Page 77 - IMDR Journal 2025

Research Article
where content providers vie for the attention of viewers Consumer Behavior & Willingness to Pay
through the strategic use of microtransactions. (Pellegrini et The rise of user-generated content platforms has
al., 2013)Research has highlighted the affective nature of transformed the media landscape, empowering individuals
these commercial exchanges, where the purchase of in- to create and share content at an unprecedented scale
game skins or other virtual items can be imbued with (Pellegrini et al., 2013). These platforms have become a key
emotional significance for the players (Jarrett, 2021).
battleground for attention, with content creators competing
Furthermore, the widespread adoption of microtransactions
to capture the audience's interest and platform owners
has raised concerns about the potential for addiction and the seeking to maximize user engagement and monetization. At
exploitation of users, particularly in the context of free-to- the heart of this dynamic is the increasing prominence of
play games and social media platforms. (Cramer, 2018) The micro transactions, where users are incentivized to make
rise of user-generated content platforms has ushered in a small, in-platform purchases to enhance their experience or
new era of content creation and monetization, with micro access exclusive content. This study examines the consumer
transactions emerging as a dominant business model. behavior and willingness to pay for user-generated content,
Platforms like YouTube, Twitch, and various social media delving into the key motivators that drive users to engage
networks have made it possible for everyday individuals to with and financially support this ecosystem.The existing
become content creators and share their work with massive literature provides valuable insights into the complex
audiences. As these platforms have expanded, they've dynamics at play. Researchers have explored how the
realized the immense value generated by user-created interplay between user-generated content and marketer-
content and have looked for ways to monetize it.One of the
generated content can impact consumer behavior and
most common ways they’ve achieved this is by introducing
purchase decisions. In the context of gaming platforms,
microtransaction models, where users can buy virtual studies have highlighted how the implementation of a "fair"
goods, loot boxes, or digital items to enhance their free-to-play model, underpinned by microtransactions, can
experience or show support for their favorite creators. foster a sense of reciprocity and affective valorization in
Popular platforms like League of Legends and Fortnite have users. (Jarrett, 2021)Furthermore, the competitive nature of
led this trend, embedding microtransactions directly into content diffusion on UGC platforms has been examined,
their gameplay and revenue strategies. Take League of with content providers leveraging microtransactions to gain
Legends, for example — players can purchase character preferential treatment and increase the rate of content
skins that change the appearance of their in-game avatars. propagation. (Goh et al., 2012) (Pellegrini et al., 2013)
These skins are often highly sought after and have become a Microtransactions, the practice of embedding small,
major revenue stream for the game’s developer, Riot Games. incremental purchases within digital content, have become
Similarly, Fortnite has successfully adopted increasingly prevalent in the realm of user-generated
microtransactions by offering cosmetic items and battle
content. This paper aims to explore the consumer behavior
passes, giving players access to exclusive in-game content
and willingness to pay among various user demographics in
and experiences.The rise of platforms driven by user- the context of microtransactions within user-generated
generated content has marked a new chapter in how content content platforms.Recent research has highlighted the
is created, shared, and monetized. As a result, content growing importance of social media brand communities and
creators are constantly exploring innovative ways to their influence on consumer behavior. These online
generate income from their work. Microtransactions have communities, fostered by user-generated content, have
become a popular alternative to traditional revenue models, become a critical avenue for brands to engage with their
offering flexibility and new opportunities for both creators target audiences. Integrating user-marketer interaction data
and platforms.Unlike conventional monetization and consumer transaction information, studies have
approaches, microtransactions allow for a "freemium" demonstrated the significant impact of both user-generated
business model, where basic content is provided for free, content and marketer-generated content on consumer
and users can choose to pay for additional features or purchasing decisions. (Goh et al., 2012). Moreover, the
exclusive content. This model has proven particularly affective economy surrounding microtransactions has been
effective for growing digital businesses — the free offerings
a topic of growing interest. Scholars have positioned the
help build a loyal audience, which can then be monetized
microtransaction model of games like League of Legends as
through optional microtransactions. Moreover, micro - a notable example of affective valorization, where
transactions can foster a sense of community and reciprocal forms of commercial exchange are bound up in
engagement among users, as they are often tied to exclusive the emotional connections and experiences of players.
in-game items, customizations, or social features. This (Jarrett, 2021). Understanding the demographic factors and
"affective economy" can lead to stronger brand loyalty and a spending patterns associated with microtransactions in user-
more sustainable revenue stream for content providers. generated content is crucial for both marketers and platform
Despite these benefits, microtransactions have also been developers. This research seeks to shed light on the
subject to criticism, particularly around issues of fairness, underlying drivers of consumer willingness to engage with
transparency, and the potential for predatory practices. and invest in microtransactions, with the aim of informing
Content providers must strike a delicate balance between strategic decision-making and enhancing the user
monetizing their content and maintaining a positive user experience within these evolving digital ecosystems. In the
experience.
era of user-generated content, the rise of microtransactions
has become a prevalent phenomenon. Consumers'

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