Envy or conformity? An empirical investigation of peer influence on the purchase of non-functional items in mobile free-to-play games

Peer influence is considered an important element in shaping an individual's consumption decisions. Prior studies have noted the differences between strong-tie and weak-tie influences but have yet to examine the underlying mechanisms of these two kinds of peer influences. Hence, this study compared the influences of strongtie versus weak-tie peers and investigated their influencing mechanisms by proposing two mediating variables (envy regarding the outcomes of peers and conformity to peer choices) in the context of non-functional item consumption in free-to-play mobile games. This study further unveiled how these variables' mediation of peer influence channels through envy and conformity are adjusted by tie strength and individual differences, as well as their interactions. The model was tested using a scenario-based experiment that integrated the essence of field surveys and lab experiments. This study enriches theory by distinguishing the underlying mechanisms between strong- and weak-tie peer influences. Furthermore, our findings can be extrapolated to services that rely on freemium business models to generate revenue.