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Users' Understandings of the Virtual Economy in Social Virtual Worlds: Consumption and Entrepreneurship of Virtual Goods

Social virtual worlds (SVWs) such as Second Life have gained immense popularity during the last decade. Their popularity is reflected in the explosive growth of the in-world economy, which is mainly supported by users consumption of virtual goods and entrepreneurial behavior. Users economic behavior has increased the size of the virtual economy to reach over $1B in the United States in 2009 (Nicholson 2009). Given that virtual consumption and entrepreneurship have become an important part of everyday virtual life in SVWs, understanding these two types of economic activities is an essential aspect to understanding user behavior in SVWs. This research aims at investigating the meanings of virtual consumption and entrepreneurship for users.
The research consists of two independent essays. In the first essay about virtual consumption, I examine users understandings of virtual consumption through core-periphery analysis of its social representation. 154 Second Life users participated in the web-based survey for this study. I also identify user goals for virtual consumption by using means-end chain analysis, based on interviews with 93 Second Life users. The second essay on the topic of virtual entrepreneurship examines the collective meanings of virtual entrepreneurship and their relationship with the collective meanings of SVWs. To understand the meanings of virtual entrepreneurship, the core-periphery structure of social representations of virtual entrepreneurship is analyzed, based on interviews with 24 Second Life entrepreneurs. The meanings of virtual entrepreneurship are explained and compared with the central meanings of SVWs, identified from 101 newspaper articles on SVWs from 2005 to 2009.
The results show that virtual consumption penetrates extensively into the virtual life of users and make their virtual experience in SVWs much richer; that virtual entrepreneurship is institutionalized in SVWs, and the key meanings of SVWs are well translated into the meanings of virtual entrepreneurship. This research contributes in providing fundamental knowledge about virtual consumption and entrepreneurship and further suggests potential theoretical frameworks for future research. Implications for SVW service providers and producers and sellers of virtual goods are also identified. Another contribution of the research is to demonstrate alternative qualitative research approaches combined with quantitative analyses.

Identiferoai:union.ndltd.org:LSU/oai:etd.lsu.edu:etd-04092010-154422
Date12 April 2010
CreatorsJung, Yoonhyuk
ContributorsPawlowski, Suzanne, Hirschheim, Rudy, Van Scotter, James, Wiley-Patton, Sonja, Porter, Lance, Ullmer, Brygg
PublisherLSU
Source SetsLouisiana State University
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lsu.edu/docs/available/etd-04092010-154422/
Rightsunrestricted, I hereby certify that, if appropriate, I have obtained and attached herein a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to LSU or its agents the non-exclusive license to archive and make accessible, under the conditions specified below and in appropriate University policies, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.

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