Core

This thesis is divided into eleven chapters with Chapters Two, Three and Four outlining the research literature and conceptual framework, whilst Chapters Five, Six and Seven concern the research undertaken by this study. Chapters Eight, Nine and Ten relate to the analysis and interpretation of that research with the final Chapter Eleven concluding the thesis, and discussing its contributions to knowledge.

Chapter Two identifies the basis for examining the customer re-subscription decision from a Commitment Trust Theory and Relationship Marketing perspective. Commitment Trust Theory is a predictive model of human decision making based on identifying key customer variables, whilst Relationship Marketing is concerned with the long term development of customer relations. Both of these are identified as key components to achieving the investigatory aim of this thesis of understanding and examining the re-subscription decision.

Chapter Three outlines the role of Churchill’s (1979) marketing research framework in the design of this research’s constructs and, in accordance with this framework, clearly defines the operational domains of every construct used in the main study. The constructs from this study are mainly based on existing and established relationship marketing constructs with minor wording changes for the context. Where context specific constructs have been introduced, the literature surrounding these has been examined, and the basis for inclusion detailed.

Chapter Four details the 27 specific test hypotheses which examine this investigation’s research questions. Seventeen of these hypotheses are confirmatory and concern the testing of this study’s adaptation of Morgan

and Hunt’s (1994a) nomological framework to a MMO context. Ten are exploratory and concern relevant demographic and contextual factors.

Chapter Five discusses how the research aim and questions of this study were operationalised into an investigation, with the research design approach detailed, discussed and mapped. Structural Equation Modelling in the study, a technique which synergises with Churchill’s (1979) approach, is then discussed. Structural Equation Modelling forms both a structural model and a measurement model and this study follows the two step process of first validating the structural model using Confirmatory Factor Analysis and then fitting the data to the measurement model using goodness-of-fit statistical measures. Structural Equation Modelling techniques emphasise that the measures are purified using Cronbach’s Alpha and Factor Analysis techniques, and this approach complements the concentration on internal validity and rigour that Churchill (1979) stresses.

Chapter Six discusses how the operational definitions of the constructs identified in Chapter Four were developed into the correspondence rules for specific measurement. This research follows the recommendation of Straub et al. (2004, p.413) that in positivist research, pre-validated instruments relating to the constructs being examined are highly desirable, and details both the rationale for the measures used and how they link to the domains of the constructs. Chapter Six also details the initial exploratory studies undertaken by this investigation and the pilot online survey used for construct measure refinement and purification (Churchill, 1979). The first exploratory study undertaken was a case study comprising three convergent elements; a pen and paper questionnaire survey of 162 final year university students, a netnographic approach using responses from 31 online gamers on a popular video games forum and field notes from contact with a World of Warcraft guild. The second study examined the elements of confidence and trust, and applied a netnographic approach to gather the views of eight long term MMO customers. The resultant questionnaire survey pilot is detailed with the role of the 26 participants in refining the research instrument discussed.

Chapter Seven then moves on to the questionnaire survey research instrument that was deployed, which collected data from 2226 MMO gaming customers. It examines issues such as the survey coverage, sampling and demographic benchmarking. Due to the confidential nature of subscriber numbers this study utilises the indirect method of asking the customers to participate rather than having a database to form a sampling frame. This study‘s resultant dataset benchmarks well with other large studies of MMO customers who have used similar data collection techniques.

Finally, this chapter discusses the application of the Structural Equation Modelling process to analyse the data collected. The latent constructs discussed in Chapter Four were tested using Confirmatory Factor Analysis, and they displayed a strong internal validity. In keeping with a two step approach, a Modification Index was applied, and the model re-specified based on the results (Arbuckle, 2009, p.112). The analysis found a coherent and internally valid structural model upon which to measure the data. The data was then measured on this structure using Goodness-of-Fit statistics, which display a good fit for the data to the model.

Chapter Eight details the statistical findings of this study from the examination of the 17 confirmatory hypotheses and the application of Alternative Models technique. The Seventeen Path Model, which includes all of the constructs presented in Chapter Three, is tested, and evidence is found to support 11 of Chapter Four’s hypotheses. However, for four of those 11 supported hypotheses it was noted that the Cohen’s f²of the relationship, the effect size of the relationship, was so low as to make it, using Cohen’s heuristic indicator, insignificant. Two Alternative Models are then presented.

First, this study follows the Morgan and Hunt (1994a) Commitment Trust Theory approach of comparing a model including all the relevant constructs (the Seventeen Path Model) against a linear additive “Rival Model”. This displays that placing Commitment and Trust at the centre of the relationships as mediating variables allows for a better interpretation of the data. This comparison gave evidence to support the mediating variable approach.

These findings are then compared to a further alternative model based on just those relationships which display a significant effect size; this model is termed the Five Path Model. This comparison showed that the Five Path Model fitted the sample data just as well as the Seventeen Path Model, and for a 70% reduction in complexity lost less than half a percent in explanatory power. This chapter then concludes by discussing the creation of knowledge from the findings, and considers issues of parsimony and interpretation. The alternative models compared by this study are considered with the role of parsimony seen to be “all things being equal, less is more” (Arbuckle, 2009, p.586). The argument is made that while the Seventeen Path Model does explain more, the trade-off of that 0.4% for a 70% reduction in the complexity of the explanation is judged to be acceptable, with the Five Path Model found to be a more efficient explanation of the re-subscription decision.

Chapter Nine then moves on to display the findings of the analysis of the ten exploratory hypotheses. It was found that a number of the constructs displayed statistically significant differences when particular factors were examined. This provided sufficient statistical evidence in a number of the constructs to reject the null hypothesis of no change, and accept the alternative hypothesis that there was a change due to the presence of that factor.

In Chapter Ten the combinations of psychological outcomes upon the customer’s decision are considered, and it is discussed that if benevolent trust is un-important in the relationship (but not insignificant), and the relationship is driven more by commitment and expectations of satisfaction, then a business-to-customer relationship in the MMO context can be expected to be more volatile. Finally, the constructs themselves are discussed, with an emphasis on what new knowledge this study adds to the evidence about each of them in a MMO product context.

Chapter Eleven concludes the thesis and summarises its theoretical, methodological and managerial contributions. The limitations of this study

are discussed and future research avenues are outlined to continue and develop the investigation’s findings.

1.10 Summary

This chapter has set out the foundations of this thesis. The gap in the literature which this study addresses has been defined as the gap between non-instrumental theoretical research that academics are providing, and the instrumental business-focused pragmatic research that the game developing practitioners are requesting. This chapter defines the research aim that this thesis addresses as examining the re-subscription decision, as understanding the drivers of commitment and retention in a MMO gaming product which lead to a customer deciding to re-subscribe.

The research context, the 50 million customers who make up the MMO gaming segment of the $4.3bn PC gaming market has then been introduced.

In this industry segment, the subscription based business model has been phenomenally successful and at the core of this business model is the commitment and loyalty of the customers who, month after month, re-subscribe to their entertainment product.

This chapter also gives an overview of the research methodology that has guided the study in its selection of appropriate methods, with the importance of Churchill’s (1979) approach to research design highlighted. Finally, an outline of the thesis was presented, and the boundaries and scope of the investigation defined.

On these foundations, this thesis now proceeds with a detailed examination of the background literature with a specific emphasis on the nomological framework which underpins this investigation: Commitment Trust Theory (Morgan and Hunt, 1994a).