Description
Case Analysis - Complete Case 2-3 Virtually Free (Pg. 155) Prepare in a Word document using APA guidelines for margins and page numbers in header and spacing. Re-write in bold font the questions asked. Follow that with a well developed narrative answering the questions substantively while also providing rationale. Two other references that are APA reputable should also be included along with your text with in-text citations to support your case within the case narrative as appropriate. (Example, you may want to expand more on social networks and their utility using a reputable outside source for the first case). Include a reference page. (100 points)
1) Consumers, whether adults are children, have to learn how to play online games like Tiny Zoo or Castleville. In this part of the book, learning is described as being either intentional or unintentional. Explain your opinion on whether these games are learned more by intentional or unintentional learning mechanisms.
2) Brand loyalty is an important marketing concept. Define the concept of schema. How important is the brand schema in consumer decisions to play these games? Do you think consumers think of the company (Zynga), the game (Cityville), or the host (Facebook) when playing the games?
3) All consumer behavior is motivated by something. What motivations underlie online gaming and purchasing of online games? In the case of parents paying for virtual goods used by their kids, what value is involved in the consumption?
4)Do consumer attitudes play a role in online gaming?
An old marketing adage puts forward the importance of creating customers. In times gone by, companies like Kodak were heralded for using inexpensive cameras like the Kodak 110 to create customers for film and film services. Kodak’s success lay in film, not in cameras. Perhaps the connection between Kodak and video games isn’t so obvious, but success in gaming is all about creating customers. Before the widespread adoption of online gaming, companies like Nintendo used game consoles as loss leaders to create customers for games. The online gaming companies don’t even have to manufacture or sell consoles as loss leaders. Zynga is one of the major players in online gaming. While Zynga’s original marketing strategy was to provide
games free to users and generate revenue from advertisers, they’ve morphed into a revenue model strongly driven by Facebook users. Zynga games like Castleville, Cityville, Farmville, Fishville, and Zynga Poker have become a social networking phenomenon in recent years. Zynga and other online gamers now use the “freemium” as the primary tool to create customers. The term freemium refers to the free games that companies offer to consumers as a tool to sell virtual products that help freemium customers succeed in their game play. Zynga grew on this business model to revenues topping $600 million in 2010 (from $1 million in 2008).1 Zynga went public with an initial stock offering in late 2011. Initially shares sold for $10 and showed a decline to about $5 by the middle of 2012.2 Zynga’s hope is to create more whales, a term referring to heavy consumers of virtual products. However, Zynga faces a lot more competition today than it did in 2011, as consumers find many more options for online games.3 Take for example TinyCo, makers of Tiny Zoo, available as an app in iTunes or for Android systems through Google. After playing Tiny Zoo for only
60 seconds, new users receive a message saying “looks
like you need more Coins to buy a Chickity Puff.” The idea behind the game is to amass a prized collection of virtual (not real) animals to display in the virtual (not real) zoo. Perhaps with more than a touch of irony, one of the prized animals is known as the Cash Cow! In case you haven’t guessed by now, TinyCo sells Tiny Zoo virtual coins for real money. One market segment for virtual products is children. One eight-year-old spent two months’ allowance ($50) when Tiny Zoo released a new batch of animals. These kids are not playing the games on computers but on their parents’ smartphones and tablets— or on their own tablets and iPods. Many parents willingly allow their kids to use payment apps to buy virtual products as a sort of babysitting device. After all, parents have always given in to kids in toy stores. Trouble is, unlike a real toy store, the app store is open 24-7 and the kid is in the store any time the smartphone is in their hands.4 Industry analysts expect the mobile gaming business to grow fivefold to nearly $20 billion per year by 2015.
The growth may seem like good news for Zynga, but many questions linger. Among these questions are the following: ▸▸ Zynga games are predominantly played on PCs through Facebook. Consumer trends seem to be moving toward gaming on mobile devices. Zynga would be a latecomer to this market. Will consumers continue to play games like Farmville on Facebook or will consumers substitute gaming on mobile devices at the expense of Zynga? ▸▸ Zynga is closely tied to Facebook. Is this risky? ▸▸ Apple’s new operating system will facilitate social networking simultaneously with the use of many online games. Will this make Zynga’s typical distribution outdated? ▸▸ Can Zynga continue to develop new and creative freemiums given the large number of app designers entering the gaming market? With these issues in mind, Zynga may need to rethink their marketing strategy. Consumer behavior knowledge may be useful to them in better understanding their customers
Explanation & Answer
It has been great working with you right from the start to the end. I wish you all the best in your academics. Feel free to ask me any questions in the future. Finally, kindly rate me when you get a chance, please. Thank you in advance!
Running head: ONLINE GAMING
1
Online Gaming
Name
Institutional Affiliation
Date
ONLINE GAMING
2
Online Gaming
Online games are have become popular nowadays and they are played by children and
adults. These games can be played using mobile devices or PCs. Playing online games can be
addictive especially to children and young adults. Children either use their parents’ phones or have
their own phones or iPods and they should be monitored as they tend to use a lot of time playing
these games.
Consumers whether adults or children have to learn how to play online games like Tiny Zoo
or Castle vile. In this part of the book, learning is described as being either intentional or
unintentional. Explain your opinion on whether these games are learned...
Review
Review
