Why do people buy virtual goods: A meta-analysis

During the last decade, virtual goods have become an important target of consumption online (especially in games, virtual worlds and social networking services) amongst physical and digital goods. In this study we investigate the question of why do people purchase virtual goods by conducting a meta-analysis (random effects model) of the existing quantitative body of literature (24 studies) on the topic. The meta-analysis revealed an important aspect of value of virtual goods: contrary to traditional goods, the reasons why people purchase virtual goods are tightly connected to the platform where they are sold in. These findings underline the significance of service design and its relationship to the formation of value of virtual goods: the value of virtual goods is context-bound, and therefore, bound to the environment where they are usable in. Most factors that were found to be significant predictors of purchase behavior (such as network effects, self-presentation, enjoyment, ease of use, flow and use of the platform) are directly related to the aspects and design of the platform beyond the general attitudes towards virtual goods themselves. Moreover, we found that enjoyment and prolonged use of the platform were more important predictors for purchases in virtual worlds than in games. •Virtual consumption has emerged alongside of material and digital consumption.•A meta-analysis of literature on why do people purchase virtual goods is conducted.•Following factors are found to be positively associated with virtual consumption.￮Attitude, flow, network size, self-presentation, subjective norms, social presence.￮Perceived value, enjoyment of the platform, service use intention and ease of use.