Movie Sequels: Testing of Brand Extension and Expansion Using Discrete Choice Experiment

Abstract

This study investigates the attributes that can affect a sequel’s audience size and product life cycle. The purpose is to determine what attributes influence an individual’s decisions of whether to watch a sequel in the theatres, and when to watch the sequel. Compare is made between the existing audience and new comers. This study employs Discrete Choice Experiment (DCE) as the main research method, with Edge of Tomorrow and Interstellar as two parent movies for this research. The findings indicate that four attributes significantly influence consumers’ movie watching decisions: recommendation, valence, actor and title strategy. In addition, existing audiences tend to watch the sequels earlier than new comers. Finally, it is demonstrated that a sequel’s audience size and life cycle largely depend on the level combinations of some given attributes.