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Implementing and Evaluating SilverScreener: A Marketing Management Support System for Movie Exhibitors

The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104-6371
Department of Industrial and Management Engineering, Indian Institute of Technology, Kanpur, 208 016 U.P., India
Faculty of Commerce and Business Administration, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada
Center for Information Technology in Marketing (C/IT/M), Rotterdam School of Management, Erasmus University, 3000 D.R. Rotterdam, The Netherlands

Every Monday morning, Pathé Theaters in the Netherlands decides which movies in its cinemas to retain and which to replace. It must choose replacement movies from those available at that time. We implemented the SilverScreener model, a mathematical-programming system [Swami, Eliashberg, and Weinberg 1999] to help Pathé managers make those decisions for one six-screen theater and tested its performance against the performance of two unaided similar multiscreen cinemas. Using Pathé's historical data, managerial judgment, and theater-specific factors, we developed an attendance-forecasting system. While a fully controlled experiment was not possible, the revenues at the theater using the Silver-Screener recommendations were higher than those at the two comparable theaters. Managerial attitudes towards the modeling system improved after implementation of SilverScreener.

Key Words: INDUSTRIES—RECREATION-SPORTS; DECISION ANALYSIS—APPLICATIONS

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