Energizing business transactions in virtual worlds: an empirical study of consumers’ purchasing behaviors

Virtual marketplaces for products and services have become major profit sources in virtual worlds (VWs). The large quantity and growth of virtual product transactions and their platform providers’ profits have made it critical to understand consumer purchasing behavior in VWs. However, as open‐ended VWs such as Second Life have environments that differ from those of other online communities, the underlying mechanisms of consumers’ e‐commerce behavior may not explain their VW behavior. Therefore, this study examines consumers’ VW behavior by considering three categories of factors influencing their purchasing behavior: the platform context (i.e., technical characteristics such as interactivity and vividness and social characteristics such as involvement), product context (i.e., product value), and virtual experience (i.e., flow and satisfaction). This study examines how these factors affect consumers when they purchase virtual products. Its results highlight the importance of flow experience in consumers’ VW behavior. Interactivity, vividness, and involvement are found to affect consumers’ virtual experience–flow, and involvement exhibits a significantly stronger influence on flow. Flow and involvement are found to affect product value, and flow exerts a stronger influence than involvement on product value. Flow and product value directly impact consumers’ willingness to purchase, whereas satisfaction with the virtual world experience, which is significantly affected by flow, is not associated with willingness to purchase. The results further indicate that product value is more influential on willingness to purchase than is flow. After describing the study’s contributions to both research and practice, I conclude the paper by presenting avenues for future research.