The Impact of Emotional Product Attributes on Consumer Demand: An Application to the U.S. Motion Picture Industry
affiliation not provided to SSRN
Cornell University - Samuel Curtis Johnson Graduate School of Management
NUS Business School
May 20, 2009
Johnson School Research Paper Series No. #22-09
Demand for products is often modeled as a function of product attributes. We propose that demand for experiential or hedonic products be modeled also as a function of “emotional product attributes” or emotions that a product might elicit from consumers. Our category of interest is the U.S. motion picture industry. We calibrate emotional attributes of a movie by mapping a movie’s plot keywords on a list of human emotions by using a word pattern recognition method called Latent Semantic Analysis (LSA). We propose a factor model to reduce this multidimensional representation of correlated emotional attributes to two factors - “emotional complexity” and “negative emotions”. These two factors are simultaneously incorporated in a random-utility choice model of 982 movies released in theaters in 1999-2005. We find that consumers prefer movies with greater emotional complexity. Demand for movies with negative emotions is moderated by consumers’ sense of well-being, as measured by the Consumer Confidence Index. Importantly, our method of capturing emotional product attributes is simple, off-the-shelf, inexpensive, and scalable to studying markets with a large number of products. Substantively, our findings combine insights from economics and psychology, and are of interest to studios and theaters in their production and release timing decisions.
Number of Pages in PDF File: 42
Keywords: Consumer choice models, emotional attributes of product, movies, economics and psychology
JEL Classification: C40, D12, D43, M30, L82
Date posted: May 21, 2009 ; Last revised: June 4, 2009
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