Defining the lines between virtual and real world purchases: Second Life sells, but who’s buying?

The present study examines the virtual spending habits of Residents in Second Life, a unique Massively Multi-player Online Role-Playing Game (MMORPG) with a thriving economy where virtual goods and services are purchased with real money. Large corporations are entering the virtual worlds of MMORPGs through advertising; yet, few studies have examined the relationship between virtual identities, virtual consumption and real world consumption. This study formulates a preliminary taxonomy of user motivations for playing Second Life and addresses how these diverse reasons impact both virtual and ‘real world’ consumer behaviors. A total of 209 participants completed a Web-based questionnaire. The independent variable in the study was motivation for using Second Life, and respondents completed measures of frequency of purchasing different products, motivations for using Second Life, and demographic characteristics. Results are consistent with the expectation that not all Second Life users are the same in their motivations or behaviors, despite popular media coverage of the phenomenon.