A Case Study of League of Legends. A Case Study of League of Legends 1

A case study of League of Legends.
A Case Study of League of Legends 1
Why do People Spend Real World Money on Virtual Games? —A Case Study of League
of Legends.
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Table of Contents
Abstract............................................................................................................................................3
Chapter One.....................................................................................................................................4
Introduction......................................................................................................................................4
Problem Statement.......................................................................................................................5
Research Question.......................................................................................................................8
Significance of the Study.............................................................................................................8
Chapter 2..........................................................................................................................................9
Literature Review............................................................................................................................9
Historical Background.................................................................................................................9
Relevant Theory.........................................................................................................................11
Empirical Literature...................................................................................................................12
Chapter 3........................................................................................................................................18
Methodology..................................................................................................................................18
Research Design........................................................................................................................18
Sampling....................................................................................................................................19
Data Collection..........................................................................................................................20
Data Analysis.............................................................................................................................23
Internal Validity, Reliability, and Instrumentation....................................................................24
Ethical Issues.............................................................................................................................26
Chapter 4........................................................................................................................................28
Results............................................................................................................................................28
Response Rate............................................................................................................................28
Demographical Data..................................................................................................................28
Analysis of Participant Number.................................................................................................30
Interview and Questionnaire Responses....................................................................................30
Chapter 5........................................................................................................................................43
Discussion......................................................................................................................................43
Summary....................................................................................................................................43
Conclusion.................................................................................................................................46
Limitations and Recommendations for Future Research...........................................................46

Abstract
The aim of this study was to determine why people use real-world money on virtual
games using a case study analysis of the League of Legends. The following objectives
guided this research; to analyze how and why people use real money in virtual games,
and to provide various digital marketing strategies that can be used in improving the
online gaming companies returns from virtual games. The study used Social Identity
theory to determine the highlighted study objectives (McKinley, Masto and Warber 2014,
p.104). A mixed methods research design was used during the study, which allowed the
researcher to amalgamate quantitative and qualitative data collection methodologies. A
questionnaire and interview were used as the main data collection methodologies. The
collected data was analyzed using descriptive statistical procedures and presented using
figures, graphical, and tabular presentation. According to the study’s findings, the major
reason why people engage in the using of real-world money in purchasing virtual games
is to enhance the beauty and appearance of the main character, improve the ability and
attributes of the game and for personal satisfaction that is achieved when a player
unlocks may more levels, the brain is very happy as one will feel that he/she has achieved
something great.
CHAPTER ONE
Introduction
This chapter will highlight background information on virtual games. It will comprise of
the introductions section that will focus on the background information of virtual games and how
they have grown over the years. The section will also comprise of the problem statement,
research questions, and significance of the study.
The virtual economy refers to the exchange of virtual goods and services with real-world
money within a virtual world. A virtual word consists of real-world users represented by avatars
in a 3D platform. Through this platform, the users can interact with his/her surrounding virtual
environment and participate in any activities inducing having a direct line of communication
with other avatar users. The avatars can engage in various exchanges such as virtual objects,
virtual currency, and instant messaging. The virtual economy has been growing over the past
decade because of increased technological advancement as witnessed through the growth of the
internet, big data, artificial intelligence and the cloud. An example is seen in the case Second
Life virtual world that saw the land size increasing to over 400,000 acres as of 2013 up from 4
acres in 2003 (Nazir and Lui 2016,p.2). The number of virtual world users has also increased
tremendously from 2 million residents in 2006 to 36 million by 2013 (Nazir and Lui, p.2).
One area of the virtual economy that has been immensely growing with each new year is
virtual gaming. Video gaming has now turned into a multi-player platform from the traditional
single-player platform (Nuyens et al., 2016, p.351). This has laid down a platform in which
communication is enabled between the various players. Before being part of a game, a player
must first create an avatar, a representation of the player in the virtual game who will carry out
activities (Nazir and Lui 2016, p.2). Before creating a virtual payer, avatar, the real world user
can decide to purchase various assets that will enhance his/her online character. Virtual assets
encompass the various items that the avatars in the video games purchase using real-world
money (Lehdonvirta 2005, p.53). It is an indication that the purchasing of virtual items and
goods is becoming a common undertaking within the virtual games and world industry. This has
brought about an increasing rate of the global virtual items market, and by 2012; the market was
estimated at $14.8 billion (Wohn 2014, p.3359). The market was also anticipated to increase by
12.5% by 2016 (Wohn 2014, p.3359). The sale of virtual items was predominately seen in the
Easter Asia nations though it is now spreading into other nations such as the USA, European
Union, and even in Africa (Wohn 2014, p.3359). This is mainly witnessed in social network
game sites as people continue to immerse themselves in online games.
Despite this increasing prevalence of virtual items purchase, there is little research into
why people engage in such transactions. The increasing spending of real-world money in virtual
games is a clear show that there is a real value attached to the virtual items, and that is why the
people are continually purchasing the items. These virtual markets have similar market dynamics
to a real market such as making and maximizing profits for the companies, forces of demand and
supply and fluctuation virtual item prices. This is evidenced by the fact that the gaming
companies enter into the business to make profits, and it is the needs of the customers that
determine whether a company will be successful within its operational environment. Due to
increased competition in not only virtual games market but also the entire business environment,
it brings about fluctuation of prices. According to Hyped Talk (2010), the importance of the
virtual items is evidenced in the case whereby a wife filed a divorce against her husband and
even claimed she wanted half of his virtual assets as part of the divorce plea agreement. In 2005,
another, Qiu Chengwei following a dispute about a virtual item killed a fellow gamer (Lee, 2005,
p.14). From these two cases, it is clear evidence that virtual items purchased by gamers have
psychological and financial value for the gamers.
Problem Statement
People spend many hours on the internet, whether it is chatting, making purchases, or for
entertainment purposes as compared to any other activity (Araujo et al., 2017, p.173. Video
gaming companies have created a virtual world whereby the players can create avatars and
engage in gaming activities. The virtual gaming platforms also allow players around the world to
communicate with each other and engage in various challenges as they seek an overall winner.
Virtual games players are continually using real-world money to pay the virtual games
when purchasing various virtual items that enable them to play the games (Mataruna-Dos-Santos
and Wanick, 2018, p.1). This has brought about increased websites platforms that allow the
players to use real-world money in purchasing the items such as weapons they might need to use
in the games. Other games such as Ultima Online, Second Life, League of Legends, and World
of War have allowed players across the globe to interact with each other in the virtual
environment. The virtual items transactions take places on sites such as eBay among others while
payments are channeled through money transfer platforms such as Skrill and PayPal.
Gamers across the world have been spending hundreds and even thousands of dollars in
purchasing virtual items as evidenced from the game EVE Online whereby over $50,000 in
purchasing powerful spaceships ( Molloy, Dias and Lyons, 2018). However, the looming
question is, why would anyone spend such an amount of money in purchasing virtual items to be
used in virtual games? The performance and quality of the item might be one factor. With
regards to the performance, a player will ensure that a virtual item purchased is one that will aid
him/her in winning a particular game or boosting the avatar’s abilities. A quality virtual item is
one that will help the avatar in winning the game. (Lehdonvirta 2009, p.99). Li (2012, p.255)
cites that the social status of an individual might also be a factor why people use real-world
money in virtual games. This results from the fact that a low-income earner cannot spend money
purchasing virtual items as compared to high-income earner. Therefore, the social status of an
individual determines the social class determined by the amount of money or wealth one has.
Nonetheless, Guo & Barner (2011, p.305) counter this argument by citing that social status does
not have any motivational significance in explaining the gamers purchase behavior. Kaburuan,
Chen & Jeng (2009, p.259) state that for one to understand this purchasing behavior, it is vital for
one to ascertain the time a gamer has used in building up an avatar and any preceding rewards
after becoming a winner. As witnessed in the case of the League of Legends, the winner of the
2015 tournament was awarded one million dollars in prize money while in 2016; it had increased
to $5,070,000 (Sun 2017, p.23).
Even though there is an increasing incidence of purchasing virtual items and goods from
the virtual video games, there has been minimal research into just what is influencing this
purchasing behavior. One of the major reasons for this is that there is very little information
released to the public by the gaming companies. In this research, it will rely on a company that
releases its information to the public. Most of the research on purchasing behavior has focused
on the player's purchase intention rather than the actual behavior. Given this lack of empirical
research, this study aims at examining why people spend real-world money in virtual games
using a case study analysis of the League of Legends. The main reason for selecting the game is
that it has a Public Beta Environment whereby the game developers Riot Games publish all data
related to the game.

Research Question
The following research questions will guide the study;
1. Why do people spend real-world money on virtual games?
2. What influence do virtual games have on people’s virtual items purchasing behavior?
3. What strategies do virtual games companies’ use in improving their profits and returns?
Hypothesis
H1 The frequency of playing games will affect whether a person has consumption
behaviors in the game
H2 Different types of occupations will affect in-game consumption behavior
H3 Playing different types of games will affect the game consumption
H4 In-game consumption is mainly to improve the appearance of the game
H5 In-game consumption mainly involves the purchase of game props and equipment
Significance of the Study
The findings of the study will be useful mostly for online gaming companies. Knowing
your customers’ needs and wants is the key to a successful business engagement (Gamble et al.,
2011, p.227). Successful companies have an in-depth awareness of their customers’ needs and
want and thus ensure they come up with products and services that will satisfy them to the fullest
profitable advantage is understanding why they are making various purchases for it will give the
company a competitive advantage. The current online gaming industry is growing at a high rate
(Kshetri, 2009, p.159). This intensified battle between companies is bound to see those that do
not meet client needs collapsing. It is therefore important that the companies understand why a
customer would decide to use their real-world money in purchasing virtual items to use in the
virtual games. This will enable the company to customize the customer’s experience and thus
create loyalty and create repeat business.
Additionally, the findings of the study will enable players in making informed choices
about how they use money in fulfilling their entertainment needs. The findings will thus allow a
customer to ascertain whether the purchase of virtual items to use in virtual games is a necessity,
or it can be avoided, thus leading to saving money for other purposes.
CHAPTER 2
Literature Review
The interests in video games date far back in the 1940s following the invention of the
game Nim. The attraction of competing against a machine is enticing for both children and
adults. The virtual games have brought with them another form of expenditure for gamers as they
players have begun spending real world money on the games. Nonetheless, this has always been
a mystery as to why people would even spend money on virtual game. The aim of this literature
review is to provide a historical background on video and virtual games, a theoretical framework
and past studies on why people spend real world money on virtual games.
Historical Background
The aim of this section is to provide a historical background of the gaming industry. This
will include how the gaming industry has develop from the 1940s up to date. The section will
outline ho virtual games have come to exist in the gaming industry and what future lies for the
online games following the invention of virtual reality.
The history of online gaming is linked to the development of the first-ever mainframe
computers. The games were mainly developed to test the functional abilities of the first
computers. The first ever-online game was introduced at the 1939 World Fair referred to as
Nimtron that saw an individual engaging in various mathematical games (Rivenes, 2017). Over
the next six decades, three technological innovations; host-based networks, the internet, and
time-sharing were later adopted by the gaming community in coming up with much better
games. Host-based networks changed the game from single-player to multiplayer gaming.
Through the 1990s, online gaming took a more aggressive turn as companies such as Sega and
Nintendo pushed the industry much further (Rivenes, 2017). In the 2000s, online gaming has
improved substantially as people engage in various games due to better network and
technological devices such as smartphones and play stations. Virtual reality is also now finding
its spot in online gaming (Shelstad et al., 2017, p.2072). People across the globe are participating
in online gaming tournaments that were not available more than a century ago. However, with
the technological advances being witnessed in the online gaming industry, there has been a sharp
increase in how people spend their money as they try to play the games. This is mainly
associated with the purchase of virtual items used in boosting the avatars in the games such as
weapons, vehicles, among other goods.
The League of the Legends is an example of a virtual game that supports multiple players
engaging each other in a battle arena. The game is developed by Riot Games and is available for
MacOs and Microsoft Windows-based PCs. The game was first released on October 27, 2007,
and since then; it could attract a very active and large fan base. In terms of numbers of hours
played, The League of Legends was the most played online game in Europe and North America
in 2012 (Gaudiosi, 2012). The games could attract a large fan base than even baseball and
basketball. According to Sun (2017, p.20), the League of Legends World Championship attracted
more than 334 million viewers across the globe in 2015. Daily, more than 27 million people play
the League of Nations across the world (Sun, 2017, p.23).
In the game League of Legends, a player has access to two types of currencies: Interest
Points (IP) and Riot Points (RP). The interest points are not directly bought by real-world
money. They are earned as an individual continues to play the game and unlock various changes,
including winning over opponents. However, through using boosters, one can enhance the
number of interest points. The interest points are used when a player wants to enhance the
gaming runes or unlocking a certain champion one would want to use. A player using real-world
money must purchase the Riot Points, and they are used when one wants to access the whole
shop in the game. A player must first choose the preferred payment method and the amount of
Riot Points an individual would want to purchase. A player who spends more money on
purchasing Riot Points can acquire more bonuses. The cost for Riot Points ranges from 2.50
Euros for 350 Riot Point to 50 Euros per 8250 Riot Points (Minchev and Schmitt 2016, p.16).
The players must also purchase various championship skins (representing the various virtual
items in the game). These are only used in customizing the champions look and do not help in
boosting the skills or abilities. In 2016, the cheapest skin was the Hextech Signed costing 2
Euros (260 Riot Points) while the most expensive skin was valued at 20 Euros (3250 Riot Points)
(Michev and Schmitt 2016, p.17).
Relevant Theory
This research aims to ascertain the various motivations of the virtual games players in
purchasing digital goods and items. Despite the online games being formed on science fiction
and fantasy themed word, they tend to provide gamers with a much higher level of social
experiences. The various features used in the games support the socialization of players by
allowing for communication between the players, and this leads to the creation of an in-gaming
community (Griffiths et al., 2011, p.21). The formation of guild members that can consist of
several dozen players is what leads to the immersive social dimensional experience.
According to the Social Identify Theory, social identity is part of a self-concept that is
affiliated to an individual being part of a group. Henri Tajfel formulated the Social Identity
Theory in 1979 when he proposed that the groups in which people being such as football team,
social class, family among others allows an individual to have self-esteem and source of pride
(McKinley, Masto and Warber 2014, p.104). The enhancement of a group’s status brings about
an increased self-image. In most cases, people will divide the world into an “us” vs. “them” once
they fit in a certain social group and this is what forms the out-group (them) and in-group (us)
categorization. Oldmeadow and Fiske (2010, p.425) state that to enhance their self- image, the
in-group in most cases, discriminates against the out-group.
Therefore, this is an indication that people will end up not being themselves based on
their characteristics but rather on the salient group features. Yee (2006, p.774) states that the
continued interest in people to engage in virtual games results from the formation of the digital
crowd that is later viewed as a group. The people plying the games can display their profile
pictures. Through virtual games such as the League of legends, the players will mask their real-
world idiosyncratic traits with avatars and anonymity. The only cues available in the game is the
various costumes and profile names. The players will thus end up feeling a sense of belonging
and membership and thus end up engaging in an inter-guild self-categorization level (Guegan,
Moliner and Buisine 2015, p.349). It is through this self-categorization platform upon which
factors such as group identification and in-group favoritism, which are part of the identity
processes, develop.
Empirical Literature
According to Guegan et al. (2015, p.349), they carried out a study to ascertain why
gamers are so self-involving in virtual games. The study was carried out on gamers who involve
themselves in multi-player games. The study was mainly based on the social identity theory and
its impact on virtual gaming. The researchers carried out two studies using a survey design on
players inside and outside a massive multiplayer online role-playing games platform
(MMORPGs). According to the study, the chief motivations that drive massive multiplayer
online role-playing games players is an immersive experience and various social dimensions.
This allows the players to get away from the normal reality undertakings and get to involve
themselves in new experiences. The study found out form the two studies that in-group
favoritism is what drives the players into wanting to continue to become part of the entire game
(Guegan et al., 2015, p.354). Through this study, it showed that the players continue to play the
game so that they can remain part of the in-group created when they initially joined the game.
The players feel that they have a connection to the various members and would not want to let go
of the affiliation. Therefore, the players are willing to engage in an undertaking that will make
them part of the game, and this includes purchasing the various virtual items. Therefore, this is
an explanation as to why people continue to spend real-world money in virtual games. They
would not want to leave the guild created as they identify with the members as being part of one
in-group. This article useful in this research as it will help me in answering my research question
on why people spend real-world money on virtual games.
Park and Lee (2017) carried out a study to ascertain why people engage in real money
trades in MMORPG. According to the researchers, players spend money to help them in skipping
the narrative structure of the game. This is by purchasing certain points that allow a player in
moving on to a much higher level. The researchers used Korean based MMORPGs and carried
out a study for four years. In the MMORPG, the gaming companies have outlined a variety of
digital items that are mostly used for ornamental purposes, and these items cannot affect the
overall result of the game. The researchers cited that such games include League of Legends,
whereby a user has access to “skins” that are bought using real-world money, and they are used
in decorating the games’ characters. The main reason for this is that in case the skins had any
role to play in determining the outcome of the “battle arena,” money would, therefore, be used in
deciding who would win rather than one’s skills thus eliminating the pleasure of the entire game.
According to most MMORPGs, gamers can gather a variety of items used in decorating and
strengthening an avatar, and this is what forms the primary motivation for players engaging in
the game. This article useful in this research as it will help me in answering my research question
on why people spend real-world money on virtual games and the various strategies that gaming
companies use to improve their revenues and profits.
Kordyaka and Hribesek (2019) carried out a study to ascertain why players in the online
game, the League of Legend make purchases of the various virtual items. According to the
researchers, the e-sports section of the virtual markets has had a growth pattern, and in 2017, it
had an estimated $1.5 billion in revenue. The major revenues came from the purchase of virtual
items in the free to play virtual games away from the pay-to-play games. The researchers mostly
focused on the Multiple Online Battle Arena (MOBA) games due to their heightened economic
and popularity success. The study employed a cross-sectional survey to ascertain why players
make purchases on virtual items related to the online game, League of Legends. The study found
out that the purchase of virtual items was highly linked to the identification and self-presentation
of then players. However, the study found out that other factors such as supplication,
intimidation, ingratiation, and self-promotion did not have any role in explaining the purchase
behavior (Kordyaka and Hribesek 2019, p.17). This article will be useful in the study, as it will
help answer the research question on what influence virtual games have on the purchasing
behavior of people with respect to the game League of Legends.
Jack (2015, p.85) carried out a study to ascertain why gamers purchase virtual assets.
According to the study, virtual gaming, the industry has grown from a single player to a multi-
player whereby one can interact with fellow gamers. The study involved a sample of six
participants from a university gaming society. The researchers used a qualitative method using
an interpretive phenomenological analysis. The participants’ data was gathered using semi-
structured interviews, and the researchers found out seven key themes as being the main cause of
gamers’ purchasing virtual items. These included; research and impulse buying, gaming culture
and stock market gaming, self-expression, psychological impact and reward, an emotional
attachment to the avatar and the gaming’s social aspects and purchasing (Jack 2015, p.89). I
think this article will be useful in the study, as it will help answer the research question on why
people purchase virtual items.
Guo and Barnes (2007, p.69) carried out sequential multi-method research to determine
why people purchase a virtual item using real money from virtual worlds. The study focused on a
game such as Everquest and Second Life, established theories such as the technology acceptance
model, theory of planned behavior, trust theory, and unified theory of acceptance, and use of
technology to answer the research questions. Guo and Barnes (2007, p.70) state that there has
been an increased concern as to why people trade virtual items for real money. The MMORPGs
allow people to interact with thousands of other online players as well as with the various non-
player characters and creatures controlled using a computer. The study found out that various
factors determine that virtual items transactions amongst the players and the include behavioral
intervention, perceived enjoyment, trust, perceived critical mass, social influence, effort
expectancy, and performance expectancy. Moreover, the researchers found out that other
additional factors include the character’s competency. Perceived information symmetry and
perceived virtual game community quality (Guo and Barnes 2007, p.72). I think this article is
useful in the study as it will help answer two research questions one being why people spend
real-world money on virtual games and what influence the virtual games have on the people’s
virtual items purchasing behavior.
Mantymaki, Merikivi, and Islam (2014,p.303) carried out a study using an online survey
form 3265 respondents to determine why young people purchased virtual items form a virtual
world. Nonetheless, the study only used 1225 virtual world users out of which 60% was
comprised of females. According to the researchers, they noted that young people have
increasingly been purchasing virtual items that exist in online platforms such as avatars and other
non-physical nature items. However, this is not a surprise as most of the virtual world based
features such as game have continually targeted an audience aged 5-15 years old and the makeup
more than 1 billion virtual world users (Mantymaki et al. 2014, p.303). The researchers aimed at
determining what drives the purchasing behavior of the virtual world users, yet it is still very
young relative to the traditional online or offline shopping. The researchers based their study on
two main factors; user experience and social context (Mantymaki et al., 2014, p.304). According
to the user experience element, it was based on three factors; multi-user, 3D environment,
avatars used in representing real old individuals and ever-dynamic user interface. Therefore, the
richness of the virtual world users experience is heavily based on the balancing of these three
factors, and in the end, it brings about cognitive absorption. This is based on curiosity, temporal
association, control perception, intrinsic motivation, and focused immersion (Mantymaki et al.,
2014, p.304). The social context is highly dependent on the number of users in the virtual world.
This will allow an individual to form various virtual social network with other users, and thus,
the affiliations between the users will determine whether one will want to continue being part of
the entire game. However, one fundamental element of the entire relationship is trust, and this
will determine whether a user will continue to engage in virtual items purchasing. I think this
article is useful in the study, as it will help answer two research questions one being why people
spend real-world money on virtual games and what influence the virtual games have on the
people’s virtual items purchasing behavior.
Bleize and Antheunis (2019, p.403) carried out a literature review to determine the
factors that influence the purchasing decisions and intent of virtual world users. The study aimed
to fill the gaps in knowledge about the exact factors, as the previous studies have not provided a
much clearer overview. The researchers noted that virtual worlds have increasingly continued to
become popular amongst most people as they stimulate the real-world undertaking using three-
dimensional platforms. Bleize and Antheunis (2018,p.404) noted that a virtual game such as
Second Life has more than 900,000 active users every month while the entire virtual world users
grow at a rate of 10,000 users daily. The Multiplayer Online Role Playing Game that currently
holds the Guinness World Record for the most popular visited is the World of Warcraft that has
over 5 million active subscriptions and has earned more than $10 billion in revenue (Bleize and
Antheunis, 2019, p.405). The success of these virtual games is mostly linked from their ability to
sell virtual products to the users. The researchers used the results to form twelve studies to
determine the purchasing intent of users. The researchers found out that the intent is caused by
factors such as requirements of the quest system, perceived enjoyment of the user, the characters
competence, virtual world quality, performance expectancy, effort expectancy personal real
resources, and social influence. Another important factor was the ease of use of the virtual game.
Once the users use minimal effort in maneuvering through the virtual world, they are more likely
to continue purchasing more items. The customization factor is also crucial, as a user will have
an ability to modify an avatar as per his /her liking. The avatars esthetics are of great importance
to the user as it brings out their self-expression needs and thus is fully satisfied (Bleize and
Antheunis 2019,p.412). I think this article is useful in the study, as it will help answer the
research questions on what influence the virtual games have on the people’s virtual items
purchasing behavior.
Zivic et al. (2017) researched to ascertain the impact of virtual money endowments and
money demand in virtual games. The researchers carried out the study for 28 days using a
randomly selected sample of 575,000 participants. According to Zivic et al. (2017), the online
community has hundreds of millions of users, and to determine why people continue to purchase
virtual currency, the researchers used a football management game referred to as Top Eleven-Be
a Football Manager. According to the investigators, they found out that an increased endowment
of the virtual currency used in the games leads to a higher rate of purchasing the virtual currency
by the players. This brings about a shift in the psychological and economic mechanisms of the
players. Online gaming companies have introduced various discounts for their virtual items, and
this leads to the increased use of real-world money to purchase the goods. The study found out
that all the random selected 575,000 players of the Top 11 online games had an increased
purchase e of virtual currency using real-world money after endowment was introduced. The
higher the rates of endowments, the more the players used real-world money. I think this article
is useful in the study, as it will help answer the research question on the various strategies that
virtual game companies use in improving their profits and revenue by enticing players to use
real-world money in playing the games.
Winn and Heeter (2009, p.1) carried out a study to determine between males and females,
who spends most amount of time playing online games. The researchers used a sample of 276
US graduates aged 18-24 whereby 44% were from senior, 26%junior, 16% sophomore and 14%
freshman. The participants were asked to estimate the amount of hours and days they spend
playing online games per week. The researchers found out that there is a very wide gender gap
amongst the college students with regards to their gaming activities. Only 25% of the female
participants had played a game during the week of the research as compared to 70% of the male
participants’ substantial number of the female participants were grouped as non-gamers who had
not engaged in any form of gaming activity for the past 6 months. In case of the males, they
played 266 hours a year in middle school, 305 hours per year in high school and 225 hours per
year in college (Winn and Heeter, 2009, p.11). The average number of days spend by males
playing games was while in college was 4.8 days per week as compared to 3.3 days per week for
the females (Winn and Heeter, 2009,p.11). I think this article will be useful in the study by
adding knowledge of the gender differences involved in playing online games. However, I do not
think the article will help in answering any of the research questions.
Jansz and Tanis (2007, p.133) carried out a study to determine why most people prefer
playing online first-person shooter games such as Counter-Strike and Doom. The researchers
used an online survey to carry the study on a sample of 751 online players. The researchers
found out that the young men with a mean age of 18 years are the most avid first-person shooter
games players, and they spend an average of 2.6 hours a day. (Jansz and Tanis, 2007, p.134). The
researchers found out that most people who play the games consider themselves members of a
certain “clan.” This was evidenced by the results whereby more than 80% of the respondents
were members of a “clan.” This is comprised of avid gamers who come together to compete and
challenge each other, whether it is online or physically. The researchers were able to conclude
that most of the first-person shooter games players have social motives. The study also focused
on role-play games whereby the researchers determined the gamers spend 23-25 hours a week on
the games, which is higher than the 16 hours per week spent by first-person shooter games
players (Jansz and Tanis, 2007, p.135). The average gaming age for the role-play gamers were,
also, different form first-person shooter games players, and it averaged between 24-28 years
(Jansz and Tanis, 2007, p.135). I think this article will be useful in this study as it highlights the
time spent by players on other games apart from the game League of Legends that is used as the
main case study. However, the article will not be useful in answering the research questions on
why people spend real-world money on virtual games.
Griffith (2010, p.119) carried out research using a case study example to ascertain the
impact of excess online gaming and addiction on a player. The researcher noted that there had
been little research into online gaming addictions though some few studies have reported that an
individual can spend up to 80 hours a week engaging in the various gaming activities. Griffith
(2010, p.120) states that gambling and video gaming have similar addiction similarities than
differences, and thus, video gaming is described as being a non-financial type of gambling. The
researcher used a case study of two participants to ascertain the impact of addiction on video
gaming. One participant was aged 21, Davie and his favorite game was World of Warfront while
the second participant, Jeremy, aged 8 years old, was accustomed to Everquest. The researcher
found out that the players spend up to 14 hours a day playing the respective games. However, the
impact of the gaming activities had varied effects on the players as with Jeremy; it was negative,
unlike with Davie whereby it was positive. In most of the online games, they require one to
unlock various levels, this requires real-world money, and once addiction to the game sets in, the
spending spree is much higher. I think this article is useful in the study, as it will help answer the
research question on why people spend real-world money on virtual games.

CHAPTER 3
Methodology
The methodology section outlines the various techniques used in gathering data for the
study. This section is very important as it provides data that will be analyzed in order to come up
with findings that can help answer the research questions. The section will include the research
design, sampling techniques, data collection, data analysis, internal validity, reliability,
instrumentation, and ethical issues.
Research Design
The integration of various research components into a single unit is crucial, as it will
enable the researcher in gathering accurate results. The process through which a researcher
integrates all these components is determined by the research design methodology selected
(Talavera, 2011, p.53). It is crucial for one to ensure that the research design approach selected
will provide a solution or answer to the research problem. The study employed a mixed-methods
research design that integrates qualitative and quantitative research. The advantage of using this
research design is that it allows a researcher in gaining an in-depth and in breadth comprehension
and corroboration while equipoising the weaknesses that would rather have been brought about
by using the two approaches separately (McKim, 2017, p.205). A mixed methods research
enables a researcher in laying down a foundation for triangulation by using various data sources,
methods, and researchers in studying a similar phenomenon (Mertens and Hesse-Biber, 2012,
p.75). The analysis of the same phenomenon from various vantage points will ensure that the
data gathered is more accurate and concise. Nonetheless, the mixed methods design has its fair
share of setbacks as it is rather complex and might end up taking a substantial number of
financial resources, human capital; and time to fully plan and implement (Tariq and
Woodman,2013).
The quantitative approach employed in the study allowed the researcher to quantifying
the information gathered from the sample and generalize it to the entire population. According to
Hoy (2010, p.1), quantitative analysis allows one in using various statistical methodologies in the
research. The research used a quantitative approach to determine the affiliation between the
money used in virtual games by gamers and their achievements. The quantitative approach was
used in determining the relationship between the independent and dependent variable (Williams,
2007, p.66). The qualitative approach employed in the study enabled the researcher is trying to
understand the underlying motivations, reasons, and opinions (Williams, 2007, p.67). It allowed
the researcher to have an insight into the research topic and uncover any trends in opinions and
thoughts. In the study, a qualitative approach methodology was employed to determine the
motivation behind what makes people play online games. The data gathered from the two
approaches were analyzed using descriptive statistical analysis. This analysis allowed the
researcher in summarizing, organizing and making sense of the raw data and thus coming up
with meaningful conclusions. The data was presented in the form of graphs, tables, and figures.
Sampling
The sample used in the study was gathered from players of the League of Legends. The
major reason for focusing on this game is due to its vast global following and thus attaining the
right sample is much easier. Moreover, the game releases its information to the public, unlike
many other gaming companies that store and keep their information secret. A sample is a
representation of the entire population, and due to the quantitative approach employed in the
study, the sample size chosen had to be one that would warrant for statistical tabulation
approaches. The results from the sample were then used in generalizing to the entire population.
According to Suresh and Chandrasekhar (2012,p.7), a perfect sample is one that will not
lay a foundation for the emergence of bias aimed at just answering the research problem but
should be one whose results can be used by other people to make various decisions. Sampling is
vital, as it will enable a researcher in cutting down the huge financial requirements that would be
required by collecting data from an entire population. More importantly, it helps in saving time.
As such, the researchers used a random sampling technique. This methodology was selected due
to its ability to eliminate any bias in selection, and the sample selected is a representation of the
entire population (O’Leary and Hunt 2016, p.148). Random sampling eliminates bias by not
allowing the researcher to have the upper hand in selecting a participant who has a direct
relationship with the study hypothesis (Vogt et al., 2012, p.122).
Before the selection of the study sample, a two-week advertisement was placed on local
media, including newspaper and radio broadcasts. Similarly, the advertisement was placed on
community notice boards close to game shops and distributed through flyers. The advertisement
outlined the conditions that one must meet before being part of the study, and the most important
one was that an individual had to be an avid gamer of the League of Legends.
All the participants who met the requirements were invited for the sample selection
procedure. The selected participants were each given a 7-day period to go through the terms and
conditions of the study. Any participant who had questions had access to the researcher phone
contact placed in the terms and conditions document. After a week, the participants were each
asked to sign an informed consent form that would ensure all ethical obligation related to the
research are maintained (Marianna, 2011). The informed consent also outlined all the procedures
that the study would follow the purpose of the study and the benefits of being part of the study,
which included a free lunch coupon and participation certificate. The study had 100 participants
who were League of Legends gamers.
Data Collection
Data collection includes the strategies that the researcher will use in gathering and
measuring data linked to the variables under study. According to Sutton and Austin (2015,
p.226), data collection is one of the most vital components of research. A researcher must ensure
that the data collection technique selected is one that will allow him/her to succinctly respond to
the hypothesis testing, answering the research question, and results in the evaluation. There are a
myriad of factors that determine the type of data collection technique a researcher will choose.
However, Gliklich, Dryer, and Leavy (2014) state that the researcher should place a substantial
amount of emphasis on a procedure that will provide valid and accurate results. Gliklich et al.
(2014) state that the truthfulness and credibility of a study are highly dependent on the accurate
and valid data. An inaccurate data collection methodology will not only render research useless
but will have brought about a waste of resources, and it can affect people who will use the
findings in making various real-life decisions, in this case, the online game manufacturers and
customers.
Being a mixed methods research, the quantitative and qualitative approaches will each
require the use of primary data to come up with the required results. The data analyzed from the
results will later be used in coming up with various recommendations for online gaming
companies, policymakers, and consumers. Primary data is referred to in most cases as first-hand
information (Mooi and Sarstedt, 2011). The use of primary data is vital in this research, as it will
allow participants in laying out facts as they appear based on their individual opinions, attitudes,
beliefs, and ideologies (O’Leary and Hunt, 2016, p.140). First hand, data in most cases is more
valid than secondary data as the latter might see the researcher having to rely on biases and
mistakes made by previous researchers. To ensure that primary data is gathered, the study
employed the following data collection methodologies;
Online Questionnaires
A questionnaire is a tool used in gathering the respondent’s ideas, statements, and
responses (Ponto 2015, p.168). A questionnaire is administered using two methods: hard copy or
softcopy, and in this study, an online-based questionnaire was used to gather data from the
respondents. The questionnaire was emailed to the respondents, and it had a list of 20 items. The
advantages of using an online questionnaire are that it helps in cutting don expenses that would
have been used in traveling, hiring additional research assistants, and printing of the hard copies.
Ponto (2015,p.168) also states that an online questionnaire saves time that would have been used
in gathering data from one respondent to the next hence providing one with more time to analyze
the results. The questionnaire used in the study used two types of questions. The first was
restricted questions, and this would ensure that the respondents did not respond to the options
using their own words hence making it easier for data analysis. The researcher restricts the
restricted questions to a finite number of possibilities using a scale of responses labeled A-M.
The second set of questions used in the questionnaire were the open-ended items with the option
of “other” response. A participant who selected “other” had to give a more detailed account from
the provided list of response choices. According to Privitera (2013, p.256), open-ended questions
allow the respondents to provide a more detailed account of their beliefs, ideologies attitudes in
relation to the research topic. The distribution of questionnaires to respondents took 30 minutes,
and each participant had 24 hours to ensure that the filled questionnaire is emailed back to the
researcher. Any late questionnaire was not used in the study. The questionnaire also required a
participant to provide information such as the age, date of birth, name, and gender
Interviews
O’Leary and Hunt (2016, p.140) state that one of the most commonly used data collection
methodologies is the interview. The interview session per respondent in the study was carried out
for 20-30 minutes, and the questions were closed whereby a participant had to pick from a list of
multiple choices. An interview schedule was used during the interviewing process, which acted
as a guide to ensure questions were posed to the interviewees (Monette et al., 2013, p.176). The
interview guide will likewise ensure that similar questions are posed to all the participants to
avoid confusions during the analysis of data (Monette et al., 2013, p.176). Moreover, a semi-
structured interview technique was employed to ensure that any question posed to the
respondents was fully understood. This technique likewise allowed the interview to alter the
interview question sequence, thus allowing for a detailed response from the interviewer
(Jamshed. 2014, p.87). The interview consisted of a set of 20 questions, and the respondent had
to respond to each question.
During the interview, an audio recording device was used that allowed the researcher in
capturing the responses that would later be used as references during the analysis of the data.
This also allowed the researchers in analysis the various verbal and non-verbal cues from the
interviewees hence ascertain the accuracy of any feedback provided (Al-Yateem, 2012, p.33).
The main reason for conducting an interview was to gather qualitative data that would be used in
establishing the motivations behind using real would money in virtual games, specifically,
League of Legends.
The adapted methodology

This dissertation will use the form of questionnaires to obtain the data required, and then use
descriptive statistical analysis to analyze the data obtained for the final analysis. The posting of
the questionnaire will be on the online questionnaire platform.
In addition, an anonymous interview will be sent in a game chat group with a large number
of League of Legends players on the network. Some questions about the League of Legends will
be posted in this game chat group and collect feedback from each player about these issues. If
some players are more responsive to these questions and show interest, they will set as a new
focus group and conduct personal anonymous interviews with them to collect more League of
Legends players’ consumption situation.
First of all, the questions that are distributed within the game chat group are:
1. Have you spent any money in League of Legends?
2. What is your main expenditure in League of Legends?
If I can find some players in that group who are actively involved in the discussion and show
interest in this topic, I will conduct further personal anonymous interviews with them. The
content of the interview is mainly as follows:
1. Do you think that using skin gives more power to your game?
2. What do you think is the main reason why League of Legends attracts you to spend money?
This also allowed the researchers in analysis the various verbal and non-verbal cues from
the interviewees hence ascertain the accuracy of any feedback provided (Al-Yateem, 2012, p.33).
The main reason for conducting an interview was to gather qualitative data that would be used in
establishing the motivations behind using real would money in virtual games, specifically,
League of Legends.
Data Analysis
The completed interview templates, audio recordings, and questionnaires underwent a
sorting process to ensure that the data was edited for consistency and completeness that would
provide accurate and valid responses. The qualitative data underwent coding procedures to
classify it in different categories using content analysis. According to Bengtsson (2016,p.10),
content analysis allows one in ascertaining the presence of exact terms, phrases, and word within
a group of text. The researcher uses this data in determining the relationship between the study
variables and outline the findings in a quantifiable structure. Content analysis is dependent on
two procedures during scrutinizing the data; conceptual analysis and relational analysis
(Bengtsson 2016, p.13). In the case of the study, it relied on the conceptual analysis that allows
the reduction of the texts into themes that are indicative of the research topic and questions.
Nonetheless, the results from the content analysis will be presented using graphical and
chart diagrams. Graphical and chart diagrams were chosen as they are much easier to develop,
and one can easily understand the content being presented. On the other hand, the data gathered
from the questionnaire will be presented using descriptive analysis procedures. Descriptive
statistics helps in producing summaries of the results gathered from the sample. This will also
see the data presented in various graphical, tabular, and pie presentations.
Internal Validity, Reliability, and Instrumentation
A pilot study is a vital undertaking during the research process, as it will allow a
researcher in determining the validity and reliability of the research design, data analysis
procedures, data collection methodologies, and respondent recruitment strategies (Hasan et al.,
2006, p.70). This ‘small study’ will enable the researcher in ascertain whether the main study
will yield the expected results and in case of any setbacks in the respective phases, one will have
the ability to implement various re-adjustments. The pilot study followed the following phases;
Table 1: Pilot Study Flowchart
Define research protocols feasibility
Outline data collection instruments feasibility
Testing feasibility of data entry and analysis
Research Protocol Feasibility
The pilot study had 20 participants and was carried out for one week. During this time,
the data collection and recruitment protocols were tested. The participants were informed of the
importance of the informed consent in ten minutes, which resulted in some seeking clarifications,
as they did not understand some points. The online questionnaires were not all received by the
participants due to transcription errors during entry of email addresses. The audio devices used
during the interview process likewise suffered various malfunctions related to the data storage
devices, and this made the interview process to be postponed twice.

During the primary study, the informed consent period was extended to 24 hours to allow
the respondent to understand the terms of conditions related to the study. Moreover, the
respondent's emails were thoroughly scrutinized to ensure no transcription errors were presents.
Backup audio recording devices were also present in the main study.
Data Collection Methodologies Validity and Reliability
According to Bolarinwa (2015, p.195), validity is the degree upon which an instrument
gauges what it is supposed to measure. The internal validity is the level of accuracy a certain data
instrument/too will provide in the first place. For any data toll to be reliable, it must first be
valid. The primary data-gathering instruments in the study were questionnaire and interviews. A
questionnaire is a self-completion tool, and the pilot study aimed to determine the
comprehensibility of the questions in answering the research question. The questionnaire was
divided into two sections; demographical features and a section related to the research question.
The pilot study focused on the amount of time used in answering the questions, which was one
hour. The responses had some unfilled questions resulting from tightly squeezed questions,
especially for the open-ended ones. The interview process also lasted more than the 15 minutes
set by an additional eight minutes due to the numerous clarifications by respondents’ when
answering the questions. Following this, it was decided that an additional 10-15 minutes during
the primary study interview process and the process would be formulated in such a manner that it
would not require any clarifications. The questions in the online questionnaire were likewise
spaced to allow for a more detail response by respondents.
Testing Feasibility of Data Entry and Analysis

The data gathered via the questionnaire was analysed using descriptive statistical
methods, while data from the interview was analysed through content analysis. All the emerging
themes were grouped into specific groups using content analysis, results from the two analysis
procedures represented via graphs, tables, and figures. Any issues did not mar the data entry and
analysis procedures.
Ethical Issues
Ethical principles will guide how the researcher should gather data, treat the respondents
and act as an outline for the research protocols that will ensure meaningful findings are produced
that will make them credible and thus can be used for decision making and outlining any
recommendations (Vanclay, Baines and Taylor, 2013,p.244). The study had to adhere to the
following ethical principles;
Informed Consent
This is one of the most common ethical issues that affect most studies. According to
Marianna (2011, p.4), informed consent refers to the voluntary and intelligent approval of a
participant to become part of a study. Through informed consent, the participants’ integrity,
autonomy, and human rights liberties are protected. During the drafting of the informed consent,
a researcher must ensure that it outlines the procedures, protocols, and benefits of the study.
Moreover, it should point out that no participants will be subjected to any form of penalization in
case one decides to pull out of the study.
Research Bias
In most cases, a researcher might try to force the research results to solve a particular
research problem during the gathering, interpretation, and publication of data. It is unethical for a
researcher to deviate from the truth, and this is enabled through the introduction of bias
(Simundic 2013, p.13). Following the completion of research, it is important that lists al
limitation encountered during the study. The researcher must also ensure that no bias is
introduced during data gathering, picking of samples, and data analysis.
Privacy and Confidentiality
According to Marianna (2011, p.6), it is crucial for a researcher to ensure that the
participants’ identity is concealed during the publication of the research. This result from the
adverse outcomes that can emerge once the study responses are linked to a certain individual. A
researcher must ensure that code names are used in place of the participants’ real names. The
audio recording devices, tapes, and data collection templates such as questionnaire and interview
forms must safety be stored as they contain the participants’ real identities.
CHAPTER 4
Results
Response Rate
The study had 152 respondents, and none of them drooped out during the study. The data
was gathered from the gamers at the game shops and friends who are familiar with the League of
Legends. The data was gathered using two methods; online questionnaire and face-to-face
interviews. 130 participants filled the online questionnaire while the interview was directed to 32
participants. In the case of the interviews, an audio recording device was used to collect data
from the participants. With no participant dropping out of the study, it is an indication that the
response rate was 100%. Fincham (2008, p.43) states that, in any research, the validity and
credibility of the data are enabled by having a 50% and higher response rate as it is more
reasonable. It is an indication that customers and online gaming companies can, therefore, use
the results from this study in making meaningful decisions and recommendations.
Demographical Data
Out of the 152 participants, 61.18% were male (93), while 38.82% were females (59).
Additionally, the participant ages were determined (Refer to table three in Appendix 2). This is
an indication that most of the online gamers are aged 26-32 years, followed by 19-25 years. The
table below highlights the participants’ demographical data;
Table 2: Gender Statistics
Gender Total Percentage
Females 59 38.82%
Males 93 61.18%
Total 100 100%
Table 3: Age Bracket
Age Bracket Total Percentage
18 and below 12 7.89%
19-25 106 69.74%
26-32 25 16.45%
33-40 3 1.97%
40 and above 6 3.95%
Total 152 100%
Analysis of Participant Number
This research aims to determine why people spend real-world money on virtual games
using the League of Legends as a case study. Following the completion of the research, different
people will have access to the reports after its publication and use the finding in making various
decisions. However, carrying out a study on an entire population is not an easy undertaking and
thus prompting for the need of selecting a sample that will provide the results, which will later be
extrapolated, to the entire population. According to Nayak (2010, p.469), the appropriate sample
size is the key to having conclusive results. In most cases, a small sample size will lead to
insufficient results that cannot be generalized to an entire population. This is due to the null trial
broth about by the small sample sized study. Nayak (2010, p. 469), a study on 100 null trials
showed that only 36% of them had an 88% ability to show relative differences of 50% between
the various research group. This shows that more than 64% of the studies did not fully answer
the research problems the results were inconclusive. However, this does not indicate that large
sample size is a solution to having conclusive results as with such a study sample, the researchers
have a higher probability of introducing bias by pushing the results towards positively answering
the research problem. The study sample used in this research had a 95% confidence level, an
indication that the results had a 5% variation from the entire population once they were
extrapolated. Therefore, the sample size used in this study consisting of 152participants was
appropriate.
Interview and Questionnaire Responses
1. What is your gender?
The study had 152 participants out of which 61.18% were males while 38.82% were
female.
2. How old are you?
7.89 % of all the participants were aged 18 years, and below, 69.74% were aged 19-25
years, 16.45% were aged 26-32 years, 1.97% were aged 33-40 while 3.95% were aged 40 and
above.
3. What is your occupation?
According to this question, 57.24% of the participants identified themselves as being
students, 14.4% as freelancers, 13.82% as company occupation, 4.61% as government agents,
5.26% as individual business owners and 4.61% as managers.
4. How often do you play games?

The participant's results for this question included 58.55% every day, 22.37% 3-5 days,
and 11.18% once a week and 7.89% 1-3 times per month as highlighted in the pie chart below;
5. (Multiple choices) what type of game do you like to play?
32.24% of participants noted they like playing action class games, 28.29% participants’
preferred sports games, 25.66% participants preferred fighting class games, 2.63% participants
preferred chess boards, 25% participants preferred adventure class games, 34.21% leisure
category, 44.74% participants selected the shooting class category, 51.32% participants selected
the role class category, 36.84% participants selected the strategic category while 2.63% chose
other.
6. How long have you played games?
1.97% selected less than a year, 3.95% selected 1-2 years, and 25% selected 2-3 years.
28.93% of participants selected 3-5 year, 20.39% of participants chose 6-9 years, while 19.74%
selected more than 10 years.

7. (Multiple choices) what are your main purposes of playing games?
130 participants cited they pay the games for entertainment (A), 90 participants to kill
time (B), 26 participants to understand the game plot (C), 56 participants to make friends (D), 35
participants for a sense of accomplishment (E) and 1 participant to make profits (F).
8. Have you spent any money on the game?
119 participants stated they had spent money in the game while 33 stated they have not
highlighted in the graph below;

Part A (only for respondents who choose the A option in question 8)
9. How much do you invest in the game each year on average?
33 participants cited spending €200-€499 (D), 17 participants €500-€999 (C), 34
participants spend € 50-€199 (E), 8 participants € 10-€49 (F) and 7 for €1000-€1999 (B), 6
participants spend €2000 or more (A), and 14 spend less than € 10. (G)
10. What is the percentage for your annual game investment of your overall living expenses?
2.52% participants selected above 50% (A), 2.52% participants 30-49% (B), 5.04%
participants selected 20-29% (C), 21.85% participants selected 10-19% (D), 27.33% participants
selected 5-10% (E) and 40.34% participants less than 5%. (F)
11. (Multiple choices) what are the main objects of spending money on games?
37 participants cited most of the expenses as being linked to purchasing electronic
equipment (A), 112 as being buy game equipment (B) and 12 buy or hire auxiliary game services
(C)
12. (Multiple choices) what is the main purpose of spending money on games?
96 participants cited a better game experience (A), 39 participants stated for a more
powerful game power (B), 92 participants cited for a better-looking game appearance (C), 31
selected personal vanity satisfaction (D) and 17 selected save time (E ).

13. How do you evaluate your ability to control the game?
49 participants stated it is very easy to control the game (4) while 41 participants cited
they can control the game (3). 1 participant selected they cannot control (1), 10 selected hard to
control (2) and 13 selected completely outside the influence (5).
14. Do you play League of Legends?
Out of the 119 participants, 84 indicated they are avid gamers of the League of Legends
(Yes), and 35 cited they do not play the game (No).

Part A-1 (only for respondents who choose option A for question 14)
97.62% participants cited the buy skin (A), 0 participants selected prop purchase (B),
and none selected to hire a representative (C), and 2 participants selected account to purchase (D)
option.
25 participants cited skins has a role to play in giving one power in the game while 59
stated it does not give more power to your game.
17. (Multiple choices) what do you think is the main reason why this game attracts you to
spend money?
74 participants cited for beautiful appearance (A), 52 participants for the rare skin
collection (B), 5 selected the save time with props (C), 16 selected to show off to other (D) and
6 participants selected the other option (E ).

Part B (only for respondents who choose the B option in question 8)
18. (Multiple choices) The reason why you do not spend money on games is
Out of the 33 participants who cited they do not spend money on games, 17 indicated
they think it is meaningless (B) while none selected the other option (D). 15 selected the no such
habit (C) and 1 extra leisure money option (A).
19. What is your attitude towards spending money on the game?
6 participants cited their attitude as being disdain (C) while 24 selected does not matter
(B), and 3 selected praise (A).

20. If you have the chance, what will you spend your money on?
26 participants selected purchase of electronic equipment (A), 3 participants selected buy
game equipment (B) and none selected buy or hire auxiliary game services (C) while 4 stated
they would not have any investment in the game (D).

CHAPTER 5
Discussion
Summary
The study was mainly carried out form game shops and people who play the online
games form how at work or any other place whereby they can access the games. However, from
the study results, men still represent the largest number of online game players, and this is in line
with a study by Pew Research Centre, which found out that young men make up the largest share
of video game players in the USA (2017). Additionally, a large percentage of the online game
players are aged 19-25 years old, followed by 26-32 years old, representing 69.74% and 16.45 %
of the study population. This is similar to a study b PEW Research Centre (2017) which found
out that 6 out of 10 Americans aged 18-29 play video games while 5% of those aged 30-48 also
play the games though not much as those aged 18-29. Moreover, the older generation of adults
does not much involve themselves in video or online games as they feel as though it is more
youth-oriented undertaking. The largest share of online gamers is comprised of the students
representing 57.24% of all gamers. The freelance also represents a higher portion of online
gamers at 14.47%. However, individuals occupying positions such as government agents and
managers represent a small share of online gamers at 4.61% and 4.61% respectively. This is an
indication that the H2 hypothesis is true different types of occupations will affect in-game
consumption. 58.55% of the participants, they play the games every day, and this is what
determines whether they will continue to spend their money on the games. This indicates that the
H1 hypothesis is true whereby the frequency of playing games will affect whether a person has
consumption behaviors in the game. This might result from the tight schedule and their ever-
busy schedules. According to 51.32% of online gamers, prefer role class games, while 44.74%
prefer shooting class. Action class and strategic category games are similarly highly preferred by
gamers representing 32.24% and 36.84% respectively. According to a study by Kokkinakis et al.,
(2017,p.4), games such as League of Legends, DOTA II, Battlefield 3 and other Multiplayer
Online Battle Area (MOBAs) are played by millions of people due to their action-based
strategies. The researchers cite that the adrenaline from playing the games is what has seen them
attracting millions of players across the globe (Kokkinakis et al., 2017, p.2). This indicates that
the H3 is true, whereby laying different types of games will affect the game consumption.
It is also evident that 85.53% of online game players engage in the activity for
entertainment purposes, 59.21% play games to kill time, 36.84% to make friends, and only 1%
for profits. Online games form part of the various leisure activities individuals engage in on a
day-to-day basis during their free time, and the entertainment evidence this and killing time
options selected. This is also supported by a study by (Sporcic and Glavak-Tkalic, 2018) which
found out that one of the major motivations for engaging in online games is enjoyment, which is
part of entertaining oneself. This is why most of the people engage in games to make profits.
Sporcic and Glavak-Tkalic, 2018 also found out that self-concept is another factor that drives
people into engaging in online games. This is what amounts to the making of friends while
playing the games and this helps them satisfy some of their social needs through virtual and
physical interactions with fellow gamers (Sporcic and Glavak-Tkalic, 2018). Additionally, some
play games for profits and this is evidenced from the League of Legend that hosted a World
Championship in 2015 and 2015 respectively with prize money of $1,000,000 and $5,070,000
(Sun 2017, p.23).
78.29% of online gamers have also spent some amount of money on the games for a
variety of reasons. The average annual spending rate for most gamers ranges from €10-€999.
This is an indication of how people use real-world money in virtual games. This is what has
contributed to the ever-growing virtual markets industry that was estimated at $14.8 billion as of
2012 (Wohn, 2014, p.3359). 42.8% of most of the expenses are linked to the purchase of various
games while 31.09%% is linked to purchasing various electronic components and game
consoles. However, the main purpose of spending money on the games was to buy game
equipment which was supported by 94.12%% of the gamers. Live Gamer (2009) states that a
substantial number of MMO gamers would want to enhance their characters in the games and
boosting the game appearance and making the game power more powerful and this is what has
led to the growth of the virtual goods market. A majority of the tools that can aid a gamer in
becoming champion have been tagged with some monetary value, and for one to have a more
powerful character, it is vital to boost the avatar through making purchases. This was evident
from the study whereby 77.31% cited they wanted to make the game appearance look better,
32.77% more powerful game power and 80.67% better game experience. The boosting of the
characters overall appearance is also fundamental as witnessed in the game League of Legends
that allows the gamers to purchase skins, which change the appearance of the avatars.
Nonetheless, in most cases, by purchasing the skins from an online game such as the League of
the Legends, it does not boost the avatar’s abilities or skills but rather, only the appearance, and
this is seen from 70.24%% League of Legend players who supported the notion from the study.
This is an indication that the H4 is true whereby in-game consumption is mainly to improve the
appearance of the game. A study by Park and Lee (2011, p. 2179) found out that gamers make
purchases for visual authority value of their characters. Additionally, 88.1% of League of the
Legend players cited they spend money for beautiful appearances while 61.9% for rare skin
collection. The game has a “shop” that has the collection of all digital items in the game (Luton,
2013). However, all the items in the shop do not offer an individual any competitive advantage
but rather helps to customize the champions in the game and make them more appealing. This is
by purchasing the skins. However, there is ‘Gameplay’ option in the shop whereby a gamer can
access various boosters to help one-gain interest points (Luton,2013) The shop has other options
aimed at boosting the look of the champions such as “Bundles and Accessories.” Nonetheless,
29.76% of people find it hard to spend money on the virtual games as they view it as being either
meaningless a waste of money and they have no such habits due to their disdain and does not
matter attitude towards the games.
Conclusion
The online games have attracted a massive following of players ranging from 13-40
years. However, there are still people above 40 years, which engage in the games. Additionally,
an individual’s occupation will also determine the frequency of game involvement and this is
evidenced form the students and freelancers who play the games more than government agents,
managers and those in the company occupation jobs. Platers play online games of a variety of
reasons through the major one is for entertainment purposes. Other factors include; for profit, a
sense of accomplishment, make friends, and killing time. Over the years, the virtual items
industry has grown into a multi-billion dollar industry, and these results from the increased use
of real-world money. As witnessed in the study, the highest annual spending per player is about €
1000. People spend money on online games due to a variety of reasons such as improving the
power and abilities of the character that leads to a better game experience. In the game League of
Legends, the major reason players spend; money is to boost the appearance of the avatar from
the games “shop.” However, some people prefer not to spend money on games as they see it as
being meaningless and waste of resources. This is mainly due to the disdain attitude they develop
towards games, and they are more likely to invest their money in electronic devices.
Limitations and Recommendations for Future Research
The major limitation of this study is that the findings cannot be generalized to the entire
gaming industry. However, it is transferable to the MOBAs. The study aimed at bridging the gap
in the research topic that has had very few researches, it vital that in future, more researches into
the whole gaming industry is carried out to ascertain why people would spend real-world money
in gaming. Correspondingly, there is a need to test other consumer behavior theories that
determine the purchasing behavior within the free to play gaming industry.
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Appendix 1: Questionnaire Template
Questionnaire/Interview Template for Game Investment
This questionnaire is mainly about the investigation of game consumption. Please confirm that
you are or have been a game player before completing this questionnaire.
1. What is your gender?
A. Male
B. Female
2. How old are you?
A. 18 or less
B. 19-25
C. 26-32
D. 33-40
E. 40 or more
3. What is your occupation?
A. Company occupation
B. Individual business
C. Manager
D. Governmental agents
E. Student
F. Freelance
4. How often do you play games?
A. Every day
B. 3-5 days
C. Once a week
D. 1-3 times per month
5. (Multiple choice) What type of game do you like to play?
A. Role class
B. Adventure class
C. Action class
D. Shooting class
E. Sports
F. Strategic category
G. Fighting class
H. Develop a class
I. Chessboard
J. Leisure class
K. other___________
6. How long have you played games?
A. Less than one year
B. 1-2 years
C. 2-3 years
D. 3-5 years
E. 6-9 years
F. More than 10 years
7. (Multiple choices) What is your main purposes of playing games?
A. Entertainment
B. Kill time
C. Understand the game plot
D. Make friends
E. A sense of accomplishment
F. Profit from it
8. Have you spent any money on the game?
A. Have
B. No
Part A (only for respondents who choose the A option in question 8)
9. How much do you invest in the game each year on average?

A. £2000 or more
B. £1000-£1999
C. £500-£999
D. £200-£499
E. £50– £199
F. £10 – £49
G. Less than £10
10. What is the percentage for your annual game investment of your overall living expenses?
A. Above 50
B. 30% - 49%
C. 20% - 29%
D. 10% - 19%
E. 5% - 10%
F. Less than 5%
11. (Multiple choice) What are the main objects of spending money on games?
A. Purchase of electronic equipment (including but not limited to computers, computer
accessories, game consoles, etc.)
B. Buy game equipment (refers to all expenses of the game property category)
C. Buy or hire auxiliary game services (including but not limited to training, accompany
player, plug-in)
12. (Multiple choices) What is the main purpose of spending money on games?
A. Better game experience
B. More powerful game power

C. Better looking game appearance
D. Personal vanity satisfaction
E. Save time
13. How do you evaluate your ability to control the game?
1. 1 can't control
2. 2 hard to control
3. 3 can control
4. 4 very easy to control
5. 5 completely outside the influence
14. Do you play League of Legends?
A. Yes
B. No
Part A-1 (only for respondents who choose option A for question 14)
A. Buy skin
B. Prop purchase
C. Hire a representative
D. Account purchase
A. Yes
B. No
17. (Multiple choices) What do you think is the main reason why this game attracts you to spend
money?
A. Beautiful appearance
B. Rare skin collection
C. Save time with props
D. Show off to others
E. Other_______
Part B (only for respondents who choose the B option in question 8)
18. (Multiple choices) The reason why you do not spend money on games is
A. No extra leisure money
B. Think it is meaningless
C. No such habit
D. other_________
19. What is your attitude towards spending money on the game?
A. Praise
B. Does not matter
C. Disdain
20. If you have the chance, what will you spend your money on?
A. Purchase of electronic equipment (including but not limited to computers, computer
accessories, game consoles, etc.)
B. Buy game equipment (refers to all expenses of the game property category)
C. Buy or hire auxiliary game services (including but not limited to training, accompany
player, plug-in)
D. I will definitely not have any investment in the game

Appendix 2
Table 2: Gender Statistics
Gender Total Percentage
Females 59 38.82%
Males 93 61.18%
Total 100 100%
Table 3: Age Bracket
Age Bracket Total Percentage
18 and below 12 7.89%
19-25 106 69.74%

26-32 25 16.45%
33-40 3 1.97%
40 and above 6 3.95%
Total 152 100%

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A case study of League of Legends.

A Case Study of League of Legends 1

Significance of the Study.............................................................................................................8

Internal Validity, Reliability, and Instrumentation....................................................................24

Analysis of Participant Number.................................................................................................30

Interview and Questionnaire Responses....................................................................................30

Limitations and Recommendations for Future Research...........................................................46

researcher to amalgamate quantitative and qualitative data collection methodologies. A

research questions, and significance of the study.

game sites as people continue to immerse themselves in online games.

psychological and financial value for the gamers.

to $5,070,000 (Sun 2017, p.23).

related to the game.

The following research questions will guide the study;

1. Why do people spend real-world money on virtual games?

behaviors in the game

H2 Different types of occupations will affect in-game consumption behavior

H3 Playing different types of games will affect the game consumption

H4 In-game consumption is mainly to improve the appearance of the game

Significance of the Study

create loyalty and create repeat business.

or it can be avoided, thus leading to saving money for other purposes.

online games following the invention of virtual reality.

weapons, vehicles, among other goods.

the League of Nations across the world (Sun, 2017, p.23).

(Michev and Schmitt 2016, p.17).

in-group in most cases, discriminates against the out-group.

on why people spend real-world money on virtual games.

companies use to improve their revenues and profits.

behavior of people with respect to the game League of Legends.

people purchase virtual items.

virtual items purchasing behavior.

people’s virtual items purchasing behavior.

real-world money in playing the games.

why people spend real-world money on virtual games.

research question on why people spend real-world money on virtual games.

instrumentation, and ethical issues.

relationship with the study hypothesis (Vogt et al., 2012, p.122).

who were League of Legends gamers.

employed the following data collection methodologies;

A questionnaire is a tool used in gathering the respondent’s ideas, statements, and

to respond to each question.

The adapted methodology

the questionnaire will be on the online questionnaire platform.

Legends players’ consumption situation.

1. Have you spent any money in League of Legends?

2. What is your main expenditure in League of Legends?

content of the interview is mainly as follows:

The completed interview templates, audio recordings, and questionnaires underwent a

classify it in different categories using content analysis. According to Bengtsson (2016,p.10),

Internal Validity, Reliability, and Instrumentation

Table 1: Pilot Study Flowchart

Define research protocols feasibility

Outline data collection instruments feasibility

Testing feasibility of data entry and analysis

Research Protocol Feasibility

devices, and this made the interview process to be postponed twice.

Data Collection Methodologies Validity and Reliability

spaced to allow for a more detail response by respondents.

Testing Feasibility of Data Entry and Analysis

following ethical principles;

case one decides to pull out of the study.