TheImpact of Freemium Business Model on Player's Engagement: An Empirical Study in Online Game

Abstract

Abstract:

In online games, "freemium" business model has attracted wide attention of scholars, but its impact on user participation in the game and its internal mechanism are seldom discussed. Based on the theories of self-determination, uniqueness seeking and self-identity, this study uses real individual game data to explore the similarities and differences between free and paid users in the "freemium" model and the long-term impact of group interaction on user participation. Research shows that game challenge and user's game performance significantly enhance user's willingness to participate in the game, but with the increase of the proportion of paying users, free users' willingness to participate in the game increases, while paying users' willingness to participate in the game decreases. In addition, the excellent performance of paying users will enhance the willingness of other paying users to participate and reduce the willingness of free users to participate. This study clarifies the psychological mechanism that affects the willingness to participate in online games, expands the theoretical insight into the long-term impact of the "freemium" business model on the development of online games, and further proposes targeted revision strategies.

Key words: online game, freemium, business model, user engagement

Guo Guoqing, Wang Yuxi, Yang Hailong. TheImpact of Freemium Business Model on Player's Engagement: An Empirical Study in Online Game[J]. , 2019, 31(7): 199-209.

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