When Mixed Information Is a Blessing: the Effects of Critical Disagreement on a Film’S Evaluation and Subsequent Box Office Performance

Extant research suggests that how consumers react to reviewer disagreement (e.g., three reviewers rate the same film as three stars, two stars, and one star respectively) depends upon their prior expectations of the product. We test this proposition, first in a laboratory setting, where participants endowed with higher (or neutral) expectations evaluate a film after they are given directional review information. We find that participants with higher expectations prefer reviewer disagreement to agreement, but participants with neutral expectations do not show any differential preference. Second, we analyze the opening week box office revenues of a random sample of 500 films released between December 1997 and March 2001 and find that the effect of critical disagreement on box office revenues is moderated by the advertising and production budget of the film (the latter treated as a surrogate for expectations). Consistent with our laboratory study, increasing critical disagreement helps the higher budget films, but has no effect on lower budget films.



Citation:

Subimal Chatterjee, Suman Basuroy, and Timothy B. Heath (2006) ,"When Mixed Information Is a Blessing: the Effects of Critical Disagreement on a Film’S Evaluation and Subsequent Box Office Performance", in AP - Asia-Pacific Advances in Consumer Research Volume 7, eds. Margaret Craig Lees, Teresa Davis, and Gary Gregory, Sydney, Australia : Association for Consumer Research, Pages: 310-311.

Authors

Subimal Chatterjee, School of Management, Binghamton University, Binghamton, NY 13902-6000, USA
Suman Basuroy, The College of Business, Florida Atlantic University, Jupiter, FL 33458, USA
Timothy B. Heath, Farmer School of Business, Miami University, Oxford, OH 45056, USA



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 7 | 2006



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