How Word-of-Mouth Influences Box-Office Revenues in China

Electronic Word of Mouth (eWOM) has a great effect on consumers’ purchasing decision. Movies cannot be evaluated before consumption and that makes the eWOM much more important. The awareness and persuasive effect of the eWOM influence the box office revenues. The impact of the eWOM on revenues of movies’ box-office are investigated in domestic market of China. Using a sample of 224 movies released from 2015 and 2016, an OLS regression of this sample for eWOM was performed. This study concluded the Awareness Effect and the Persuasive Effect of the eWOM influencing the revenues of box office positively.