Game design as marketing: How game mechanics create demand for virtual goods

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 developer...

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Main Authors: Lehdonvirta, V., Hamari, J.
Format: Article
Language:English
Published: International Journal of Business Science and Applied Management 2010-01-01
Series:International Journal of Business Science and Applied Management
Subjects:
Online Access:http://www.business-and-management.org/download.php?file=2010/5_1--14-29-Hamari,Lehdonvirta.pdf
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author Lehdonvirta, V.
Hamari, J.
author_facet Lehdonvirta, V.
Hamari, J.
author_sort Lehdonvirta, V.
collection DOAJ
description 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.
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spelling doaj.art-10ad0cd38f944ad9b1ef0e63a9ad71942022-12-21T21:26:58ZengInternational Journal of Business Science and Applied ManagementInternational Journal of Business Science and Applied Management1753-02962010-01-01511429Game design as marketing: How game mechanics create demand for virtual goodsLehdonvirta, V.Hamari, J.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.http://www.business-and-management.org/download.php?file=2010/5_1--14-29-Hamari,Lehdonvirta.pdfonline gamessocial networkingvirtual worldvirtual goodsbusiness modelsustainabilitycaptology
spellingShingle Lehdonvirta, V.
Hamari, J.
Game design as marketing: How game mechanics create demand for virtual goods
International Journal of Business Science and Applied Management
online games
social networking
virtual world
virtual goods
business model
sustainability
captology
title Game design as marketing: How game mechanics create demand for virtual goods
title_full Game design as marketing: How game mechanics create demand for virtual goods
title_fullStr Game design as marketing: How game mechanics create demand for virtual goods
title_full_unstemmed Game design as marketing: How game mechanics create demand for virtual goods
title_short Game design as marketing: How game mechanics create demand for virtual goods
title_sort game design as marketing how game mechanics create demand for virtual goods
topic online games
social networking
virtual world
virtual goods
business model
sustainability
captology
url http://www.business-and-management.org/download.php?file=2010/5_1--14-29-Hamari,Lehdonvirta.pdf
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