Experiential over functional: how intrinsic motivation and identity drive virtual goods consumption in digital service platforms

Purpose This study aims to investigate why experiential value attributes systematically outweigh functional and social value dimensions in driving purchase intentions for character-based virtual goods in F2P digital platforms. Drawing on the theory of consumption value, self-determination theory, and extended self theory, the study develops an integrative framework explaining how motivational internalization and identity incorporation produce the observed dominance of experiential value. The study addresses a persistent theoretical gap in consumer value research by identifying the psychological mechanisms through which certain value dimensions translate into sustained behavioral commitment while others do not. Design/methodology/approach This study employs a theory-testing survey design administered to 192 active players of a character-centric free-to-play (F2P) platform. Respondents were recruited from an official online community dedicated to the focal game. All constructs were measured using multi-item scales adapted from established literature and assessed on seven-point Likert scales. Structural equation modeling (SEM) was used to test hypothesized relationships among consumption value dimensions, attitude, and purchase intention. Reliability and validity were confirmed via Cronbach's alpha, composite reliability, average variance extracted, and the Fornell–Larcker criterion. Gaming intensity was included as a moderating variable. Findings Experiential value dimensions – aesthetics and playfulness – exerted the strongest effects on attitude toward virtual characters, consistent with intrinsic motivation processes. Functional dimensions of quality and competency showed no significant effects, while price utility emerged as the only functional predictor. Social value dimensions were non-significant, attributed to identity incorporation processes through which players embed virtual characters into their self-concept, reducing reliance on external social validation. Attitude strongly mediated the relationship between value perceptions and purchase intention. Gaming intensity moderated the effects of price utility and self-image representation among high-intensity players. Research limitations/implications The cross-sectional design limits causal inference, and findings are based on a single character-centric F2P game, constraining generalizability. Future research should employ longitudinal designs and replicate the framework across diverse game genres and platform types. Theoretically, the study extends consumption value theory by introducing motivational internalization as an explanatory mechanism for differential value effects, and establishes identity incorporation as a boundary condition attenuating social value. For marketers and platform designers, findings suggest that investments in aesthetic design, narrative depth, and experiential richness yield stronger returns than performance-oriented differentiation. Practical implications Platform designers and marketing managers should prioritize aesthetic quality, narrative depth, and playful interaction in character design, as these experiential attributes drive attitude formation and purchase intention more powerfully than performance-based differentiation. Pricing strategies should maintain transparency and perceived fairness, as price utility remains significant even among highly engaged players. High-intensity players exhibit heightened sensitivity to both economic value and symbolic representation, suggesting opportunities for differentiated monetization strategies targeting distinct engagement segments. Platforms should approach character monetization as a long-term relationship-building mechanism, fostering emotional attachment and identity relevance rather than pursuing short-term transactional revenue extraction. Originality/value This study makes three original contributions to the marketing literature. First, it resolves a persistent empirical anomaly in consumer value research — the systematic dominance of experiential over functional value in voluntary digital consumption — by introducing motivational internalization via self-determination theory as an explanatory mechanism, moving beyond descriptive categorization toward theoretical explanation. Second, it establishes identity incorporation as a boundary condition under which social value loses predictive power, directly challenging prevailing assumptions about social signaling in digital consumer behavior. Third, it reconceptualizes character-based virtual goods as experiential, identity-embedded consumption objects – a category distinct from generic digital products – opening new directions for marketing research on hedonic consumption, digital brand relationships, and platform-based value creation.