Why Do People Buy Virtual Items? An Assessment Using the Theory of Functional Value

Most of the revenue for online game producers comes from selling virtual goods. This study aimed to investigate the intention to purchase virtual items in online games. In these games, players can buy virtual items that can be used to improve their character’s abilities. The researchers used the theory of functional value to test the intention to purchase virtual items and what factors influence this purchase intention. 100 students participated, and data was analyzed through multiple linear regression. Our results indicated that price utility influences the purchase intention of virtual items. We found that character competence and functional quality did not affect purchase intention, which was thought to be related to the social aspects of virtual communities. Keywords: theory of functional value, intention to buy, mobile gam

Das virtual capital : an economic perspective on playing online games : Fantastic scarcity and Real-market trades

Massively multiplayer role-playing games (MMORPG) are becoming a popular leisure activity world-wide. MMORPG players have created a new kind of market, one for virtual possessions. Some players will buy and sell virtual goods for real-world money. Many game developers oppose this real-market trade because it threatens the control of their intellectual property. These games are inherently social environments where players group together to fulfill quests and meet goals. The value of virtual possessions is a response to a game world’s fantastic scarcity, where certain virtual goods and activities raise a player’s social rank or further other goals. The game acts like a technological production function that produces virtual goods and capital. Players with high real-world wages will spend less time in games in comparison with low-wage players. Real-market trade allows buyers to shift their real-world wealth into game wealth. However, real-market trade also detracts from the information value of virtual goods, which are act as signals for the amount of time a player has invested and player ability

The Cost of Playing the Game: Modeling In-Game Purchase Intention and Investigating Purchase Behavior of Mobile Gamers

Free-to-play games typically have a monetization model that relies on players to purchase in-game items or virtual goods to generate revenue (Nguyen, 2015). There have been several empirical efforts to investigate purchase intention of virtual goods in video games with some focusing on quantitative models of purchase intention. Most of these studies tend to be with virtual worlds and lack the use of validated instruments to measure constructs (Hamari & Keronen, 2017). This research sought to gain a greater understanding of purchase intention of in-game content or virtual goods in mobile games through two studies. Study 1 modeled purchase intention with factors including satisfaction, addiction, attitudes of virtual goods, social motivations, continuance intention, and play characteristics. A total of 284 participants who played mobile games for at least 5 hours a week completed an online survey examining the relationships between the different constructs. Several structural equation models were generated to find the best fitting model. Results of the final model explained 66.1% of the variance in purchase intention with the factors of attitudes towards virtual goods, monetary value, addiction, enjoyment, and creative freedom. Attitudes towards virtual goods (β = .767) was the most associated factor with purchase intention in the model followed by enjoyment (β = .153), monetary value (β = .148), creative freedom (β = -.127), and addiction (β = .106). Study 2 examined purchase behavior of mobile video game players with a longitudinal diary study. Eight mobile video game players selected a game to play over the course of two weeks while logging their experience and purchases. Seven of the eight participants made a purchase of in-game content. Analyses of what game elements contributed to purchasing behavior revealed that some participants reported associated dark patterns around their purchases such as paying for enhancements, which is paying for in-game content to make characters stronger to progress in the game. Players also encountered loot boxes that provide only a chance to earn specific items in the game. These results add to Study 1 results by demonstrating that aspects of how a game is designed may impact in-game purchase intention and should be considered in future research. The combination of Studies 1 and 2 show that both psychological constructs of mobile gamers and aspects of game design may influence in-game purchase intention. Future research could replicate the model from this research in other in-game purchase intention or actual purchase behavior settings such as different types of games genres, platforms, or populations. Other areas of future research include further examination of the impact of dark game design patterns on purchase behavior in other situations (e.g., console, free to play vs. pay to play) and the development of ways to mitigate deceptive designs on player purchasing habits

Gamers' Reasons for Purchasing Gaming Virtual Products: A Systematic Review

With the development of the gaming industry, the trend of gaming virtual goods consumption is gradually growing, and online gaming goods consumption has become a hot topic. Players spend a lot of money purchasing virtual items. Why do people buy these items? Therefore, we conduct a systematic literature review to investigate the reasons for purchasing virtual goods in games. We use the “The Preferred Reporting Items for Systematic reviews and Meta-Analyses” (PRISMA) statement to guide the data collection, analysis and reporting project for the systematic review. This article obtained 37 papers from the Web of Science (WOS) and Scopus databases. The article covers research during the period 2013-2023. We review the independent and dependent variables, research methods, theoretical background, and findings involved in the relevant literature. The study finds that the "enjoyment", "social attributes" and "functional value" of gaming products often play a key role in consumer purchases at certain times and among certain user groups. It is the hope of this paper that these findings will increase gaming companies' understanding of what drives players to purchase virtual items. Game designers can grasp the needs of game users and better convert ideas into payment points so that game companies can get higher profits

More than Just a Game – User Expectations v Operator Interests

Trade in virtual goods is currently governed by social conventions. This has resulted in a complex network of social contracts being established outside the formal legal system. The size of informal secondary markets has transformed virtual environments from games into transaction spaces. This has been encouraged by operators and their marketing strategies. The design of virtual environments leads users to expect that virtual property will reflect the real world property system. Although users speak about ownership, the law may not authorise them to alienate virtual goods through the secondary markets. Therefore, transactions are carried out in the context of legitimate expectations based on implicit social conventions. Property law theorists tell us that the law develops by recognising and formalising social conventions. An analysis of those social conventions and contracts can therefore indicate how and to what extent formal law should be adopted in virtual environments and what categories of (property) law can best address these new challenges

Virtual money

Виртуальная валюта или игровая валюта — частные электронные деньги, которые используются для приобретения и продажи виртуальных товаров в различных сетевых сообществах: социальных сетях, виртуальных мирах и онлайн-играх.Virtual currency or game currency - private electronic money used for the purchase and sale of virtual goods in various online communities: social networks, virtual worlds and online games

Second Life - problems with the prolongation of reality

Linden Lab studies massive online game "Second Life" unexpectedly gained worldwide fame after a few years after release. To the surprise of many game has met with great interest, despite the lack of promotional campaigns. It can be assumed that the reason why "second life" reached a wider audience was a special type of offered entertainment. Network game proved to be no longer a game that was known so far, but an example of a mass media, whose central element is a dynamic virtual world which is an extension of our "first" reality. "Second Life" has the potential, which is challenging the widely shared rules could shake the foundations of the social world. This program is currently the most advanced example of a virtual economy. Unlike many other massive online games and their predecessors, this game is entirely based on the principles of virtual property ownership, as well as rules of conduct virtual business and service, and finally also the consumption of goods. Users of the game, just like the person providing the data in the framework of social networking sites maintained in the mainstream of Web 2.0, user-generated content constituting the virtual world, which can trade content with others linden virtual dolars that can be exchanged to real U.S. dollars. The increase in popularity of "Second Life" brings to mind the vision of the possibility of creating a better place to live for many people. Closer analysis of this phenomenon does not allow for such statements. In the following instances will be presented: information about the growth of the global market for online games and its consequences, the distinguishing features of "Second Life" from traditional online games, virtual elements of the impact of economics on social life, the concept of entertainment as a job stream properties Games 2.0 and contentious issues, which produces "second life".Second Life, Crowdsourcing, User-Generated Content, Wikinomics

Digital play and the actualisation of the consumer imagination

In this article, the authors consider emerging consumer practices in digital virtual spaces. Building on constructions of consumer behavior as both a sense-making activity and a resource for the construction of daydreams, as well as anthropological readings of performance, the authors speculate that many performances during digital play are products of consumer fantasy. The authors develop an interpretation of the relationship between the real and the virtual that is better equipped to understand the movement between consumer daydreams and those practices actualized in the material and now also in digital virtual reality. The authors argue that digital virtual performances present opportunities for liminoid transformations through inversions, speculations, and playfulness acted out in aesthetic dramas. To illustrate, the authors consider specific examples of the theatrical productions available to consumers in digital spaces, highlighting the consumer imagination that feeds them, the performances they produce, and the potential for transformation in consumer-players

From the Hands of an Early Adopter's Avatar to Virtual Junkyards: Analysis of Virtual Goods' Lifetime Survival

One of the major questions in the study of economics, logistics, and business forecasting is the measurement and prediction of value creation, distribution, and lifetime in the form of goods. In "real" economies, a perfect model for the circulation of goods is impossible. However, virtual realities and economies pose a new frontier for the broad study of economics, since every good and transaction can be accurately tracked. Therefore, models that predict goods' circulation can be tested and confirmed before their introduction to "real life" and other scenarios. The present study is focused on the characteristics of early-stage adopters for virtual goods, and how they predict the lifespan of the goods. We employ machine learning and decision trees as the basis of our prediction models. Results provide evidence that the prediction of the lifespan of virtual objects is possible based just on data from early holders of those objects. Overall, communication and social activity are the main drivers for the effective propagation of virtual goods, and they are the most expected characteristics of early adopters.Comment: 28 page

Exploring social gambling: scoping, classification and evidence review

The aim of this report is to speculate on the level of concern we might have regarding consumer risk in relation to ‘social gambling.’ In doing so, this report is intended to help form the basis to initiate debate around a new and under-researched social issue; assist in setting a scientific research agenda; and, where appropriate, highlight concerns about any potential areas that need to be considered in terms of precautionary regulation. This report does not present a set of empirical research findings regarding ‘social gambling’ but rather gathers information to improve stakeholder understanding