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Terror is usually described as the feeling of dread and anticipation that precedes the horrifying experience. By contrast, horror is the feeling of revulsion that usually follows a frightening sight, sound, or otherwise experience.

The terror is experienced in the development of suspense and the fear of the unknown. The horror is manifested through the unknown becoming the 'known', and the fear being realised. The conventions of horror films delve into our fears and bring to the surface the degeneracy of the human mind.

Some of us use the term bad movies  to mean, simply, films that emerge from a supposedly lowbrow genre, or films that are stylized in the manner we tend to label camp.  (Road House from 1989 is this kind of bad movie, and is very good at being one.)

There is no single "most important" element as all film components  story, characters, acting, direction, production quality, pacing, emotional impact, relatability, and originality  contribute to its overall quality. However, many argue that a compelling story is at the heart of a great movie.