FACTORS THAT INFLUENCE PURCHASE INTENTION FOR FREEMIUM MOBILE GAME IN INDONESIA

• Main Author: Salman Firdaus, Adzan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52087
• Institution: Institut Teknologi Bandung

The surge of popularity and the increasing number of innovations in mobile games lead to the rise of freemium business model in mobile games. Due to its popularity, many large and small developers are competing in the freemium mobile game business. Along with the controversy over in-game virtual items in many countries, this creates a pressure for developers to innovate their in-game purchase system and virtual items to gain attention from players. The purpose of this research is to determine the factors that influence purchase intention in freemium mobile games and recommend the best way for game developers to design in-game transaction that is accepted by players. This study uses UTAUT2 with additional variable added. The respondents are 246 people who play freemium mobile games in Indonesia and the data is analyzed using Partial Least Square Structural Equation Modelling. The result shows that habit, hedonic motivation, price value, and social influence have significant effects on purchase intention, while effort expectancy, facilitating condition, game satisfaction, and performance expectancy does not have significant effect on purchase intention. The result also shows that players prefer cosmetics and battle pass types of ingame transaction over items that increase performances and randomized items. The recommended action for game developers is to design in-game transaction model that avoid randomized models and items that increase performances. The in-game transaction model should be designed in a way that encourage first time purchase to create habit for players while making sure that the price value is great. Multiplayer function should also be considered in terms of cost. There should also be limitation on how players can purchase ingame items to avoid addiction and predatory practices. With this recommended action, game developers will hopefully gain revenue from small increment of purchases from large number of players instead of relying on a small number of players to purchase in big amount.