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International Journal of Electronic Business Management, Vol. 10, No. 3, pp. 204-212 (2012)
FACTORS AFFECTING INTENT TO PURCHASE VIRTUAL
GOODS IN ONLINE GAMES
Cheng-Hsun Ho* and Ting-Yun Wu
Graduate Institute of Information Management
National Taipei University
New Taipei City (23741), Taiwan
ABSTRACT
Online games increasingly sell virtual goods to generate real income. As a result, it is
increasingly important to identify factors and theory of consumption values that affect intent to
purchase virtual goods in online games. However, very little research has been devoted to the
topic. This study is an empirical investigation of the factors and theory of consumption values
that affect intent to purchase virtual goods in online games. The study determines the effects of
game type, satisfaction with the game, identification with the character, and theory of
consumption values on intent to purchase virtual goods. The study used a survey to collect
information from 523 virtual game users. Study results showed that game type is a moderating
variable that affects intent to purchase virtual goods. And it demonstrated that role-playing game
users are affected by theory of consumption values: functional quality, playfulness, and social
relationship support. Moreover, war-strategy game users are affected by satisfaction with the
game, identification with the character, and theory of consumption values: price, utility, and
playfulness. The study also presents conclusions, proposes applications, and describes
opportunities for further research.
Keywords: Online Games, Virtual Goods, Satisfaction with the Game, Identification with the
Character, Theory of Consumption Values
1. INTRODUCTION
*
The internet has become a part of life. People use
the internet for communication, social interaction,
business transactions, and entertainment. Due to the
development of the internet, computer games have
become online games The Market Intelligence &
Consulting Institute analyzed the behavior of Internet
users in Taiwan. They found that 60.1% of internet
users use the internet to watch online videos; 58% of
internet users play online games. The results show the
importance of the online game industry [19].
The market share of the online game industry is
rapidly increasing. Wu [32] showed that the market
share of the online game industry will be over $24.8
billion in 2013. Most online game revenue comes from
selling the games. However, online games increasingly
sell virtual goods for real money. As a result, it is
increasingly important to identify factors that affect
purchasing virtual goods in online games. However,
very little research has been devoted to the topic.
Most studies related to online games are related to
“online game obsession”, “the characteristics of online
game users”, “motivations for playing online games”,
and “desire to play online games”. The focus of this
study is: “the factors that affect intent to purchase
*
Corresponding author: [email protected]
virtual goods in online games” The study is an
empirical investigation of factors and theory of
consumption values that affect intent to purchase
virtual goods in online games. The study identifies
factors and theory of consumption values that affect
intent to purchase virtual goods in online games. The
study also identifies behaviors related to intent to
purchase virtual goods in online games.
2. LITERATURE REVIEW
2.1. Online Games
Online games are generally played by users that
are located in different places. The users exchange
information through mutual internet connections and
shared virtual worlds [5]. Curtis [8] described online
games as virtual worlds with internet connections and
multiple users. In other words, online games are
computer games that use internet connections to
process user interactions.
There are different types of online games.
Bahamut, a popular game community website in
Taiwan, classifies online games into role-playing
games, action games, shooting games, sports games,
racing games, adventure games, puzzle games, and
war-strategy games. Game industry reports show that
role-playing games are the most popular modern type
205
C. H. Ho and T. Y. Wu: Factors Affecting Intent to Purchase Virtual Goods in Online Games
of online game. War-strategy games are the most
popular classical type of online game.
Although both types of online games are popular,
their features are very different. Role-playing games
generally use cute or beautiful graphic design styles.
They focus on social interactions between players.
War-strategy games are based upon game theory. They
focus on strategic interactions between users.
Modern online games sell virtual goods to
generate income and increase user interest. This study
uses role-playing games and war-strategy games to
investigate the theory of consumption and the factors
that affect intent to purchase virtual goods in online
games.
2.2. Virtual Goods
Virtual goods have become one of the primary
sources of revenue for online game suppliers. Lin and
Sun [17] described two types of virtual goods:
functional props and decorative props. Functional
props enhance the competency of the game user;
decorative props that change the in-game appearance
of the game user.
Live Gamer [18], a global supplier for
online-games, described three types of virtual goods:
vanity goods, functional goods, and social goods.
Vanity goods are similar to decorative props.
Functional goods are similar to functional props.
Social goods are gifts that game users can send to other
game users.
Guo and Barnes [11] described three virtual good
attributes that influence intent to purchase virtual
goods: perceived playfulness, character competency,
and requirements of the quest context. Perceived
playfulness is the game user’s absorption, enjoyment,
and curiosity in the game. Character competency is the
competency of the game user. Requirements of the
quest context are the items a game user’s character
neets to execute a game mission.
Lehdonvirta [16] showed that virtual goods have
functional, emotional, and social qualities. Functional
qualities include performance and functionality.
Emotional and social qualities include appearance,
source, customization capability, and rarity.
product or brand characteristics that create functional
or social value under specific circumstances.
Previous studies related to marketing and
e-commerce showed that theory of consumption values
affect customer purchasing behavior and customer
purchasing decisions. Previous studies related to sports
marketing [25], organic foods [9], travel packages [31]
and costumes [24] all showed that theory of
consumption values affect customer purchasing
behavior and customer purchasing decisions.
Previous studies related to online products also
showed that theory of consumption values affect
customer purchasing behavior and customer
purchasing decisions. Previous studies related to MP3
music downloads [4], smart phone user interaction
features [3], differences in web-surfing behavior and
ringtone choices between Japanese and Korean users
[29] and information systems for e-government
applications [13] all showed that theory of
consumption values affect customer or user behavior
and customer or user decisions.
This study uses the theory of consumption to
investigate user behavior and user decisions in online
games. The study shows that functional, emotional,
and social theory of consumption values affect intent to
purchase virtual goods in online games. The study
shows that perceived value affects intent to purchase
virtual goods in online games.
3. METHODOLOGY
3.1. Research Model
Figure 1 shows the research model used in this
study. The model was used to show that satisfaction
with the game, identification with the character, and
functional, emotional, and social theory of
consumption values affect intent to purchase virtual
goods in online games.
Satisfaction with
the game
Functional value
Character
competency
H2
H1
Emotional value
H3
H4
2.3. Theory of Consumption Values
Sheth et al., [27] described five theory of
consumption values: functional values, emotional
values, social values, epistemic values, and conditional
values. Customers choose products and brands based
upon the five theory of consumption values. Functional
values are related to product functions. Emotional
values are related to product characteristics that affect
customer feelings. Social values are related to product
or brand characteristics that create connections
between product or brand users. Epistemic values are
related to product characteristics that promote
customer curiosity or freshness. Conditional values are
Identification with
the character
Price utility
Intent to purchase
virtual goods
H5
H6
Playfulness
H7
Aesthetics
Functional quality
H8
H9
Social self-image
expression
Social relationship
support
Social value
H10
Game type
Figure 1: Research model
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International Journal of Electronic Business Management, Vol. 10, No. 3 (2012)
3.2. Research Hypotheses
Prior marketing research studies showed that
customer satisfaction with products affects customer
intent to purchase products. In general, customer
satisfaction with products increases intent to purchase
products; customer dissatisfaction with products
decreases intent to purchase products. Satisfied
customers purchase products; dissatisfied customers
turn to other products [2,6,22,28].
This study applies the finding to virtual goods in
online games. The study tests the hypothesis that
overall customer satisfaction with the game affects
intent to purchase virtual goods in online games. The
first research hypothesis of this study is:
H1: Satisfaction with the game increases intent to
purchase virtual goods in online games.
Prior organization and marketing studies showed
that identification with companies or products affects
intent to repurchase products. In general, identification
with companies or products increases intent to
repurchase products. Customers that identify with
companies or products develop a sense of loyalty. In
general, they do not turn to other companies or other
products [7].
This study applies the finding to virtual goods in
online games. Prior studies shows that online game
users tend to identify with the characters. They use the
characters to express their own feelings [12,20]. The
study tests the hypothesis that identification with the
character affects intent to purchase virtual goods in
online games. The second research hypothesis of this
study is:
H2: Identification with the character increases intent
to purchase virtual goods in online games.
Prior studies identified functional theory of
consumption values for virtual goods in online games.
Park and Lee [23] showed that character competency
and monetary value are functional theory of
consumption values for virtual goods in online games.
Kim et al., [14] showed that functional quality and
price utility are functional theory of consumption
values. Character competency is related to the increase
in character competency received for purchasing
virtual goods. Monetary value and price utility are
related to how reasonable the prices of virtual goods
are to game users. Functional quality is related to the
function and quality of virtual goods.
This study applies the findings to intent to
purchase virtual goods in online games. The study tests
the hypotheses that character competency, price utility,
and functional quality affect intent to purchase virtual
goods in online games. The third, fourth, and fifth
research hypotheses of this study are:
H3: Character competency increases intent to
purchase virtual goods in online games.
H4: Price utility increases intent to purchase virtual
goods in online games.
H5: Functional quality increases intent to purchase
virtual goods in online games.
Prior studies identified emotional theory of
consumption values for virtual goods in online games.
Kim et al. [14] showed that playfulness and aesthetics
are emotional theory of consumption values for virtual
goods in online games. Park and Lee [23] showed that
enjoyment is a theory of consumption value for virtual
goods in online games. Playfulness and enjoyment are
related to the increase in fun, attention, and
imagination received for purchasing virtual goods.
Aesthetics are related to the increase in visual appeal
received for purchasing virtual goods.
This study applies the findings to intent to
purchase virtual goods in online games. The study tests
the hypotheses that playfulness and aesthetics affect
intent to purchase virtual goods in online games. The
sixth and seventh research hypotheses of this study are:
H6: Playfulness increases intent to purchase virtual
goods in online games.
H7: Aesthetics increases intent to purchase virtual
goods in online games.
Prior studies identified social theory of
consumption values for virtual goods in online games.
Prior studies showed that social self-image expression
and social relationship support are social theory of
consumption values for virtual goods. Social
self-image expression and social relationship support
increase social image and strengthen social
relationships.
This study applies the findings to intent to
purchase virtual goods in online games. The study tests
the hypotheses that social self-image expression and
social relationship support affect intent to purchase
virtual goods in online games. The eighth and ninth
research hypotheses of this study are:
H8: Social self-image expression increases intent to
purchase virtual goods in online games.
H9: Social relationship support increases intent to
purchase virtual goods in online games.
Prior studies show that there are many types of
online games: role-playing games, action games,
shooting games, sports games, racing games,
adventure games, puzzle games, and war-strategy
games. Prior studies show that there are also many
types of virtual goods in online games. Prior studies
show that different virtual goods have different
functions and values.
C. H. Ho and T. Y. Wu: Factors Affecting Intent to Purchase Virtual Goods in Online Games
Role-playing games focus on social interactions
and role playing. Game users purchase virtual goods to
enhance their emotional and social attributes.
War-strategy games focus on strategic interactions.
Game users purchase virtual goods to enhance their
strategic capabilities.
This study applies the findings to intent to
purchase virtual goods in online games. The study tests
the hypothesis that game type moderates the
relationships between game variables and intent to
purchase virtual goods in online games. Game
variables include customer satisfaction with the game,
identification with the character, character competency,
price utility, functional quality, playfulness, aesthetics,
social self-image expression, and social relationship
support. The tenth research hypothesis of this study is:
H10: Game type moderates the relationship between
game variables and intent to purchase virtual
goods in online games.
3.3. Procedures and Measures
The study used an online survey to test the ten
research hypotheses. The online survey was completed
by role-playing online game users and war-strategy
online game users who had purchased virtual goods.
Information about the online survey was posted on the
Bahamut and Gamebase game community websites in
Taiwan. The two websites have over one million
registered users.
The survey information included a description of
the research study and a link to the survey website.
Users were asked to click on the link. The online
survey contained measures for all of the research
constructs in the research model. The survey was
posted for one month.
Survey scales were based upon survey scales from
prior research studies. All of the survey scales were
multi-item scales. All of the scales were seven-point
Likert scales that ranged from 1 - “strongly disagree”
to 7 - “strongly agree”.
207
Both standard translation tools and back
translation tools were used to translate the survey.
Differences between the two translations were
reviewed. The translations were refined ensure survey
consistency [30].
A pre-test was conducted to evaluate the wording
and interpretability of the survey [26]. Five graduate
students from a university information management
program completed the pre-test. The graduate students
were asked to complete the survey and to evaluate the
wording and interpretability of the survey.
4. RESULTS
4.1. Sampling
During the one-month posting, 523 online game
users completed the survey. During the one-month
posting, 363 role-playing online game users completed
the survey; 160 war-strategy online game users
completed the survey. 84.1% of the online game users
were male; 15.9% of the online game users were
female. 77.2% of the online game users were 16-25
years old. 71.3% of the online game users were
students. 57% of the online game users had college or
university degrees. Over 50% of the online game users
had played online games for at least one year.
A confirmatory factor analysis (CFA) was used to
assess reliability, convergent validity, and discriminant
validity of the measurement scales. Table 1 shows CFA
results. All of the item loadings were greater than .7.
All of the Cronbach’s α values, composite reliability
(CR) values, and average variance extracted (AVE)
values exceeded the cut-off values: .7, .7, and .5
[1,10,21]. None of the estimated correlations between
variables exceeded .85. The results showed that the
constructs and measurement scales met reliability,
convergent validity, and discriminant validity
requirements [15]. The results showed that the
constructs and measurement scales could be used to
test the research hypotheses.
Table 1: Confirmatory factor analysis results
Variables
Cronbach’s α CR AVE SAT
CI
PU
FQ
AES CCV PLY SSE SRS PI
SAT
.92
.94 .80
1
CI
.88
.92 .73
.17** 1
CC
.96
.97 .90
.54** .15** 1
PU
.93
.95 .83
.61** .14** .80** 1
FQ
.91
.94 .78
.55** .21** .60** .73** 1
PLY
.91
.92 .80
-.18** .08** -.23** -.17** -.05
1
AES
.91
.93 .70
.21** .22** .26** .32** .39** .36** 1
.21** .17** .21** 037** .42** .73** 1
SSE
.90
.92 .67
.11*
SRS
.96
.97 .89
-.04
.31** .10*
.06
.13** .42** .55** .67** 1
.46** .35** .27** 1
PI
.98
.99 .96
.38** .20** .48** .53** .44** .02
Mean
5.57
1.03
3.97
4.50
4.85 .457
4.84 5.14 4.00 4.57
S.D.
1.29
1.53
1.66
1.52
1.45 1.81
1.31 1.31 1.67 1.74
Note1: ** indicates a p-value < .01; * indicates a p-value < .05.
Note2: SAT = satisfaction with the game, CI = identification with the character, PU = price utility, FQ = functional quality, AES
= aesthetics, CC = character competency, PLY = playfulness, SSE = social self-image expression, SRS = social
relationship support, PI = intent to purchase.
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International Journal of Electronic Business Management, Vol. 10, No. 3 (2012)
4.2. Hypothesis Tests
Hierarchical multiple regression analysis was
used to complete the hypothesis tests. Table 2 presents
hypothesis test results. Three analyses were completed
with intent to purchase virtual goods as the dependent
variable and the nine game variables as independent
variables. One analysis was completed with intent to
purchase virtual goods as the dependent variable, the
nine game variables as independent variables, and
game type as a moderating variable.
The difference in R2 for the four models was
significant (p-value < .01). Model 1 and Model 4
results showed that price utility, aesthetics, and social
relationship support increased intent to purchase
virtual goods in role-playing games and both types of
online games, as a group. Model 2 results showed that
Model 1
(role-playing)
Variables
SAT
CI
CC
PU
FQ
PLY
AES
SSE
SRS
.06
.01
.02
.38***
-.03
-.01
.25***
-.03
.17**
SAT × GT
CI × GT
CC × GT
PU × GT
FQ × GT
PLY × GT
AES × GT
SSE × GT
SRS × GT
R2
.37
satisfaction with the game, identification with the
character, character competency increased intent to
purchase virtual goods in war-strategy games. Model 4
results showed that there was significant interaction
between game type and character competency, price
utility, and social relationship support.
The results partially supported research
hypotheses H1, H2, and H3. The results supported
research hypotheses H4, H7, and H9. The results did
not support research hypotheses H5, H6, and H8. The
results partially supported research hypothesis H10.
The results show that game type moderates the
relationships between game variables, including
character competency, price utility, and social
relationship support, and intent to purchase virtual
goods.
Table 2: Hypothesis test results
Model 2
(war-strategy)
.21**
.19**
.39***
-.12
-.02
.01
.27**
.12
-.13
.43
Model 3
(all)
.09+
.05
.12*
.31***
-.04
-.03
.25***
.03
.08
.39
Model 4
(all)
.06
.01
.02
.42***
-.04
-.01
.26***
-.02
.18**
.40+
.18+
.55**
-.96***
.02
.01
-.05
.21
-.32**
.42
.03 (.01**)
ᇞR2 (F value)
Note1: ***: p value < .001; **: p value < .01; *: p value < .05; +: p value < .1.
Note2: GT: types of online games (role-playing or war-strategy).
5. CONCLUSIONS
A significant number of internet users play online
games. Virtual goods have become a major source of
income for online game suppliers. Online game users
purchase virtual goods to increase their character’s
competence, improve their character’s appearance, or
enhance their character’s relationship with other
characters in the online game. This study identifies
factors and theory of consumption values that affect
intent to purchase virtual goods in online games.
Prior studies showed that role-playing games and
war-strategy games are the most popular types of
online games. This study surveyed role-playing game
users and war-strategy gamer users to identify factors
and theory of consumption values that affect intent to
purchase virtual goods in online games.
The study used findings from prior studies to
create an improved model that describes the factors and
theory of consumption values that affect intent to
purchase virtual goods. The model assumes that
different types of online game users are affected by
C. H. Ho and T. Y. Wu: Factors Affecting Intent to Purchase Virtual Goods in Online Games
different factors and theory of consumption values. As
a result, the model uses game type as a moderating
variable.
Study results show that role-playing game users
are affected by functional theory of consumption
values: functional quality, playfulness, and social
relationship support. Study results show that
war-strategy game users are affected by satisfaction
with the game, identification with the character, and
functional theory of consumption values: price utility
and playfulness. Study results show that game type is a
moderating variable for character competency, price
utility, and social relationship support.
The results are different than results from prior
studies [14,23]. The differences may be due to
differences in the online games that were used to
complete the studies. Prior studies used specific online
games. This study surveyed game users that used many
different role-playing and war-strategy games.
This study identified factors and theory of
consumption values that affect intent to purchase
virtual goods in online games. Online game suppliers
can use study results to improve online games and
increase income from online games.
2.
3.
4.
5.
6.
7.
6. LIMITATIONS AND FUTURE
RESEARCH
Due to the exploratory nature of this study, the
study has a number of limitations. However, the
limitations can be used to create recommendations for
future research. This study only investigated the
factors and theory of consumption values that affect
role-playing and war-strategy game users.
There are many other types of online games.
Different types of games attract different types of
online game users. Different factors and different
theory of consumption values may affect intent to
purchase virtual goods for different online game users.
Future research can determine factors and theory
of consumption values that affect intent to purchase
virtual goods in online games for other types of online
games.
This study used online surveys and convenience
sampling to test the research hypotheses. Future
research can use structured experiments and statistical
sampling to test the research hypotheses. Future
research can focus on verifying and improving
accuracy of the results.
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ABOUT THE AUTHORS
Cheng-Hsun Ho is an assistant professor in the
Graduate Institute of Information Management,
National Taipei University. His current research
interests are internet marketing, electronic commerce,
online behavior, and information management. He has
published papers in several international journals.
Ting-Yun Wu is a MBA student in the Graduate
Institute of Information Management, National Taipei
University.
(Received May 2012, revised August 2012, accepted
September 2012)
C. H. Ho and T. Y. Wu: Factors Affecting Intent to Purchase Virtual Goods in Online Games
211
APPENDIX A:
MEASUREMENT INSTRUMENT
Variables
Survey items
1. I am satisfied with this game.
Satisfaction about the 2. I think that this game is very good.
game
3. I am satisfied with my decision to play this game.
4. My choice to play this game is a wise one.
1. I consider game character as my other-self.
2. When I play an online game, I feel almost like the game character.
Character identification
3. When I play an online game, the goals of the character became my own goals.
4. I take game character as my equivalent-being.
1. When I use the virtual goods sold here, I can increase my game level quickly.
Character competency
2. When I use the virtual goods sold here, I can get more game points than before.
value
3. When I use the virtual goods sold here, I increase my powers.
1. A virtual good is a good product given the price.
2. The prices of virtual goods are reasonable.
Price utility
3. The virtual goods sold here offer value for money.
4. The virtual goods sold here are considered economical in terms of price.
1. The virtual goods sold here have an acceptable standard of quality.
2. The virtual goods sold here are reliable in their performance.
Functional quality
3. The virtual goods sold here are good in terms of their overall excellence.
4. The virtual goods sold here possess a degree of quality which is satisfactory.
1. When I use the virtual goods sold here, I enjoy the game more.
2. When I use the virtual goods sold here, I find the game more exciting.
3. Using the virtual goods sold here is interesting to me.
Playfulness
4. Using the virtual goods sold here stimulates my curiosity.
5. Using the virtual goods sold here arouses my imagination.
6. Using the virtual goods sold here keeps me absorbed.
1. The virtual goods sold here are lovely.
2. The virtual goods sold here reflect beauty.
Aesthetics
3. The virtual goods sold here are aesthetically appealing.
4. The virtual goods sold here have attractive aesthetic feature.
1. When I use the virtual goods sold here, I can adorn my game characters to be more
fashionable or stylish.
2. When I use the virtual goods sold here, I can make my game characters look better.
Social self-image
3. When I use the virtual goods sold here, I am more noticed by others.
expression
4. Using the virtual goods sold here enhances my self-image to others.
5. Using the virtual goods sold here improves my self-expression to others.
6. Using the virtual goods sold here makes a good impression on other people.
1. Using the virtual goods sold here better enables me to form interpersonal bonds with
others.
Social relationship 2. Using the virtual goods sold here helps me maintain my social relationships with
support
others.
3. Using the virtual goods sold here helps me make new friends.
4. Using the virtual goods sold here enhances my social relationships with others.
1. The probability that I will consider buying virtual goods from this game in the future
is high.
Purchase intention
2. My willingness to buy a virtual good from this game in the future is high.
3. The likelihood of my purchasing a virtual good from this game in the future is high.
212
International Journal of Electronic Business Management, Vol. 10, No. 3 (2012)
影響購買線上遊戲虛擬寶物之因素
何政勳*、吳庭昀
國立臺北大學資訊管理研究所
新北市三峽區大學路 151 號
摘要
販售虛擬寶物對網路線上遊戲廠商而言，是普遍且重要的運營獲利模式之一。因此，了
解影響虛擬寶物消費支出的驅動力成為日益重要的課題。然而，過去研究較罕見致力於
此研究議題，為更深入了解購買虛擬物寶物行為的因素網絡遊戲，本研究採用實證研究
方法。本研究藉由社會學的角度，探索購買虛擬寶物的影響因素。本研究藉由滿意、角
色認同、消費價值理論等，衡量玩家購買虛擬寶物意圖的驅動因素。本研究以線上問卷
進行調查，共收集 523 份樣本。研究發現提供了研究模型的支持證據。此外，角色扮演
類型遊戲與戰爭策略遊戲類型的玩家之間，其虛擬寶物購買意圖之影響因素具有差異。
角色扮演型玩家主要關注於虛擬的功能價值、有趣性和社會關係支持。戰爭策略型遊戲
玩家則關注於遊戲滿意、角色認同、價格價值和有趣性。本文結論亦提出進一步的研究
與實務之討論。
關鍵詞：線上遊戲、虛擬寶物、滿意、角色認同、消費價值
（*聯絡人：[email protected]）