Article 92 = 210 Whose and what chatter matters? The effect of tweets on movie sales

Whose and what chatter matters? The effect of tweets on movie sales

In the present study, we investigated whether and how Twitter WOM affects movie sales by estimating a dynamic panel data model using publicly available data and well-known machine learning algorithms. In support of some recent findings about the importance of WOM valence on product sales, we also found that positive Twitter WOM is associated with higher movie sales, whereas negative WOM is associated with lower movie sales. Interestingly, we found that the strongest effect on movie sales comes from those tweets in which the authors expressed their intention to watch a certain movie. Our findings provide new perspectives to understand the effect of WOM on product sales and have important managerial implications. For example, our study reveals the potential values of monitoring people's intentions and sentiments on Twitter and identifying influential users for companies wishing to harness the power of social broadcasting networks.