Three Essays on Adoption and Consumption of Entertainment Products

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2022-12-01T06:00:00.000Z

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Abstract

We study users’ adoption and consumption of entertainment products in three chapters. Using unique data collected from online video gaming platforms on users’ playing times, we study how consumers make decisions to adopt and play video games. In the first chapter, we investigate the factors that influence an individual’s adoption of a video game. Specifically, we study how the adoption of a video game in a franchise is influenced by the adoption of previous games in that franchise and users’ experiences with those games. We also introduce some measures of dissimilarity between a video game and its franchise. The results show that being franchised does not affect the time of adoption in general. However, users who have adopted the last game in the franchise and have better experience with the franchise adopt the new game faster. We also find that a game’s changes in genres are more favored by general users. However, users who have adopted the last game in the franchise adopt the new game later when there are some changes in genres. In the second chapter, we investigate the effects of esports events and product update on players’ decisions to play a video game using individual player’s gaming history data of Dota 2. To study individual video game playing decisions in continuous time, we develop a continuous-time discrete choice structural model of product usage. Counterfactual analysis results show that decreasing the frequency of esports events and decreasing the frequency of product updates can both increase the total game playing time of players. In addition, joint scheduling of product updates and esports events can increase product usage further. Considering these findings, product managers in the video game industry might want to decrease product update frequency and allocate budgets to host less esports events. They should also consider joint scheduling of product updates and esports events to take advantage of the synergy between these marketing actions. In the third chapter, we investigate the interdependencies in consumers’ video game consumption, specifically how esports events of two particular video games affect the consumption of those video games as well as other video games in the same genres (i.e., product categories) and other genres. Players may consume more than one video game in a specific time window. Standard choice models are not appropriate to model contexts entailing this phenomenon called multiple discreteness. Multiple discreteness is a characteristics of consumption be- havior as the choice of multiple, but not necessarily all alternatives simultaneously (Bhat, 2008). To address these challenges, we extend the model developed by Bhat (2005, 2008) called multiple discrete-continuous extreme value (MDCEV) model. The results show that esports events of Dota 2 and CS:GO do not increase the baseline preference for these video games during these events or after these events. We also find that the impact of esports events spillover to other genres, depending on the interdependencies in consumers’ consumption. Platform managers and video game developers can utilize the methodology in this paper to predict the probable impacts of their marketing actions on consumers’ consumption.

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Business Administration, Marketing

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