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Does fun or freebie increase in-app purchase?

Author

Listed:
  • Moonkyoung Jang

    (Korea University)

  • Rumi Lee

    (Seoul National University)

  • Byungjoon Yoo

    (Seoul National University)

Abstract

The goal of this study is to enhance the understanding of factors that affect intention to purchase virtual items in mobile games. The effects of gameplay motivation and item experience are evaluated on intention to purchase. An online survey was conducted in a leading mobile game and we used partial least squares modeling for the empirical analysis. The results shows that play frequency and social interaction are positively associated with intention to purchase, while the level of stage is negatively associated with intention to purchase. Moreover, a player’s experience with a virtual item is positively related to intention to purchase the item. Although the level of stage is negatively associated with purchase intention of a user, free-item experience positively meditates the effect of expertise on intention to purchase the item. This implies that offering free items is an effective way for all users, not just novices but also skillful players. Furthermore, purchased-item experience has the largest effect on intention to purchase among suggested factors. This presents that players who purchased in-app items are more likely to purchase again. Thus, game developers need to consider more carefully about paying users for continuous purchasing. Drawing on the empirical findings, managerial implications and directions for future research are provided.

Suggested Citation

  • Moonkyoung Jang & Rumi Lee & Byungjoon Yoo, 2021. "Does fun or freebie increase in-app purchase?," Information Systems and e-Business Management, Springer, vol. 19(2), pages 439-457, June.
    • Handle: RePEc:spr:infsem:v:19:y:2021:i:2:d:10.1007_s10257-019-00420-z
    DOI: 10.1007/s10257-019-00420-z
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    References listed on IDEAS

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    1. Kapil Bawa & Robert Shoemaker, 2004. "The Effects of Free Sample Promotions on Incremental Brand Sales," Marketing Science, INFORMS, vol. 23(3), pages 345-363, November.
    2. Escobar-Rodríguez, T. & Carvajal-Trujillo, E., 2014. "Online purchasing tickets for low cost carriers: An application of the unified theory of acceptance and use of technology (UTAUT) model," Tourism Management, Elsevier, vol. 43(C), pages 70-88.
    3. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
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