Why people buy virtual items in virtual worlds with real money

TLDR

Virtual worlds such as Second Life and Everquest have become economically active communities where players trade virtual items for real money, making understanding transaction behavior a key challenge for game operators. The study aims to identify, model, and test the determinants influencing players’ decisions to purchase virtual items, providing a foundation for future research on transaction behavior. The authors develop a model integrating TPB, TAM, trust theory, and UTAUT, using a sequential two‑phase approach that first gathers inductive qualitative data from focus groups and expert interviews, then applies deductive quantitative surveys.

Abstract

Virtual worlds, such as Second Life and Everquest, have grown into virtual game communities that have economic potential. In such communities, virtual items are bought and sold between individuals for real money. The study detailed in this paper aims to identify, model and test the individual determinants for the decision to purchase virtual items within virtual game communities. A comprehensive understanding of these key determinants will enable researchers to further the understanding of player behavior towards virtual item transactions, which are an important aspect of the economic system within virtual games and often raise one of the biggest challenges for game community operators. A model will be developed via a mixture of new constructs and established theories, including the theory of planned behavior (TPB), the technology acceptance model (TAM), trust theory and unified theory of acceptance and use of technology (UTAUT). For this purpose the research uses a sequential, multi-method approach in two phases: combining the use of inductive, qualitative data from focus groups and expert interviews in phase one; and deductive, quantitative survey data in phase two. The final model will hopefully provide an impetus to further research in the area of virtual game community transaction behavior. The paper rounds off with a discussion of further research challenges in this area over the next seven years.