Alvari Suwarno - 01013170012 - Thesis - MGT - Signed

THESIS
THE EFFECT OF USES AND GRATIFICATIONS ON
CUSTOMER ENGAGEMENT TOWARDS LEAGUE OF
LEGENDS PLAYERS MICROTRANSACTION
PURCHASE INTENTION
Written as a partial fulfilment of the academic

requirements to obtain a degree of Sarjana Manajemen
By:
NAME : ALVARI
SUWARNO ID NUMBER :
01013170012
STUDY PROGRAM OF MANAGEMENT

FACULTY OF ECONOMICS AND
BUSINESS UNIVERSITAS PELITA
HARAPAN JAKARTA
2021
Assignment Statement and Upload Agreement
vi
UNIVERSITAS PELITA HARAPAN FACULTY OF ECONOMICS AND BUS
THESIS APPROVAL
THE EFFECT OF USES AND GRATIFICATIONS ON
CUSTOMER ENGAGEMENT TOWARDS LEAGUE OF LEGENDS
PLAYERS MICROTRANSACTION PURCHASE INTENTION
By:
Name : Alvari Suwarno

NPM : 01013170012
Study Program : Management
This thesis has been checked and recommended for final comprehensive oral
defense to get a Sarjana Manajemen at the Universitas Pelita Harapan, Tangerang,
Banten.
Tangerang, May 1st,

2021 Approved by:
Supervisor
(Dr. Moses L. P. Hutabarat, S.Kom., S.E., M.M.)
Head of Management Study Program Dean of Faculty Economics and Business
(Isana S.C. Meranga, S.P., M.M.) (Dra. Gracia Shinta S. Ugut, MBA, Ph.D.)
v
UNIVERSITAS PELITA HARAPAN FACULTY OF ECONOMICS
THESIS DEFENSE COMMITTEE
On Monday, June 7th, 2021, a comprehensive exam was held to fulfil one of the
academic requirements to achieve Sarjana Manajemen, Faculty of Economics and
Business, Management Study Program, Universitas Pelita Harapan, as follow:
Name : Alvari Suwarno

NPM : 01013170012
Study Program : Management
Included in the final examination of this thesis entitled “THE EFFECT OF
USES AND GRATIFICATIONS ON CUSTOMER ENGAGEMENT
TOWARDS LEAGUE OF LEGENDS PLAYERS MICROTRANSACTION
PURCHASE
INTENTION” with the thesis defense committee as follows:
Name Position Signature
1. Dr. Sabrina O. Sihombing, ,as Head of the
Committee S.E., M.Bus.
2. Dr. Moses L. P. Hutabarat, ,as Supervisor and Member
S.Kom., S.E., M.M. of the Committee
3. Juniarty S.Sos., M.M. ,as Member of the Committee
v
ABSTRACT
Alvari Suwarno (01013170012)
The Effect of Uses and Gratifications on Customer Engagement
Towards League of Legends Players Microtransaction
Purchase Intention
(137 pages; 6 figures; 30 Tables; 3 Appendix)
Nowadays, innovative business opportunity always seems to present themselves,

which in the case of Riot games and their games League of Legends, they adopted
the microtransaction business model, where it allows them to provide their
services for free while making the payment optional. This uniqueness is what led
to the creation of this study, which is how can League of Legends able to attract
their players to purchase a virtual item on a free game. For this reason, this
research is going to research the effect of customer engagement and uses and
gratifications towards the League of Legends player purchase intention, which is
why the quantitative data from 225 respondent which live in JABODETABEK
and plays League of Legends are collected using online questionnaire in the form
of non-probability sampling. This quantitative data is then analysed using the
structural equation method (SEM) based on the previously collected quantitative
data. The result shows that 11 out of 14 hypotheses being accepted, while the
other 3 being rejected, with most of the dimensions of customer engagement and
purchase intention having the most positive influence, with flexibility having the
least positive influence.
Keywords: Microtransaction, Purchase Intention, Customer Engagement, Uses
and Gratifications.
Reference: 100 (2001 – 2021)
v
ACKNOWLEDGEMENTS
Praise to Almighty God for the entire blessing that has been given. Without His
wisdom, perseverance, and guidance, the author will not be able to complete this
thesis.
This thesis titled “The Effect of Customer Engagement and Uses and
Gratifica- tions Theory Towards JABODETABEK League of Legends Players
Microtransac- tion Purchase Intention” is aimed to fulfil the final requirement to
attain the Sarjana Ekonomi Degree in Management, University of Pelita Harapan,
Karawaci.
Without various people supporting and encouraging the author, this thesis
wouldn’t be complete. Which is why this section of the paper is dedicated to those
that has helped the author along the creation of this thesis, namely to:
1. Gracia Shinta S. Ugut, MBA., Ph.D., as the Dean of Faculty Economics of
Universitas Pelita Harapan.
2. Isana S.C. Meranga, S.P., M.M., as the Head of Management Study Pro-
gram of Universitas Pelita Harapan.
3. Dr. Moses L.P. Hutabarat, S.kom., S.E., M.M. as thesis supervisor that has
helped, guided, and assisted me throughout the writing process.
4. Dr. Ir. Evo S. Hariandja, M.M., as the AOE of Marketing of Universitas
Pelita Harapan
5. Liza Handoko, S.E., M.M., as the author’s Academic Advisor since 2017.
v
6. All lectures and staff in UPH Business School who have taught and helped
during these past 3,5 years both academically and non-academically.
7. My beloved parents, Suwarno and Lanny Sanggaya for their continuous
support and prayers throughout the writing process.
8. My sister Laura Amanda for her continuous support of me throughout the
writing process.
9. All my friends that have supported me throughout the writing process.
10. Each and every one of the respondents that took their time to participate in
the questionnaire which helped with the completion of the thesis.
Finally, the author realized that the paper is far from perfect, and many
improve- ments still can be made, which is why any suggestion, criticism, and
opinion are absolutely welcome in order to improve this paper and any paper that
the authors may make in the future. Hopefully with the creation of this thesis
paper are useful to those who read it.
Tangerang, April 19th, 2021
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TABLE OF CONTENTS
Final Assignment Statement and Upload Agreement.........................................ii

THESIS APPROVAL...........................................................................................iii
THESIS DEFENSE COMMITTEE....................................................................iv
ABSTRACT............................................................................................................v
ACKNOWLEDGEMENTS..................................................................................vi
TABLE OF CONTENTS...................................................................................viii
LIST OF TABLES...............................................................................................xii
LIST OF APPENDICES....................................................................................xiii
Chapter 1: Introduction........................................................................................1
1.1 Research Background.....................................................................................1
1.2 Problem Statements and Research Question..................................................8
1.3 Purpose of study.............................................................................................9
1.4 Research Benefits.........................................................................................10
1.5 Research Contributions................................................................................11
1.6 Systematic Outline.......................................................................................12
Chapter 2: Literature Review.............................................................................15
2.1 Purchase Intention........................................................................................15
2.2 Customer Engagement.................................................................................16
2.2.1 Vigor in Customer Engagement............................................................17
2.2.2 Dedication in Customer Engagement....................................................17
2.2.3 Absorption in Customer Engagement....................................................18
2.3 Uses and Gratification..................................................................................18
2.3.1 Entertainment in Uses and Gratification................................................19
2.3.2 Flexibility in Uses and Gratification......................................................19
2.3.3 Self-presentation in Uses and Gratification...........................................20
2.4 Previous Research........................................................................................21
2.5 Relationships between Variables and Research Hypothesis........................23
2.5.1 Vigor towards Purchase Intention.........................................................23
2.5.2 Dedication towards Purchase Intention.................................................23
2.5.3 Absorption towards Purchase Intention.................................................24
2.5.4 Relationships among Customer Engagement Dimensions....................24
2.5.5 Entertainment towards Vigor, Dedication, and Absorption..................25
2.5.6. Flexibility towards Vigor, Dedication, and Absorption.......................26
2.5.7 Self-presentation towards Vigor, Dedication, and Absorption..............27
2.6 Research Model........................................................................................28
Chapter 3: Research Methodology.....................................................................30
3.1 Research Design...........................................................................................30
3.1.1 Research Classification..........................................................................30
3.1.2 Research Subject and Object.................................................................31
3.1.3 Unit of Analysis.....................................................................................31
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3.2 Population and Sample.................................................................................32
3.2.1 Sample Size...........................................................................................33
3.3 Data Collection Method...............................................................................33
3.3.1 Measurement Scale................................................................................33
3.4 Conceptual Definition and Operational Definition......................................35
3.5 Data Analysis Method..................................................................................38
3.5.1 Descriptive Statistic...............................................................................38
3.5.2 Inferential Statistic.................................................................................39
3.6 Pre-test Study...............................................................................................40
3.7 Validity Test.................................................................................................40
3.8 Reliability Test.............................................................................................41
3.9 Partial Least Square-Structural Equation Modelling (PLS-SEM)...............42
3.10 Multicollinearity Test.................................................................................42
3.11 Outer Model Evaluation.............................................................................43
3.12 Inner Model Evaluation..............................................................................43
3.13 Pre-Test Result...........................................................................................44
3.14 Results of Preliminary Study Validity Test................................................45
3.15 Results of Preliminary Study Reliability Test............................................48
Chapter 4: Findings and Analysis.......................................................................50
4.1 Respondent Profile.......................................................................................50
4.1.1 Respondent Profile based on Gender.....................................................50
4.1.2 Respondent Profile based on Age.............................................................51
4.1.3 Respondent Profile based on Residence................................................52
4.1.4 Respondent Profile based on Employment............................................52
4.1.5 Respondent Profile based on Income Per Month..................................53
4.1.6 Respondent Profile based on Playtime Per Day....................................54
4.1.7 Respondent based on Previous Purchase...............................................54
4.2 Actual Test...................................................................................................55
4.3 Descriptive Statistics....................................................................................55
4.3.1 Entertainment.........................................................................................56
4.3.2 Flexibility...............................................................................................56
4.3.3 Self-Presentation....................................................................................57
4.3.4 Vigor......................................................................................................58
4.3.5 Dedication..............................................................................................59
4.3.6 Absorption.............................................................................................60
4.3.7 Purchase Intention.................................................................................61
4.4 Outer Model Evaluation...............................................................................62
4.4.1 Convergent Validity...............................................................................62
4.4.2 Discriminant Validity............................................................................64
4.4.3 Reliability Test.......................................................................................66
4.5 Inner Model..................................................................................................68
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4.5.1 Hypothesis Testing................................................................................69
4.6 Discussion....................................................................................................71
Chapter 5: Conclusion.........................................................................................76
5.1 Conclusion....................................................................................................76
5.2 Managerial Implication................................................................................77
5.3 Research Limitations....................................................................................81
5.4 Research Suggestion and Recommendation.................................................82
References.............................................................................................................83
Appendix...............................................................................................................95
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LIST OF FIGURES
Figure 1. 1 Games Company Microtransaction Earnings in 2019...........................4

Figure 2. 1 Research model....................................................................................29
Figure 3. 1 Measurement Scale..............................................................................34
Figure 3. 2 Research model before adjustment......................................................45
Figure 3. 3 Adjusted Research Model....................................................................49
Figure 4. 1 Actual Research Model.......................................................................68
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LIST OF TABLES
Table 3. 1 Conceptual Definitions and Operational Definitions............................35

Table 3. 2 Likert Scale...........................................................................................39
Table 3. 3 Outer Loadings Result..........................................................................45
Table 3. 4 AVE Value............................................................................................47
Table 3. 5 Discriminant Validity Table.................................................................47
Table 3. 6 Composite Reliability...........................................................................48
Table 4. 1 Respondent Profile based on Gender....................................................51
Table 4. 2 Respondent Profile based on Age........................................................51
Table 4. 3 Respondent Profile based on Residence...............................................52
Table 4. 4 Respondent Profile based on Employment...........................................52
Table 4. 5 Respondent Profile based on Income Per Month..................................53
Table 4. 6 Respondent Profile based on Playtime Per Day....................................54
Table 4. 7 Respondent based on Previous Purchase..............................................55
Table 4. 8 Mean Values of Entertainment.............................................................56
Table 4. 9 Mean Values of Flexibility...................................................................56
Table 4. 10 Mean Values of Self Presentation.......................................................57
Table 4. 11 Mean Values of Vigor.........................................................................58
Table 4. 12 Mean Values of Dedication................................................................59
Table 4. 13 Mean Values of Absorption................................................................60
Table 4. 14 Mean Values of Purchase Intention....................................................61
Table 4. 15 AVE Value in Actual Test..................................................................62
Table 4. 16 Outer Loading Value in Actual Test..................................................63
Table 4. 17 Fornell-Larcker Criterion Value in Actual Test..................................64
Table 4. 18 Cross Loading Value in Actual Test...................................................65
Table 4. 19 Cronbach’s Alpha Value in Actual Test.............................................66
Table 4. 20 Composite Reliability Value in Actual Test.......................................66
Table 4. 21 VIF Value in Actual Test....................................................................67
Table 4. 22 R-squared Adjusted Value in Actual Test..........................................69
Table 4. 23 Hypothesis Testing Result..................................................................71
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LIST OF APPENDICES
Appendix A: Questionnaire...................................................................................95
Appendix B: SmartPLS 3.0 Test Result...............................................................102
Appendix C: Research Model..............................................................................107
Appendix D: Replicated Journals........................................................................108
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Chapter 1: Introduction
This chapter would briefly explain the research background to help familiarize
the readers regarding the context of the research by giving brief information
regarding the focus of this research, which are microtransactions, and Riot
Games, and subsequently their most popular games, League of Legends to serve
as the subject of study. This chapter would also talk about the problem statements
and research questions, purpose of study, research benefits, research contributions,
and research outline.
1.1 Research Background
Nowadays, digital electronics ownership became more prevalent in the indus-
trialised world due to the increase in requirement for industry standards, the rapid
fall in cost of devices, and the increase of economical and purchasing power of the
general populace. These phenomena influence technology by advancing them in
all sectors, particularly in the entertainment sector. This advancement in the
entertainment sector opens so many new opportunities for technology to be
integrated and monetized.
The example of this technology integration in the world of entertainment is in
the form of Video Games. A video game is a type of entertainment application
that can be played through various devices, such as a personal computer, a laptop,
a game console, and even a mobile phone. Compared to now, the early generation
of
1
video games are very simple. One example of this is a video game which consists
of only two blocks trying to bounce a small ball to the opposing side, imitating
table tennis. This game would be called “Pong” and was founded in 1973 on a
very simple arcade machine.
These days, technological development allows video games to be as creative
and innovative as the developer intends. This could be done due to today’s
hardware capability that was not available in the past (Bossom & Dunning, 2017).
This pro- gression in video games opened new ways in terms of video game
design and video game monetization. While in the past, the possibility of how a
video game company can monetize their products are extremely limited, being
only the “pay to play” model where a player must either put money in an arcade
machine or buy both the game system and the game itself to enjoy the game.
Nowadays, it is possible for a video game to be offered as a service, meaning a
video game company can constantly monetize the game beyond its initial release
by periodically releasing content and supporting the game through various
updates (Cook, 2018). This new type of video game system also gave rise to a
new type of business model called “microtransaction”.
In-app purchasing or microtransactions refers to the ability of a customer to be
able to purchase perks or add-on that the customer can purchase from inside the
app itself. This type of business model is common but is not strictly limited to free
to play apps. The reason why this type of video game business is common is
because
2
this type of business allows a company to earn revenue and constantly update their
services while providing their base services for free (Iglesia & Gayo, 2008)
The microtransaction business model in video games was first used by a game
called “Habbo Hotel” in 2001, where players can purchase various cosmetics such
as clothing to customize their characters (Berlo & Liblik, 2016). From then on,
many games adopt this business model due to the success it brings, such as
Fortnite in 2017, Counter Strike: Global Offensive in 2012, and League of
Legends, which was released in 2009, which coincidentally are the main subject
of this study.
Microtransaction business model is interesting because the customers are not
required to pay, yet they are still able to enjoy the services provided by the
company, which means the transaction parts are completely optional. For this
reason, it is interesting to find out how video game companies can attract their
players to partake in the game’s microtransaction option that are completely
optional, and still earn lots of revenue. And in some cases, such as Riot Games,
made it their main mode of generating revenue.
While microtransaction business model has been adopted with varying degree
of success, it is still a relatively new business model compared to the conventional
pay to play business model, which means there are still a lot of opportunities to
explore this business model by learning deeper about this business model and
learn how to effectively integrate it and promote it to the customers.
3
Figure 1. 1 Games Company Microtransaction Earnings in 2019
Source: Tweaktown (2019)
While previous research has been conducted by Taozhen Huang, Zheshi Bao,
and Yan li regarding the topic of microtransactions in video games titled “Why do
players purchase in mobile social network games? An examination of customer
engagement and of uses and gratifications theory” in 2017, the scope of the
research is still limited due to the research coverage of only the purchase intention
on Chi- nese mobile social network games or M-SNG for short players in WeChat
games, which means the research can still be expanded upon by replicating the
research on a different research subject to broaden the research scope. Another
reason why a replication is made is because the replicated research focuses on M-
SNG, their research findings might be different if applied to other subjects, such
as JABODETABEK League of Legends players, which is a computer game,
which
4
means this research can also help to better integrate the exploration of purchase
intention in microtransaction using customer engagement theory and uses and
gratification theory on a different subject.
This paper aims to replicate the previous study by finding out the effect of cus-
tomer engagement and the uses and gratification theory on the player’s purchase
intention to effectively promote the player’s payment towards the game itself.
This is done by applying the research model of previous studies into other
subjects, which in this case JABODETABEK League of Legends player by
exploring the purchase intention behind microtransaction by integrating customer
engagement theory and uses and gratification theory to better promote player’s
purchase.
Customer engagement theory is a theory regarding the customer attitudes to-
wards a firm or company that goes beyond simple purchase (Doorn et al., 2010),
meaning this theory studies the customer relationships that goes beyond simple
transactions, while Uses and gratification theory is a social communications
theory that focuses on the concept that a media most important role is to fulfil the
needs of its audience (Mehrad & Tajer, 2016.), meaning that this theory will
explore the reason why someone would need and seek out a specific media, or in
other words why do players choose to play a particular game. Due to the nature of
microtransactions where users are not required to participate in it, this paper is
going to utilize these two theories to explore the purchase intention by finding out
if the customer engagement and player’s uses and gratification has a positive
5
effect on player’s
6
purchase intention and utilizing it to promote player’s initial purchase or
encourage repeat purchase.
This paper is going to use Riot Games as the subject of study. The reason on
why Riot Games, and subsequently their most popular game League of Legends
are chosen as the main subject of this study is because from the game’s
inception, the game was planned to be a free to play with additional perks that a
player can buy to enhance the game experience, or in other words, a
microtransaction business model.
Riot Games was founded in 2006 by Marc Merril and Brandon Beck. When
this company was founded, they believed that the weakness of the gaming
industry at that time was that game developers were jumping from game to game
too quickly, which is why Riot Games founder believed that an already existing
game called “Defense of The Ancients”, or DOTA which was a popular game at
that time can be developed even further, and even monetized. which is why in
2009, Riot Games released their first game, called “League of Legends” (Kollar,
2018).
What made the game different at that time other than the development principle
behind it, is the business model. They believed that the game should be monetized
differently. While at the time the popular business scheme in the west was the
clas- sic “pay to play”, where consumers would pay a certain amount of money to
play the game. League of Legends, or Onslaught, as it was called at the time of
7
develop-
8
ment, was going to be monetized differently. They are going to take the
microtransaction model which is getting more popular in Asia. This business
model means that the company would provide the game for free and put in an
optional transaction in the game that the player can purchase to get extra benefits
(Crecente, 2019).
League of Legends is a game where two teams of opposing sides consisting of
five players on each team battle each other using various characters or
“champions'' as the game calls them each with unique abilities to destroy the
opposing team base (Wolf, 2020). The microtransaction aspect of this game
mostly consists of various champions the players can buy or cosmetics to change
the looks of the player characters (Kordyaka & Hribersek, 2019). Other
microtransaction options also include, but are not limited to name change, account
profile pictures, and emotes (Thorn, 2019).
Based on the previously stated problem, research topic regarding microtransac-
tion and how to effectively promote it are still uncommon, which is why this re-
search aims to find out how to effectively promote player’s payment in
microtransaction by exploring the effect of their engagement level and their uses
and gratification on their purchase intention by using customer engagement
theory and uses and gratification theory respectively on JABODETABEK League
of Legends player.
9
1.2 Problem Statements and Research Question
As a relatively new business model, microtransaction business models need to
be able to compete with the traditional business model due to the nature of micro-
transaction that allowed customers to not participate in it if they so choose when
enjoying a service that adopted these business models, which is why
microtransaction business model adopters needed to find out how to attract
potential customer to partake in microtransaction purchase.
The research questions for this research study are:
RQ1: Does player vigor have a positive influence on purchase intention?
RQ2: Does player dedication have a positive influence on purchase inten-
tion?
RQ3: Does player absorption have a positive influence on purchase inten-
tion?
RQ4: Does player absorption have a positive influence on a player's
dedication?
RQ5: Does player dedication have a positive influence on a player's vigor?
RQ6: Does player entertainment have a positive influence on a player's
vigor?
RQ7: Does player entertainment have a positive influence on a player's
dedication?
RQ8: Does player entertainment have a positive influence on a player’s
absorption?
10
RQ9: Does player flexibility have a positive influence on a player's vigor?
RQ10: Does player flexibility have a positive influence on a player’s dedi-
cation?
RQ11: Does player flexibility have a positive influence on a player’s ab-
sorption?
RQ12: Does player self-presentation have a positive influence on a
player’s vigor?
RQ13: Does player self-presentation have a positive influence on a
player's dedication?
RQ14: Does player self-presentation have a positive influence on player’s
absorption?
1.3 Purpose of study
The purpose of this research study is:
1. To determine if player vigor has a positive influence on the purchase
intention.
2. To determine if player dedication has a positive influence on purchase in-
tention.
3. To determine if player absorption has a positive influence on purchase in-
tention.
4. To determine if player absorption has a positive influence on a player's
dedication.
11
5. To determine if player dedication has a positive influence on a player's
vigor.
6. To determine if player entertainment has a positive influence on a player's
vigor.
7. To determine if player entertainment has a positive influence on a player's
dedication.
8. To determine if player entertainment has a positive influence on player’s
absorption.
9. To determine if player flexibility has a positive influence on a player's vigor.
10. To determine if player flexibility has a positive influence on a player’s
dedication.
11. To determine if player flexibility has a positive influence on a player’s ab-
sorption.
12. To determine if player self-presentation has a positive influence on a play-
er's vigor.
13. To determine if player self-presentation has a positive influence on a play-
er's dedication.
14. To determine if player self-presentation has a positive influence on
player’s absorption.
1.4 Research Benefits
The benefits of this research study are:
12
1. For those that are considering or are already participating in microtransac-
tion business models, this research paper helps them by giving them an un-
derstanding on how their level of engagement towards the game itself
could affect their purchase intention, which would allow them to make
better decisions regarding their purchase in future if they so choose.
2. For companies that want to adopt the relatively new microtransaction busi-
ness model, this study is useful in that companies can learn how their cus-
tomer engagement is able to affect their purchase intention. What this
means is that companies can learn from this study result to positively alter
their customer purchase intention towards their product.
1.5 Research Contributions
1. For the theoretical contributions, this research can prove to be useful in un-
derstanding how customer engagement level and their reason for playing
the game can influence a customer purchase intention, and their
significance in influencing customer purchase intention.
2. For the practical contributions, the result of this research study can be used
in two ways:
13
1. From the customer perspective, the result of this research can be used
to make better decisions regarding their microtransaction purchases by
understanding how their engagement level is able to affect their purchase
intention.
2. From a company perspective, the result of this research can be used to
observe the effect of customer engagement regarding their purchase inten-
tion when partaking in micro-transaction, which means a company can use
the result of this research to set a strategy to alter the customer purchase
intention favourably
1.6 Systematic Outline
To define the outline of the research paper, an outline will be presented and ex-
plained below:
Chapter 1: Introduction
This section would talk about the research background to help the reader get
acquainted with the research topic, the research problem, the research topic, the
research objectives, and the scope and the limitation of the research.
Chapter 2: Literature Review
14
This section of the paper would talk about the theoretical framework of the re-
search paper, and this section would explore in depth the independent and depend-
ent variables and previous studies that serves as the basis for this research paper.
This paper would also talk about the connection between each variable, which
would result in the proposal of hypothesis and research model.
Chapter 3: Research Method
This section of the paper would talk about the research process and will
describe the design of the research, the analytical method of the research, sources
for the data and their types, population and sample, descriptive analysis, validity
and reliability testing, operational definition, and last but not least pre-test and
hypothesis testing method.
Chapter 4: Findings and Analysis
This section of the paper would talk about the findings of the research and ana-
lyze them based on the methods that are explained in previous chapter, and the
topics that would be discussed in this chapter would consist of: the profile of the
respondent, descriptive statistics, validity test, reliability test, hypothesis testing,
and finally the result of the hypothesis testing.
Chapter 5: Conclusion and Suggestions
15
This section of the paper would talk about the conclusion of the research, the
managerial implications, limitations, and suggestions regarding how the papers
can be further improved and personal reflection.
16
Chapter 2: Literature Review
This chapter would discuss the relevant theories that go into the research,
which consists of purchase intention, customer engagement theory, and the uses
and gratification theory. This chapter would go in depth on each of the theories
and all their components while also giving context on how these theories and their
subsequent components relate to the research paper as a whole.
2.1 Purchase Intention
Purchase intention is the preference in buying products or services for the con-
sumer, meaning it’s the decision making process that goes through the customer
before they make their purchase (Younus, Rasheed, & Zia, 2015). This decision
making process is affected by many external factors (Haris, 2012). This external
factor can come not just from the object of purchase itself, but from the
geographic, demographic, or the group surrounding the individual (Madahi &
Sukati, 2012). which in the context of this research is if they are positively
affected by the various dimensions of customer engagement and uses and
gratifications in their microtransaction purchase intention, with customer
engagement being their behaviour and feelings towards the game and uses and
gratifications being their reason for playing the game in the first place (Huang,
Bao, & Li, 2017).
17
2.2 Customer Engagement
Customer Engagement is defined as a behavioural construct that goes beyond
purchase (Doorn et al., 2010). This means that customer engagement encompasses
any behaviour and feelings of a customer towards your brand. This behaviour and
feelings can be positive, such as recommending the brand to other people, leaving
good reviews, and making repeat purchases. But this can also be negative, such as
encouraging other people NOT to buy from a certain brand, leaving negative re-
views, and not making repeat purchases.
In the context of this research, customer engagement is going to be broken
down into three different parts on how they’re going to affect the player’s
purchase intention. These parts consist of Vigor, Dedication, and Absorption. To
briefly explain, Vigor is described as the feeling of energeticness when playing
the game (Chuang, 2020). Next is dedication, which is described as the feeling of
commitment that a player has towards the game (Cheung, Shen, Lee, & Chan,
2015). The final one is absorption, which is described as the feeling of how
absorbed the players are towards the game which can be described as a “flow”
state (Harris, Vine, & Wilson, 2017). These three different parts of customer
engagement are going to be explained further on how they relate to the customer
engagement in its entirety (Huang et al., 2017).
18
2.2.1 Vigor in Customer Engagement
Vigor can be described as the feeling of energeticness (Chuang, 2020) , which
in the context of this research is their level of energy when playing the game. This
feeling of energeticness when playing the game can determine the effort an
individual will put into their game and the time that they invest to play the game
(Cheung et al., 2015). This means the more a player feels excited when playing
the game, the more they will invest their time and be engaged towards the game
itself. This energeticness may encourage repeat usage due to the feeling of
energeticness that is provided to the players through the game.
2.2.2 Dedication in Customer Engagement
Dedication in customer engagement can be described as the level of
commitment of a player towards the game, meaning how dedicated are the players
towards the game. This dedication can also be described as their level of
enthusiasm, pride and commitment towards the game (Cheung et al., 2015), and
this feeling of loyalty and dedication can also be attributed to the player’s feeling
of satisfaction towards the game (Khadka & Maharjan, 2017), be it from the
entertainment value that the game provides, the flexibility that are given to
players, or the game’s ability to allow its player to represent themselves in various
ways, such as through in game rank or cosmetics (Huang et al., 2017). This
feeling of dedication can also be stated as how much do the players care about the
game itself and their progress in those games, and their satisfaction towards the
game ability to fulfill their needs.
19
2.2.3 Absorption in Customer Engagement
Absorption in customer engagement can be described as how absorbed are the
players towards the game. This absorption can also be described as how much a
player is engrossed towards the game and how “involved” are the players towards
the game (Cheung et al., 2015). What is meant by involved is that on low involve-
ment level in games, players are just playing to pass the time, for example while
they are waiting for transport, while if the player has a high involvement towards
the game, they will immerse themselves in the games, sometimes to the point of
their attention are narrowed to focus just on the game itself, which to give an
example is a game player that sets a time on their schedule to focus specifically
on playing the game (Huang et al., 2017). Absorptions are also described as a
“flow state”, where one’s attention is completely focused to the task they’re
performing, and all other irrelevant thoughts are blocked out. (Harris et al., 2017)
2.3 Uses and Gratification

Uses and Gratification, or “need seeking” is a social communications theory
that states that the most important role for a media is to fulfill the needs of its
audience (Mehrad & Tajer, 2016), meaning uses and gratification theory is a
theory that studies why people seek a certain media, or in the context of this
research is why do people choose to play a particular game (Li et al., 2015).
In the context of this research, uses and gratification are going to be broken
down in three parts based on the reason why JABODETABEK League of Legends
players
20
play League of legends. The first one is from the entertainment side, meaning how
much a player enjoys the game and how much fun they’re having when playing
the game. The second one is flexibility, meaning how convenient the players
found the game to be played and how lost in time the players are when playing the
game. The third one is self presentation, meaning how presented are the players
when playing the game, such as the players portrayal of skill or their portrayal of
ingame status, be it in the form of cosmetics or ranks that other players can see
(Huang et al., 2017).
2.3.1 Entertainment in Uses and Gratification

Entertainment in uses and gratification can be described as the feeling of enjoy-
ment and fun when players are playing the game (Huang et al., 2017), and Enter-
tainment are the activities that are performed for the sole purpose of attaining en-
joyment and pleasure instead of the traditional extrinsic rewards, meaning the
hap- piness that is experienced by an individual while performing the activity is its
own reward (Bates & Ferri, 2010). In the context of this research, the
entertainment aspect can also be described as the entertainment-based reasoning
when they are playing the game. For example, a player may play the game
because they find the game enjoyable, or because they find that playing the game
gives them thrills and makes them excited to be playing more of the game.
2.3.2 Flexibility in Uses and Gratification

Flexibility in uses and gratifications can be described as the level of
accessibility and the ease of access of the game for players to play (Huang et
al., 2017). This

21
feeling of flexibility may encourage the players to play more of the game due to
the ease of accessing the game. A game may be easily accessible due to the device
it's played on (usually in the form of portable device) compared to the
conventional device (Wei & Lu, 2014). or the flexible time investment needed
from the players to play the game, such as a game that can be stopped at any time
without stopping in game progress, or the opposite end, where the game needed
the player to dedicate a certain amount of time to play the game in order to
progress. Flexibility reasoning to play the game can take the form of a player
playing the game because it is convenient to play the game and don't require
high commitment, be it from time or focus standpoint or because they can begin
and stop playing the game at any time (can stop playing without losing in-game
progress) (Chiapello, 2013)
2.3.3 Self-presentation in Uses and Gratification

Self-presentation in uses and gratifications can be described as the ability to
show players self-image in the game, be it from showing a player skill, or through
cosmetic items (Lee et al., 2012). This showing of players' self-image are usually
facilitated in game through cosmetics that a player may buy or an in game rank
that a player may achieve to promote their self-image to their friends or other
players. This self presenting reasoning to play the game can take the form of high
in-game rank that a player needs to achieve by dedicating their time to be skillful
enough to achieve this high rank through repeat play or an in-game purchase,
which would result in the player to be perceived as skilled by other players.
(Huang et al., 2017).
22
2.4 Previous Research
The basis of studies originated from a previous study conducted by Taozhen
Huang, Zheshi Bao, and Yan Li which was published by Data Technologies and
Applications in 2017 titled “Why do Players Purchase in Mobile Social Network
Games? An Examination of Customer Engagement and of Uses and Gratifications
Theory” which sought to analyze the purchase intention behind mobile social net-
working games (M-SNG) microtransaction by integrating customer engagement
and uses and gratification theory. The data for this research was collected from
Chi- nese WeChat Games players through questionnaire and 354 valid samples
were gathered and analyzed by structural equation modeling approach.
Based on the data acquired, the researchers found that in their exploration of
customer engagement that in the three dimensions of customer engagement which
consists of absorption, dedication, and vigor can affect each other with absorption
affecting dedication, and dedication would influence vigor, which results in player
intentions being indirectly affected by these interactions. This means that while
some research states that these dimensions are independent of each other (Cheung
et al., 2015), the results of these research proved that these customer engagement
dimensions are not always in fixed form, and they should not be treated as inde-
pendent dimensions, but as flexible dimensions that can interact and influence
each other.
Based on the research exploration of the uses and gratifications with their
structural model that consists of entertainment, flexibility, and self-
representation, they
23
found that self-representation has a stronger indirect effect on player purchase in-
tention than entertainment. One possible explanation for this according to the re-
searchers is that when players are enjoying M-SNG, they will have more chances
to interact and compete with their friends, which can be considered as social inter-
actions. According to the researchers, since players wanted to present themselves
in a good image, and being perceived as skilled and capable, they have the
motivation to pay in M-SNG to better present themselves. The researchers also
found that flexibility of M-SNG doesn’t have a significant effect on player’s vigor
and dedication, and also cannot positively affect player’s purchase intention
through customer engagement.
For the practical implications, the researchers found that hedonic gratifications,
meaning entertainment, and social gratifications in the form of self presentation
are important in building a player's engagement, which reveals two things. Firstly,
the reason for most players to play M-SNG is to fulfill self-filling values, such as
hap- piness, which means improving mobile social networking games to be more
interesting and enjoyable are still an important task. Secondly, it reveals that the
player has a desire to interact with their M-SNG friends, which means the
developer of the game should try to promote and enhance the social aspect of their
game through various interactive means that promote social interaction, such as an
“asynchronous cooperative game mode” where players can cooperate in the game
to finish a mis- sion at different times.
24
2.5 Relationships between Variables and Research Hypothesis
2.5.1 Vigor towards Purchase Intention

As previously mentioned, Vigor the level of energy of the player’s when
playing a game and their willingness to invest their time and effort to play the
game (Cheung et al., 2015). Through this definition, vigor reflects the energetic
feeling, or excitement when playing the game, which means the more
“energetic” the player is when playing the game, the more likely they are to invest
their time and effort to play the game (Huang et al., 2017). This means that the
more a player enjoys the game, the more likely they are to purchase additional
services for the game to enhance their experiences (Hsiao & Chen, 2016).
Therefore, the hypothesis offered will be:
H1: Vigor has a positive influence on purchase intention.
2.5.2 Dedication towards Purchase Intention

Satisfaction will lead towards loyalty (Khadka & Maharjan, 2017), meaning in
the context of this research player’s satisfaction towards the services offered by
the game would lead to their loyalty towards the game, which means loyalty can
influence purchase intention, as e-marketplaces (Hsiao & Chen, 2016.) Based on
this, players who are loyal to the game due to their satisfaction towards the
services offered by the game are likely to have a stronger intention to make a
purchase in the in-game stores to acquire and improve their experiences (Huang et
al., 2017). Therefore, the hypothesis offered will be:
H2: Dedication has a positive influence on Purchase intention.
25
2.5.3 Absorption towards Purchase Intention
In the context of this research, absorption means how involved are the players
towards the game, with low involvement being the games are just played to pass
the time, while high involvement means that the players will immerse themselves
by dedicating their entire focus and time to the game. This state of focus is
called “flow state” (Harris et al., 2017), where someone’s attention and focus are
narrowed to their performed task. Flow state is positively linked with online con-
sumer’s purchase intention (Ali, 2016). In the context of this research,
participation in in-game microtransactions purchases in the form of virtual items
and value-added purchases are similar to standard online shopping behaviours,
and can be treated as another form of online shopping, which means the player's
flow state may positively affect their in-game purchase intention (Huang et al.,
2017). Therefore, the offered hypothesis will be:
H3: Absorption has a positive influence on purchase on intention.
2.5.4 Relationships among Customer Engagement Dimensions

As previously mentioned, where dedication for games comes from satisfaction
towards the game and appears as loyalty, absorption can also be stated as flow ex-
perience, and flow experience will increase consumers' positive perception, which
would lead into customer satisfaction , (O’Cass & Carlson, 2010). This means that
it can be predicted that absorption would lead into dedication. In addition to this,
as mentioned before where vigor can be described as the level of excitement when
playing the game, it reflects their level of energy of the player when playing the
26
game which would allow them to invest more of their time and effort towards the
game with high focus and passion (Huang et al., 2017). A significant and positive
relationship has been found between satisfaction and repeat usage intention, it can
be speculated that a player who is dedicated towards the game would be willing to
invest their time and energy into the game which would result in them becoming a
vigorous player (Liu et al., 2017). Based on these, it can be predicted that the three
dimensions of customer engagement are not independent of each other, Therefore,
the offered hypothesis will be:
H4a: Absorption has a positive influence on dedication.
H4b: Dedication has a positive influence on vigor.
2.5.5 Entertainment towards Vigor, Dedication, and Absorption

Entertainment refers to the activities that are done with the purpose of
obtaining pleasure and enjoyment (Bates & Ferri, 2010). Players are more
enthusiastic to play games they found to be enjoyable, which means it can be
predicted that if a game can provide its players with a game that is fun and
enjoyable, they are more willing to invest their time and efforts into their game.
As mentioned before, dedication for games comes from the feeling of satisfaction
towards the game and manifests itself in the form of loyalty, which means, when
games can provide its players with games that can satisfy them through
enjoyment, they are more likely to be loyal and dedicated to the game (Huang et
al., 2017). Finally, since online games as a form of entertainment can induce the
flow experience for its players, and flow state is linked
27
to absorption, it means that entertainment would inevitably affect absorption
(Harris et al., 2017). Therefore, the offered hypothesis would be:
H5a: Entertainment has a positive influence on vigor
H5b: Entertainment has a positive influence on dedication
H5c: Entertainment has a positive influence on
absorption
2.5.6. Flexibility towards Vigor, Dedication, and Absorption

As previously mentioned, in the context of this research flexibility can be de-
scribed as the level of accessibility and convenience of games in terms of how
easy to play the game is in terms of portability or time commitment. As League of
Leg- ends is a multiplayer computer online game, it doesn’t have high flexibility
as players are required to dedicate a portion of their time and focus their entire
attention to the game with no interruption to win and compared to those games
that are on portable devices such as mobile games (Wei & Lu, 2014), which
means League of Leg- ends are not as portable as those mobile game. League of
Legends may benefit from higher flexibility that is enjoyed by the more games
with higher flexibility, such as mobile games.
Unlike standard computer games like League of Legends, mobile game players
are able to enjoy their game anywhere and anytime without the constraint of
plugged-in device, which means this accessibility may greatly promote players to
increase their play frequency and their playtime, which in turn may invest their
time
28
and energy towards the game to become vigorous. Website stickiness is an im-
portant factor to be a successful e-commerce, which means e-commerce success,
or in this case video games ability to extend its player playtime are the key to its
success (Liu et al., 2017). In the context of this dimension, the ability of a game
to extend its players playtime through ease of access may cause its player to play
longer due its convenience, which would enhance their experience, becoming
loyal to the game due to the player’s satisfaction towards the game ease of access
(Huang et al., 2017). Finally, ecommerce shopping convenience has a positive
effect on the shopper’s flow, which means convenience of a game may have a
positive effect on the player’s flow, or absorption (Fan, Lee, & Kim, 2013).
Therefore, the offered hypothesis would be:
H6a: Flexibility has a positive influence on a vigor
H6b: Flexibility has a positive influence on a
dedication H6c: Flexibility has a positive influence on
absorption
2.5.7 Self-presentation towards Vigor, Dedication, and Absorption

As previously mentioned, self-presentation can be described as the ability to
show one’s self image in the game. This showing of self image can take the form
of a rank or cosmetic item that he can show to shape his own image (Lee et al.,
2012). In games such as League of Legends, players are able to promote
themselves in the form of various items and in-game points or rank, players may
be motivated to continue playing or purchase to achieve or maintain this
29
particular self image
30
which would lead them into playing long enough to become vigorous. Players
with strong ingame self-representation would be more loyal to the game due to
their achievement, which may lead into their satisfaction and dedication towards
the game. Finally, it is found that the level of involvement of a player is affected
by motivational factors, such as the desire to achieve progress (Gainsbury, King,
Rus- sel, & Delfabbro. 2016). Based on this, it can be theorized that the need to
achieve something in-game to shape their self-image in the game such as a high
player rank can positively affect their absorptions (Huang et al., 2017). Therefore,
the offered hypothesis would be:
H7a: Self-presentation has a positive influence on vigor
H7b: Self-presentation has a positive influence on dedication
H7c: Self-presentation has a positive influence on
absorption
2.6 Research Model
Based on the proposed hypothesis based on the relationships between each
variable, these research models were formed by Taozhen Huang, Zheshi Bao, and
Yan Li in 2017
31
Figure 2. 1 Research model
Source: Taozhen Huang, Zheshi Bao, Yan Li (2017)
32
Chapter 3: Research Methodology
This section of the paper would talk about the research methodology and will
describe the design of the research, the analytical method of the research, sources
for the data and their types, population and sample, descriptive analysis, validity
and reliability testing, operational definition, and last but not least pre-test and hy-
pothesis testing method.
3.1 Research Design

This Research would use a quantitative method as it is a replication of a
previous study conducted by Taozhen Huang, Zheshi Bao, and Yan Li which was
published by Data Technologies and Applications in 2017 titled “Why do Players
Purchase in Mobile Social Network Games? An Examination of Customer
Engagement and of Uses and Gratifications Theory”, where it would gather
qualitative data on cross- sectional time horizon using a likert scale-based survey.
This gathered data would then be analyzed and implemented to answer the
proposed research questions.
3.1.1 Research Classification

This research paper is going to use a qualitative analysis approach and a
descriptive research design. Quantitative research is research that quantifies and
analyzes variables in order to explain and describe an issue or phenomenon by
gathering numerical data and analyzing it using statistical methods (Apuke, 2017).
While descriptive research design is a research that aims to describe a
phenomenon and its
33
characteristics without any intervention or manipulation of the variables (Hossein,
2015).
3.1.2 Research Subject and Object

Research subject is a single member of a sample, while a research objective is
observed characteristic of the study of an event or an object (Sekaran & Bougie,
2016). Independent variables is a variable that is not affected by other variables,
which in this study is the three dimensions of the uses and gratifications, which
consists of entertainment, flexibility, and self-presentation, while the dependent
variables for the research is vigor, dedication, absorption, and purchase intention.
For this research, the research subject is the people that live in the
JABODETABEK area, while the research object is the League of Legends player.
3.1.3 Unit of Analysis

Units of analysis are divided into five, which are individuals, where the data is
collected from individuals, and each data is treated as an individual source. Dyads,
where the data is collected from the interaction between two individuals such as
supervisor and subordinate relationships. Groups, where individual data is col-
lected, which then the data would be combined into groups. Organizations, where
the collected data is on an organizational level. And culture, where the data col-
lected is on a cultural level, which it would be compared to other regions or coun-
tries with different cultural values (Sekaran & Bougie, 2016). Based on the expla-
nation above, this research is going to use the individual unit of analysis, where
the collected data is going to be obtained from individual respondents.
34
3.2 Population and Sample
Population refers to the entirety of demographic, events, or objects that are
stud- ied by researchers (Amirullah, 2015). In the context of this research, are
Indonesian League of Legends Players, while sample is a subgroup of a
population that are chosen by the researchers to study, which means the sample of
this research are Indonesian League of Legends players who live in the
JABODETABEK area. There are two types of sampling, which are non-
probability sampling and probability sampling. Non-probability sampling means
that the sample chosen by researchers has a certain element that made them
chosen to be the sample, whereas the probability sampling is truly random with
no chosen element. Non-probability sampling has four techniques, which consists
of Convenience sampling, judgemental sampling, quota sampling, and snowball
sampling, while probability sampling has simple random sampling, systematic
sampling, stratified sampling, and cluster sampling.
This research paper uses non-probability sampling, with judgemental sampling
or also known as the purposive sampling as the chosen technique, which means
the sample is chosen with certain considerations from the researchers that suits the
purpose of the research (Amirullah, 2015). Based on these explanations, the
researchers of has determined that the criteria for the sample that are chosen for
this paper are:
35
1. Lives in the JABODETABEK area
2. Is a League of Legends player
3.2.1 Sample Size

The rule of thumb of the number of samples should be 10 times the predictor,
which means this paper would use the predictor x 10 for the sample size to deter-
mine the sample size (Barclay, 2005).
3.3 Data Collection Method

As a replication, this research paper is going to use survey, which would allow
a researcher to collect data on many types of research questions by distributing
questionnaires, which in this case the sample group that met the criteria, being an
Indonesian League of Legends player that lives in the JABODETABEK area
(Sekaran & Bougie, 2016). This survey is going to be distributed in the form of
google forms that contains all the relevant questions regarding the research to
those that meet the sample criteria.
3.3.1 Measurement Scale

Measurement scale is a systematic process that differentiate a measured object
based on a certain scale (Junaidi, 2015). These scales of measurements consist of
four different scales, which consists of nominal, ordinal, interval, and ratio. Nomi-
nal is the lowest one, which is used to identify objects. Ordinal aims to classify
objects based on a grading scale that are based on certain desired characteristics.
36
Interval aims to classify objects based on a grading scale just like ordinal scale,
but with the added fixed interval. Ratio involves all characteristics of previous
measurements, but with the added beginning point of zero.
Figure 3. 1 Measurement Scale

Source: Dalati (2018)
This research would use the ordinal scale of measurement using likert scale,
where questionnaires are distributed that would allow its participants to respond to
various statements and situations using their level of agreement to the aforemen-
tioned statements from the highest to the lowest scale (Joshi, Kale, Chandel, &
Pal, 2015). For this research paper, the likert scale measurements are going to be
measured using a five-point scale ranging from “Strongly disagree” (1) to
“Strongly agree” (5). Using this five-point scale, respondents are able choose how
they feel regarding the presented statement in the questionnaire.
37
3.4 Conceptual Definition and Operational Definition
Conceptual definition is the definition that outlines the basic principles of a
term, which in the context of this research conceptual definitions states the outline
of a variable, while operational definition outlines the metric that is used to
quantify an something of interest, which in the case of this research specifies the
nature of the variables (Church, 2005). The conceptual definitions and the
operational definitions of this research are presented in table 3.1 below:
Table 3. 1 Conceptual Definitions and Operational Definitions
Variables Conceptual Definitions Indicators Source
Entertain- Entertainment can be de- 1. I play League of (Huang et

ment Legends because
scribed as the feeling of it’s fun al., 2017).
enjoyment and fun when 2. I play League of

Legends for the en-
players are playing the joyment
game (Huang et al., 2017). 3. I play League of

Legends because
it’s exciting
Flexibility Flexibility can be 1. It is convenient to (Huang et
play League of
described as the level of Legends anytime al., 2017).
and anywhere.
accessibility and the ease
2. I can begin and
of access of the game for stop playing
League of
players to play (Huang et Legends anytime
al., 2017). 3. I can control my

League of
Legends playtime
38
Self-presen- Self-presentation can be 1. I play League of (Huang et
tation Legends to be per-
described as the ability to ceived as friendly al., 2017).
by others in-game.
show players self-image in
2. I play League of
the game, be it from show- Legends to be per-
ceived as skilled by
ing a player skill, or others in-game.
through cosmetic items 3. I play League of

Legends to achieve
(Lee et al., 2012). high rank, which
gives me higher
status than other
players in-game.
Vigor Vigor can be described as 1. I try my hardest to (Huang et
perform well in
the feeling of energeticness League of al., 2017).
Legends.
(Chuang, 2020), which in
2. I devote a lot of en-
the context of this research ergy to League of
Legends.
is their level of energy
3. I feel energetic
when playing the game when i play League
of Legends.
Dedication Dedication can be de- 1. I’m enthusiastic (Huang et
about League of
scribed as the level of Legends. al., 2017).
commitment of a player 2. I’m interested in

playing League of
towards the game, Legends.
meaning how dedicated are 3. I’m excited when

playing League of
the players towards the Legends.
game. This dedication can
also be de-
39
scribed as their level of en-
thusiasm, pride and com-
mitment towards the game
(Cheung et al., 2015).
Absorption Absorption can be de- 1. Time flies when I (Huang et

play League of
scribed as how much the Legends. al., 2017).
player is engrossed towards 2. Playing League of

Legends is so ab-
the game and how “in- sorbing that I for-
got about every-
volved” are the players to- thing else.
wards the game (Cheung et 3. My mind is focused

when playing
al., 2015). League of Legends.
Purchase In- Purchase intention is the 1. I intend to pay for (Huang, et

tentions virtual items in
preference in buying prod- League of al., 2017).
Legends.
ucts or services for the con-
2. I predict that I
sumer, meaning it’s the de- would pay for vir-
tual items in
cision-making process that League of
Legends in the
goes through the customer future.
before they make their pur- 3. I will recommend
others to pay for
chase (Younus et al., 2015).
virtual items in
League of
Legends.
40
3.5 Data Analysis Method
This research is going to be analysed using the program “SmartPLS 3.0” pro-
gram. SmartPLS 3.0 is a statistical processing software that is used to test the rela-
tionship between variables. The advantage of using SmartPLS 3.0 is that it
requires a relatively small sample size, which is useful when the number of
samples are limited compared to the complexity of the model (Harahap, 2020).
The next advantage for SmartPLS is that it doesn’t require normal distribution
using bootstrapping methods, which is assigning accuracy estimates to a sample.
Finally. SmartPLS can test formative and reflective SEM models with different
measurement indicator scales in a single model.
3.5.1 Descriptive Statistic

Descriptive statistics are used to summarize data by describing the
relationships between variables in a sample or population. Descriptive statistics
consists of three types of measurements, which are measures of central tendency,
measures of dispersion/variation, and measures of position.
1. Measures of central tendency describe the entire data as a single set of
measurements. This measurement consists of mean, median, and mode.
2. Measures of dispersion/variation describe the degree of a variable
similarity or diversity. This measurement only applies to ordinal, interval,
and ratio, and includes range, variance, and standard deviation.
41
3. Measures of position divide the data into three main ways, which consists
of percentile, quartiles, and deciles.
This research is going to use the central tendency measurement, which means it
will the data in the form of a mean.
To determine the minimum and maximum length of a 5-point likert scale,
the range is calculated by (5-1), the divided by 5 as it is the greatest value
(⅘=8). Afterwards, number one which has the lowest value is added to the scale
to identify the maximum of the scale to (Mohammed, 2019). From the data above,
the resulting table regarding the likert scale is shown below.
Item Description Score range

Strongly Agree 4,21-5,00
Agree 3.41-4.20
Neutral 2.61-3.40
Disagree 1.81-2.60
Strongly disagree 1.00-1.80
Table 3. 2 Likert Scale
3.5.2 Inferential Statistic

Inferential statistics is a method of inferring the conclusion of a population
from a sample (Byrne, 2007), which means it applies the results that are gathered
from a sample to the population. This method allows researchers to detect the
correlations between variables that are relevant to the research question
(Marshall, 2009). For
42
this research, SmartPLS are going to be used to measure the inferential statistics
using the structural model (inner model) and the measurement model (outer
model) (Wong, 2013).
3.6 Pre-test Study

Pre-testing is the main chance for researchers to make sure that the given survey
question produces the desired understanding, meaning the question can be under-
stood by the respondent. For this reason, a pre-test is conducted which consists of
52 samples that meet the criteria, being League of Legends players that live in
JABODETABEK.
3.7 Validity Test

Validity test is used to find out if the testing instrument accurately measures the
object it’s supposed to measure (Ghazali, 2016). There are three types of validity,
the first one is content validity, which means it ensures the measurement
instrument actually measures the concept it sets out to measure through its various
representa- tive measurement items. The second one is criterion-related validity,
which is used to differentiate individuals based on the criteria the measurement is
supposed to predict. The final one is construct validity, which means how well the
measurements results that are obtained fit the theories of the test (Sekaran &
Bougie, 2016).
43
For this research, SmartPLS 3.0 software was used, which means two
additional validity factors needed to be considered, namely the convergent validity
and discriminant validity. Convergent validity is when scores from two different
instruments that measure the same concept are highly correlated, while
discriminant validity is when two theoretically unrelated variables are unrelated in
its application as well. In the case of SmartPLS 3.0, a data is considered valid if
the outer loading numbers scores 0.70 at the minimum, the average variance
extracted (AVE) score is 0.5 or higher (Wong, 2013).
In addition to the standard fornell-larcker criterion to measure validity, hetero-
trait-monotrait (HTMT) ratio might also be used if there is a lack of discriminant
validity, where in a well fitted model the value of heterotrait correlations should
be smaller than monotrait correlations, meaning the value of HTMT ratio should
be lower than 1 (Garson, 2019).
3.8 Reliability Test

Reliability test is used to indicate the level of non-bias of a measurement which
ensures consistent measurements across time and the items contained in the meas-
urement (Sekaran & Bougie, 2016). Traditionally, internal consistency reliability
are measured using “Cronbach Alpha”, but it tends to undervalue the measure-
ments, which is why in the case of SmartPLS 3.0 composite reliability is used to
measure the internal consistency reliability, where the of value of both the
44
cronbach’s alpha and the composite reliability should be 0.7 or higher, while if it
is an exploratory research, 0.6 is acceptable (Wong, 2013).
3.9 Partial Least Square-Structural Equation Modelling (PLS-SEM)

Structural equation modelling (SEM) is a data analysis method where it allows
the researchers to examine the relationship among variables with two submodel,
which consists of inner model, where it specifies the relationships between the in-
dependent and dependent latent variables, and outer model, which specifies the re-
lationship between the latent variables and their observed model, while partial
least squares (PLS) is an approach to SEM that focuses on the analysis of variance
that makes no assumptions about data distribution, and are usually used in applied
research project with limited participants and skewed data (Wong, 2013).
3.10 Multicollinearity Test

Multicollinearity test is an assessment that is used to check each variable in the
inner model for collinearity problems to see if any variables should be eliminated,
merged into one, or higher latent variables by using the latent variable scores as an
input for the multiple regression in IBM SPSS statistics to get the variance
inflation factor (VIF) values. As a rule of thumb, VIF should be 5 or lower to
avoid collinearity problems (Wong, 2013).
45
3.11 Outer Model Evaluation
Outer model details the relationship between the variables and their indicators,
and it’s also known as measurement models (Wong, 2013). Outer models are
evaluated by determining the composite reliability, convergent validity, and
average variance extracted (AVE) (Hair, Sarstedt, Ringle, & Mena, 2011), where
the value of convergent validity is evaluated from the value of AVE that are
greater than the threshold of 0.5 (Wong, 2013), with the addition of SmartPLS 3.0
where discriminant validity is also used to evaluate the outer model.
3.12 Inner Model Evaluation

Inner model specifies the relationships between the variables, and it’s also
known as a structural model (Wong, 2013). This inner model can show
researchers about the directions of the relationships of the variable, be it positive,
negative which is called directional hypothesis, or no direction at all, called non-
directional hypothesis (Sekaran & Bougie, 2016).
Hypothesis testing is the act of falsifying null hypothesis, which would be re-
placed with an alternate hypothesis (Sekaran & Bougie, 2016). Null hypothesis
(H0) is a hypothesis that is set up to be rejected, which is used to support an
alternate hypothesis (Ha). to perform a hypothesis testing, the null hypothesis and
the alternate hypothesis must be stated, after which the appropriate statistical
tests are chosen depending on the data collected being parametric or
nonparametric. Next, the desired level of significance is stated (P=0.05). And
finally, see if the output from
46
computer analysis indicates the significance level is met, where if the resultant
value is larger than critical value, null hypothesis is rejected, and the alternate hy-
pothesis is accepted. The other measurements that are used is the t value, where
the value of it needs to be above 1.65 to be accepted (Sekaran & Bougie, 2016).
In SmartPLS 3.0, the inner models are also evaluated with the R-squared for
each variable, with the value of this R-squared being 0.75, 0.50, and 0.25, with
them being substantial, moderate, and weak respectively in terms of predictive
accuracy (Sarstedt, 2017).
3.13 Pre-Test Result

This pre-test was conducted with 52 respondents that met the screening criteria.
The chart shown below in figure 3.2 is the unmodified research model before any
adjustment by removal of several indicators due to the invalidity that was reported
by the SmartPLS 3.0 program.
47
Figure 3. 2 research model before adjustment
Source: SmartPLS 3.0
3.14 Results of Preliminary Study Validity Test

The validity test was performed by SmartPLS 3.0, which resulted in the outer
loadings, which would be used to review each variable for its validity. The result
of the outer loadings can be seen in table 3.3.
Table 3. 3 Outer Loadings Result
Variables Indicators Outer Loading Results

ENT ENT 1 0.812 Valid
ENT 2 0.859 Valid
48
ENT 3 0.816 Valid
FLEX FLEX 1 0.463 Invalid
FLEX 2 0.911 Valid
FLEX 3 0.905 Valid
PRE PRE 1 -0.088 Invalid
PRE 2 0.870 Valid
PRE 3 0.859 Valid
VIG VIG 1 0.601 Invalid
VIG 2 0.874 Valid
VIG 3 0.882 Valid
DED DED 1 0.789 Valid
DED 2 0.506 Invalid
DED 3 0.795 Valid
ABS ABS 1 0.791 Valid
ABS 2 0.778 Valid
ABS 3 0.619 Invalid
ENT ENT 1 0.812 Valid
ENT 2 0.859 Valid
ENT 3 0.816 Valid
49
Table 3. 4 AVE Value
Construct AVE Results

ABS 0.538 Valid
DED 0.503 Valid
ENT 0.688 Valid
FLEX 0.621 Valid
PRE 0.501 Valid
INT 0.639 Valid
VIG 0.634 Valid
Source: SmartPLS 3.
Table 3. 5 Discriminant Validity Table
ABS DED ENT FLEX PRE INT VIG

ABS 0.733
DED 0.469 0.709
ENT 0.438 0.491 0.830
FLEX -0.224 -0.235 -0.308 0.788
PRE 0.583 0.575 0.467 -0.465 0.708
INT 0.553 0.462 0.321 -0.204 0.445 0.799
VIG 0.567 0.591 0.449 -0.381 0.735 0.487 0.796
50
3.15 Results of Preliminary Study Reliability Test
For the preliminary study test, the table below would show both the results
from the cronbach alpha and composite reliability. The reason for this is that as
stated before, cronbach alpha tends to undervalue the measurement, which is why
composite reliability are used.
Table 3. 6 Composite Reliability
Composite Reliability
ABS 0.775
DED 0.746
ENT 0.869
FLEX 0.820
PRE 0.643
INT 0.810
VIG 0.835
3.16 Research Model after Pre-test Results

Figure 3.3 will show the adjusted research model after the removal of several
indicators due to the SmartPLS 3.0 result invalidity. Due to this, this adjusted re-
search model would be used as the basis for the research.
51
Figure 3. 3 Adjusted Research Model
52
Chapter 4: Findings and Analysis
This chapter is going to talk about the findings of the research and analyze
them based on the methods that are explained in previous chapter, and the topics
that would be discussed in this chapter would consist of: the profile of the
respondent, descriptive statistics, validity test, reliability test, hypothesis testing,
and finally the result of the hypothesis testing.
4.1 Respondent Profile

For this research, 225 responses are collected from the respondents that met the
screening criteria, being a League of Legends player that live in the
JABODETABEK area. The respondent collected characteristics are their gender,
their age, their place of residence, their employment, their monthly income, their
League of Legends playtime in a day, and whether they have purchased something
in League of Legends with real money. These characteristics are going to be de-
tailed in table 4.1 to table 4.7 below.
4.1.1 Respondent Profile based on Gender
Respondents that are classified and grouped based on their gender are shown
below with the male respondents making up 83.6% (188 people) of the total re-
spondents, while the female respondents making up 16.4% (37 people) of the total
respondents.
53
Table 4. 1 Respondent Profile based on Gender.
Gender Number of Respondents Percentage

Male 188 83.6%
Female 37 16.4%
Total 225 100%
Source: Researcher’s Data
4.1.2 Respondent Profile based on Age
Respondent that are classified and grouped based on their gender are shown be-
low with the age group of below 20 making up 24.9% (56) of the total
respondents, 20-23 age group making up 51.1% (115) of the total respondents, 24-
27 making up 20.4% (46) of the total respondents, and finally 28-31 age group
making up 3.6%
(8) of the total respondents.
Table 4. 2 Respondent Profile based on Age
Age Group Number of Respondents Percentage

Below 20 56 24.9%
20-23 115 51.1%
24-27 46 20.46%
28-31 8 3.6%
Total 225 100%
54
4.1.3 Respondent Profile based on Residence
Respondent that are classified and grouped based on their residence are shown
below with Jakarta making up 37.3% (84) of the respondents, Bogor making up
16% (36) of the total respondents, Depok making up 6.2% (14) of the total
respondents, Tangerang making up 28.9% (65) of the total respondents, and
finally Bekasi that makes up 11.6% (26) of the total respondents.
Table 4. 3 Respondent Profile based on Residence
Residence Number of Respondents Percentage

Jakarta 84 37.3%
Bogor 36 16%
Depok 14 6.2%
Tangerang 65 28.9%
Bekasi 26 11.6%
Total 225 100%
4.1.4 Respondent Profile based on Employment
Respondents that are classified and grouped based on their employment are
shown below, with students making up 71.6% (161) of the total respondents, Em-
ployees making up 27.6% (62) of the total respondents, and finally entrepreneurs
making up 0.9% (2) of the total respondents.
Table 4. 4 Respondent Profile based on Employment
55
Employment Number of Respondents Percentage
Students 161 71.6%

Employees 62 27.6%
Entrepreneur 2 0.9%
Total 225 100%
4.1.5 Respondent Profile based on Income Per Month
Respondents that are classified and grouped based on their Income per Month
are shown below, with below Rp5,000,000. per month making up 41.8% (94) of
the total respondent, Rp5,000,000. -Rp10,000,000. Per month making up 47.1%
(106) of the total respondent, Rp10,000,000. -Rp15,000,000. Per month making
up 10.2%
(23) of the total respondent, and finally Rp15,000,000. -Rp20,000,000. Per month
making up to 0.9% (0.2) of the total respondent.
Table 4. 5 Respondent Profile based on Income Per Month

Income per Month Number of Re- Percentage
spondents
< Rp5,000,000. 94 41.8%
Rp5,000,000. -Rp10,000,000. 106 47.1%
Rp10,000,000. -Rp15,000,000. 23 10.2%
Rp15,000,000. -Rp20,000,000. 2 0.9%
Total 225 100%
56
4.1.6 Respondent Profile based on Playtime Per Day
Respondents that are classified and grouped based on their League of Legends
playtime per day are shown below, with 1-2 hours per day making up 22.7% (51)
of the total respondents, 3-4 hours per day making up 57.8% (130) of the total re-
spondents, 5-6 hours per day making up 14.7% (33) of the total respondent, and
finally above 6 hours per day making up 4.9% (11) of the total respondent.
Table 4. 6 Respondent Profile based on Playtime Per Day

Playtime per Day Number of Respondent Percentage
1-2 hours 51 22.7%

3-4 hours 130 57.8%
5-6 hours 33 14.7%
Above 6 hours 11 4.9%
Total 225 100%
4.1.7 Respondent based on Previous Purchase
Respondents that are classified and grouped based on if they have purchased
something in League of Legends using real money are shown below, with those
that have previously purchased something with real money making up 75.1%
(169) of
57
the total respondent, and those who have not purchased making up 24.9% (56) of
the total respondent.
Table 4. 7 Respondent based on Previous Purchase
Previous Purchase Number of Respondent Percentage

Yes 169 75.1%
No 56 24.9%
Total 225 100%
4.2 Actual Test
Based on the result of the pre-test which confirms the validity of the test, 225
respondents that fulfill the screening criteria were gathered for the actual test ,
being a League of Legends player that lives in the JABODETABEK area.
4.3 Descriptive Statistics
Descriptive statistics is a type of statistics that is used to describe the character-
istics of a data, which in the context of this research descriptive statistics would
statistically describe the result of the quantitative test that has been previously
conducted (Marshall & Jonker, 2010). When using descriptive statistics, there
are three types of measurements, which consists of measure of frequency, measure
of central tendency, measure of dispersion/variation, and measure of position
(Yellapu, 2018).
58
For this research, measures of central tendency are going to be used which would
describe the variable of the research through the mean of their indicators.
4.3.1 Entertainment
Table 4. 8 Mean Values of Entertainment
Indicator Description Mean Category

ENT 1 Playing League of 4.56 Strongly Agree
Legends because
it’s fun
Legends for the en-
joyment
Legends because
it’s exciting
Mean Value Result 4.64 Strongly Agree
Based on mean values that are shown by table 4.8 where each indicator is cate-
gorized as strongly agreed, it shows that the JABODETABEK League of Legends
players strongly agree that one of the reasons that they play the game is for the
entertainment value.
4.3.2 Flexibility
Table 4. 9 Mean Values of Flexibility

FLEX 1 Can begin and stop 2.27 Disagree
59
playing League of
Legends anytime
FLEX 2 Can control League 2.33 Disagree
of Legends Play-
time
Mean Value Result 2.30 Disagree
Based on the mean value that are presented in table 4.9 regarding the mean val-
ues of flexibility, it shows that each indicator mean value are categorized as disa-
gree, which means that League of Legends player disagree that the flexibility or
ease of access is the reason why JABODETABEK League of Legends player play
the game. FLEX 1 low score means that players are not able to easily play and
stop at any time since the game require players to dedicate a certain amount of
time to play the game, while the low FLEX 2 enforces this as players are not able
to control their playtime as a certain amount of time must be invented to play
League of Leg- ends.
4.3.3 Self-Presentation
Table 4. 10 Mean Values of Self Presentation

PRE 1 Playing League of 4.64 Strongly Agree
Legends to be per-
ceived as skilled by
others in-game.
60
PRE 2 Playing League of 4.53 Strongly Agree
Legends to achieve
high rank, which
gives higher status
than other players
in-game
Based on the mean value presented in table 4.10 where each indicator of self
presentation showed the result of strongly agreed, it means that self presentation is
strongly agreed as one of the reasons why JABODETABEK League of Legends
players play the game. Self presentation in this context means that the reason why
players play the game is because they can show themselves off in the game
through others, whether it through the looks provided by the cosmetic or by
showing their high game rank. The high score of PRE 1 shows that one of the
reasons why JABODETABEK League of Legends player play the game is to be
perceived as skilled, which ties into the PRE 2, where the reason they play the
game is to get higher status compared to other player by achieving high ingame
rank through skill.
4.3.4 Vigor
Table 4. 11 Mean Values of Vigor

VIG 1 Devoting a lot of 4.51 Strongly Agree
energy to League of
Legends.
61
VIG 2 Feeling energetic 4.71 Strongly Agree
when playing
League of Legends.
Based on mean value provided by table 4.11 where each indicator of vigor
showed the result of strongly agreed, which means that vigor is strongly agreed as
one of the dimensions of JABODETABEK League of Legends players customer
engagement. Vigor in here can be described as the feeling of energy when playing
the game. High score in VIG 1 means that players are devoting a lot of energy
when playing the game, whereas VIG 2 score states that when playing the game,
JABODETABEK League of Legends players felt energetic.
4.3.5 Dedication
Table 4. 12 Mean Values of Dedication

DED 1 Enthusiastic about 4.67 Strongly Agree
League of Legends.
DED 2 Excited when play- 4.67 Strongly Agree

ing League of Leg-
ends.
62
Based on the mean value provided by table 4.12 where each indicator of
dedication showed the result of strongly agreed, which means that dedication is
strongly agreed by the JABODETABEK League of Legends player as one of the
dimensions of customer engagement. Dedication here can be described as the
level of commitment that the player put towards the game. High DED 1 score
means that they are enthusiastic about League of Legends, while the high DED 2
score shows that the JABODETABEK League of Legends player are excited
when playing the game.
4.3.6 Absorption
Table 4. 13 Mean Values of Absorption

ABS 1 Time flies when 4.65 Strongly Agree
playing League of
Legends.
ABS 2 Mind is focused 4.66 Strongly Agree

when playing
League of Legends.
absorption showed the result of strongly agreed, which means that absorption is
strongly agreed by the JABODETABEK League of Legends player as one of the
dimensions of customer engagement. The high score of ABS 1 shows that
JABODETABEK League of Legends players are so absorbed into the game that
63
the time flies when
64
they are playing the game and as stated by the result of ABS 2, their minds are
focused when playing League of Legends.
4.3.7 Purchase Intention
Table 4. 14 Mean Values of Purchase Intention

INT 1 Intend to pay for 4.36 Strongly Agree
virtual items in
League of Legends.
INT 2 Predict to buy vir- 4.22 Strongly Agree

tual items in
League of Legends.
purchase intention showed the result of strongly agreed, which shows that
JABODETABEK League of Legends player has a high intention to purchase
virtual items in the game, as shown by indicator ENT 1 where it shows that the
player strongly agree that they intend to pay for League of Legends virtual items,
and are followed by the strongly agree result of INT 2, which shows that they
predict that they are going to buy virtual items in League of Legends.
65
4.4 Outer Model Evaluation
Outer models are evaluated by determining the composite reliability,
convergent validity, and average variance extracted (AVE) (Hair et al., 2011),
where the value of convergent validity is evaluated from the value of AVE that
are greater than the threshold of 0.5 (Wong, 2013). In the case of SmartPLS 3.0,
discriminant validity also needed to be used to evaluate the outer model.
4.4.1 Convergent Validity
Validity test is used to find out if the testing instrument accurately measures
the object it’s supposed to measure (Ghazali, 2016). In the case of convergent
validity assessment by SmartPLS 3.0, a data is considered valid if the outer
loading numbers scores 0.70 at the minimum, and the average variance extracted
(AVE) score is 0.5 or higher (Wong, 2013).
Table 4. 15 AVE Value in Actual Test
Variables AVE Value
Absorption 0.867
Dedication 0.915
Entertainment 0.730
Flexibility 0.873
Purchase Intention 0.905
Self Presentation 0.772
66
Vigor 0.790
4.4.1.1 Factor Loading
The value that is shown by the outer loading should score 0.7 at the minimum,
while the value of the average variance extracted (AVE) should pass the minimum
value of 0.5 (Wong, 2013). The research model used for the actual test has been
modified based on the result of the pre-test, where six indicators were removed
due to them not passing the factor loading test, with their value not reaching 0.7.
Table 4. 16 Outer Loading Value in Actual Test
Variables Indicators Outer Loading Result
Entertainment ENT 1 0.903 Valid
ENT 2 0.747 Valid
ENT 3 0.904 Valid
Flexibility FLEX 1 0.939 Valid
FLEX 2 0.929 Valid
Self Presentation PRE 1 0.864 Valid
PRE 2 0.892 Valid
Vigor VIG 1 0.884 Valid
VIG 2 0.893 Valid
67
Dedication DED 1 0.952 Valid
DED 2 0.961 Valid
Absorption ABS 1 0.947 Valid
ABS 2 0.915 Valid
Purchase Intention INT 1 0.952 Valid
INT 2 0.951 Valid
4.4.2 Discriminant Validity
For the discriminant validity Fornell-Larcker criterion are going to be used
Table 4. 17 Fornell-Larcker Criterion Value in Actual Test

ABS DED ENT FLEX INT PRE VIG
ABS 0.931
DED 0.551 0.957
ENT 0.514 0.517 0.855
FLEX -0.066 0.040 -0.027 0.934
INT 0.436 0.420 0.385 0.052 0.951
PRE 0.376 0.394 0.542 -0.239 0.377 0.878
VIG 0.552 0.503 0.620 -0.100 0.423 0.592 0.889
68
4.4.2.1 Cross Loading
Cross loading is another type of measurement in discriminant validity assess-
ment (Achjari, 2004), where the value of cross loading should be 0.70 and above
to be considered valid (Hair, Black, Babin, & Anderson, 2019).
Table 4. 18 Cross Loading Value in Actual Test

ABS 1 0.947
ABS 2 0.915
DED 1 0.952
DED 2 0.961
ENT 1 0.903
ENT 2 0.747
ENT 3 0.904
FLEX 1 0.939
FLEX 2 0.929
INT 1 0.952
INT 2 0.951
PRE 1 0.864
PRE 2 0.892
VIG 1 0.884
VIG 2 0.893
69
4.4.3 Reliability Test
Reliability test is used to indicate the level of non-bias of a measurement which
ensures consistent measurements across time and the items contained in the meas-
urement (Sekaran & Bougie, 2016). Traditionally, internal consistency reliability
are measured using “Cronbach Alpha”, but it tends to undervalue the measure-
ments, which is why composite reliability are also going to be used to measure the
internal consistency reliability, where the of value of both the cronbach’s alpha
and the composite reliability should be 0.7 or higher, while if it is an exploratory
research, 0.6 is acceptable (Wong, 2013).
Table 4. 19 Cronbach’s Alpha Value in Actual Test

Cronbach’s Alpha Result
ABS 0.848 Reliable
DED 0.908 Reliable
ENT 0.811 Reliable
FLEX 0.855 Reliable
PRE 0.895 Reliable

INT 0.705 Reliable
VIG 0.734 Reliable
Table 4. 20 Composite Reliability Value in Actual Test

Composite Reliability Result
ABS 0.867 Reliable
DED 0.915 Reliable
70
ENT 0.730 Reliable
FLEX 0.873 Reliable
PRE 0.950 Reliable
INT 0.772 Reliable
VIG 0.790 Reliable
4.4.3.1 Multicollinearity Test
Multicollinearity test is an assessment that is used to check each variable in the
inner model for collinearity problems to see if any variables should be eliminated,
merged into one, or higher latent variables by using the latent variable scores as an
input for the multiple regression in IBM SPSS statistics to get the variance
inflation factor (VIF) values. As a rule of thumb, VIF should be 5 or lower to
avoid collinearity problems (Wong, 2013).
Table 4. 21 VIF Value in Actual Test

ABS 1.385 1.622
DED 1.580 1.418
ENT 1.440 1.711 1.684
FLEX 1.078 1.078 1.091
INT
PRE 1.526 1.549
VIG 1.512
71
4.5 Inner Model
Inner model specifies the relationships between the variables, and it’s also
known as a structural model (Wong, 2013). This inner model can show
researchers about the directions of the relationships of the variable, be it positive,
negative which is called directional hypothesis, or no direction at all, called non-
directional hypothesis (Sekaran & Bougie, 2016).
In the case of this research, this section is going to analyze the relationships be-
tween variables and show the result of the hypothesis testing. Below is the
adjusted research model after pre-testing, and the one that is used for the actual
test.
Figure 4. 1 Actual Research Model

Figure 4.1 shows the actual research model after the removal of several indica-
tors, being the removal of one indicator each for flexibility, self presentation,
72
vigor,
73
dedication, absorption, and purchase intention, with each variable having two
indicators with the exception of entertainment with no removal of indicator and
having three indicators instead.
4.5.1 Hypothesis Testing
Shown below is table 4.23 that shows the relationship between the variables
and the value of the R-squared.
Table 4. 22 R-squared Adjusted Value in Actual Test
R-Squared Adjusted Value

Absorption 0.268
Dedication 0.386
Purchase Intention 0.256
Vigor 0.496
R-squared are used to measure the predictive accuracy of each changes in the
independent variable towards the dependent variables, with the value of this R-
squared being 0.75, 0.50, and 0.25, with them being substantial, moderate, and
weak respectively in terms of their predictive accuracy (Sarstedt, 2017), Whereas
shown in table 4.23, the values for each of them are considered weak in terms of
their predictive accuracy, with the value of vigor being the closest to have
moderate strength in predictive accuracy.
74
To explain further, the predictive accuracy of the value of absorption of 0.268
translates to absorption are 26.8% affected by the value of the dimension of uses
and gratification which consists of entertainment, flexibility, and self presentation,
with the rest being 73.2% which are influenced by factors not included in the re-
search model. The value of dedication of 38.6% means that dedication is 38.6%
affected by the changes in value of the uses and gratifications dimension, with the
rest 61.4% are affected by factors not included in the research model. The value of
vigor being 49.6% means that vigor is affected by that amount by the changes in
value of the uses and gratifications dimension, with the rest 50.4% are affected by
the factors not included in the research model. Finally purchase intention value of
25.6% means that purchase intention is affected by that amount of changes in
value of absorption, dedication, and vigor, with the rest of the value of 74.4% are
affected by other factors not included in the research model.
Next is the result of bootstrapping calculation which is shown in table 4.24
which would show the result of the t value and the p value where it would decide
the acceptance or the rejection of the hypothesis.
75
Table 4. 23 Hypothesis Testing Result
Hypothesis Regression Path Coef- T Value P Value Status

ficient
H1 VIG→INT 0.211 2.636 0.004 Accepted
H2 DED→INT 0.193 1.973 0.025 Accepted
H3 ABS→INT 0.220 2.518 0.006 Accepted
H4A ABS→DED 0.376 4.751 0.000 Accepted
H4B DED→VIG 0.200 2.626 0.004 Accepted
H5A ENT→VIG 0.340 4.012 0.000 Accepted
H5B ENT→DED 0.249 3.231 0.001 Accepted
H5C ENT→ABS 0.443 4.651 0.000 Accepted
H6A FLEX→VIG -0.021 0.485 0.314 Rejected
H6B FLEX→DE 0.106 2.019 0.022 Accepted

D
H6C FLEX→ABS -0.023 0.437 0.331 Rejected
H7A PRE→VIG 0.323 4.293 0.000 Accepted
H7B PRE→DED 0.143 2.309 0.011 Accepted
H7C PRE→ABS 0.130 1.547 0.061 Rejected

4.6 Discussion
This research is a replication based on a previous study conducted by Taozhen
Huang, Zheshi Bao, and Yan Li which was published by Data Technologies and
Applications in 2017 titled “Why do Players Purchase in Mobile Social Network
Games? An Examination of Customer Engagement and of Uses and Gratifications
76
Theory”. This replication aims to find out if uses and gratifications and customer
engagement has a positive effect on the purchase intention of JABODETABEK
League of Legends players. The previously proposed hypothesis would be dis-
cussed below.
4.6.1 Hypothesis 1: Vigor has a positive influence on purchase intention
According to table 4.24 the relationship between vigor and purchase intention
has the t value of 2.636 and the p value of 0.004, which results in the hypothesis
being accepted, which means vigor has a positive influence on purchase intention.
4.6.2 Hypothesis 2: Dedication has a positive influence on purchase intention
According to table 4.24 the relationship between dedication and purchase
intention has the t value of 1.973 and the p value of 0.025, which results in the
hypothesis being accepted, which means dedication has a positive influence on
purchase intention.
4.6.3 Hypothesis 3: Absorption has a positive influence on purchase intention
According to table 4.24 the relationship between absorption and purchase
intention has the t value of 2.518 and the p value of 0.006, which results in the
hypothesis being accepted, which means absorption has a positive influence on
purchase intention.
4.6.4 Hypothesis 4a: Absorption has a positive influence on dedication
77
According to table 4.24 the relationship between absorption and dedication has
the t value of 4.751 and the p value of 0.000, which results in the hypothesis being
accepted, which means absorption has a positive influence on dedication.
4.6.5 Hypothesis 4b: Dedication has a positive influence on vigor
According to table 4.24 the relationship between dedication and vigor has the t
value of 2.626 and the p value of 0.004, which results in the hypothesis being ac-
cepted, which means dedication has a positive influence on vigor.
4.6.7 Hypothesis 5a: Entertainment has a positive influence on vigor
According to table 4.24 the relationship between entertainment and vigor has
the t value of 4.012 and the p value of 0.000, which results in the hypothesis being
accepted, which means entertainment has a positive influence on vigor.
4.6.8 Hypothesis 5b: Entertainment has a positive influence on dedication
According to table 4.24 the relationship between entertainment and dedication
being accepted, which means entertainment has a positive influence on dedication.
4.6.9 Hypothesis 5c: Entertainment has a positive influence on absorption
According to table 4.24 the relationship between entertainment and absorption
being accepted, which means entertainment has a positive influence on
absorption.
78
4.6.10 Hypothesis 6a: Flexibility does not have a positive influence on vigor
According to table 4.24 the relationship between flexibility and vigor has the t
value of 0.485 and the p value of 0.314 which results in the hypothesis being re-
jected, which means flexibility does not have positive influence on vigor. This re-
sult means that the player’s flexibility towards the game has no positive impact on
their vigor or energeticness when playing the game. The possible reason for this is
that since League of Legends is a computer game where players have to dedicate a
certain
4.6.11 Hypothesis 6b: Flexibility has a positive influence on dedication
According to table 4.24 the relationship between flexibility and dedication has
the t value of 2.019 and the p value of 0.022 which results in the hypothesis being
accepted, which means flexibility has a positive influence on vigor.
4.6.12 Hypothesis 6c: Flexibility does not have a positive influence on absorp-
tion
According to table 4.24 the relationship between flexibility and absorption has
the t value of 0.437 and the p value of 0.331 which results in the hypothesis being
rejected, which means flexibility does not have positive influence on absorption.
This hypothesis rejection means that the player flexibility towards the game has
no positive influence on the player’s absorption towards the game. As stated
before, League of Legends is considered inflexible, as players would have to sit in
front of
79
their pc and dedicate a certain amount of time to play the game, which would not
have a positive influence on absorption.
4.6.13 Hypothesis 7a: Self-presentation has a positive influence on vigor
According to table 4.24 the relationship between self-presentation and vigor
has the t value of 4.293 and the p value of 0.000 which results in the hypothesis
being accepted, which means self-presentation has a positive influence on vigor.
4.6.14 Hypothesis 7b: Self-presentation has a positive influence on dedication
According to table 4.24 the relationship between self-presentation and dedica-
tion has the t value of 2.309 and the p value of 0.011 which results in the
hypothesis being accepted, which means self-presentation has a positive influence
on dedication.
4.6.15 Hypothesis 7c: Self-presentation does not have a positive influence on
absorption
According to table 4.24 the relationship between self-presentation and absorp-
tion has the t value of 1.547 and the p value of 0.061 which results in the
hypothesis being rejected, which means self-presentation does not have positive
influence on absorption. The rejection of this hypothesis means that the player’s
reasoning based on the self-presentation dimension has no positive influence on
their absorption towards the game.
80
Chapter 5: Conclusion
This section of the paper would talk about the conclusion of the research, the
managerial implications, limitations, and suggestions regarding how the papers
can be further improved in the future.
5.1 Conclusion
Based on the result of the actual testing that was analyzed through the program
SmartPLS 3.0, these following hypotheses are accepted
1. H1: Vigor has a positive influence on purchase intention.
2. H2: Dedication has a positive influence on purchase intention.
3. H3: Absorption has a positive influence on purchase intention.
4. H4a: Absorption has a positive influence on dedication.
5. H4b: Dedication has a positive influence on vigor.
6. H5a: Entertainment has a positive influence on vigor.
7. H5b: Entertainment has a positive influence on dedication.
8. H5c: Entertainment has a positive influence on absorption.
9. H6b: Flexibility has a positive influence on dedication.
10. H7a: Self-presentation has a positive influence on vigor.
11. H7b: Self-presentation has a positive influence on dedication.
Based on the result of the actual testing that was analyzed through the program
SmartPLS 3.0 these following hypotheses are rejected.
81
1. H6a: Flexibility does not have a positive influence on vigor.
2. H6c: Flexibility does not have a positive influence on absorption.
3. H7c: Self-presentation does not have a positive influence on absorption.
5.2 Managerial Implication
The acceptance of hypothesis H1 means that the state of energeticness or vigor
has a positive influence on the player’s purchase intention, which means that com-
panies such as Riot Games needs to be able to give this feeling of energeticness
towards the player which in turn would encourage the players to invest their
energy towards the game to gain the feeling of energeticness, and positively affect
their purchase intention.
The acceptance of hypothesis H2 means that a player's level of dedication to-
wards the game has a positive influence on their purchase intention. What this
means is that the more a company is able to make a customer dedicated to them
either through their satisfaction towards the service or products offered by the
company the more it will positively affect the player’s purchase intention.
The acceptance of hypothesis H3 means that a player’s absorption has a
positive influence towards purchase intention. What this means is that the more a
player is involved towards the game and the more their attention is focused
towards the game, the better it will affect their purchase intention. This means that
the ability to
82
absorb a player’s attention and make them ignore all irrelevant thoughts towards
the game are important for a company to positively affect their purchase intention.
The acceptance of hypothesis H4a means that absorption has a positive
influence on the player’s dedication. What this means is that the more a player is
absorbed towards the game and enters the “flow” state where all other irrelevant
thoughts towards the game are ignored, the more it will positively affect their
dedication towards the game they are playing. This means that the more a game is
able to absorb a player towards the game and make them ignore all irrelevant
thoughts towards the game, the more the player will dedicate themselves towards
the game.
The acceptance of hypothesis H4b means that dedication has a positive
influence on vigor. What this means is that the level of dedication that player’s put
in the game will positively affect their feeling of energy towards the game, as the
more a player is satisfied towards the game, the more likely they will invest their
time and energy towards the game, which would make them energetic or
vigorous.
The acceptance of hypothesis H5a means that entertainment has a positive
influence on vigor. What this means is that the entertainment reasoning to play
the game, which is to play for the purpose of obtaining pleasure and enjoyment
will positively influence their energy level as player’s are more likely to be more
enthusiastic and willing to invest their time in games they found to be enjoyable.
83
This means that
84
catering to the entertainment needs of the player is important to positively
influence the player's feeling of vigor when playing the game.
The acceptance of hypothesis H5b means that entertainment has a positive
influence on dedication. What this means is that since dedication comes from the
feeling of satisfaction that manifests itself as a feeling of loyalty or dedication,
which means if a game can satisfy their player’s need for entertainment through
satisfaction towards the game services, they are more likely to be loyal and
dedicated towards the game.
The acceptance of hypothesis H5c means that entertainment has a positive
effect on absorption. What this means is that when the player needs for
entertainment are fulfilled by the game, they are more likely to absorb themselves
and put themselves in a flow state, which means they will ignore irrelevant
thoughts towards the game as they want to absorb themselves in the game that
fulfill their entertainment needs. This means that catering to the player's need for
entertainment is important to absorb them towards the game.
The rejection of hypothesis H6a means that flexibility has no positive influence
on vigor. What this means is that the game flexibility, which means how
convenient and accessible a game is would not positively affect the level of
energy the players would put into the game. This reasoning might come from the
fact that since League of Legends is a computer game where you have to play a
certain amount of time to
85
win, it's inflexible, which is why the game flexibility (or lack of it) has no positive
impact on their vigor.
The acceptance of hypothesis H6b means that flexibility has a positive
influence on dedication. What this means is that the convenience and the
accessibility of the game may positively affect their dedication as the ease of
access can cause the player to play for longer and dedicate themselves and be
loyal towards the game. This means that catering to the flexibility side of uses and
gratifications by making the game easy to access can positively influence
dedication.
The rejection of hypothesis H6c means that flexibility does not have a positive
influence on absorption. What this means is that the flexibility of League of Leg-
ends does not affect the player’s absorption positively as previously mentioned
where despite League of Legends being an inflexible game, players are still ab-
sorbed to the game itself, which shows that flexibility does not positively affect
absorption.
The acceptance of hypothesis H7a means that self presentation has a positive
influence on vigor. This means that the player’s ability to present themselves in
game would motivate them to achieve this goal of self presentation in the form of
either cosmetics or ingame rank. This continuous play motivated by the goal of
self presentation would lead them into being vigorous. This means that catering to
the players need of self-presentation by a game through various cosmetic or
86
ingame
87
ranks are useful to positively influence their feeling of vigorousness due to their
want to achieve their self presentation goal through repeat play.
The acceptance of hypothesis H7b means that self presentation has a positive
influence on dedication. What this means is that the player goal of self
presentation would make them dedicate themselves towards the game as they
desire to achieve this self presentation goal through cosmetic or ingame rank. For
a company, this means that just like vigor the
The rejection of hypothesis H7c means that self presentation has no positive in-
fluence on absorption. What this means is that player’s feelings of absorption to-
wards the game are not positively affected by their ability to self presentate and
are possibly affected by factors not included in the research model.
5.3 Research Limitations
This research still has limitations, which are listed below:
1. Limitation of research subjects being those that live in the
JABODETABEK area.
2. Relatively low sample size of 225.
3. Research object only focuses on one game, which is League of Legends.
4. Survey questions might not be fully understood by the respondents.
88
5.4 Research Suggestion and Recommendation
These recommendation and suggestion may be taken to improve future
research, which are listed below:
1. Increase in sample size from 225 respondents to broaden the scope of the
research.
2. Broaden the range of research targets by not limiting to the
JABODETABEK area.
3. Different games can be used for future research.
89
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Appendix
Appendix A: Questionnaire
Halo semuanya! nama saya Alvari Suwarno, saya adalah mahasiswa bisnis ma-
najemen dari Universitas Pelita Harapan angkatan 2017. saya sedang melakukan
penelitian skripsi saya yang bertujuan untuk meneliti efek dari uses and gratifica-
tions dan customer engagement terhadap microtransaction purchase intention pada
game League of Legends.
Kuesioner ini hanya akan memakan waktu sesaat, dan semua jawaban yang
dikirim bersifat anonim, mohon bantuannya untuk menjawab kuesionernya ini ya!
terima kasih atas partisipasinya!
Apakah anda pemain League of Legends?
Are you a League of Legends player?
O Yes
O No
*If yes is answered, continue to the rest of the question. While if no is answered,
the questionnaire is submitted.
Apakah anda tinggal di daerah JABODETABEK?
Do you live in the JABODETABEK area?
O Yes
O No
10
*If yes is answered, continue to the rest of the question. While if no is answered,
the questionnaire is submitted.
Identitas Responden
Respondent Identity
Gender
O Male
O Female
Umur
Age
O Dibawah 20
O 20-23
O 24-27
O 28-31
O Diatas 31
Domisili
Place of Residence
O Jakarta
O Bogor
O Depok
10
O Tangerang
O Bekasi
Pekerjaan
Employment
O Pelajar/Mahasiswa
(Student) O Karyawan
(Employee)
O Guru/Dosen (Teacher)
O Pengusaha (Entrepreneur)
O Tidak Bekerja (Unemployed)
Penghasilan perbulan
Monthly Income
O < Rp. 5,000,000
O Rp. 5,000,000 - Rp.10,000,000
O Rp. 10,000,000 - Rp.15,000,000
O Rp. 15,000,000 - Rp. 20,000,00
O > Rp. 20,000,000
Berapa lama anda main League of Legends dalam sehari?
How long do you play League of Legends in a day?
O 1-2 jam (1-2 hours)
O 3- 4 jam (3-4 hours)
10
O 5 - 6 jam (5-6 hours)
O Diatas 6 jam (Above 6 hours)
Apakah anda sebelumnya pernah melakukan transaksi dengan uang asli di
game League of Legends?
Have you ever bought something with real money in League of Legends?
O Ya (Yes)
O Tidak
(No)
Five-point Likert Scale
Likert Scale:
1= Strongly disagree
2= Disagree
3= Neutral
4=Agree
5= Strongly agree
Num. Statement Likert Scale
1 2 3 4 5
10
Entertainment
1. Saya bermain League of Leg-

ends karena menyenangkan
(I play League of Legends be-
cause it's fun)
ends untuk bersenang - senang
(I play League of Legends for
the enjoyment)
3 Saya bermain League of Leg-
ends karena seru
(I play League of Legends be-
cause it's exciting)
Flexibility
1. Saya bisa bermain League of

Legends dimanapun dan kapan-
pun dengan mudah
(It is convenient to play
League of Legends anytime
and anywhere)
2. Saya bisa mulai dan berhenti
main League of Legends kapan-
pun
(I can begin and stop playing
League of Legends anytime)
3. Saya bisa mengontrol waktu
bermain League of Legends
saya
(I can control my League of Leg-
ends playtime)
Self-presentation

ends agar dianggap bersahabat
oleh pemain lain
(I play League of Legends to be
perceived as friendly by others
in-game.)
10
ends agar dianggap mahir oleh
pemain lain
(I play League of Legends to be
perceived as skilled by others in-
game.)
ends untuk mencapai ranking
yang tinggi, yang akan membuat
saya memiliki status yang lebih
tinggi dibanding pemain lainnya
(I play League of Legends to
achieve high rank, which gives
me higher status than other play-
ers in-game.)
Vigor
1. Saya berusaha untuk menang

saat bermain League of Legends
(I try my hardest to perform
well in League of Legends.)
2. Saya menuangkan banyak energi
saya saat bermain League of
Legends
(I devote a lot of energy to
League of Legends.)
3. Saya merasa ber-energi saat ber-
main League of Legends
(I feel energetic when i
play League of Legends.)
Dedication
1. Saya merasa antusias tentang

League of Legends
(I’m enthusiastic about League
of Legends)
2. Saya tertarik bermain League of
Legends
(I'm interested in playing League
of Legends)
10
3. Saya bersemangat saat bermain
League of Legends
(I’m excited when playing
League of Legends.)
Absorption
1. Waktu terlewat dengan mudah

saat saya bermain League of
Legends
(Time flies when I play League
of Legends)
2. Saat bermain League of Legends
membuat saya lupa dengan hal-
hal lainnya
(Playing League of Legends is
so absorbing that I forgot about
everything else.)
3. Pikiran saya fokus saat bermain
League of Legends
(My mind is focused when play-
ing League of Legends)
Purchase Intention
1. Saya berniat untuk membeli item

virtual di League of Legends
(I intend to pay for virtual items
in League of Legends.)
2. Saya akan membeli item virtual
di League of Legends di masa
yang akan datang
(I would pay for virtual items in
League of Legends in the fu-
ture.)
3. Saya akan merekomendasikan
orang lain untuk membeli item
virtual di League of Legends
(I would recommend others to
buy virtual items in League of
Legends)
11
Appendix B: SmartPLS 3.0 Test Result
A. Results of pre-test data processing with 52 respondents
11
B. Results of actual test data processing with 225 respondents
11
11
11
11
Appendix C: Research Model
11
Appendix D: Replicated Journals
11
11
11
12
12
12
12
12
12
12
12
12
12
13
13

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THESIS

THE EFFECT OF USES AND GRATIFICATIONS ON

CUSTOMER ENGAGEMENT TOWARDS LEAGUE OF

LEGENDS PLAYERS MICROTRANSACTION

Written as a partial fulfilment of the academic

STUDY PROGRAM OF MANAGEMENT

THE EFFECT OF USES AND GRATIFICATIONS ON

CUSTOMER ENGAGEMENT TOWARDS LEAGUE OF LEGENDS

PLAYERS MICROTRANSACTION PURCHASE INTENTION

Name : Alvari Suwarno

Tangerang, May 1st,

(Dr. Moses L. P. Hutabarat, S.Kom., S.E., M.M.)

Head of Management Study Program Dean of Faculty Economics and Business

THESIS DEFENSE COMMITTEE

academic requirements to achieve Sarjana Manajemen, Faculty of Economics and

Business, Management Study Program, Universitas Pelita Harapan, as follow:

Name : Alvari Suwarno

Included in the final examination of this thesis entitled “THE EFFECT OF

USES AND GRATIFICATIONS ON CUSTOMER ENGAGEMENT

TOWARDS LEAGUE OF LEGENDS PLAYERS MICROTRANSACTION

INTENTION” with the thesis defense committee as follows:

Name Position Signature

1. Dr. Sabrina O. Sihombing, ,as Head of the

Committee S.E., M.Bus.

2. Dr. Moses L. P. Hutabarat, ,as Supervisor and Member

S.Kom., S.E., M.M. of the Committee

3. Juniarty S.Sos., M.M. ,as Member of the Committee

Alvari Suwarno (01013170012)

The Effect of Uses and Gratifications on Customer Engagement

Towards League of Legends Players Microtransaction

(137 pages; 6 figures; 30 Tables; 3 Appendix)

Nowadays, innovative business opportunity always seems to present themselves,

Keywords: Microtransaction, Purchase Intention, Customer Engagement, Uses

Reference: 100 (2001 – 2021)

Gratifica- tions Theory Towards JABODETABEK League of Legends Players

Microtransac- tion Purchase Intention” is aimed to fulfil the final requirement to

attain the Sarjana Ekonomi Degree in Management, University of Pelita Harapan,

1. Gracia Shinta S. Ugut, MBA., Ph.D., as the Dean of Faculty Economics of

Universitas Pelita Harapan.

gram of Universitas Pelita Harapan.

helped, guided, and assisted me throughout the writing process.

4. Dr. Ir. Evo S. Hariandja, M.M., as the AOE of Marketing of Universitas

during these past 3,5 years both academically and non-academically.

7. My beloved parents, Suwarno and Lanny Sanggaya for their continuous

support and prayers throughout the writing process.

8. My sister Laura Amanda for her continuous support of me throughout the

9. All my friends that have supported me throughout the writing process.

the questionnaire which helped with the completion of the thesis.

paper are useful to those who read it.

Tangerang, April 19th, 2021

Final Assignment Statement and Upload Agreement.........................................ii

4.5 Inner Model..................................................................................................68

Figure 1. 1 Games Company Microtransaction Earnings in 2019...........................4

Table 3. 1 Conceptual Definitions and Operational Definitions............................35

and research questions, purpose of study, research benefits, research contributions,

and research outline.

1.1 Research Background

Nowadays, digital electronics ownership became more prevalent in the indus-

general populace. These phenomena influence technology by advancing them in

all sectors, particularly in the entertainment sector. This advancement in the

entertain- ment sector opens so many new opportunities for technology to be

integrated and monetized.

The example of this technology integration in the world of entertainment is in