Servitizations influence on the perceived value of consumers in the video game industry: A study on full priced live service titles

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School of Business | Master's thesis
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Date

2024

Department

Tieto- ja palvelujohtamisen laitos

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Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

78

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Abstract

This master's thesis investigates the impact of servitization on consumer value perceptions within the video game industry, specifically focusing on the emergence of a hybrid model that combines elements of both Games-as-a-Product (GaaP) and Games-as-a-Service (GaaS). The research is part of an academic study on how hybrid business models affect consumer behaviour and perceived value in the context of full-priced live service titles. Qualitative methods were employed, and empirical data was collected through semi-structured interviews with eight participants. Central to the study's methodology, these interviews were analyzed using the Gioia method, which helped identify first-order concepts, second-order themes, and aggregated dimensions. The research framework follows the Hamari, Hanner, and Koivisto (2020) model, which examines perceived value, continued use, and purchase intentions. The findings of this study underscore the crucial role of transparency and fair pricing in maintaining consumer trust and loyalty. They reveal that continuous content updates enhance engagement and perceived quality, but also highlight the significant dissatisfaction that arises from high initial costs with additional monetization, as well as subpar initial quality. Participants emphasized the importance of transparency from developers throughout development and fair pricing for additional content to maintain trust and loyalty. This study provides crucial insights into balancing monetization practices with delivering comprehensive and enjoyable experiences, which is essential for fostering positive consumer perceptions and sustaining long-term engagement. This thesis not only contributes to the broader understanding of servitization in digital markets but also proposes practical implications for developers and publishers in all industries. It underscores the need for transparent communication and fair pricing strategies to enhance consumer satisfaction and loyalty, offering a nuanced view of the benefits and challenges associated with the hybrid live service model.

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Thesis advisor

Koskinen, Kari

Keywords

continuous development, perceived value, games-as-a-service, video game industry, hybrid model, consumer behavior, monetization strategies

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https://urn.fi/URN:NBN:fi:aalto-202408255587

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[gradu] Kauppakorkeakoulu / BIZ