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Virtuality, Virtual Consumption, and the China Market University of Rhode Island DigitalCommons@URI Open Access Dissertations 2015 Virtuality, Virtual Consumption, and the China Market Man Zhang University of Rhode Island, [email protected] Follow this and additional works at: https://digitalcommons.uri.edu/oa_diss Recommended Citation Zhang, Man, "Virtuality, Virtual Consumption, and the China Market" (2015). Open Access Dissertations. Paper 407. https://digitalcommons.uri.edu/oa_diss/407 This Dissertation is brought to you for free and open access by DigitalCommons@URI. It has been accepted for inclusion in Open Access Dissertations by an authorized administrator of DigitalCommons@URI. For more information, please contact [email protected]. VIRTUALITY, VIRTUAL CONSUMPTION, AND THE CHINA MARKET BY MAN ZHANG DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION UNIVERSITY OF RHODE ISLAND 2015 DOCTOR OF PHILOSOPHY DISSERTATION OF MAN ZHANG APPROVED: Dissertation Committee: Major Professor Nikhilesh Dholakia Hillary Leonard Ian Reyes Nasser H. Zawia DEAN OF THE GRADUATE SCHOOL UNIVERSITY OF RHODE ISLAND 2015 ABSTRACT With technological advance, virtuality and virtual consumption have been evolving to become increasingly important in marketing landscapes worldwide. Theoretical and methodological approaches for study of virtuality and consumption, however, have not kept pace. In terms of theoretical approach, the existing literature has been primarily focused on virtual consumption in virtuality as a place of “de-localization” and “de-realization”. In terms of methodological approach, there have been various conflicting opinions concerning different methodological procedures to be followed. Moreover, in terms of empirical study, there is little existing literature dealing with virtuality and virtual consumption in context other than western. Given the fact that China is now the largest virtual goods market in the world and has unique sociocultural characteristics, studies on virtuality and virtual consumption in the context of China’s market are particularly needed. To fill these research gaps, this dissertation aims to begin a process of theoretical and methodological renewal, and then to apply such renewed approaches to the study of virtuality and virtual consumption in context of China’s market. Starting with introduction of major extant theories of virtuality and discussion of such theoretical perspectives in the context of studies of virtual consumption, chapter two of this dissertation presents a broader and integrated conceptual framework for analysis of virtual consumption, which is based on both perspectives of “virtuality as place”, and “virtuality as practice/process”. Additionally, chapter two also identifies the research questions that have not been addressed in prior studies and will be addressed in this dissertation. Chapter three examines the qualitative methods to be applied in study of virtuality and virtual consumption, with special focus on the methodological challenge and adaptation of ethnography, and demonstrates the benefits of using digital ethnography to take advantage of the opportunities offered by Web 2.0 and Web 3.0, and address the methodological challenges. Applying the theoretical and methodological approach discussed in previous chapters, chapter 4 first generates a historical narrative of rapidly changed and persistently unchanged aspects of reality in China, as a larger place, that suits virtuality and virtual consumption. Then, the chapter explores how the Chinese post-1990 generation consumers, as the largest segment of virtual goods market in China, navigate between the virtuality and reality and mediates between the old and the new. The main finding is that through self-control, compromise, and negotiation in the process of virtual consumption, the Chinese post-1990 generation consumers strike a balance between their virtual world experience and their offline daily life, and develop a coherent perception of self. Collectively, this dissertation has advanced the state of knowledge of virtuality and virtual consumption in general, and in China’s market context in particular. ACKNOWLEDGMENTS First, I would especially like to thank Dr. Nikhilesh Dholakia, my major professor, for his support and guidance throughout my doctoral program and dissertation research. This dissertation would not have been possible without his insightful suggestions and invaluable advice. I am also greatly grateful to Dr. Hillary Leonard and Dr. Ian Reyes for serving on my dissertation committee. Their comments and suggestions helped to improve this dissertation significantly. The aid of countless supporters at URI has been vital throughout my journey developing this dissertation. I owe particular gratitude to Dr. Shaw Chen for his support and help during my transition from a doctoral student at URI to a faculty member at ENMU. Also, my thanks go to my friend, Mr. Yifei Li, a member of URI doctoral student cohort group, for his friendship and continued support. A special thank is also due to Dr. Tingting Zhao (Fudan University) for her assistance during my fieldwork and data collection in China. Last, but not the least, I am truly blessed with a supportive and loving family. I am immeasurably grateful to my father and mother for their continued support and love. iv TABLE OF CONTENTS ABSTRACT ................................................................................................................... ii ACKNOWLEDGMENTS ............................................................................................ iv TABLE OF CONTENTS ................................................................................................ v LIST OF TABLES ........................................................................................................ vi LIST OF FIGURES ..................................................................................................... vii CHAPTER 1: INTRODUCTION ................................................................................... 1 CHAPTER 2: VIRTUALITY AND VIRTUAL CONSUMPTION – A CONCEPTUL FRAMING………………………………………………………………………..13 CHAPTER 3: METHODOLOGICAL CHALLENGES AND ADAPTATIONS……51 CHAPTER 4: REALITY, VIRTUALITY, AND VIRTUAL CONSUMPTION IN CHINA……………………………………………………………………………69 CHAPTER 5: CONCLUSIONS AND FUTURE RESEARCH ................................. 136 BIBLIOGRAPHY ...................................................................................................... 144 v LIST OF TABLES TABLE PAGE Table 1.1: Evolution of Web and Online Consumption. ...................................2 Table 1.2: Online Economy and Virtual Goods.................................................5 Table 1.3: Selected Major Companies Selling Virtual Goods ..........................6 Table 2.1: Comparison of Physical Goods, Services, Information Goods and Virtual Goods .................................................................................22 Table 2.2: Main Research Objectives and Questions ......................................49 Table 3.1: Comparison of Online Ethnographic Methods ...............................58 Table 3.2: Profile of Research Participants......................................................63 Table 4.1: Historic Narrative of Reality and its Influences on Virtuality and Virtual Consumption in China ........................................................86 Table 4.2: Emergent Themes from Fieldwork .................................................90 Table 4.3: Participants’ Practices/ Strategies to Construct Coherent Self ….125 vi LIST OF FIGURES FIGURE PAGE Figure 2.1: Overall Schematic of Theoretical Positions .................................15 Figure 2.2: Main Types of Virtual Goods ........................................................23 Figure 2.3: Virtual Consumption: The Three P’s View ..................................48 vii CHAPTER 1 INTRODUCTION 1.1 Chapter Abstract This chapter provides background information on virtual consumption in the global marketplace and discusses the problems surrounding the research on virtual consumption and virtual markets. Thereafter, it specifies the motivation and objectives of this dissertation research about virtual consumption in China, the research questions in focus, and the expected contributions of this dissertation to the marketing and consumer research literature. 1.2 The Rise of Virtual Consumption With the evolution of the Internet, online consumption has also evolved. The following subsections trace this evolution, starting from early and simple e-commerce and ending with the forms of consumption that are the focus of this dissertation: virtual ways of consuming. 1.2.1 Evolution of online consumption The rapid migration of technology across geographic and socioeconomic boundaries is a defining element of the times we live in (Masten and Plowman 2003; Dholakia 2012, p.7). Especially the Internet “heralds the onset of a third industrial revolution, one based in technological advances in software, hardware and telecommunications” (Smith 2001). As of December 2014, there were over 3 billion Internet users worldwide (Internetworldstats 2015). These digital technological advances 1 are changing consumers’ lives (Dholakia 2012, p. 23) and transforming marketing practices (Berman 2012; Dholakia and Dholakia 2011, p. 52). The evolution of Internet from the past Web 1.0 to Web 2.0, and the shift to ongoing and future Web 3.0, has been shaping the online consumption spaces
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