Social tie strength and virtual goods purchase decisions of online game players

This paper investigates how social ties among online game players can influence their in-game purchase of virtual goods that are representative of the personalities and status of the players. Using the data provided by the operator of an online game, this paper finds that a player is more likely to purchase such a product if more of her peers (with either a strong tie or a weak tie) possess that same or similar product, with the strong-tie peers having a bigger influence on the purchase than that of the weak-tie ones. This paper also finds that, due to the product-sharing activities among strong-tie friends, a player is less likely to purchase a more expensive virtual good if more of his strong-tie friends already own a similar one. In terms of methodology, this paper uses generalised linear mixed models to identify strong and weak ties, and models customer purchase behaviours. This paper contributes to the literature of social connections and purchase decisions, and offers managerial implications on how to utilise social media that builds on the different strengths of social ties to promote consumer purchase.