Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 year olds) Co-authors: Hitesh Vij Muskaan Chuttani Lakshay Buttan Lakshay Meeena Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 1 ACKNOWLEDGEMENT The success and final outcome of this research required a lot of guidance and assistance from our mentors and we are extremely privileged to have got this all along the completion of our research. All that we have done is only due to such supervision and assistance and we would not forget to thank them. We respect and thank Dr. Preeti Rajpal Singh, for providing us an opportunity to do the research on Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years) and giving us all the support and guidance, which made us complete the research duly. We are extremely thankful to her for providing such a nice support and guidance. We are thankful and fortunate enough to get constant encouragement, support and guidance from our parents and friends which helped us in successfully completing our research report. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 2 TABLE OF CONTENTS ABSTRACT 4 INTRODUCTION 5 RESEARCH OBJECTIVES 6 RESEARCH QUESTIONS 6 RESEARCH HYPOTHESIS 7 RESEARCH METHODOLOGY 7 ANALYSIS 10 FINDINGS AND RESULTS 20 LIMITATIONS 28 CONCLUSION 29 REFERENCES 31 QUESTIONNAIRE 32 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 3 Abstract With the rise in the internet, users across the globe proliferated. With this surge, online gaming achieved a new milestone every year. Players of all ages and every nationality compete against each other be it on arcade or console games. These gamers have become abstract with their uncanny usernames and thus it becomes impossible to research about them and collect worthwhile statistics for gaming companies. Thus it has become very important to investigate further in this domain. Many games also invoice for their premium services and thus it has become profitable for these companies. Furthermore, it would be advantageous for these companies if they could find definite data on the consumer profiles, the time they devote and their outlays. We have conducted research with an aim of consumer profiling of mobile online gamers. This research paper intends to investigate the consumer decisionmaking process of youth-(Target Population-(15-24 years)) with respect to mobile online games by using the methodology of questionnaire analysis and literature review. The centre of attention of this research paper revolves around the factors influencing the decisions of youth gamers. This research paper incorporates the major pros and cons of mobile online games that play a crucial role in consumer profiling. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 4 Introduction As everyone knows, the rapid development of the Internet gave birth to the popularization of mobile Internet. Mobile Internet has gradually penetrated into people's lives, work, entertainment and other fields. Mobile phone games, videos, animations, social intercourses, readings and other applications of mobile Internet have developed rapidly. With mobile phone games as a representative, the communication content of new entertainment media is profoundly changing the entertainment life of people in the information age. Through tortuous application of mobile terminals in previous years, mobile games finally ushered in the well jet development in the mobile Internet era. The online gaming industry is on an all-time high in India. The gaming market in India, where a third of its population belonging to Gen-Z, is expected to grow to $3 billion by 2023 from the current $1.2 billion.1 Currently, India has around 365 million mobile gamers and their numbers are expected to grow rapidly.In 2019 the average time spent per day gaming by a such a person who regularly plays games was found to be 3 hours per day.3 Several studies, literature reviews, and meta-analyses have focused on the correlation of problematic video gaming, usually assessed as a continuum with addiction marking the upper end of the scale2. In addition to looking at problematic video game use and its relation to psychological functioning, it is relevant to also focus on why individuals play video games. Players use video games for very different reasons such as to distract themselves from daily hassles or because they enjoy the social relationships they have developed in the virtual world. In the present study, our objective is to examine the relation between mobile gaming and its users in a fine-grained manner. In India, the youth population(15-24years) comprises one-fifth of India’s population. This study will help us in making potentially valid generalizations about video gaming and allows us to examine the spectrum of gaming habits and the respective relations between such habits and a diverse set of variables representing the general consumers. The main objective behind this research will be profiling the online mobile gamers and quantifying the qualitative aspects. We will mainly focus on the mobile-online gamers and study about the time they spend, their expenses on the purchase of games or inapp services. We will collect data from various secondary sources and will conduct a comprehensive survey through questionnaires from the targeted population. Further, we will categorise the data into various fragments and apply various parametric and non-parametric tests. Through this research, we aim to gain insights about the market of online-mobile gaming and will draw some insights about the industry. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 5 Background Games format4 a. Pre-loaded/Offline purchase channel: Such games for downloaded on the user’s device b. Browser Based: These games are accessible on websites, can be accessed on browser c. App Based: User downloads such games using an app distribution store and these usually work in the form of an app. 2 Playing Formats5 a. Single Player: The users plays the game with pre-decided story line against computer without the involvement of any other human b. Multiplayer: More than one person plays simultaneously in same environment c. Massively Multi-player: Large number of gamer(s) (hundreds/ thousands) play 1 simultaneously in same environment 3 a. b. c. d. e. f. 4 a. b. c. d. e. Genre Segmentation of Games6 Puzzle: Tests the gamers problem-solving skills and involves in-game puzzles Action: Physical challenges including eye hand coordination and reaction time Strategy: The users’ decision making skills have a high impact on the outcome of the game. The user has to develop strategies and make decisions to overcome challenges posed in the game Adventure: These are interactive story based based involving the gamer as the protagonist of the game story Arcade: These are meant to be ‘for fun games’ with progressive difficulty levels and intuitive control schemes Sports: Such games simulate different real life sports such football, cricket,etc Revenue Models for online Games7 Pay-per-purchase: Upfront payment to download the game Freemium: Free download but charges for the access to the certain products in the game or for full access of the game In-app purchases: It consists of a ‘virtual currency’ of the game that enables the users to purchase certain products or gain access to certain parts of the game. Users pay to purchase this virtual currency Subscriptions: There is a subscription charge to gain the access to the game. The subscription might be monthly, quarterly,half-yearly or yearly In-app advertisement: Advertisements are placed in the game in the form of banners or videos, works on revenue per click model Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 6 f) In-game product or brand placement: Revenue is earned from brands who pay for placing their product in the games Objective of the research The objective of the research is to determine the market characteristics of the mobile gaming industry in India with respect to youth gamers. 1. To construct a consumer profile that will contain (but not limited to) the following characteristics: a. Category of games preferred the most b. Average expenditure on mobile games in a month c. Time spent playing the game(s) per day d. How affected do they feel with the habit of gaming e. Their views on the future of gaming in India, and do they look at gaming as a tool of recreation or a prospect of potential future employment 2. To segment the online mobile gaming market further (based on different genres of the mobile-games available and different revenue models) 3. To identify the major mobile-games development companies and the emerging entrants. Research Questions 1. Is there any relationship between time spent on online mobile gaming and age? 2. Is there any relationship between time spent on online mobile gaming and gender? 3. Is there any relationship between time spent on online mobile gaming and profession? 4. Is there any relationship between average monthly expenditure on online mobile gaming and income? 5. Is there any relationship between average monthly expenditure on online mobile gaming and gender? 6. What are consumer preferences towards playing different genres of mobile games? Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 7 7. What is the impact of COVID-19 pandemic on consumer expenditure habits on mobile gaming Research Hypothesis The hypothesis discussed later in this paper are as follows: H0: The time spent on online mobile gaming is independent of age. H1: The time spent on online mobile gaming is not independent of age. H0: The time spent on online mobile gaming is independent of gender. H1: The time spent on online mobile gaming is not independent of gender. H0: The time spent on online mobile gaming is independent of profession. H1: The time spent on online mobile gaming is not independent of profession. H0: The average monthly expenditure on online mobile gaming is independent of income. H1: The average monthly expenditure on online mobile gaming is not independent of income. H0: The average monthly expenditure on online mobile gaming is independent of gender. H1: The average monthly expenditure on online mobile gaming is not independent of gender. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 8 Research Methodology Research Design The research design that we will be using in this study is the Single CrossSectional Design because it is extremely useful to study current patterns of behaviour or opinion. It involves looking at data from a population at one specific point in time. The participants in this type of study are selected based on particular variables of interest. These are observational in nature and are known as descriptive research as this type of research can be used to describe characteristics that exist in a community. It is often used to make inferences about possible relationships or to gather preliminary data to support further research and experimentation. So, the broad reasons due to which we will be using this research design are 1. Our study is taking place at a single point in time. 2. Cross-sectional designs generally use survey techniques to gather data which are relatively inexpensive and take up little time to conduct. 3. It allows us to look at numerous characteristics at once (age, income, gender, etc.). 4. It can provide information about what is happening in the current population. Data Collection Method We have used primary data collection technique for our research most preferably a self-administered questionnaire8 with close-ended questions to arrive at figures to be calculated statistically. This method was executed by employing online platforms to send the questionnaire and receive responses. Sampling Method - Convenience non-random sampling was used as a sampling method The data was collected from respondents aged between 15 years to 24 years since the study was specifically concerned with the youth population (i.e people between the age of 15 to 24) of gamers Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 9 Response Rate - The Response rate is 100% as none of responses that were received were incomplete or invalid Data Analysis The information for this research paper was mainly accumulated through the primary and secondary sources of data. We used a self-administered questionnaire as a primary source to gather the salient data for this research paper. 1. Test of Independence9: This is a non-parametric hypothesis testing technique. The test helps the researcher to identify if a relationship exists between two variables. However, the test cannot be effectively employed to determine casual relationships. 2. Pie-Chart Analysis: It involves calculating the percentage of different categories against their cumulative percentage. This helps the researcher to compare the proportion of different options or categories against the cumulative. 3. Bar-Chart- A bar chart involves totalling frequencies of different categories. And gives the researcher a visual representation about how the frequencies of available categories or options differ. 4. Friedman Test- The Friedman test is the non-parametric alternative to the one-way ANOVA with repeated measures. It is used to test for differences between groups when the dependent variable being measured is ordinal. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 10 ANALYSIS AGE Fig.1.1 The above chart illustrates the detailed distributions of age groups among the participants of the survey. Out of the 52 respondents who took part in the survey conducted by us, the maximum number of respondents (60%) belonged to the category of 18-21 years. The majority of the responses are from the age group 18-21 owing to the short time and reach at hand. This is followed by the age groups comprising 15-17 years (21%). Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 11 GENDER Fig 1.2 The above table shows that there is almost a balanced sex ratio with a higher proportion of males (52%), this incidence is primarily because of a higher proportion of males among the undergraduate students and the school students of the target population. FAMILY ANNUAL INCOME Fig 1.3 The above chart illustrates the family annual income of the participants of the survey. Majority of the respondents have family annual income more than 10 lakhs (27%). This is followed by participants who have family annual income between 7.5 and 10 lakhs. (21%) Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 12 PROFESSION Fig 1.4 The above chart illustrates the detailed distributions of the occupations of the participants of the survey. Out of the 52 respondents who took part in the survey conducted by us, the maximum respondents were undergraduate students (65%), followed by school students (21%). The majority of respondents were undergraduate students because of accessibility and time constraints. How much time do you devote to mobile gaming daily? Fig 1.5 The above chart illustrates the time devoted by the participants of the survey on mobile gaming on a daily basis. Out of the 52 respondents who took part in the survey conducted Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 13 by us, the maximum number of respondents (86%) devoted 0-2 hours daily on mobile gaming, followed by the participants (8%) who devoted 2-5 hours daily on mobile gaming. Has the time you devote towards mobile gaming changed because of lockdown during COVID-19 pandemic? Fig 1.6 When asked if the time they devote towards mobile gaming has changed because of lockdown during COVID-19 pandemic, Out of the 52 respondents who took part in the survey, the maximum number of respondents (40%) reported a slight increase in the time devoted towards mobile gaming has slightly increased during COVID-19 pandemic, further 29% reported a high increase in the time they devote daily towards gaming. This indicates that the youth may like to play games when they get free time out of their routines. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 14 Where do you usually purchase mobile games from? Fig 1.7 When asked from where do they usually purchase mobile games, Out of the 52 respondents who took part in the survey conducted by us, the maximum number of respondents (90.4%) reported that they purchased mobile games from Google Play Store/Apple App Store, followed by the respondents (13.5%) who reported that they purchased mobile games from Gaming Store Websites. How do you choose a game to purchase? Fig 1.8 69.2% of respondents get to know about the games they buy by ‘referencing from friends’. This indicates word of mouth and popularity plays a decent role in the success of any mobile game in the Indian market. Also, this may be the Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 15 result of an emerging multiplayer scenario wherein several people join, in a virtual space to play together over the internet. The next most popular factors are- Self research, reading description of games(44%) and Reviews over Internet by Influencers (32%). How do you spend money on mobile online games? Fig 1.9 When asked how they spend their money on mobile online games, 73.1% of the respondents reported that they do not explicitly spend money on games. This indicates that free to play games may be more popular amongst the Indian youth. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 16 Average monthly expenditure on mobile games Fig 1.10 77% of the respondents don’t spend money on mobile games. This further indicates that free to download and play mobile game models that may use advertisements and in-game purchases as a revenue stream may be increasingly popular. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 17 How has your expenditure habits on mobile gaming changed during the COVID-19 pandemic? Fig 1.11 How do you perceive mobile gaming? Fig 1.12 84.6% of the respondents perceive mobile gaming just as a hobby while only 5.8% reported that they perceive it as a prospective employment opportunity. Thus, this indicates that it is just a hobby for most of the respondents and they don’t have any serious aspirations towards making it their profession Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 18 Have you ever been a part of professional competitive gaming tournaments? Fig 1.13 When asked if they ever have been a part of professional competitive gaming tournaments, a majority of the participants disagreed while close to 21% agreed with this statement. In the next 5 years, mobile gaming can become a prospective employment in India. How strongly do you agree or disagree with this statement? Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 19 Fig 1.14 When asked if they felt mobile gaming could become a prospective employment in India, a majority of the participants agreed while close to 9% disagreed with this statement. This clearly shows the majority of them are of the view that online gaming skills might soon help them get a job. Mobile gaming arouses curiosity to learn new things. How strongly do you agree or disagree with this statement? Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 20 Fig 1.15 When asked if they felt mobile gaming aroused curiosity to learn new things, a majority of the participants agreed while close to 15% disagreed with this statement. This clearly shows the majority of them are of the view that online games could have great educational potential in addition to their entertainment value. FINDINGS AND RESULTS CHI-SQUARE TEST OF INDEPENDENCE In order to test if there exists any significant relationship between time spent on online mobile gaming and various other characteristics of the respondent (Age, Gender, Profession), we have conducted Chi-square test of independence. We have also conducted the same test to test if there exists any significant relationship between average monthly expenditure and income or gender. Here the level of significance, α is assumed to be 0.05 in all the cases. H0: The time spent on online mobile gaming and age are independent variables. H1: The time spent on online mobile gaming and age are not independent variables. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 21 Table 1.1 Here the p-value is equal to 0.001 Since the p-value is less than our chosen significance level (α = 0.05), we reject the null hypothesis. We conclude that there is enough evidence to suggest an association between time spent on online mobile gaming and age. H0: A relationship does not exist between the time devoted to online gaming(on daily basis) and gender H1: A relationship exists between the time devoted to online gaming(on daily basis) and gender Table 1.2 Here the p-value is equal to 0.527 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 22 Since the p-value is more than our chosen significance level (α = 0.05), we do not reject the null hypothesis. We conclude that there is not enough evidence to suggest that there is an association between time spent on online mobile gaming and gender. H0: A relationship exists does not between mobile gaming and and profession H1: A relationship exists between mobile gaming and profession Table 1.3 Here the p-value is equal to 0.173 Since the p-value is more than our chosen significance level (α = 0.05), we do not reject the null hypothesis. We conclude that there is not enough evidence to suggest an association between time spent on online mobile gaming and profession. H0: The average monthly expenditure on online mobile gaming and gender are independent variables Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 23 H1: The average monthly expenditure on online mobile gaming and gender are not independent variables Table 1.4 Here the p-value is equal to 0.530 Since the p-value is more than our chosen significance level (α = 0.05), we do not reject the null hypothesis. We conclude that there is not enough evidence to suggest that there is an association between average monthly expenditure on online mobile gaming and gender. Thus, the average monthly expenditure on online mobile gaming and gender are independent variables H0: The average monthly expenditure on online mobile gaming and annual family income are independent variables. H1: The average monthly expenditure on online mobile gaming and annual family income are not independent variables. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 24 Table 1.5 As, Test statistic calculated> critical value(tabulated). We have enough evidence to reject the null hypothesis. Thus, Annual Family Income and Average Monthly Expenditure on games may not be related. FRIEDMAN TEST For the respondents who play online games, we created rank based question so as to rate their preference towards playing different genres of mobile games. The table below shows the descriptive statistics of the responses. Rank scale from 1 to 5 puts a rank of 5 to the highly preferred and a rank of 1 to the least preferred. The Friedman test is the non-parametric alternative to the one-way ANOVA with repeated measures. It is used to test for differences between groups when the dependent variable being measured is ordinal. It is important to note that the Friedman test is an omnibus test, like its parametric alternative; that is, it tells you whether there are overall differences, but does not pinpoint which groups in particular differ from each other. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 25 A broad glance at the Ranks table showing the mean rank reveals that Action is the most preferred genre of the mobile game while Puzzle is the least preferred of the same. Here, we have applied the Friedman test to test whether there is an overall statistically significant difference between the mean ranks of the related groups. The Test Statistics table informs of the actual result of the Friedman test. As we can infer from the Test Statistics table, it has an Asymptotic Significance of 0.003 which is less than the alpha value of 0.05. Hence, we Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 26 can see that there is an overall statistically significant difference between the mean ranks of the related groups. Limitations 1. The study was conducted on a small sample size of 52 respondents. With a larger sample size, the results could be more accurate 2. Due to paucity of time and resources the study was limited to the geographical areas of Delhi, Haryana and Uttar Pradesh and mainly consisted of undergraduate students thus leading to the respondents being fairly homogeneous 3. Qualitative research and physical in-depth interview could not be conducted due to the on-going global pandemic COVID-19 4. A major problem that our survey has faced is that the respondents’ age has primarily been a part of one category which has resulted in a lot of redundant data and limited the potential of the research Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 27 Conclusion The study was conducted keeping in view the emerging practice of online mobile gaming amongst the youth (age 15-24 years) in India. Because no such study specifically done for the youth mobile gamers was available in the public domain most of the data and inputs were collected using primary research methodologies. The results in relation to the research objective are as follows: a. Category of games preferred the most- The most preferred games genres of games are action, adventure, puzzle and sports b. Average expenditure on mobile games in a month for the youth is 0200 INR(Indian Rupees) c. Time spent playing the game(s) per day is between 0-2 hours d. Has the lockdown in 2020 due to the pandemic affected the gaming habits of youth- 29% of the respondents reported a high increase and 40% a slight increase in the time spent playing mobile games on a daily basis e. Their views on the future of gaming in India, and do they look at gaming as a tool of recreation or a prospect of potential future employment- 84.5% of the respondents perceive gaming as a hobby, 4.8% as a prospective of future employment and 9.8% as their passion f. 69.4% of the respondents play and download a game based on the references of their friends g. 70% of the respondents use official app stores like Google Play Store and Apple app store to download games h. Most popular model of revenue stream for mobile games is the free to download and play games wherein the developer uses advertisements and in-game purchases as a revenue stream Our results show that time spent on online mobile gaming has an association with age. However, it is independent of gender and profession of the respondent. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 28 We even found out that average monthly expenditure on mobile online gaming does not have an association with gender and annual family income of the respondent. Also, the Friedman test showing the mean rank revealed that Action is the most preferred genre of the mobile game while Puzzle is the least preferred of the same. We could even see that there is an overall statistically significant difference between the mean ranks of the related groups. Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 29 References 1. https://www.thehindubusinessline.com/info-tech/mobile-gaming-marketin-india-to-touch-3-billion-by-2023/article34090995.ece 2. Digital Gaming and Psychological Well-being among Adolescent College Going Students in Puducherry, India.Journal of Clinical & Diagnostic Research.Jun2021, Vol. 15 Issue 6, p19-22. 3. Y Zhang. The Research on Consumer Behavior of Online Games and Its Influencing Factors. MATEC Web of Conferences 267, 04010 (2019) 4. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/onlinegaming.pdf.-Pp 9 5. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/onlinegaming.pdf.-Pp 9 6. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/onlinegaming.pdf.-Pp 10 7. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/onlinegaming.pdf.-Pp 11 8. D.Chawla, N. Sondhi, Research Methodology: Concepts and Cases, 2 ed., Vikas Publishing House, India. 2016 pp 202 9. D.Chawla, N. Sondhi, Research Methodology: Concepts and Cases, 2 ed., Vikas Publishing House, India. 2016 pp 455 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). Questionnaire 30 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 31 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 32 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 33 Consumer profiling for the online-mobile gaming industry with respect to the youth (15-24 years). 34