Consumer Response and Behavior on In-game Spending (CRABS) Model: Psychological Lens into Virtual Economies

Online game spending has become a significant and rapidly growing phenomenon within the virtual economy. This study aimed to explore four key areas: (1) the demographic profile of online game spenders, (2) the correlation between psychological factors—such as motivation, awareness, belief, and uptake—and online game spending behavior, (3) the proposal of a model to describe this phenomenon, and (4) the impact of in-game spending on psychological well-being. Utilizing a mixed-method approach, specifically a sequential explanatory design, the researchers surveyed 480 online game spenders through purposive sampling. Additionally, 10 respondents were randomly selected for focus group discussions. The profile of the typical online game spender includes being a young adult male who is a moderate spender, prefers role-playing games (RPGs), plays between 1 and 21 hours per week, and is employed. The results indicated that psychological factors are positively related to spending behavior and cognitive processes, as well as to the emotional responses of spenders. The findings supported the Consumer Response and Behavior to In-game Spending Model, or CRABS Model, conceptualized by the researchers. In-game spending was reported to enhance emotions and mood, boost self-esteem and feelings of competence, and promote identity expression and a sense of community. These findings highlight the significant potential for further research in gaming psychology and suggest the possibility of growth in this field parallel to innovations in the virtual landscape.