KOREASCHOLAR

PRICING ADD-ON PRODUCTS: THE EFFECT OF PRICE DIFFERENCES AMONG BASE AND ADD-ON PRODUCTS OF MOBILE GAMES ON ADD-ON PRODUCT SALES

Seongsoo Jang, Jaihak Chung, Philip James Kitchen
  • LanguageENG
  • URLhttp://db.koreascholar.com/Article/Detail/372629
Global Fashion Management Conference
2019 Global Fashion Management Conference at Paris (2019.07)
pp.650-655
글로벌지식마케팅경영학회 (Global Alliance of Marketing & Management Associations)
Abstract

This research examines how inter-price relationships among base and add-on products affect the sales of a new add-on product in the mobile gaming context. Based on theories of price fairness, product familiarity and price-quality relationship, a research model was drawn and tested on a sample of 6,766 weekly observations derived from 74 base games and 514 add-on virtual goods. Our empirical results show that the relative price of a new add-on product, when compared to the base game price, is negatively related to the add-on product sales, but positively related to its sales, when compared to prices of existing add-on products. Furthermore, the inter-price relationships among base and add-on gaming products are moderated by visual richness and game genre. This study provides the implications for IS research and practice.

Table Content
ABSTRACT
 Introduction
 Conceptual Framework
 Empirical Analysis
 Discussion
 References
Author
  • Philip James Kitchen(University of Salford, UK)
  • Jaihak Chung(Sogang University, Republic of Korea)
  • Seongsoo Jang(Cardiff University, UK)