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Customer preferences in mobile game pricing: a service design based case study

Author

Listed:
  • J. Tuomas Harviainen

    (Hanken School of Economics)

  • Jukka Ojasalo

    (Laurea University of Applied Sciences)

  • Somasundaram Nanda Kumar

    (Rovio Entertainment Ltd.)

Abstract

This article examines the service design of freemium game pricing. Freemium games are a type of game that is partially free to play, but its players are able to access various options by playing real money. The article increases knowledge of the usability of service design processes in the pricing of mobile games, as well as the understanding of central aspects of freemium pricing models from the perspective of user experience and customer value. Existing research shows that one major reason for failing freemium pricing models is the orientation for technology development, alongside poor content and too aggressive monetization, rather than customer experience. The article presents a process in which an alternative pricing model was developed for freemium games, through the use of service design workshops.

Suggested Citation

  • J. Tuomas Harviainen & Jukka Ojasalo & Somasundaram Nanda Kumar, 2018. "Customer preferences in mobile game pricing: a service design based case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 191-203, May.
    • Handle: RePEc:spr:elmark:v:28:y:2018:i:2:d:10.1007_s12525-018-0285-6
    DOI: 10.1007/s12525-018-0285-6
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    References listed on IDEAS

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    1. Koeder, Marco Josef & Tanaka, Ema, 2017. "Game of chance elements in free-to-play mobile games. A freemium business model monetization tool in need of self-regulation?," 28th European Regional ITS Conference, Passau 2017 169473, International Telecommunications Society (ITS).
    2. Voigt, Sebastian & Hinz, Oliver, 2016. "Making Digital Freemium Business Models a Success - Predicting Customers' Lifetime Value via Initial Purchase Information," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 84850, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Feijoo, Claudio & Gómez-Barroso, José-Luis & Aguado, Juan-Miguel & Ramos, Sergio, 2012. "Mobile gaming: Industry challenges and policy implications," Telecommunications Policy, Elsevier, vol. 36(3), pages 212-221.
    4. Koeder, Marco & Tanaka, Ema & Sugai, Philip, 2017. "Mobile Game Price Discrimination effect on users of Freemium services– An initial outline of Game of Chance elements in Japanese F2P mobile games," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168503, International Telecommunications Society (ITS).
    5. Lehdonvirta, Vili & Castronova, Edward, 2014. "Virtual Economies: Design and Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262027259, December.
    6. Alexander Osterwalder & Yves Pigneur, 2002. "An e-Business Model Ontology for Modeling e-Business," Industrial Organization 0202004, University Library of Munich, Germany.
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    Cited by:

    1. Miikka J. Lehtonen & J. Tuomas Harviainen & Annakaisa Kultima, 2023. "How monetization mechanisms in mobile games influence consumers’ identity extensions," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 113-136, March.
    2. Hong Wu & Zhaohua Deng & Bin Wang & Sumeet Gupta, 2021. "How does service price influence patients’ decisions? An examination of the free-market pricing mechanism in online health communities," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 877-893, December.
    3. Franziska Handrich & Sven Heidenreich & Tobias Kraemer, 2022. "Innovate or game over? Examining effects of product innovativeness on video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 987-1002, June.
    4. Martin Adam & Konstantin Roethke & Alexander Benlian, 2022. "Gamblified digital product offerings: an experimental study of loot box menu designs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 971-986, June.
    5. Rainer Alt, 2018. "Electronic Markets and current general research," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 123-128, May.
    6. Sven Heidenreich & Franziska Handrich & Tobias Kraemer, 2023. "Flawless victory! Investigating search and experience qualities as antecedent predictors of video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    7. Abdullah Mohammed Baabdullah, 2020. "Factors Influencing Adoption of Mobile Social Network Games (M-SNGs): The Role of Awareness," Information Systems Frontiers, Springer, vol. 22(2), pages 411-427, April.

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