The influence of movie's quality on its performance: evidence based on Oscar Awards

The purpose of this paper is to develop and empirically test a new framework that shows how different signals of movie quality along with key control variables affect consumers’ post-consumption evaluations, critics’ reviews (CR), and movie box office revenues.

The data set consists of a sample of 332 movies released between 2000 and 2008. Regression was used to test the study hypotheses.

The results suggest that the three signals of movie quality exhibit different effects on three movie performance measures. Of the three cues, the peripheral quality signal is positive related to movie box, moviegoers’ evaluations (ME), and CR. Furthermore, star performance quality is positive related to both ME and CR. Surprisingly, overall quality signal does not display any influence on movie performances.

The primary limitation is the use of cross-sectional study design and future research should apply for time-series technique to test the relationships between movie quality signals and movie performances.

The findings suggest that consumers and critics evaluate movie qualities based on various movie quality signals. Furthermore, the characteristics of movies also have mixed impacts on movie performances. Movie studios may take these findings into account to produce better movies.

This study proposes and empirically tests the impacts of three groups of movie signals – peripheral quality signal, star performance quality signal, and overall quality signal on motion picture performance. This study contributes to service quality literature and signal theory by categorizing different Academy Awards into three groups of quality signals and by empirically testing the proposed relationships.