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| Author: | Elberse, A. Eliashberg, J. |
| Title: | Demand and supply dynamics for sequentially released products in international markets: The case of motion pictures |
| Journal: | Marketing Science
2003 : SUMMER, VOL. 22:3, p. 329-354 |
| Index terms: | Marketing Film industry Leisure industry Distribution channels Strategy Case studies USA Europe |
| Language: | eng |
| Abstract: | This paper develops an econometric model to study a setting in which a new product is launched first in its domestic market and only at later stage in foreign markets, and where the product's performance ("demand") and availability ("supply") are highly interdependent over time within and across markets. With the focus of the empirical analysis on theatrical motion picture industry, a dynamic simultanenous-equations model of the drivers and interrelationship of the behaviour of consumers ("audiences") and retailers ("exhibitors") is developed. The findings emphasize the importance of considering the endogeneity and simultaneity of audience and exhibitor behaviour, and challenge conventional wisdom on the determinants of box office performance. Specifically, it is found among others that variables such as movie attributes and advertising expenditures, mostly influence revenues indirectly. |
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