Consumers spend freely in online, “virtual” worlds

A Florida State University researcher is studying the growing market for virtual products, particularly in Internet virtual worlds, and has identified several factors that appear to increase the likelihood that people will make these types of purchases.

Rob Hooker's independent research conducted for an international producer of virtual world environments has studied virtual worlds and concluded that they might hold important lessons for companies seeking to market real-world products and services.

Immersion Matters!

In studying a control group of 348 participants on Planet Calypso, a state-of-the-art role-playing environment set on an alien planet, Hooker and Robin Teigland, a researcher from the Stockholm School of Economics, documented how the psychological states of the participants affected the likelihood that they would purchase virtual products such as clothing to adorn their avatars.

Flow is a cognitive state of immersion

Previous research has shown that the state of flow is intrinsically pleasurable for people experiencing it, he said. They become less self-conscious, less aware of the world aroundthem, and generally feel more relaxed.

Flow and Positive Attitudes

“This has enormous significance for companies looking for ways to increase their profit margins,” Hooker said. “It strongly suggests that if you can create the sorts of immersive, pleasurable experiences that enable consumers to reach a state of flow, you’ll have a greater likelihood of selling them your products.”

While Hooker’s research has focused more on virtual marketing, he sees a potential upside for more traditional product makers as well.

“If I’m a major retailer such as Nike or Adidas, then I want to make sure my products are available in role-playing activities like Planet Calypso,” he said. “I want the participants to feel so good about my brand that they’re willing to spend a buck, say, to outfit their avatar with one of my hats or T-shirts. And then I want that positive brand association to carry over into their daily lives as well, so that when they’re done playing they’ll go to the mall and buy my products in the real world.”

Sale of Virtual Products During Recession

It’s a trend that is likely to increase in popularity as people become more comfortable with online environments, said Molly Wasko, formerly an associate professor in FSU’s Department of Management, who worked with Hooker on much of his research involving Internet-based virtual environments. (Wasko recently accepted a position at the University of Alabama-Birmingham as chair of the Department of Management, Information Systems & Quantitative Methods.)

Growth Projections of Virtual Economy

Other faculty members in the College of Business who worked with Hooker on this research include his major professor and dissertation co-chair, David Paradice, the Sprint Professor of Business Administration in the Department of Management; Professor Charlie Hofacker of the Department of Marketing; and Associate Professor Deb Armstrong of the Department of Management.

Released: 7/6/2010
Source: Florida State University
Rob Hooker
rhooker@fsu.edu
or Molly Wasko
(205) 934-8806; mwasko@uab.edu