An Exploratory Study of Play Duration and In-App Purchase Behavior in Mobile Games

28 Pages Posted: 8 Jul 2021

See all articles by Yifan Jiao

Yifan Jiao

The University of Hong Kong - Faculty of Business and Economics

Christopher S. Tang

University of California, Los Angeles (UCLA) - Decisions, Operations, and Technology Management (DOTM) Area

Jingqi Wang

The Chinese University of Hong Kong, Shenzhen

Date Written: June 21, 2021

Abstract

In the context of free-to-play mobile games, we seek to examine one question: which factors are associated with a player’s play duration or in-app purchases (of virtual items)? Our research question has not been examined in the research literature. It is important because the revenue of a free-to-play game developer is based on in-app ads watched by players (which depend on play duration) and in-app purchases. We use different regression models to analyze weekly data associated with 15,120 players’ activities and expenditures of a free-to-play mobile game over a span of three years.
We find that players with higher cumulative play time tend to continue to play for a longer duration; however, they feel satiated in terms of purchasing more virtual items associated with the game. Interestingly, players with exceptionally good/bad performance in one week tend to play for a shorter play duration and make fewer purchases in the following week. Finally, players who acquired new virtual items in one week tend to play for a longer duration and make more purchases in the following week. Armed with our results, we discuss how a game developer can take proactive measures to increase its revenue by enticing players to play for a longer duration and make more in-app purchases.

Keywords: mobile game, winning rate, social network effect, novelty effect

Suggested Citation

Jiao, Yifan and Tang, Christopher S. and Wang, Jingqi, An Exploratory Study of Play Duration and In-App Purchase Behavior in Mobile Games (June 21, 2021). Available at SSRN: https://ssrn.com/abstract=3871031 or http://dx.doi.org/10.2139/ssrn.3871031

Yifan Jiao

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Christopher S. Tang

University of California, Los Angeles (UCLA) - Decisions, Operations, and Technology Management (DOTM) Area ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

HOME PAGE: http://www.anderson.ucla.edu/x980.xml

Jingqi Wang (Contact Author)

The Chinese University of Hong Kong, Shenzhen ( email )

2001 Longxiang Road, Longgang District
Shenzhen, 518172
China

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