Understanding consumer behavior in in-app purchases for mobile games

Abstract

Fingersoft, the commissioner of this thesis, is an Oulu-based mobile gaming best known for their hit Hill Climb Racing games. Garnering more than 2.5 Billion downloads across all their games. The aim of the study is to understand what the impacts mobile gamers might come upon when making an in-app purchase (IAP). This paper goes through value perception, psychological factors, and the impact of demographics on spending patterns. A mixed research method was used; a quantitative method with a survey through questionnaire and qualitative method with open-ended questions at the end of questionnaire to supplement the descriptive numerical data to gain deeper understanding. Convenience and snowball sampling gathered 69 responses from mobile gamers aged 18-40, predominantly based in Europe. Data was collected on demographics, gaming frequency, spending habits, specific IAP types purchased, motivational drivers using Likert scales, and qualitative perceptions of fairness. Results indicated that 54% of respondents had previously made IAPs, although current spending was generally low and infrequent. Monthly Passes and virtual currency were favored purchase types. Key motivations appeared linked to achieving progression, convenience, accessing content, and personalization, reflecting both functional and hedonic values. Non-purchasers (46%) primarily cited cost aversion or the principle that games should be free. Perceived value for money among purchasers was often neutral, suggesting critical assessment. Significant concerns regarding the fairness of "pay-to-win" mechanics and loot boxes were expressed across the sample. It is concluded that optimizing IAPs requires a focus on transparent value delivery and fair mechanics. Developers are recommended to prioritize IAPs that offer clear benefits and are perceived as equitable, such as cosmetic items and well-designed season pass systems, over mechanics that may be perceived as exploitative such as loot boxes. Understanding and respecting the perspectives of the non-spending player segment is also crucial for overall game health and community engagement. The study acknowledges limitations related to its sampling approach and suggests that future research employs larger, more diverse global samples and varied methodologies would further enrich the understanding of IAP consumer behavior in this dynamic market.