THE EFFECT OF FINANCIAL LITERACY ON IN-GAME CURRENCY SERVICES PURCHASES IN INDONESIA

• Main Author: Sahkuda Damanik, Joseph
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77045
• Institution: Institut Teknologi Bandung

Financial literacy and information availability in Indonesia is growing rapidly over the years. As financial literacy level increases, they become more aware of their spending habits, which leads them to limit spending on entertainment. This shift in consumer behavior poses a threat to the gaming industry in Indonesia, as it could experience a decline in revenue due to reduced spending on in-game purchases. The purpose of this research is to identify what factors significantly influence the in-game currency purchases and identify whether the level of financial literacy can significantly influence the in-game currency purchases in Indonesia. This research uses a quantitative approach by collecting data through a survey to 100 respondents who have purchased in-game currency at least once. This research will use PLM-SEM analysis to determine the relationship between variables. The results showed that consumptive behavior, social value and economic value have a positive relationship to the in-game currency purchases, while financial literacy has a negative relationship to the in-game currency purchases and financial literacy is able to explain the purchases of in-game currency purchases by 86.963%.