Why do People Buy Virtual Goods?
We just challenged the ill-informed idea, that virtual goods was about buying pixels. There we already referenced to Jeremy Liew as one of the most informed capacities to find on virtual goods. Today I learned on his blog that Jeremy has written on “Why do People Buy Virtual Goods” for Wall Street Journal. I strongly recommend this read, as it is very condense and at the same time provides case examples do prove the theory. Also, I fully agree with Jeremy’s conclusion:
“My theory is that people buy digital goods for the same reason that they buy goods in the real world; (i) to be able to do more, (ii) to build relationships, and (iii) to establish identity.”
There is no need to look for a distinct motivation set for buying virtual goods as compared to “real world goods” - by contrast, the same reasons apply. Let’s have a look at how the three facets of movitation, as set out in the quote above, apply to WhatsYourPlace (English version to launch this week).
1) To be able to do more: Owning a place on WhatsYourPlace lets you exclusively represent the online image on that place (via online land register records). It is only up to you, what pictures and what content visitors to that place get to see there.
2) To build relationships: WhatsYourPlace is a great platform to find like-minded people. If you buy a football stadium, supporters of the corresponding team will give feedback. If you are Michael Jackson Fan and you buy Neverland Ranch, other fans will share the latest rumors with you. In general, personal connections to real places of the world build the foundation for social exchange. It is also possible to buy someones favorite place as a gift.
3) To establish identity: Buying a place on WhatsYourPlace is a social statement (which of course is strongly linked to (2)). If you buy some place as a fan, this is a strong way of demonstrating your personal support or interest. If you buy a place that you have fond memories on, part of your history materializes - virtually.