VIII Consumer Behavior Case Study

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THE OVERRIDING INFLUENCE OF SOCIAL MEDIA AS THE KEY

DRIVER OF CINEMATIC MOVIE SALES

MAXWELL OLOKUNDUN, AUGUSTA AMAIHIAN, OMOTAYO ADEGBUYI, AKINBODE

MOSUNMOLA

Department of Business Management Covenant University

Ogun State Ota Nigeria. PMB 1023

Abstract

This study draws upon literature on social learning to investigate the relationships between feedbacks

generated from peers of a social network and product marketing. The study analysed the significantly

over – riding effects of social media on demand shift factors in the context of product / service marketing

or sales based on a review of literature and meta-synthesis approach. Specifically the work looks at the

significant influence and impact of social media on sales and marketing of cinematic movies as having an

overriding effect on the influence of the competing economic theory of shift factors of demand on product

/ service sales. Social media in this context focuses on feedbacks generated from on line technologically

facilitated networks such as face book, twitter etc.

Keywords:

Social network, Social media, Demand shift factors, Experience goods.

1. INTRODUCTION

The choices consumers make in the cultural and creative industries are not just a function of the factors

that affect a change in demand (shift factors) as stated in economics, but also a function of the choices

that others make (Jason, Stuart John & Paul 2008). Thus consumption trends are greatly determined by

the choices that others make in a social network. The government of most nations as a panacea for

sustainable development has identified the vital role of the creative and cultural industries. Thus the

choice of cinematic movie made owes largely to the fact that it is a product that cuts across most nations

in the context of their creative and cultural industries (Geoffrey (ed.) 1996). Cinematic movies therefore

represent one of the most highly demanded experience goods in most nations of the world. A critical

review and analysis is therefore carried out in consistency with the proposed research model.

Prior research and various literatures have examined the influence of social media on product sales and

marketability. Various literatures and academic work also assert the effect of demand shift factors as a key

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determinant of product sales and marketing. It is important to note that both theories are usually examined

in isolation and independently, without cognisance to theoretical conflicts in the context of their influence

on product sales and marketing. Thus the existing literatures and academic papers on both theories

provide a strong basis for a comprehensive review and critical analysis of literature in the context of this

study.

The world has become a global village particularly facilitated by social media. Social media, which began

as tools of entertainment for young people, are today used by people of all ages for business purposes.

This trend poses both as a threat as well as an opportunity for companies and organisations (MCE 2010).

Consequently social learning from social media plays a very important role in influencing purchasing

decisions as regards movie sales and marketing. Movies as an experience good attract a lot of comments,

reviews and opinions from consumers. The context of movies therefore provides a good platform to

conduct a study of social media versus demand shift factors in the context of product sales and marketing.

2. RESEARCH OBJECTIVE

This paper beyond examining the significant effect of social media on the sales and marketability of

cinematic movies, also seeks to analyse the over – riding effects of social media over the traditional

economic concept of shift factors of demand. Thus this paper is aimed at creating a broader knowledge on

the enormously significant influence of social media on the movie industry. Firstly the study

conceptualises social learning based on movie reviews from social media. Secondly the study also

provides conceptual arguments as regards the significantly over riding influence and effects of social

media on basic economics theory of demand shift factors in the context of movie sales and marketing.

3. RESEARCH QUESTION

The study examines one key research question: In what ways does social learning from social media sites

indicate an over ride effect or influence over demand shift factors in the context of cinematic movie sales

and marketing?

4. STATEMENT OF PROBLEM

Larry (2005), describes the theory of demand, as a model of consumer behaviour, he further explains that

the theory of demand attempts to identify the factors that influence the choices that consumers make. This

suggests that traditionally, consumer behaviour as regards consumption trends are generally analysed

from the view perspective of demand theory. The economic theory of shift factors of demand suggests

that individual consumers make independent decisions as regards what to consume based on certain

factors regarded as non – price determinants. This results in either a positive or negative change in

consumption trends (Paul and William 1985). The theory states that at the same prevailing market prices

consumers will demand more or less than previously demanded as a result of these non – price

determinants.

A publication of Management Centre Europe (2010) on business trends overview, describe the world as a

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reflection of a village because of the influences of social networking tools like face book, my space,

twitter, and all kinds of blogs. Individuals give feedbacks about their experiences about a business that

companies cannot control, yet these feedbacks have great impacts on future sales of company products

(MCE 2010). Companies are therefore left with no option than to embrace this phenomenon, in an

attempt to make it work for them (MCE 2010).

Dei world- wide (2008) argues that sixty percent of consumers are reported to agree that the

recommendations from other individuals on line are valuable, credible and could influence their

perceptions of a brand, and hence influence their purchasing decisions. In other words a high degree of

authenticity is associated with social learning from social media. Particularly in the context of the movie

industry, Morreti (2010) describes social learning as an important determinant of movie sales. He further

argues that ‘social learning makes successful movies more successful and unsuccessful movies more

unsuccessful’. This is consistent with the assumption that consumers update their perception of the quality

of a movie based on the purchasing decision of their peers (Morreti 2010). Consequently the role of social

media as an effective tool of influencing consumption trends and sales of movies cannot be over

emphasised and hardly a subject of debate.

Rajshree and Barry (2002) argue that demand shifts due to non – price factors is the major determinant of

increased sales described as ‘sales take off’ particularly in the context of a new market. Thus supporting

the traditional demand theory of shift factors as the key driver of product sales and marketing. Larry

(2005) argues that traditional media advertising can be used to brand a product or increase the demand for

the product. This implies that advertising which is a shift factor of the traditional demand theory is

considered a key determinant for increased sales of products.

Even though extensive research has been carried out on the significant effect of social media on product

sales, a closer look at the effects of demand shift factors suggests a conflicting theory. For example should

the operators of cinemas and theatres, expect high sales during summer based on climatic conditions? Or

should they study on line reviews about a movie as a platform for sales prediction. There is therefore a

need to compare both theories with an underlying objective of improved movie sales and marketing. Thus

critical reviews of both theories indicate a degree of conflict and competitiveness particularly in the

context of consumer behaviour as regards consumption trends and purchasing decisions.

5. GAP IN LITERATURE

Previous studies often investigate the social media theory as a complement of the theory of demand shift

factors. The enormous complexity of the overriding influence of social media theory on the theory of

demand shift factors is hardly recognised. This study proposes that more attention be given to social

learning and feedbacks of movie reviews from technologically facilitated networks referred to as social

media in the marketing of movies.

6. CONTRIBUTION TO KNOWLEDGE

Thus this study contributes to the literature by taking into account the impact of social media as a

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significant determinant of movie marketing, and as a primary reference for movie sales.

7. RESEARCH METHOD

This study is carried out based on a comparison between the theories of social media and demand shift

factors in the context of cinematic movie sales and marketing. The aim of this study is to establish the

overriding influence exerted by the social media theory over the theory of the demand shift factors

particularly in the context of movie sales and marketing. An objective, thorough summary and critical

analysis of the relevant available research and non research literature on the topic being studied is carried

out to collate data consistent with the aim and objective of this study.

8. DATA ANALYSIS

In order to accurately determine the effects and influences of the theories of demand shift factors and

social media on movie sales and marketing, a contextual application of both theories is carried out on

cinematic movie sales and marketing. A meta-synthesis approach is used to critically analyse the effects

and influences of both theories as reviewed in literature to determine which theory exerts an override on

the other as regards movie sales and marketing. In other words a critical analysis and synthesis of findings

presents a probable reflection as regards which theory exerts a comparatively greater influence

particularly in the context of movie sales and marketing.

9. LITERATURE REVIEW:

9.1. Conceptual framework

9.1.1 Social network

Various literature and scholarly papers on the concept of social networks reveal the unending interest on

the subject. “A social network can be defined as connectivity between individual agents where the actions

of other agents within the network informs production and consumption trends” (Jason et al 2008). It can

therefore be deduced that human beings have the ability to connect with one another, generate and

interpret information from each other. These networks are usually defined connections, which could also

be technologically facilitated (face book, twitter, etc). A social network therefore is not just a group of

people one is familiar with for example friends, families and colleagues, but as described by Granovetter,

(1973) social networks also consist of the concept of information networks.

9.1.2 Social media

Social media has become pivotal in the general study of social networks. Mayfield (2008) describes social

media as a new set of online media sharing characteristics of participation, openness, conversation,

community and connectedness. Consumers can easily post their views and comments through various

routes (e.g. face book blogs etc.), and also read the comments of friends, family, anonymous peers or

experts, or share opinions and views about products or services with other potential consumers. Owing to

this technologically aided mass dissemination of information with its aptness and speed, it has become

apparent that the comments and views of other individuals posted through various routes have the ability

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to influence the choices that individuals make as regards consumption trends, and purchasing decisions

9.1.3 Experience goods

Products are classified into three categories namely; Search, experience and credence products. Search

products are those consumers can obtain complete information before purchase, experience products are

those consumers can only obtain information during or after purchase of the product, while credence

products are those consumers cannot obtain information before or even after purchase (Marcus, 2008).

Generally, consumers purchasing experience goods place more value on descriptions and evaluations of

prior experiences of others who have consumed the goods. Such information reduces the uncertainty of

the quality of goods in focus and facilitates effective decision - making (Marcus, 2008). It can therefore

be deduced that online reviews and comments posted about goods or products classified as experience

goods are given greater priority than those of search, or credence goods. Hence this study focuses on the

examination of the influence of social media on the sales and marketing of cinematic movies.

10. THEORETICAL FRAMEWORK

10.1 Word of Mouth

Tourism researchers have established that recommendations and suggestions from acquaintances and

family are the most commonly obtained and significant source of information used by customers or

clients in their travel decision making (Crotts 1999; Perdue 1993). The information communicated by

acquaintances and family is construed to be more convincing, straightforward, and dependable than those

generated from marketers, given that the communicators are not rewarded for the recommendations.

Development in the Internet and Web 2.0 technology and know-how currently permit clients to gain

access to personally meaningful appraisals not only from acquaintances and family but also from

unfamiliar persons. Thus Word of Mouth through the social media influences the decisions of buyers and

consumers particularly in the context of an experience product such as cinematic movies

10.2 Psychological Ownership Theory and Perceived Control

Asatryan and Oh (2008) employed Psychological Ownership Theory in elucidating why previous guests

are actuated to recommend WOM feedbacks. From one perspective, some clients build up a stance of

relations with firms they are dedicated to that translates into a sense of ownership, as substantiated by the

use of languages such as ‘mine’, ‘my’, and ‘our’ in their reviews. In such situations, one would

presuppose that loyal customers would offer optimistic and affirmative feedback to others, directing their

unenthusiastic feedback to management (Mattila 2001). On the other hand, in the absence of such loyalty,

the intention to write either an unconstructive or optimistic review may well be a craving to be in charge

of or control the business obliquely by communicating with its prospective probable customers.

Therefore loyal customers’ motives in posting affirmative reviews on social media are efforts to

compensate firms; such as cinematic movie operators. The motives of non-loyal clients are based on the

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fulfillment achieved in being useful to other customers As argued by Pierce, Kostova, and Dirks (2003),

the longing by the consumer to be in charge through such communications possibly will result in feelings

of worth and value as well as inherent pleasure, and extrinsic contentment in providing such

recommendations to others.

10.3 Theory of consumer behaviour

The theory of consumer behaviour as developed and propagated by Alfred Marshall is based on the

assumption that an individual consumer is a rational buyer who has access to perfect information and

knowledge about the market (Schiffman and Kanuk, 2000). The theory also suggests that the individual

consumer is fully aware and conversant with his or her desires and needs hence possess the ability to

determine the most appropriate approach to satisfying them (Hirschman, 1985; Hamansu, 2008).

Specifically, the theory suggests that the demand for an individual consumer is based on four primary

factors. Firstly a consumer buys based on the price of the product given that all other factors remain

unchanged. Therefore, in principle the higher the price the less of a product a consumer demands and

vice – versa. Secondly a consumer’s income also largely determines how much of a product is demanded.

This suggests that the greater an individual’s income the greater the capacity to demand. Thirdly it is also

assumed that the prices of closely related products are also salient factors in determining the demand of a

consumer for a product. Fourthly, consumer tastes and preferences also determine to a large extent the

demand of an individual. Larry (2005) and Paul and William (1985) in support of the role of demand shift

factors also state that effectiveness of advertisement and size of population are important factors that

determine the demand of consumers given that all other factors are under control.

11. SOCIAL MEDIA VERSUS DEMAND SHIFT FACTORS

11.1 AVERAGE INCOME OF CONSUMERS VERSUS SOCIAL LEARNING

Based on the theory of demand, nations or communities with wealthy families generally demand more of

all goods and services, than nations or communities with averagely poor families (Paul and William 1985;

Colander, 2008)). From this view perspective it is assumed that, communities with wealthy families will

demand more movies than the communities with poor families, at the prevailing market prices of various

movies. Thus it is assumed that more people will go to the theatres and cinemas to watch movies in

communities where the families are averagely wealthy, and on the other hand less people will go to the

theatres or cinemas to watch movies in communities where the families are averagely poor. The

implication is that it is assumed that movie sales will be higher in communities with wealthy families than

the communities with averagely poor families.

However, a news release by MCW (2011) of Britain’s mass affluent consumers’ lifestyle summarised a

research conducted by Master Card in partnership with Future Laboratory. This News release argues that

with affordability rarely in question, a major percentage of those surveyed indicate that purchasing

decisions are made only after thorough examinations of options and price ranges, making use of the

internet for personal recommendations, and price comparison sites. Furthermore, ACCC (2010) a

guideline research for consumer product safety recall summarise different demographic groups and their

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preferred communication methods. A careful study of the summary indicates that consumers with

higher incomes have shown a significantly increased use of on line communication, suggesting the major

determinant and influence of their business and social activities.

These findings particularly in the context of cinematic movie sales and marketing suggest that

communities or individuals with higher incomes, who are expected to demand higher quantities of goods,

also make most of their purchasing decisions based on social learning and feedbacks from social media.

Thus there is an indication that social learning about a movie from social media would exert greater

influence on the purchasing decisions of individuals than average income.

Hypothesis 1: Reviews and comments posted about a movie on social media exert greater influence on

purchasing decisions than average income of consumers

11.2. SIZE OF MARKET/ POPULATION VERSUS SOCIAL LEARNING

The size of a market or the population in a place largely affects the demand trend for goods and services

(Paul and William 1985). In principle therefore, based on the assumption that all things remain constant,

the total quantity of goods demanded increases in the same ratio as an increase in the size of the market or

the population of a place. Consequently the assumption is that a highly populated community will reflect

a very higher demand for movies compared with areas or communities with lower population. From the

perspective of the demand shift factor theory, it is expected that more individuals will go to theatres and

cinemas to watch movies in highly populated communities, and fewer individuals will do the same in

densely populated areas.

Quite conversely, with the concept of globalisation and de – localisation in focus, Smith and Doyle (2002)

argue that most interactive activities and engagements that were characterised by face – to – face

involvements or localization are now carried out across great distances. They further argued that activities,

interactions and relationships have been uprooted from local origins and cultures. Consequently the

simple notions of distance and territory are being redefined. The ‘spaces’ we occupy when we carry out

economic and social activities using the Internet creates a different definition of place and the community

we belong (Smith and Doyle 2002).

It is important to note that activities in local neighbourhoods are increasingly being influenced by the

actions of people and systems operational in distant places; as such people and system are increasingly

interdependent (Smith and Doyle 2002). Thus the world seemingly consist of separate and sovereign

individuals, firms, nations or cities, but a more complex reality is that the world actually is made up of

multiple connections (Smith and Doyle 2002).Businesses therefore as described by Smith and Doyle

(2002) are organised around networks of production, management and distribution. Thus sophisticated

information systems are regarded as essential ingredients in the context of the concept of globalisation.

Therefore it could imply particularly in the context of cinematic movie sales that the size of the market or

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population of individuals in a city does not necessarily culminate into higher marketability or increased

sales. There may be an indication that the size of market does not necessarily imply increased sales,

which in this context is may be primarily a function of social learning from social media.

Hypothesis 2: Reviews and comments posted about a movie on social media exert greater influence on

purchasing decisions than size of market/ population

11.3 PRICE AND AVAILABILITY OF CLOSE SUBSTITUTES VERSUS SOCIAL

LEARNING

The price and availability of a good substitute to a product is also assumed to largely affect the

consumption trend of consumers (Paul and William 1985). From this view point, if the cost of watching a

new movie at a cinema is far more expensive than the cost of watching a substitute movie at another

cinema, then less individuals will demand the new movie, and vice – versa. In other words it is assumed

that the degree of sales a new movie makes at cinemas or theatres depends largely on the availability and

price of good substitute movies. It also implies that even if a new movie promises to be a blockbuster,

sales and marketability of the movie depends largely on the availability and price of a substitute movie.

On the other hand Bo and Lillian (2008) argue that ‘what other people think’ has always been a

determinant for decision making for most people long before the awareness of World Wide Web. It is

worthy to note therefore that the internet among many other things has made it possible to have access to

opinions and experiences of a vast pool of individuals who may neither be personal acquaintances nor

experts, but are always ready to give their opinions to strangers via the internet (Bo and Lillian 2008). A

summary of two surveys of more than 2000 American adults conducted on opinion mining, reports that

consumers are willing to pay from 20% to 99% more for a 5 star rated item than a 4 star rated item (Bo

and Lillian 2008). These ratings symbolise the opinions, reviews, and perceptions of other individuals

about a product from social media.

Thus these findings provide evidence that other people’s perception of the quality of a product regardless

of the availability and price of close substitutes largely informs the purchasing decisions of individuals.

Hypothesis 3: Reviews and comments posted about a movie on social media exert greater influence on

purchasing decisions than price and availability of close substitutes.

11.4 INDIVIDUAL TASTE (S) AND PREFERENCE (S) VERSUS SOCIAL LEARNING

It is assumed that the demand trends of individuals are largely determined by subjective factors like

individual tastes and preferences for goods and services (Paul and William 1985). Consequently, a new

movie may promise to be entertaining and be of high quality, but individuals still may not demand such

movies if the movies are not consistent with their tastes and preferences. It is therefore assumed that

movies are not marketable just for their high quality, or presence and performance of certain actors, but

particularly because they align with individual taste and preferences. Here the individual taste or

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preference is regarded as a principal factor in the explanation of demand trends in the context of movie

sales

Jeong, Anjana, and Yong (2008) in a research on the ‘you tube’ model, argue that the uncertainty in user

interest prediction is suggestive of potential effects for social interaction as largely reflective of individual

preferences and actions being dependent on the decisions of others. The authors further argue that

identifying social influence is complicated owing to an indication that individual choices are reflective of

the choices of a social group to which they belong. Sheila, Joseph and Tadhg (2011) argue that the

evolution of the web and the increased use of social media influence purchasing decisions and affect the

consumption of cultural goods in a significant way. Sheila, Joseph and Tadhg (2011) further argue that the

consumption of cultural goods rely on word of mouth, taste cultures and popularity, in such a way that

there is clear indication that individual choices are dominated by information feedback from social

networks, as against innate preferences and price signals.

The findings of this study reflects an indication that most consumption decisions are primarily done based

on feedbacks, reviews and opinions from social media. Individual tastes and preferences have become

subjective to wider online social and cultural matrix. In the context of cinematic movies, most individuals

may only be favourably disposed to watching movies that are highly rated in opinion and review sites

from social media and would also be unfavourably disposed to watching movies with negative reviews

and opinions. Social media in this context thus exerts an override on innate preferences as regards

purchasing decisions hence a comparatively major determinant of cinematic movie sales and marketing.

Hypothesis 4: Reviews and comments posted about a movie on social media exert greater influence on

purchasing decisions than individual tastes and preferences.

11.5 MASS MEDIA VS SOCIAL LEARNING

It is assumed that effective advertisement of a good or service increases the awareness of a larger part of a

market thus facilitating sales (Larry 2005). It therefore implies that a movie well advertised is expected to

be very marketable, and reflect a high degree of sales. On the other hand, a movie not effectively

advertised should reflect very low sales and marketability. In other words, more individuals will go to

theatres and cinemas to watch movies effectively advertised and vice versa. It is important to note that

advertisement in this context includes traditional media like the television, radio, print media, and

etcetera.

David (2009) argues that the influence of traditional mass media institutions is strongly challenged by

what he refers to as audience participation and co – creation in online media production. He further

argues that internet based social media tools such as blogs and other social network sites have given voice

to the opinions and perception of millions of consumers’ worldwide virtually breaking down the dividing

walls between the consumer and producer or the public and audience. With information about the quality

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of a product in focus, Linville (2009) argue that traditional media like the television and print media are

ranked at the lowest bottom by consumers owing to the fact that social media is considered a quick and

more reliable source of information as regards the quality of a film. Even though the conventional mass

media like the television, radio and other print media still occupy a pivot place as regards the

dissemination of mainstream information, it is increasingly evident that they are deeply influenced by the

online conversations taking place on social media (David, 2009: Enrico, 2010).

Therefore social media on product sales may exert greater influence than the effects of the traditional

mass media. Particularly in the context of cinematic movie sales as an experience good, the influence of

social media may reflect an override on the effects of traditional mass media thus giving credence to the

possible comparatively greater influence of social media over mass media, particularly in the context of

cinematic movie sales.

Hypothesis 5: Reviews and comments posted about a movie on social media exert greater influence on

purchase decisions than advertisement through mass media.

12. DISCUSSION AND IMPLICATIONS

Based on accumulated knowledge from these findings this study proposes that social media may exert an

override effect on demand shift factors as regards purchasing decisions of individuals particularly in the

context of cinematic movies. This paper has examined the possible overriding effects of social media on

demand shift factors, in the context of movie marketing. The paper has identified social media as the

probable predominant determinant of increased sales particularly in the context of cinematic movie sales.

It has observed that though more movie producers and marketers are beginning to appreciate the crucial

role social media plays in movie marketing, more priority and focus needs to be given to social learning

from social media as a basis for effective movie marketing.

The paper argues that a decline in movie sales especially cinematic movies may owe largely to the

assumption by stakeholders in the movie industry that non – price determinants of demand exert greater

influence on purchasing decisions of individuals (Rotfeld 2006). Analysing the influence of social

learning from social media as a complement of traditional demand theory of shift factors as regards sales

and marketing of movies will greatly undermine the predominant effects of the social media theory.

Findings from literature reviewed in this study has shown that favourable social learning from social

media does not only significantly affect attitudes and beliefs as regards purchasing decisions of

individuals, but as well as propel the buying intentions of consumers. This is particularly consequent upon

the influence of peer group from social media. Individual consumers are greatly influenced by peer

pressure from social media and usually tend to adopt the behavioural trends of their particular peer group

in the context of purchasing decisions. The individual consumer usually makes the commitment to

adopt peer group purchasing trends to remain in conformity with what is seen as fashionable amongst

peer groups from social media.

Traditional marketing gives credence to the influence of relationships as regards purchasing decisions, but

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the findings from literature has shown that social media exerts greater influence particularly in the context

of purchasing intentions and decisions of individuals. This influence is enhanced by the opinions, reviews

and perception of consumers from social media about a product. These opinions, reviews and perceptions

are usually seen as credible as such individual consumers are greatly influenced by them.

Dave (2011) argues that social media occupies a pivotal place as regards current trends of

consumer-to-consumer conversation, and prospective gains of interpersonal marketing. Thus a strong

indication that social media is interlocked with movie marketing particularly because movies are

experience products. It is therefore no exaggeration that an effective social media campaign can

effectively facilitate movie sales in an exceptional way. Dave (2011) further argues that social media is

predominantly based on the word of mouth, giving credence to the content of product marketed. Hence in

the context of cinematic movies, social media has the ability to boost sales and positively influence

purchasing decisions.

Marketing is only effective where a large number of people pay attention. The concepts of globalisation

and cyber space have generated large consumer traffic on social media. Hence social media has become

the most effective forum and platform for successful marketing of products and services. In the context of

cinematic movies, engaging the audience on social media sites can effectively facilitate movie marketing

by creating an awareness, which largely increases fan base. This approach gives the audience a sense of

belonging and stirs up interest in the movies marketed. That social media marketing has, outpaced

traditional ways of movie marketing like television and print media cannot be over emphasized (Rotfeld

2006). Social media remains the only platform where a two – way communication is created between the

consumers and the movie marketers, consequently increased sales is achieved by the multiplier effect of

social learning from social media.

13. CONCLUSION

Generally, the recent dominance of online social and business activities cannot be over emphasised.

Today more than sixty - seven percent of the world’s population are involved with social media (Santore

2011). Consequently these interactive websites and messaging services have become individual outlets to

the world. Apart from being interactive and re - creational, these sites also serve as information banks for

individuals. Thus social media is a presumed to be a major overriding determinant of purchasing

decisions particularly in the context of cinematic movies. As such it is advocated that studios and

production houses should give greater priority to social media as regards their marketing budget. With

these recent global trends, movie producers and marketers need to re-strategize to ensure that good

quality movies are within the reach of all and sundry. The movie industry turn out a large number of films

yearly, therefore survival and success in this industry will possibly require an appropriate social media

strategy consistent with the achievement of this goal and objective.

This research dots the possible role of customer feedback and social media as regards cinematic movie

firms’ strategic benefit. Firstly cinematic movie firms should underline and bring to the fore the

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awareness of psychological ownership and control among their customer base through loyalty and

customer feedback (Pan and Crotts 2010). This is consequent upon the fact that cinematic movie firm

should anticipate customers to both recompense and penalize their performance through social media

(Pan and Crotts 2010).

14. INDICATIONS FOR FURTHER RESEARCH

This study proposed five hypotheses based on an extended review of literature. Thus the obvious next line

of action will be to carry out an empirical research geared at testing the hypotheses presented.

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