This post will explore a relatively new concept in eMarketing, diving into the curious realm of Virtual World. Characteristics of the Virtual World will be discussed, followed by the characteristics of the online Virtual users to understand how Virtual World fits in with the motivations and rational of users of Virtual World, namely Second Life.
Analysis of Virtual World
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| University of Western Australia in Second Life |
Virtual World is a 3-Dimensional immersive simulated world which represents the next generation of internet-based application, Web 3.0 (Lyons, 2008). This assignment is focusing on the Second Life that was launched by Linden Labs in 2003. Virtual environment is dynamic in nature and allows for humanistic presence in the medium without any specific purpose imposed on them. Virtual medium has altered the ‘traditionally space and time continuum’ (Schivelbusch, 1986) orientation and enable users from different geographical areas and time to come together in a common platform in 3D which sharply resembles the real life that they live in. The immersive nature of the virtual environment allows users to be engaged in the entire experience, which stimulates multiple sensory. Virtual users are empowered to immerse and manifest their thoughts and feelings into a ‘make-visible’ world by making them co-produce their interactive process with variables in the virtual world. It can be perceived to be a ‘Second Life’ literally for users, which is an alternative world in which users can live their life. Users are represented in an avatar form; a virtual self in that respect. This has huge implications on how users get involved in virtual world.
I The Virtual Generation: Web 3.0
Virtual World has allowed users to have a whole new experience in soliciting information and consumption pattern. It is, as discussed by Kelly Lyons, the latest progression of the generation of internet-based applications from Web 1.0, Web 2.0 to Web 3.0.
Web 1.0 is a concept that stems from the first generation of internet-based services which were in a simple format; offering a generally static and non-interactive form of communication. They are of proprietary concept which does not allow users to change any form of settings. It is perceived to be a one-way communication means. Web 2.0 (O’Reilly, 2004) is the progression from web 1.0 which integrated the ability to collaborate, interact and allows dyadic exchange of information with the internet-based applications by users, on top of what was being offered by Web 1.0. The emerged examples are social networking sites FaceBook, YouTube and Wikis. Web 3.0, as argued by Kelly Lyons, will be known as the era of Virtuality/3D internet. Web 3.0 has the potential to coagulate all communication efforts into a single platform, which has not been done prior to the introduction of Virtuality. 3D world harness the same advantages that traditional internet medium has. However, the nature of 3D virtual environment opens up a whole new range of presentations and communicating products and services to the users. Users are part of the whole experience in the communication process in the environment. They manifest their feelings and thoughts represented in the form of avatar, which is used to dictate and interact with the variables presented in the environment.
Analysis of Users
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| Users in Second Life (Alter-Ego) |
II Human representation: Avatar
Avatars are 3D graphical images that represent users in Second Life. They function as an important aspect in creating an overall experiential perception by users. Avatars are central to the constitution of user’s assigned meanings and purposes in their actions in the virtual medium. It is an ‘object’ representing the embodiment of the user (Jordan, 1999). Users act through the use of avatars and therefore is co-producing a process of interactions with variables, a process termed as active participation (Stuart et al, 2008). Users are directly involved in participating in the experience with immediate response. They direct and interact with variables in virtual world, influencing the outcome of their actions.
When being immersed into Virtual World, users are engaged into an experience that engages multi sensory experience, which will evoke more emotions than ever before through a diverse range of variable stimulations that are made possible and available by Virtual World. This has effects on their perception on their ‘social status, belonging in the medium and individuality’ (Jennifer, 2008) they perceive. This ‘avatar effect’ differentiates Virtual World from other generations of internet-based services.
In order to evaluate the effectiveness of marketing techniques in virtual medium that affects virtual consumerism, it is vital to understand the characteristics of users in terms of their motivations for using virtual medium as well as their perceived values for virtual goods as a foundation. While the characteristics of users were established in Web 2.0, it will be necessary to investigate what are the driving factors that influence user’s involvement in virtual world, and ultimately translate the factors to the marketing techniques in this assignment. Theories of User's rationals and motivations as as follow:
I Motivational factors (through TAM)
User’s motivation of using virtual world and motivation to buy in virtual world influences their behavioural, attitudes and the way they use the medium. Therefore it will be useful to establish the fundamental factors that motivate users.
In order to study the motivations behind Virtual users, Technology Acceptance Model (TAM) will be applied to investigate the intrinsic and extrinsic motivation behind the acceptance of virtual world. TAM is used to determine consumer’s attitude towards Virtual World. They ‘apply psychological factors of human into the adoption of Information Technology and Computers’ (Shin, 2009) and are widely accepted by academics. The first form of TAM was formed by Fred D. Davis Jr. in 1985 which focused on perceived usefulness and Perceived ease of use as its basis of research. As technology progresses (in the context of Information Technology) through the three generations, it is no longer adequate to be used to evaluate the motivations. Therefore, the proposed model of TAM (Shin, 2009) is being analysed.
The proposed model of TAM (Shin, 2009) would be intrinsic motivation (Perceived enjoyment and Perceived empathy), extrinsic motivation (Perceived usefulness and Perceived synchronicity) and flow (Immersive). Variables such as Perceived involvements, Perceived synchronicity and Flow are assigned on top of the original model to better relate to user behaviour in SL.
i. Intrinsic Motivation
Perceived enjoyment is to determine if virtual world is enjoyable to be used by users in their own purpose of using. This will determine if virtual world presents itself as a hedonic system that is capable to bring enjoyment through the use of virtual world.
Perceived empathy defines user’s state of feelings and emotions when interacting with the medium. This will determine if positive empathy will enhance the relationship between users and virtual world.
ii. Flow
Flow is the other term for ‘immersiveness’ in the medium. It is defined as the experiential factors when users are engaged and absorbed themselves into the virtual activity. This factor will determine if users find positivity in the flow of virtual medium to use them. This factor can also be classified under intrinsic motivation as immersive experience is part of hedonic effect.
iii. Extrinsic Motivation
Perceived usefulness is defined as ‘the degree to which a person believes that using a particular system would enhance his or her performance’ (F. Davis, 1985). This factor will determine if users find the whole concept of virtual world (Second Life) useful in their context.
Perceived synchronicity refers to users doing things together at the same time with shared goals. They can be seen as a community concept, which is defined as ‘aggregation of individuals or business partners who interacts around shared interest’ (Porter, 2004). This can also be seen as a social presence state. This factor will determine if users are positively influenced by the social presence around them in the virtual world.
The result of the research done by Dong Hee Shin in 2009 on 274 Second Life users reveals that the motivational factors listed above showed reliability to predict and explain the behaviour intent towards motivation to use SL. One of the major finding was that flow had a much greater impact on user motivation than previous studies. This factor aligns with the very nature of the characteristics of Virtual World; it’s immersive environment. The study suggests that the immersive nature of virtual environment is one major driver in the use of SL. It has direct impact on the intrinsic and extrinsic motivations displayed by users. Therefore, ‘virtual reality is about providers facilitating the presence of end-users as active, collaborative co-producers’ (D. Shin, 2009) in an immersed environment.
II Values
In a virtual medium where there are no physical entities, users assign values to 3D objects in the virtual world they see and interact. Thus it is vital to assess the user’s value in terms of how they see value in an ‘imaginary’ world. Second Life resembles the real world that we live in, but the elements of survival are ‘not required to survive virtuality’ (Jennifer 2008). There is no traditional concept of needs in virtual world. The following values when users assigned in Second Life: Use-Value and Exchange-Value (Jennifer, 2008) of virtuality are the 2 main factors of values to consider in virtual goods.
i. Use-Value
Use-Value refers to the inherent of physical object that give users value. This value, however, is not applicable in virtual set-up as there is nothing material in the medium. This factor will be omitted.
ii. Exchange-Value
Exchange-Value, as suggested by Jennifer Martin, is the value assigned by users in determining an object’s worth. This is the dominant value in Second Life as use-value is completely absent from the system. Jennifer Martin suggested that Exchange-Value is related to how users linked virtual goods to: social belonging, status, individuality and social lubrication.
The value of Social Belonging stems from the fact that virtual objects can be positioned to align with status, belongings and individuality. The major discussion was about ‘Social Lubrication which indicates that virtual goods can be seen as a value that brings people together through common interests and share activities.’ (Jennifer, 2008) It is evident that virtual communities echoed this value that users share when users come together in a community on a basis of an object; for instance, car or motorbike. Virtual world enables people with common interest to come together in a common platform. In this sense, it can be inferred that the value that users perceived is shifted intrinsically to fulfil their needs when using virtual medium.
Correspondingly, a research done by on virtual goods reflected upon the attributes that users identify as of value (V.Lehdonvirta, 2009). The attributes are as follow:
Functional attributes | Performance |
Functionality | |
Hedonic attributes | Visual appearance and sounds |
Background fiction | |
Customisability | |
Cultural references | |
Branding | |
Social attributes | Rarity |
The attributes above reflects the values assigned by users to virtual goods according to Vili. As we compare the attributes of Vili to Jennifer, we can see that the Exchange-Value described are aligned with the hedonic attributes which users perceived to fulfil their needs. The other research suggests that the values of virtual goods are closely in tune with social attribute such as social belonging and social lubrication. The rarity factor described by Vili is the need to own ‘rare’ virtual items to augment their self-worth within the social context in virtual medium.
III Critical characteristics of user’s characteristics in relation to marketing techniques
According to the researches done in defining the important attributes relating to the motivational factor of use of virtual medium as well as values assignments to virtual goods in the context of users, it can be inferred that there are attributes closely resembling each other.
The 2 main factors that can be derived from characteristics of users would be intrinsic motivation &values and extrinsic motivation & values. To simplify, ‘Intrinsic characteristics’ and ‘extrinsic characteristics’ terms are used.
i. Intrinsic characteristics
In terms of intrinsic characteristics, Dong Hee Shin identified Perceived enjoyments and empathy, as well as the concept of Flow (immersiveness) as part of the characteristics. When we co-relate to the studies made by Vili Lehdonvirta with regards to values on virtual goods, we find that much of the exchange-value factors are derived from intrinsic characteristics like Hedonic attributes such as Visual appearance and sounds, Cultural references, background fictions. Therefore we conclude that intrinsic characteristics of users will affect their perception on marketing technique as follow:
Intrinsic characteristics | |
Hedonic attributes (Perceived enjoyment and empathy) | Visual appearance and sounds |
Background fiction | |
Customisability | |
Cultural references | |
Branding | |
Flow Concept | Immersive applications |
Table : Intrinsic characteristics of users displayed in Virtual Medium
ii Extrinsic characteristics
In terms of extrinsic characteristics, Dong Hee Shin identified Perceived usefulness and synchronicity as part of the characteristics. When we co-relate to the studies made by Jennifer Martin, we find the correlation between perceived synchronicity and the exchange-value of Social Belongings as a form of social presence and interactivity in virtual medium is the driving factor for repeated use and purchasing of goods in Second Life. The study done by Vili Lehdonvirta with regards to values on virtual goods aligns with the findings by both Dong Hee Shin and Jennifer Martins in the Perceived usefulness and social belonging (Perceived synchronicity) respectively. ‘Rarity’ is omitted as they are not relevant to marketing effort. Therefore we conclude that extrinsic characteristics of users will affect their perception on marketing technique as follow:
Extrinsic characteristics | |
Functional attributes (Perceived usefulness) | Performance |
Functionality | |
Social attributes (Perceived synchronicity) | Social Belonging |
Table: Extrinsic characteristics of users displayed in Virtual Medium
Analysis of Applied Theories in Virtual World
III Virtual business environment (Media Richness Theory and Purchase Intention attributes)
The environment created by virtual world provides a richer platform for businesses in terms of communications. A higher degree of information can be communicated to the users, as well as the availability of various types of presentation format from businesses to utilise. This has augmented the ability of businesses in Virtual World to conduct their business to ultimately sell their product/services, real or virtually.
Previous e-commerce literature of consumer’s purchasing intent has identified ‘the role of trust, product diagnosticity, informativeness, and product descriptions forms intentions to buy which translate to actual purchases’ (Lakshmi et al, 2009). This literature identifies the attributes for purchase intention on websites, which was a study for Web 2.0, predominantly assessing websites on the internet. As Web 3.0 is an improvement over Web 2.0, we can theoretically infer the same attributes to be used in virtual world to assess purchase intention. The nature of Virtual medium lies in the Media Richness Theory (MRT), where ‘richness is characterized by the ability to provide feedback, multiplicity of cues, and ability to provide personal focus’ (Lyons, 2008) that are relevant to marketing techniques. Therefore, an analysis can be done to relate how MRT of virtual medium enhances the purchase intent as proposed by e-commerce literature to virtual medium as follow:
i. Direct feedback of MRT as a mode to gain trust, provide more information and descriptions
In virtual world, business representatives have the opportunity to communicate directly with the users in the form of human and/or bots. This has presented users with the ability to have direct and open-ended interactions with the business, instead of a one-way communication via websites as a form of direct feedback mechanism. This will increase the quantity and quality of the information provided to users. This form of communication will increase credibility as well as trustworthiness of the business.
ii. Multiplicity of ‘cues’ of MRT as a mode of product diagnosticity, informativeness, and product descriptions
Virtual World enables businesses to model 3D graphics that represents the company and its products. This has the ability to provide physical ‘cue’ for users to have a ‘feel’ of the real products. The ‘cue’ element can elicit life-like psychological reactions from users and reduce the perceived risks from the uncertainty of not being able to have a look at the products. Users can diagnose and evaluate the products in more than one way to effectively diagnose the product, gain more information and learn more about the descriptions than just reading on them.
iii. Personal focus of MRT as a mode of trust, informativeness and descriptions
Virtual World allows for business to have the ability to provide customised service for users as they are engaging them on a personal level. When the users are engaged with the business through active participation and interactions, business can understand what the users actually need through the conversations and tailor-make or provide users with what they require since they have the ability to elicit direct feedback from users. This form of interaction is more effective in gaining trust and providing users with the information they need.
After assessing through what MRT defines virtual medium, i would propose an additional factors that aligns Media Richness to increase purchase intent:
iv. Different marketing techniques in one platform
Virtual World presents many opportunities to allow businesses to apply various marketing techniques. The richness of the platform allows streaming of advertisements content, music, links to websites, 3D model of products and company presence, the presence of business representatives, bots etc. As explained as Web 3.0, business can coagulate all communication efforts into a single platform, which has not been done prior to the introduction of Virtuality. A practical example would be the use of ‘Themed Island’ by businesses, for instance, Cisco. They provide a one-stop solution to expose users to various forms of marketing techniques like personal selling, 3D product placements, streaming advertisements and links to their websites.
The attributes listed above shows that the virtual environment can actually enhance the purchase intention of users on the very basis of the inert characteristics of virtual world. Based on research by L.Goel and S.Prokopec on 100 students, the results showed that informativeness and product descriptions are the advantages virtual world hold against traditional websites. However, trust and product diagnosticity were not deemed as advantages of virtual medium over websites. They have, however, not used the MRT as a basis of their research.
Despite the results, it can be concluded that the characteristics of virtual medium that provided business with feedback, multiplicity of cues, and ability to provide personal focus (Lyons, 2008) and different marketing technique in a single platform (As proposed by me) to communicate with user’s avatar in the immersive environment will give business a good platform for conducting businesses.
IV Critical characteristics of virtual medium in relation to marketing techniques
After careful analysis of the virtual medium in relation to the user’s level of involvements as well as the relevant business environments in virtual medium, the following attributes listed in the table will serve as a foundation for the relevant characteristics of virtual medium on business and marketing.
Table 1 will serve to evaluate marketing techniques currently being utilised in Second Life, as follow:
Characteristics of Virtual Medium |
Active participation of users through avatars |
Direct feedback of MRT as a mode to gain trust, provide more information and descriptions |
Multiplicity of ‘cues’ of MRT as a mode of product diagnosticity, informativeness, and product descriptions |
Personal focus of MRT as a mode of trust, informativeness and descriptions |
Different marketing techniques in one platform |
Table: Characteristics of Virtual Medium
Conclusion
As discussed above in my essay, it can be seen that the characteristics of the Virtual Medium has a fit with the characteristics of the users. Therefore we can based on these findings and research to come out with a check-list for all the Virtual mediums to assess it's feasibility to be used as a marketing tools.
*This post is an extract of my essay. Please contact me should you want to know more about this.
*This post is an extract of my essay. Please contact me should you want to know more about this.
