The Influence of Pricing Models on Purchase and Loyalty Intention of Mobile Games Users

In mobile/online games, a majority of game developers adopt a direct pricing model which charges users for virtual products at fixed prices (charge-per-item); however, a few game developers (e.g., Kings of Glory) choose a different pricing model that sells users lucky draws; using these draws, consumers can have the chances of acquiring desirable virtual products (charge-per-draw). Although uncommon, this pricing model yields surprisingly good results. In this study, we examined the effects of two pricing models on consumers' purchase intention and loyalty, and we found that compared with charge-per-item, consumers showed higher purchase intention on virtual products, satisfaction, and loyalty in charge-per-draw pricing model. In addition, direct charge-per-item pricing model neither increases willingness-to-pay nor successfully retains existing customers, whereas charge-per-draw pricing model shows higher effectiveness in increasing purchase intention and consumer loyalty. We argued that the psychological mechanism underlying such difference is whether consumers can directly measure the value.