| This dissertation uses the Endogenous Growth Theory to describe the value that consumer online word-of-mouth (eWOM) adds to the sales of a new product (a movie) in its multiple versions (released in the theater and then on DVD). The Endogenous Growth Theory posits that human capital growth adds value to an economy. This dissertation views consumer eWOM as human capital that adds value to advertising and new product sales. Users' votes, users' grade and users' messages on a movie website are the measurements of eWOM that represent human capital. These three measurements of eWOM are hypothesized to have positive, increasing and sustained long-term effect on movie box office sales and DVD rentals. Other movie-specific variables of production costs, screens, MPAA ratings, critics' evaluation, time lag, Oscar award and sequel were included measuring movie sales. Empirical results support the hypotheses that users' votes, users' grades, and users' messages add value to advertising in movie box office sales. Results also support the hypotheses that eWOM of users' messages have an increasing effect on movie box office sales. |
