Abstract:

The motion picture industry is a cultural and creative industry with tangible sales return and intangible social return. Based on new product diffusion perspective, this paper investigates the diffusion pattern, movie-going behavior, and interpersonal communication in U.S. and China markets. After comparing the difference between China and U.S. markets, this paper suggests that: (1) the production process should satisfy opinion leaders’ needs; (2) the produce process could not only focus the market spending before movie’s release, but also increase market spending at the opening week; (3) the exhibition process should simulate word-of-mouth communication between moviegoers and further attract much more opinion seekers.

Key words: Movie industry, Chinese Movie, Business Model, New Product Diffusion, WOM