Virtual goods in context: Digitalization of consumption Vili Lehdonvirta, vili.lehdonvirta@hiit.fi Helsinki Institute for Information Technology Virtual Economy Research Network

Virtual item purchase drivers Vili Lehdonvirta: "Virtual Item Sales as a Revenue Model: Identifying Attributes that Drive Purchase Decisions", Electronic Commerce Research, vol. 9, no. 1, pp. 97-113. Functional attributes Hedonic attributes Social attributes Performance Visual appearance Rarity Features Sound Branding Background fiction Provenance Customizability Cultural references

Digitalization of consumption Virtual goods are bought for all the same reasons as material goods As life becomes increasingly computer-mediated, so does consumption How is the virtual goods market developing vs. other forms of computer-mediated consumption?

Virtual goods are bought for all the same reasons as material goods

As life becomes increasingly computer-mediated, so does consumption

How is the virtual goods market developing vs. other forms of computer-mediated consumption?

Digitalization of consumption in Korea

Digitalization of consumption in China

Digitalization of consumption in U.S. 66 146 228

Future prospects Total U.S. retail: 4400 Bn USD / year less than 6% “digitalized” so far Recession: a boost to virtual consumption Environmental sustainability: the next selling point for virtual goods? provision of material goods (other than food) 29 % of U.S. GHG emissions

Total U.S. retail: 4400 Bn USD / year

less than 6% “digitalized” so far

Recession: a boost to virtual consumption

Environmental sustainability: the next selling point for virtual goods?

provision of material goods (other than food) 29 % of U.S. GHG emissions

http://virtual-economy.org

http://virtual-economy.org