ii)  Consumer Behaviour:

Where action research theory can aid informing the research structure and process, consumer behaviour research (specifically that found in virtual worlds) can perhaps help inform the strategy itself.  Literature and research surrounding the sale of virtual items in a virtual world is scarce due to the fact that this is a relatively new phenomenon.  Castranova (2001) scrutinised the economy in World of Warcraft to identify the nature of the economy and the value systems that are present. Castranova (2001) concluded that World of Warcraft has an operational economy with similarities to real life economies.  This provides a unique and insightful look at the forces at work within such an economy and suggests there may be certain forces that drive sales within a virtual world, including perhaps Habbo.  However Castronova’s (2001) study does not specifically help in understanding the value system in Habbo, as they are inherently different communities that have distinguished sales structures.  For example in World of Warcraft (WoW) items are bought through trading in-game currency or acquired by progressing through ‘difficulty’ levels set in the game.  Habbo on the other hand is a social game, but one where trading has opened up a structure with the supply and demand dynamics of an economy.  Here items are attributed a value by the community based on their (perceived) ‘relative scarcity’, as suggested by Reynolds (2003).  Items cannot be acquired through progression as there is no pre-determined ‘aim of the game’ set our by its publishers (Sulake), as there is for World of Warcraft.  Never the less we might in a broad sense consider treating Habbo as an economy and look at adopting economic theory in an attempt to increase sales.  However as Castronova (2003, pg 1) states himself “each world also seems to grow its own economy”.  This recognises that an economy in a virtual world “without real life restriction” (as Habbo asserts in its introductory DVD) is customised by both the developers and users and therefore unique.  Habbo has certain restrictions and functionalities that shape its unique structure (for example a furniture recycler where users can trade numerous items in for a unique piece of furniture).  As a result it is not considered that Castronova’s work can specifically help us identify the key variables that are going to be able to stimulate sales in Habbo.  Nor is it likely to be able to provide specific ways of improving our sales strategy, despite providing a useful insight, including some of the forces at work when community members acquire in-game items. 

From this it is suggested that such literature cannot be adopted without an initial understanding of the community structure, its idiosyncrasies and the relevance theory in relation to the Habbo community (and economic forces in the Habbo community specifically).  O’Brien (2006) points out that it is the views and insight of the audience that is crucial in devising an effective action research proposal.  We might also be able to generate enough information on which to base our strategy. Consumer behaviour research is useful in providing an informed perspective to how we might increase the effectiveness of our sales strategy.  Yet, an initial inquiry is crucial to understand the ‘needs’ and perceptions of the community, on which to ground the sales strategy...