![]() In this study, we obtained the responses of 615 female otome game players from China and analyzed the data using structural equation modeling. Although previous studies have attempted to explain continued playing intention and in-game purchase intention in terms of social influence among players, the parasocial phenomenon has never been used to understand female players' emotional psychology and interactive behaviors. In recent years, the number of players of otome games, which target the niche market of young females, has been rapidly increasing in Asia. The main findings in this study: (1) social interaction has a direct positive effect on the intention to buy virtual goods, (2) utility and self-indulgence are negative predictors of purchase intention, (3) the intention to play has a mediating effect on the effect of self-indulgence, interaction social media, and competitiveness towards purchase intentions of virtual goods. SEM (Structural Equation Model) analysis using AMOS software was carried out on 292 samples obtained from online questionnaires using a judgmental sampling technique. The data collection survey was conducted using an online judgmental sampling technique with the criteria of respondents being Mobile Legends: Bang Bang players aged 16 to 24 years living in Indonesia. Researchers included the variables utility, self-indulgence, social interaction, and competitiveness to measure compensatory consumption indirectly. The purpose of this research is to find out whether the consumption of compensation affects the intention to play and to buy virtual goods in context of the game Mobile Legends: Bang Bang. ![]() Our findings imply that designers should understand and account for loss aversion when setting up risk and reward structures in their games. Our results show that despite the temporary and digital nature of the game world, and the virtual nature of the gold, players still exhibited a strong bias towards avoiding losses. ![]() We carried out a study in a Zelda-style game with 18 decision points about wagering gold at different win:loss ratios. Knowing whether cognitive biases like loss aversion affect players is important for game designers when they create decision points and choices for players. On the other hand, experienced immersion and a desire to achieve may make in-game decisions similar to out-of-game contexts. In games, the "magic circle" may free players from their held attitudes, especially because in-game losses and gains are virtual. Although well studied in behavioural economics, there is little understanding of whether and how it arises in game contexts. Loss aversion is a cognitive bias in which the negative feelings associated with prospective losses have a greater magnitude than the positive feelings of winning equivalent gains. The findings also suggest that it is critically important for video game developers to strike a balance between the challenges of the gameplay and the skills of players because excessively raising (or lowering) the level of difficulty could pose a threat to the company’s sustainable profit. Therefore, video game researchers should not treat in-game goods as a homogeneous concept. Third, the purchase of ornamental goods is driven by the synergism of intrinsic motivations and exposure in the virtual world. Second, the purchase of probability-based goods is a compromise for purchase restrictions. First, the purchase of functional-based goods is a strategy for entering the flow experience. After acknowledging the heterogeneity of the categories, a conceptual framework is developed by conducting 21 in-depth interviews, from which it emerges that players purchase functional-based goods, probability-based goods, and ornamental-based goods for different motives and through the different behavioural processes. Six types of in-game goods are grouped into three categories: functional-based goods, probability-based goods, and ornamental-based goods. We used an inductive approach involving qualitative data analysis based on grounded theory. This study contributes to the theory on in-game goods purchases by explaining why and how video game players purchase different types of in-game goods. Rather than relying exclusively on the sale of video game titles or the subscription model, video game companies are maximising the revenues and extending the lifecycle of their games by means of a strategy based on the sale of in-game goods. Video game companies are increasingly diversifying their profit models.
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