Introduction：
In the beginning, this paper will examine the current status of the virtual ecommerce in the social networks. I will take online games and i-partment (a social network) in Taiwan as examples to introduces the process of virtual products adoption in virtual world. Of course, it not only introduces the process of virtual products adoption in virtual world of social networks in Taiwan, but also explains “How does the virtual world create the virtual ecommerce” and “Why users of the virtual world want to buy virtual products which do not exist in the reality?”
Theory：
This paper primarily depends on the theory of the long tail, uses and gratification, and consumer behavior.
The phrase 「The Long Tail」 was first coined by Chris Anderson in an October 2004 Wired magazine article and he described the effects of the long tail on current and future business models. It describes that new markets are shifting from a one-size-fits-all model of mass appeal to one of unlimited variety for unique tastes and the new economics of distribution allow us to turn our focus to the many more products in the tail, which collectively can create a new market as big as the one we already know. Applying to the long tail theory, the consumers and users on the social network always want to express their distinguishing characteristics so this situation leads many kinds of unique commodities can sale for a long term, instead of traditional sales theory-「80/20」. It will support me to presume the trend of virtual worlds.
The basic tenet of Uses and Gratifications is that people are not helpless victims of all powerful media, but use media to fulfill their various needs. These include: Escapism, Personal, relationships, Personal identity, and Surveillance.
The theory of consumer behavior is the study to analyze what people buy, how they buy, when they buy, and why they buy. Moreover, it brought up some stages to analyze and explain the process of buying and what reasons will affect people to make decisions.
The perspectives of the theories will support my claims to understand “How does the virtual world create the virtual ecommerce” and “Why users of the virtual world want to buy virtual products which do not exist in the reality?”
Current
First of all, I will introduce some famous social network websites how to work their marketing of virtual products and how they still keep their advantages against other competitors. The most important thing is to see how these websites and virtual products change peoples’ shopping habits leisurely. At meantime, I will focus on the impact of social network business on our daily lives and habits right now.
How does the Internet create virtual worlds?
The emergence of the Internet caused the development of MMORPG (Massively Multiplayer Online Role Playing Game) and then MMORPG create the virtual worlds because it made users who have the same habits and purposes gather around to talk to each other around the world. At the end, users built their own virtual world to share information. ………………
How does the virtual worlds create the virtual ecommerce?
MMORPG (Massively Multiplayer Online Role Playing Game) built the virtual worlds first and then they created the virtual ecommerce.
1. For example, Lineage, which is one of MMORPGs, was the most popular online game of trading virtual products in Taiwan. ……….
Meaning:
It accelerated the pervasion of ADSL in Taiwan because most adolescents ask their parents to install ADSL in order to play the Lineage.
The members of Lineage are five million and its profits are 10 billion per month
2. The website of trading virtual products (It is like stock marketing) :
For example:
ItemBay (Korea):
1 million members (2003)
7000 cases per day
Revenue US $46 thousands per day
Revenue US $ 17 million per year
3. Taking i-partment website in Taiwan an example
I-partment (a social network)
Basic function: album, blog and chat room
Avatar: virtual roles, decorate unique room and invite someone to live together on the Internet, raise pets, virtual gardening
1.4 million members
Revenue: US 80 million a year from selling virtual goods and placement marketing
(2007 Taiwan)
8 million members
(2007 China)
Why users of the virtual world want to buy virtual products?
Apply the theories above to explain why……….
1. the theory of uses and gratification
Escapism
Personal relationships
Personal identity
Social information
Entertainment
2. the theory of the long tail
The consumers and users on the social network always want to express their distinguishing characteristics so this situation leads many kinds of unique commodities can sale for a long term
The present impact：
1. The virtual ecommerce changes our cognition and habits of shopping.
2. The virtual ecommerce cause some cybercrimes (crimes through the Internet). Ex: In online games, some people stole virtual products such like sword and weapons from other peoples’ accounts.
Future
How many users and buyers of virtual products in the social network websites will be in the future? Social network websites thrive in the present, but there are many these kinds of websites which can not find a pattern to make profit from their flows and members. Therefore, what can the websites do to make more money from virtual products in the future? Moreover, how can we accelerate the growth of these internet business communities, minimize risk, and increase customers’ loyalty? Which kinds of virtual products will be the most worthy? Last but not least, what’s the impact of virtual business on our future lives? They will lead us to spend less money and have more convenient lives or spend more money on unnecessary virtual items?
The future impact
The emergence of email decreases the usages of letters. I guess it will happen again on virtual ecommerce. When the virtual markets mature in the future, they will change the regular way people express their consideration for other people because people only send virtual products of social networking such as flowers or cakes rather than visit their friend face to face with flowers or cakes.
Reference
Marie J (1993) Uses and gratifications theory to predict seniors’ use of an electronic community. Ed.D. dissertation, University of San Francisco, United States — California. Retrieved October 27, 2007, from ProQuest Digital Dissertations database. (Publication No. AAT 9413198).
The study examined the applicability of the uses and gratifications paradigm to predict level of older adult participation in a modern electronic communication mode and it tested the hypothesis that a needs gratification model explains senior citizens’ social networking behaviors.
Anderson, C. (2006). The long tail why the future of business is selling less of more. New York: Hyperion
Applying to the long tail theory, the consumers and users on the social network always want to express their distinguishing characteristics so this situation leads many kinds of unique commodities can sale for a long term, instead of traditional sales theory-「80/20」. It will support me to presume the trend of virtual worlds.
Belch, G. E., & Belch, M. A. (2007). Introduction to advertising & promotion an integrated marketing communications perspective. Homewood, IL: Irwin. Retrieved November 10, 2007
This book explains the model of consumer behavior. It will help me to apply the studies of consumer behavior to find out “Why users of the virtual world want to play online games and buy virtual products?”
Chowdhury D, Chakraborty B. (2005). Viral Marketing: New form of Word-of-Mouth through Internet. The Business Review, Cambridge, 3(2), 69-75. Retrieved October 27, 2007, from ABI/INFORM Global database.
Viral marketing is an electronically extended version of what is generally regarded to be one of the oldest forms of influence on a person’s decision to buy a product or service, traditionally known as Word of Mouth. It can help me to describe how the word of mouth can affect consumer behavior to buy virtual products.
Betsy Book (2006). Virtual worlds: today and in the future. ITNow, 48(2), 32. Retrieved December 2, 2007, from ProQuest Computing database.
Virtual worlds are simulated environments accessed by multiple users through an online interface. Other terms for virtual worlds include digital worlds, synthetic worlds, and massively multiplayer online games. The article described the present and the future of virtual world. It can support many of my claims about virtual worlds.
