The Impact of Word of Mouth via Twitter on Moviegoers' Decisions and Film Revenues—Revisiting Prospect Theory: How WOM about Movies Drives Loss-Aversion and Reference-Dependence Behaviors
Yeujun Yoon
Peking University
Charin Polpanumas
Lazada.com
Young Joon Park
Peking University
MANAGEMENT SLANT
- The study suggests moviegoers’ reaction to WOM follows a similar pattern as prospect theory expects: reference dependence, loss aversion, and diminishing sensitivity.
- Consumers’ evaluation of the movie is a function not only of WOM volume or direction but also of the consumers’ expectation level as constructed through previous Tweets.
- Negative WOM in social media like...