MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Entrepreneurship Planning, Development and Management

Freemium Business Model and Youth Purchase Behaviour: The Impact of Enjoyment Value and Social Value on Continued Use Intention and Purchase Behaviour

  1. Gourav Bareja
  2. Shabnam Gulati

Abstract

The surge of freemium digital platforms has transformed the gaming market by enabling users to enjoy the basic elements of the game for free while monetizing advanced or additional features as in-game purchases. Therefore, the factors that lead users to remain entrenched in the gaming market and make purchases have also gained significance for the game developers and the research community. For this purpose, this study evaluates the role of Enjoyment Value and Social Value as perceived value constructs on Continued Use Intention and Purchase Behaviour of young Indian gamers. PLS-SEM was used to analyze the data of 825 respondents in this study. The results indicate that Continued Use Intention was influenced by both Enjoyment Value and Social Value, with Social Value having the greatest Impact. Furthermore, Social Value was shown to have a strong positive impact on Purchase Behaviour, while Enjoyment Value impacted Purchase Behaviour to a much lesser degree. Continued Use Intention was shown to have a significant impact on Purchase Behaviour in general and fully mediated the gap between perceived value constructs and Purchase Behaviour. This study highlights the significance of social engagement and user experience of online games in the context of freemium business models and helps advance the understanding of this business model.

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