Modelling Online Word-of-Mouth Effect on Korean Box-Office Sales Based on Kernel Regression Model

In this paper, we analyse online word-of-mouth and Korean box-office sales data based on kernel regression method. To do this, we consider the regression model with mixed-data and apply the least square cross-validation method proposed by Li and Racine (2004) to the model. We found the box-office sales can be explained by volume of online word-of-mouth and the characteristics of the movies.