Hamari, J. & Lehdonvirta, V. (2010). Game design
as marketing: How game mechanics create demand for virtual goods.
International Journal of Business Science & Applied
Management, 5(1), 14-29.
In short: In this paper, we consider the question of
what leads consumers to purchase virtual goods. Most previous studies
adopt the individual user as their unit of analysis, focusing on
motivations and decision processes that lead to virtual good
purchases. We adopted a complementary approach, focusing on how the
rules and mechanics developers build into MMOs encourage virtual good
purchases.
Download
paper here and read more below.
The patterns identified in the paper, can be divided
into two categories. The first category consists of mechanics that in
marketing terms create segmentation of users and enable
differentiation of virtual goods; in other words, game mechanics that
divide service content into differentiated contexts along vertical
and horizontal lines, and in the process create a need for
corresponding virtual goods.
|
Design |
In marketing terms |
Towards |
Aims to |
|
Stratified content |
Segmentation, differentiation |
Rules, environment |
Create segmentation, enable differentiation and |
|
Status restricted items |
Differentiation, planned obsolescence |
Items |
Enforce segmentation and generate incentives for |
|
Increasingly challenging content |
Segmentation, differentiation, planned |
Rules, environment |
Enforce segmentation and generate incentives for |
|
Multidimensional gameplay |
Segmentation, differentiation |
Gameplay |
Create segmentation and enable differentiation and |
|
Avatar types |
Segmentation, differentiation |
Avatar |
Create segmentation and enable differentiation |
The second category includes mechanics that are used
to create demand for virtual goods and encourage repeated purchases.
Inconvenient user interface elements and similar gameplay factors
have also been used as means to create need for complementary and
value-added services that augment the core product. Special occasions
related to real-world culture as well as to virtual world -specific
contexts have been used in the seasonal promotion of virtual goods.
|
Design |
In marketing terms |
Towards |
Aims to |
|
Item degradation |
Planned obsolescence |
Items, rules, environment |
Create incentives for repeated purchases |
|
Inconvenient gameplay elements |
Core product -> Augmented product |
User interface, gameplay |
Create settings for additional virtual goods and |
|
Currency as medium |
Psychological pricing |
- |
Create incentives for (repeated) purchases |
|
Inventory mechanics |
- |
Items, avatar |
Create incentives for repeated purchases |
|
Special occasions |
Promotional |
Environment, items |
Benefit from cultural patterns that encourage |
|
Artificial scarcity |
Exclusiveness |
Items, environment, rules |
Make selected virtual goods more desirable |
|
Alterations to existing content |
- |
Environment, items, rules, gameplay |
Create new settings for virtual goods to have |
More detailed discussion in the paper.
Game design as marketing: How game mechanics
create demand for virtual goods
Abstract
Selling virtual goods for real money is an
increasingly popular revenue model for massively-multiplayer online
games (MMOs), social networking sites (SNSs) and other online
hangouts. In this paper, we argue that the marketing of virtual goods
currently falls short of what it could be. Game developers have long
created compelling game designs, but having to market virtual goods
to players is a relatively new situation to them. Professional
marketers, on the other hand, tend to overlook the internal design of
games and hangouts and focus on marketing the services as a whole. To
begin bridging the gap, we propose that the design patterns and game
mechanics commonly used in games and online hangouts should be viewed
as a set of marketing techniques designed to sell virtual goods.
Based on a review of a number of MMOs, we describe some of the most
common patterns and game mechanics and show how their effects can be
explained in terms of analogous techniques from marketing science.
The results provide a new perspective to game design with interesting
implications to developers. Moreover, they also suggest a radically
new perspective to marketers of ordinary goods and services: viewing
marketing as a form of game design.
Keywords: online
games, social networking, virtual world, virtual goods, business
model, sustainability, captology
The study is really interesting. Specially the conclusion is very insightful. I think it is absolutely right that with virtual goods the distinction between content and advertising is bluring. I have already recommended the paper all of my friends in Facebook.
Greetings from Germany.
Matthias
Great article, thank you. You should include the bots/gold sellers bans in it
bots => decrease of overall prices and item scarcity => faster obsolescence
Banning farmers is a sort of temporary counter measure.
Peter
Moops.com