Abstract
Virtual marketplaces for products and services have become major profit sources in virtual worlds (VWs). The large quantity and growth of virtual product transactions and their platform providers’ profits have made it critical to understand consumer purchasing behavior in VWs. However, as open-ended VWs such as Second Life have environments that differ from those of other online communities, the underlying mechanisms of consumers’ e-commerce behavior may not explain their VW behavior. Therefore, this study examines consumers’ VW behavior by considering three categories of factors influencing their purchasing behavior: the platform context (i.e., technical characteristics such as interactivity and vividness and social characteristics such as involvement), product context (i.e., product value), and virtual experience (i.e., flow and satisfaction). This study examines how these factors affect consumers when they purchase virtual products. Its results highlight the importance of flow experience in consumers’ VW behavior. Interactivity, vividness, and involvement are found to affect consumers’ virtual experience—flow, and involvement exhibits a significantly stronger influence on flow. Flow and involvement are found to affect product value, and flow exerts a stronger influence than involvement on product value. Flow and product value directly impact consumers’ willingness to purchase, whereas satisfaction with the virtual world experience, which is significantly affected by flow, is not associated with willingness to purchase. The results further indicate that product value is more influential on willingness to purchase than is flow. After describing the study’s contributions to both research and practice, I conclude the paper by presenting avenues for future research.
Similar content being viewed by others
References
Anderson RE, Srinivasan SS (2003) E-satisfaction and e-loyalty: a contingency framework. Psychol Mark 20(2):123–138
Ajzen I (1991) The theory of planned behavior. Organ Behav Hum Decis Process 50(2):179–211
Bhattacherjee A (2001) An empirical analysis of the antecedents of electronic commerce service continuance. Decis Support Syst 32(2):201–214
Bhatnagar A, Misra S, Rao HR (2000) Online risk, convenience, and Internet shopping behavior. Commun ACM 43(11):98–105
Barbin BJ, Darden WR, Mitch G (1994) Work and/or fun: measuring hedonic and utilitarian shopping value. J Consum Res 20(4):644–656
Barclay D, Higgins C, Thompson R (1995) The partial least squares (PLS) approach to causal modeling: personal computer adoption and use as an illustration. Technol Stud 2(2):285–309
Bloch PH (1982) Involvement beyond the purchase process: conceptual issues and empirical investigation. Adv Consum Res 9(1):413–417
Burns MJ (1993) Value in exchange: the consumer perspective. The University of Tennessee, Knoxville
Chen H (2000) Exploring web users’ on-line optimal flow experiences. Dissertation, Syracuse University Syracuse, NY
Cheon E, Ahn J (2009) Designing e-business systems. markets, services, and networks. In: Weinhardt C, Luckner S, Stößer, J (ed) Evolution of virtual communities. Lecture notes in business information processing 22:135–143
Chin WW (1988) The partial least squares approach for structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum, Mahwah, NJ, pp 295–336
Cohen J (1988) Statistical power analysis for the behavioral sciences, 2nd edn. Lawrence Erlbaum, Hillsdale, NJ
Cohen JA (1992) A power primer. Psychol Bull 112(1):155–159
Chen H, Wigan RT, Niran MS (2000) Exploring web users’ optimal flow experiences. Inf Technol People 13(4):263–277
Churchill GA, Surprenant C (1982) An investigation into the determinants of customer satisfaction. J Mark Res 19(4):491–504
Clow KE, Beisel JL (1995) Managing consumer expectations of low-margin high volume service. J Serv Mark 9(1):33–46
Cronin JJ, Brady MK, Hult GTM (2000) Assessing the effect of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. J Retail 76(2):193–218
Coyle JR, Thorson E (2001) The effects of progressive levels of interactivity and vividness in Web marketing sites. J Advert 30(3):65–77
Csikszentmihalyi M (1990) Flow: the psychology of optimal experience. Harpers Perennial, New York
Daft R, Rengel R (1986) Organizational information requirements, media richness and structural design. Manag Sci 32(5):554–571
Davis FD, Bagozzi R, Warshaw P (1989) User acceptance of computer technology: a comparison of two theoretical models. Manag Sci 35(8):982–1003
DeFleur ML, Kearney P, Plax TG (1997) Fundamentals of human communication, 2nd edn. Mayfield Publishing Co, Mountain View, CA
Dejwakh V (2010) Virtual goods in social networking and online gaming. Product Number: IN1004659CM. In-Stat, an NPD Group Company, Scottsdale, AZ
Dickey MD (2005) Brave new world: a review of the design affordances and constraints of two 3D virtual worlds as interactive learning environment. Interact Learn Environ 13(1–2):121–137
Fishbein M, Ajzen I (1975) Belief, attitude, intention, and behavior: an introduction to theory and research. Addison-Wesley, Boston, MA
Fornell C, Bookstein F (1982) Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. J Mark Res 19(4):440–452
Fornell C, Larcker DF (1981) Structural equation models with unobservable variables and measurement error: algebra and statistics. J Mark Res 18(3):382–388
Fortin DR, Dholakia RR (2005) Interactivity and vividness effects on social presence and involvement with a web-based advertisement. J Bus Res 58(3):387–396
Gefen D, Straub DW, Boudreau MC (2000) Structural equation modeling and regression: guidelines for research practice. Commun Assoc Inf Syst 4(7):1–77
Ghani JA, Supnick R, Rooney P (1991) The experience of flow in computer-mediated and in face-to-face groups. In: DeGross JI, Benbasat I, DeSanctis G, Beath CM (ed) Proceedings of the 12th international conference on information systems. University Press, New York, pp 229–237
Ghani JA, Deshpande SP (1994) Task characteristics and the experience of optimal flow human-computer interaction. J Psychol 128(4):381–391
Ghose S, Dou W (1998) Interactive functions and their impacts on the appeal of internet presence sites. J Advert Res 38(2):29–43
Greenwald AG, Leavitt C (1984) Audience involvement in advertising: four levels. J Consum Res 11(1):581–592
Guo Y, Barnes S (2007) Why people buy virtual items in virtual worlds with real money. Database Adv Inf Syst 38(4):69–76
Ha L, James EL (1998) Interactivity reexamined: a baseline analysis of early business web sites. J Broadcast Electron Media 42(4):457–469
Hair JF, Anderson RE, Tatham RL, Black WC (1998) Multivariate data analysis with readings, 5th edn. Prentice Hall, Englewood Cliffs, NJ
Van der Heijden H, Verhagen T (2004) Online store image: conceptual foundations and empirical measurement. Inf Manag 41(5):609–617
Heeter C (1989) Implications of new interactive technologies for conceptualizing communication. In: Salvaggio JL, Bryant J (eds) Media use in the information age: emerging patterns of adoption and consumer use. Lawrence Erlbaum Associates, Hillsdale, NJ, pp 221–225
Hoffman DL, Novak TP (1996) Marketing in hypermedia computer-mediated environments: conceptual foundations. J Mark 60(3):50–68
Holbrook MB (1994) The nature of customer value: an axiology of services in the consumption experience. In: Roland R, Oliver RL (eds) Service quality: new directions in theory and practice. Sage, Newbury Park, CA, pp 21–71
Jakala M, Pekkola S (2007) From technology engineering to social engineering: 15 years of research on virtual worlds. ACM SIGMIS Database 38(4):11–16
Jensen JF (2001) Interactivity: tracing a new concept in media and communication studies. Nordicom Rev 19(1):185–204
Jiang Z, Benbasat I (2007) Research note investigating the influence of the functional mechanisms of online product presentations. Inf Syst Res 18(4):454–470
Khalifa M, Shen N (2004) System design effects on social presence and telepresence in virtual communities. In: Proceedings of the 25th international conference on information systems, Washington, DC, pp 547–558
Koufaris M (2002) Applying the technology acceptance model and flow theory to online consumer behavior. Inf Syst Res 13(2):205–223
Kreijns K, Kirschner PA, Jochems W, van Buuren H (2007) Measuring perceived sociability of computer-supported collaborative learning environments. Comput Educ 49(2):176–192
Lawler EE, Hall DT (1970) Relationship of job characteristics to job involvement satisfaction and intrinsic motivation. J Appl Psychol 54(4):305–312
Levy M (1999) Revolutionizing the retail pricing game. Discount Store News 38(18):15
Liu Y, Shrum LJ (2002) What is interactivity and is it always such a good thing? Implications of definition, person, and situation for the influence of interactivity on advertising effectiveness. J Advert 31(4):53–64
Lodahi TM, Kejner M (1965) The definition and measurement of job involvement. J Appl Psychol 49(1):24–33
Lutz RJ, Guiry M (1994) Intense consumption experiences: peaks, performances, and flows. Winter marketing educators’ conference. St. Petersburg, FL
Massey BL, Levy MR (1999) Interactivity, online journalism, and english-language web newspapers in Asia. J Mass Commun Q 76(1):138–151
Manninen T, Kujanpaa T (2007) The value of virtual assets—the role of game characters in MMOGs. Int J Bus Sci Appl Manag 2(1):21–33
Mannell RC, Zuzanek J, Larson R (1988) Leisure states and ‘flow’ experiences: testing perceived freedom and intrinsic motivation hypotheses. J Leis Res 20(4):289–304
Marks DF (1973) Visual imagery differences in the recall of pictures. Br J Psychol 64(1):17–24
Mazen AM, Graf LA, Kellogg CE, Hemmasi M (1987) Statistical power in contemporary management research. Acad Manag J 30(2):369–380
McKinney V, Yoon K, Zahedi F (2002) The measurement of web-customer satisfaction: an expectation and disconfirmation approach. Inf Syst Res 13(3):296–315
McMillan SJ, Downes EJ (2000) Defining interactivity: a qualitative identification of key dimensions. New Media Soc 2(2):157–179
Moon JW, Ki YG (2001) Extending the TAM for a world-wide-web context. Inf Manag 38(4):217–230
Miller S (1973) Ends, means and galumphing: some leitmotifs of play. Am Anthropol 75(1):87–98
Nisbett R, Ross L (1980) Assigning weight to data: the ‘vividness criterion’. In: Nisbett R, Ross L (eds) Human inference: strategies and shortcomings of social judgment. Prentice-Hall Inc, Englewood Cliffs, NJ
Novak TP, Hoffman DL, Yung YF (2000) Modeling the flow construct in online environments: a structural modeling approach. Mark Sci 19(1):22–42
Nunnally JC (1978) Psychometric theory. McGraw-Hill, New York
Oliver RL (1980) A cognitive model for the antecedents and consequences of satisfaction. J Mark Res 17(4):460–469
Omale N, Hung WC, Luketkehans L, Cook-Plagwiz J (2009) Learning in 3-D multiuser virtual environment: exploring the use of unique 3-D attributes for online problem-based learning. Br J Educ Tech 40(3):480–495
Parasuraman A (1997) Reflections on gaining competitive advantage trough customer value. J Acad Mark Sci 25(2):154–161
Park CW, Mittal BA (1985) A theory of involvement in consumer behavior: problems and issues. In: Sheth JN (ed) Research in consumer behavior. JAI Press, Greenwich, CT, pp 201–232
Podsakoff SB, MacKenzie B, Lee JY, Podsakoff NP (2003) Common method biases in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88(5):879–903
Rafaeli S (1988) Interactivity: from new media to communication. In: Hawkins RP, Wiemann JM, Pingree S (eds) Advancing communication science: merging mass and interpersonal process. Sage, Newbury Park, CA, pp 110–134
Rafaeli S, Sudweeks F (1997) Networked interactivity. J Comput-Mediat Commun 2(4) (http://www.ascusc.org/jcmc/vol2/issue4/rafaeli.sudweeks.html)
Ranaweera C, Bansal H, McDougall G (2008) Web site satisfaction and purchase intentions: impact of personality characteristics during initial web visit. Manag Serv Qual 18(4):329–348
Robins CJ (1988) Attributions and depression: why is the literature so inconsistent? J Pers Soc Psychol 54(5):880–889
Rogers E (1986) Communication technology: the New Media in Society. Free Press, New York
Second Life (2010) Linden Research, Inc. (http://www.secondlife.com/statistics/economy-data.php)
Segars AH (1993) Grover V strategic information systems planning success: an investigation of the construct and its measurement. MIS Q 22(2):139–163
Shankar V, Smith AK, Rangaswamy A (2003) Customer satisfaction and loyalty in online and offline environments. Int J Res Mark 20(2):153–175
Shepherd, T (2012) Second life grid survey—economic metrics. http://gridsurvey.com/economy.php. Accessed 1 Oct 2012
Sherif M, Cantril H (1947) The psychology of ego involvement. Wiley, New York
Sherif CW, Sherif M, Nebergall RE (1965) Attitude and attitude change. Saunders, Philadelphia, PA
Sheth JN, Newman BI, Gross BL (1991) Consumption values and market choices: theory and applications. OH, Southwestern Publishing, Cincinnati
Slater SF, Narver JC (2000) Intelligence generation and superior customer value. J Acad Mark Sci 28(1):120–128
Smith DN, Sivakumar K (2004) Flow and internet shopping behavior: a conceptual model and research propositions. J Bus Res 57(10):1199–1208
Spreng RA, MacKenzie SB, Olshavsky RW (1996) A re-examination of the determinants of consumer satisfaction. J Mark 60(3):15–32
Steuer J (1992) Defining virtual reality: dimensions determining telepresence. J Commun 42(4):73–93
Sweeney JC, Soutar GN (2001) Consumer perceived value: the development of a multiple item scale. J Retail 77(2):203–230
Trevino LK, Webster J (1992) Flow in computer-mediated communication: electronic mail and voice mail evaluation and impacts. Commun Res 19(5):539–557
Venkatesh V, Morris M, Davis G, Davis F (2003) User acceptance of technology: toward a unified view. MIS Q 27(3):425–478
Webster J, Trevino LK, Ryan L (1993) The dimensionality and correlates of flow in human-computer interaction. Comput Hum Behav 9(4):411–426
Woodruff RB (1997) Customer value: the next source for competitive advantage. J Acad Mark Sci 25(2):139–153
Yen HJR, Gwinner KP (2003) Internet retail customer loyalty: the mediating role of relational benefits. Int J Serv Ind Manag 14(5):483–500
Zaichkowsky JL (1985) Measuring the involvement construct. J Consum Res 12(3):341–352
Zeithaml VA (1988) Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. J Mark 52(3):2–22
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Cheon, E. Energizing business transactions in virtual worlds: an empirical study of consumers’ purchasing behaviors. Inf Technol Manag 14, 315–330 (2013). https://doi.org/10.1007/s10799-013-0169-6
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10799-013-0169-6