1. 4SI, 4th IADE International Week, March 2010  Cultural events  Public information  Seppo Suominen 26 May 2016HAAGA-HELIA University of Applied Sciences 1

2. Cultural events?  BALLET/DANCE/OPERA  CINEMA  THEATRE  SPORT EVENT  CONCERT  PUBLIC LIBRARY  HIST MONUMENTS  MUSEUMS/GALLERIES  TV/RADIO PROGRAMME  READ A BOOK 26 May 2016HAAGA-HELIA University of Applied Sciences 2

3. ARTISTIC ACTIVITIES  PLAYED MUSIC INSTR  SUNG  ACTED  DANCED  WRITTEN  HANDCRAFTS  PHOTOGRAPHY/FILM  OTHER VISUAL ARTS 26 May 2016HAAGA-HELIA University of Applied Sciences 3

4. Information:  Advertising: serves as a tool for transmitting information from producers to consumers about differentiated brands and therefore reducing the search costs and also increasing welfare  Advertising may convey hard facts, vague claims or favourable impression of a product  The informational content of advertising depends on whether consumers can determine the quality of that product before buying. 26 May 2016HAAGA-HELIA University of Applied Sciences 4

5. Search goods and experience goods  If the consumer can value a product’s quality by inspection before buying it, the product has search qualities or the product is a search good  However, if the consumer must consume the product to determine its quality, the product has experience qualities or the product is an experience good (Nelson 1970). 26 May 2016HAAGA-HELIA University of Applied Sciences 5

6.  Advertising provides direct information about the characteristics of products with search qualities, their main attributes can be determined by visual or tactile inspection (e.g. clothes) or by a test drive or trial (car).  Experience goods must be consumed before its quality can be determined (e.g. processed foods, software programs, and gymnastic exercises). 26 May 2016HAAGA-HELIA University of Applied Sciences 6

7.  Nelson (1974) argues that producers of high-quality experience goods can spend more money on advertising because first-time consumers are more likely to be satisfied with the quality and will make repeat purchases, than with low-quality experience goods.  When buying search goods consumers do not depend on information received through producers’ advertising since they receive that information by inspection or trial. 26 May 2016HAAGA-HELIA University of Applied Sciences 7

8.  So the effects of advertising vary between search goods and experience goods and there is more intensive advertising with experience goods.  Producers (distributors, importers) can use other means to signal about the quality of their products, not just advertising but also product labelling or branding, reputation, guarantees or expert ratings. 26 May 2016HAAGA-HELIA University of Applied Sciences 8

9.  A brand name that carries a certain reputation can attract more customers  But when a large proportion of sales are generated by customers that do not repeat their purchases – like tourists – the reputation of a shop matters less, since few customers are familiar with the shop’s reputation 26 May 2016HAAGA-HELIA University of Applied Sciences 9

10.  Consumers obtain information through guarantees or warranties, therefore producers of high-quality products can reveal plausible information that their products are of high quality.  Consumer groups or industry groups, even government may provide information in the forms of standards or certification 26 May 2016HAAGA-HELIA University of Applied Sciences 10

11. Word-of-mouth  Word-of-mouth (WOM) has a powerful effect on movie admissions  WOM as the cumulative number of screens since its release  WOM measured as cumulative viewership  WOM is more trustworthy than advertising or critical reviews since it comes from other moviegoers. 26 May 2016HAAGA-HELIA University of Applied Sciences 11

12. Critical reviews  Critics could act as opinion leaders (influencers) who are considered as more experienced and with having more knowledge on the quality of movies  The impact of critical reviews has been found positive in many studies. 26 May 2016HAAGA-HELIA University of Applied Sciences 12