Interactive effects of individual- and group-level variables on virtual purchase behavior in online communities

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Abstract

Focusing on social network theories, we examine the interactive influence of both group-level (i.e. community influences) and individual-level variables (intrinsic and extrinsic motivations) simultaneously as the drivers of Massively Multiplayer Online Role-Playing Game (MMORPG) players’ virtual purchase behavior. We demonstrate that several aspects of real-world behavior are reflected in virtual purchase behavior. Notably, normative interpersonal influences and community identity are critical drivers and moderators of virtual purchases. Moreover, clear advancement and enjoyment opportunities offer important triggers for virtual purchase behavior. This study provides insights for game developers to increase virtual purchases, and identifies domain-specificity of each gaming platform.

Introduction

Since the mid-nineties online consumers have embraced internet product purchasing, commencing predominantly with tangible goods, such as books from Amazon, and progressing to intangibles, exemplified by music from iTunes. More recently this trend has grown to include the purchase of virtual goods, with over US$2.3 billion spent in 2011 in the United States alone [1] and an overall revenue generation of approximately US$6 billion [2]. Virtual purchases grew from the evolution of online games within virtual worlds and first emerged in 1999 in player-to-player trade of virtual possessions [3] in Massively Multiplayer Online Games (MMOGs). These self-contained, three-dimensional virtual reality games (e.g. Happy Farm, Monkey Quest, Active Worlds among others) combine a highly active, socially interactive environment with the enjoyment of game playing. MMOGs cover a range of genres that encompass sociality, strategy, action, or building, involving large numbers of simultaneous players [4] forming a complex online community. One of the fastest growing forms of the virtual electronic game community is the Massively Multiplayer Online Role-Playing Games (MMORPGs), which have fueled a multi-billion-dollar virtual economy [5].

MMORPGs (such as World of Warcraft (WoW), Aion, Runescape, and Lineage) are of interest in the management and information technology literature, not only in relation to social networks but also in terms of the market value they generate through the production of virtual commodities and currencies. Supply and demand for virtual products also impact on the real economy when they become desirable enough to be sold on auction sites such as eBay. More recently, the growth of this market has been driven by game operators selling virtual products directly to players [3]. The rising material economies of MMORPGs are therefore real, and merit investigating as an important phenomenon of online consumption.

Of special importance is the following question: “Does the virtual economy-based purchase behavior demonstrate an extension of real-world behavior?” This question has been explored from the perspective of offline–online comparisons, technology adaptation [6], gender differences [7], self-presentation [2], and online experiences [[3], [8], [9]]. However, by employing three aligned social network theories, namely Social Network Theory, Social Influence Theory and Kohler’s Motivational Gains Effects Theory, this paper offers an exploration that delves deeper into the extent to which group-level (i.e. community influences) and individual-level (i.e. a gamer’s intrinsic and extrinsic motivations) constructs influence the purchase of in-game accessories. For example, it has been well established in the extant literature that consumer purchases are significantly influenced by the community to which consumers wish to belong [10], measured here by theories of: fitting-in behavior [11] and normative interpersonal influences [12]. The world of MMORPGs is comprised of numerous online guilds and networks, of which individuals become a part and play games together. Hence, this study asks: “Will normative interpersonal influences and community identity influence virtual purchase intentions among online community members?”

Existing literature has established that intrinsic and extrinsic motivations significantly influence consumer purchase intentions online (e.g. [[13], [14]]). However, in their review of cognition and motivation, Cosmides and Tooby [15] argue that external and internal regulatory motivational influences are domain-specific and that component-level generalization should be approached with caution. This is further echoed in recent calls for more research on the motives behind virtual item purchases [[16], [17]], as these issues have not been fully addressed in the existing body of literature [[2], [18]]. Further, Lee [19] has called for more interpersonal influence research to be undertaken in multi-player games.

Consequently, this study focuses on examining both individual- and group-level influences on intentions to purchase virtual in-game items. In doing so, the study offers several important theoretical contributions. First, the role of individual-level intrinsic and extrinsic motivations in driving virtual purchase intentions highlights the psychological drivers that underpin individual engagement with virtual purchases. Second, the importance of group-level community influence variables (i.e. normative interpersonal influences and community identity) provide a better understanding of the role of group influences in a multi-player interaction context. Third, in examining the interactive effects of individual- and group-level variables, this research uncovers the social influence dynamics that drive virtual purchase behavior. Thus, the study offers substantial contributions in relation to the extension of real-world behaviors that are reflected in the virtual economy. The research also offers a number of managerial contributions that can help game developers in driving growth and their overall share of the virtual economy.

Section snippets

Literature review

The following literature review begins with an examination of online communities, followed by an outline of MMORPGs, prior research on virtual-world purchase behavior, and an overview of Social Network Theory, Social Influence Theory and Kohler’s Motivational Gains Effects Theory in terms of how these theories relate to virtual purchasing research.

Group-level variables: community influence

As members of a virtual community, players in MMORPGs have strong ties with other players, particularly in those games such as WoW, where they become members of a guild in order to work together and achieve goals. In situations where acquiring new virtual items can enhance the chances of success, the influence of other players is likely to act as a driver. Research suggests consumers’ consumption experiences are strongly influenced and shaped by their social environment and interpersonal

Procedure and sample

A quantitative methodology employing a structured questionnaire was used to measure and validate the hypothesized relationships. The data were collected online using a professional survey website. Links to the survey were put on one of the university webpages and several gaming related forums (i.e. http://forums.mmorpg.com/; http://mmorpg.org.uk/forums/ and https://www.reddit.com/r/gaming/), and visitors were requested to participate in the survey. When a respondent visited a particular

Results

As stated earlier, two streams of research exist based on Social Network Theory that argue the separate [45] versus interactive [46] influence of individual- and group-level variables. To reconcile these differences we specifically conducted a model comparison that examined the separate versus interactive influence of individual and group variables. The proposed models were analyzed with the maximum likelihood estimator of LISREL 8.70 by using the covariance matrix of the measured variables as

Discussion and conclusion

MMORPGs bring players together from all over the world on a single platform and help form a virtual community. Notably, a significant economy has emerged from players’ purchases of virtual goods within this gaming platform. This paper addresses several calls for research in understanding the motives behind virtual purchase behavior [16], the need to understand interpersonal influence research in multi-player games [19], and the potential of community and interpersonal influence on online gaming

Limitations and future directions

While this study offers interesting insights on drivers of virtual purchase intentions there are several limitations that highlight avenues for future research. Firstly, as reflected in the results, each gaming platform seems to demonstrate different motivations for virtual purchases. Hence, a study comparing the motivations of players on multiple platforms showing similarities and differences will be helpful. Secondly, each community member has a different personality, and this personality

Professor Paurav Shukla is a Professor of Marketing at the University of Essex, UK. He possesses a wide range of industry and academic experience and has written widely in the area of consumption experiences in cross-national context and digital markets in academic journals and mainstream media.

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    Professor Paurav Shukla is a Professor of Marketing at the University of Essex, UK. He possesses a wide range of industry and academic experience and has written widely in the area of consumption experiences in cross-national context and digital markets in academic journals and mainstream media.

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    The authors would like to acknowledge Dr Elaine Zhao and Dr Michelle Hall for their constructive suggestions on this paper.

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