To pay or not to pay: understanding mobile game app users' unwillingness to pay for in-app purchases

Abstract

Purpose

Worldwide In-app Purchase (IAP) revenues reached almost US$37 billion in 2017 and doubled that in 2020. Although the revenue from IAPs exceeds those from paid apps, only 5% of total app users make any IAPs. This paper investigates why some users will not make IAPs and develop a novel concept of users' Perceived Aggressive Monetization of IAPs as an alternative framework to explain IAP behavior.

Design/methodology/approach

Given the newness of IAPs, this study uses qualitative research to understand the phenomenon and develop a model to explain the decision to spend on IAPs. In total, this study collected 4,092 unique user-generated comments from app user review sites and social media webpages where users discuss in-app purchasing.

Findings

The analysis reveals recurring themes that explain user unwillingness to make in-app purchases, such as conflicting meanings of free-to-play, perceived unfairness and aggressive monetization of IAP by app publishers, and self-control issues. Subsequent user interviews support the themes and suggest that IAP spending might be more impulsive.

Originality/value

The paper develops a new concept of perceived aggressive monetization. Additionally, it proposes a novel theoretical framework that future researchers can use to understand why some mobile game users are unwilling to pay for IAPs.

Citation

Salehudin, I. and Alpert, F. (2022), "To pay or not to pay: understanding mobile game app users' unwillingness to pay for in-app purchases", Journal of Research in Interactive Marketing, Vol. 16 No. 4, pp. 633-647. https://doi.org/10.1108/JRIM-02-2021-0053