Development and Examination of Three Theories on Online Game User Loyalty

Research Question and Academic Significance: The literature has not completely explained the formation processes of online game user loyalty. Specifically, the literature has not explained: (1) why user frustration may lead to user loyalty, (2) how user interpersonal linkage affects user loyalty, and (3) why flow and its influence decrease with time. Development and examination of theories can help explain the mechanisms behind the phenomena. Such theories can help firms understand the user loyalty formation and provide basis for subsequent studies. Practical Significance: Online games are promising in their current and prospective revenues. Users contribute significant profits to game providers. Users’ switching between games reduces the revenues of game providers. Thus in-depth understanding of user loyalty can help game providers to retain their customers and stabilize their revenues, demonstrating its practical importance. Research Purpose: Thus this research project aims to develop and examine three theories for explaining the formation and change of online game user loyalty via three directions (frustration, social aspect, and flow), respectively. Hypotheses: The first study will examine if user-perceived frustration improves expected future achievements and then improves user loyalty. The first study, additionally, will examine if the likelihood of overcoming frustration strengthens the relation between frustration and expected future achievements. The first study will also examine if expected time needed for overcoming frustration weakens the relation between expected future achievements and user loyalty. The second study will investigate if interpersonal linkage amount and strength directly improve user loyalty, and if user social needs and altruism strengthen the influences of interpersonal linkage amount and strength. The third study is a three-year study which will explore if years of experience (of playing online games) reduce user concentration, flow, and then reduce user loyalty. Moreover, the third study will also explore if years of experience make users accustomed to flow, and then weaken the relation between flow and 2 user loyalty. Research Design: The first and the second studies have a cross-sectional design. The third study adopts a longitudinal research design. By following the panel participants, the third study will obtain the data cross the three years involved in this research project. All the three studies will utilize structural equation modeling and multiple-group analysis techniques for conducting analyses. Significance of the Research Project: This project innovatively proposes and examines three theories on online game user loyalty, including positive frustration theory, social media theory, and flow desensitization theory. These theories can be applied to other Internet industries that are task-oriented, social aspect oriented, or entertainment-oriented, suggesting their impact on multiple disciplines and industries. This project can help game providers understand frustration, social aspect, and flow-related antecedents of loyalty, and effectively design their games with the findings of this project. Subsequently, game providers can effectively improve their user loyalty, stabilizing their revenues.

Project ID:PF9907-7883
External Project ID:NSC99-2410-H182-024-MY2