets of admission records from a multiplex movie theater in Amsterdam. First, one of the data sets is demonstrated to exhibit confounding of unobserved movie quality and moviegoers' underlying time preference, establishing the value of the demand models in disentangling these two effects in the aggregated sales data. Second, the effectiveness of the models in comparison to previous models is demonstrated in the process of discerning between cannibalization and market expansion.
Item Metadata
Title |
Marketing models of entertainment products
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Creator | |
Publisher |
University of British Columbia
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Date Issued |
2005
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Description |
Television broadcasts of major events like the Super Bowl command extremely high
advertising rates. It is important to evaluate the value created by this advertising tactic. The first
essay develops a marketing model that illustrates a direct and an indirect effect path created by
Super Bowl TV advertising in the movie industry. First, via the direct path, Super Bowl
advertising directly increases initial theatrical demand for a movie. Second, through the indirect
path, Super Bowl advertising first encourages more exhibitors to screen a movie, then this
increased exhibition rate in turn increases initial box office revenue. Four variants of the
marketing model are explored in the attempt to capture the non-linearity of the two paths and
other control variables' effects. Three main results are obtained. First, Super Bowl advertising
is demonstrated to affect opening box office revenues positively. Second, this positive effect
occurs mainly through the indirect path, establishing the mediating role of movie exhibitors.
Third, compared to other TV advertising efforts, Super Bowl advertising appears less effective if
both efforts are evaluated at the same initial level. However, at current spending levels, Super
Bowl advertising can still be justified.
Many entertainment service providers serve customers according to pre-announced
schedules, and the timing factor can be as important as price and service quality in determining
consumer demand. The second essay develops three demand models to characterize the effects
of different service start times in a multiplex movie theater context. The models address two
recurring issues, namely the confounding of product quality and time preference in aggregated
sales data, and the difficulty of distinguishing between cannibalization and market expansion.
Meaningful results are obtained by applying the models to two data sets of admission records
from a multiplex movie theater in Amsterdam. First, one of the data sets is demonstrated to
exhibit confounding of unobserved movie quality and moviegoers' underlying time preference, establishing the value of the demand models in disentangling these two effects in the aggregated
sales data. Second, the effectiveness of the models in comparison to previous models is
demonstrated in the process of discerning between cannibalization and market expansion.
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Genre | |
Type | |
Language |
eng
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Date Available |
2009-12-23
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Provider |
Vancouver : University of British Columbia Library
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Rights |
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.
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DOI |
10.14288/1.0099857
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URI | |
Degree | |
Program | |
Affiliation | |
Degree Grantor |
University of British Columbia
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Graduation Date |
2005-11
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Campus | |
Scholarly Level |
Graduate
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Aggregated Source Repository |
DSpace
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Item Media
Item Citations and Data
Rights
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.