EXAMINING FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Dahlia Darmayanti and Christopher Hugo Tancho

Abstract

This research paper examined the factors that affect consumer online and offline behavioral intention, affected by fan engagement in video game industry. The fandom engagement contains three components of independent variables, such as; fan-to-fan, brand-to-fan, and fan co-creation. To achieve this, a quantitative study was conducted, using questionnaire that was distributed through social media. First, pilot test will be conducted first, after that pre-test will be conducted. Secondly, the data will be tested for reliability and validity, once it is reliable and valid the full test will be conducted. After that the data are analyzed using SPSS software, the testing method that this paper use is multiple regression. The findings show that 5 out of 6 hypotheses were accepted, brand-to-fan relationship with offline behavioral turned out to be insignificant. While the other hypotheses were significant. The findings suggest that brand should utilize social media to interact with fans. Allowing fans to share their co-creation process to increase fan engagement further, resulting in positive offline and online behavioral intention towards the brand.

Keywords: Customer Engagement, Customer Loyalty, Customer experience, Fan Engagement, Fandom Marketing, Online and Offline Behavioral Intention, Video Game, Social Media.

EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

INTRODUCTION

The US population in 2018 was 327.2 million of people, 66% of those population are video gamers (Gough, 2019). The population of American adults play video games on multiple platforms, such as; consoles, computer, handheld, and even mobile device (Koksal, 2019). The customer thinks that video game offer much more value and experience compared to other type of entertainment, such as film and music. The video game market is going to grow faster, it is predicted that by 2025 the revenue generated will reach over $300 billion (Koksal, 2019).

Yee (2006), created a framework studying the motivation towards customer who like video game (figure 1.2). The first framework is achievement; this framework explains customers that are interest in progressing through game, they are motivated to completing the challenges that were presented to them. Moreover, they are interested in the rules and system of the game. The second framework is social; the customer who wants to form social connection with other customer, resulting in group formation with the purpose of video game socializing. The last framework is Immersion; the customer felt immersed when they are playing video game. Immersion equals to experience, once customer felt really immersed in video game that they are playing, will lead them to have a positive customer experience.

1.1.6 Social media as platform for fan

The rise and growth of social media, makes the best environment for fandom activity. Because social media facilitates and provides fans in multiple ways to connect and to participate in their respective fandom.

Fans tend to look for other people who are also a passionate about the brand, this behavior is related to homophily, meaning that people tendency to create bonds with other people who has similarity (Newman & Dale, 2007).

This rising trend has been utilized for a long duration by gaming industry for their fandom marketing strategy. Their goal is to build and maintain relationship between EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

fans and their brand (Santos, 2018). Social media interaction quality has become an important role on brand perceptions (Carlson and O’Cass, 2012).

It was noted that the benefits of using social media and gaming brand to implement fandom marketing activities to further improve relationships between their brand and fans (Santos, 2018). Completion rate is measurement for video advertisement in social media, that shows the number of how many times the video advertisement plays to the end (“Video Ad Engagement Benchmarks in 2017”, 2018). The completion rate of social and video game advertisement is the highest compared to other type of advertisement, reaching 91% of completion rate. The completion rate is higher because the advertisement was aiming for specific demographic (Bankov, 2019).

Fandom is an example of participatory cultures. In which fan act not only as customer, but also as producers and creators. This is much more apparent in the entertainment media such as music, movie, television, sports, and video game which established the term called fandom marketing (Jenkins, 2013).

As mentioned before, there are two sides of fandom marketing: one side is from the fans and on the other side is the company. First is from the side of the fan side. Second is from the company side.

Video game market dominates and rapidly growing in Asia’s market, such as; Japan, China, South Korea, and Indonesia (Antara, 2019). Figure 1.6 shows that in 2017 Indonesia was in the list in Southeast Asian Games Market and with the second highest spending, $2,216M. This rapid growth causes video game to start contributing to Indonesia’s economy, through both developments of software and hardware. The Chief Operating Officer from Game Loka Pala (Anantarpura Studios), stated that gaming industry will be able to start contributing 5% into Indonesia’s economy (Antara, 2019). EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

The growth rate of video gaming industry in Indonesia has grown to 40%, based on data analytics of Indonesia gaming industry, e – sport, Newszoo report, in 2018 (figure 1.7). Referring to figure 1.7 show that the transaction in Indonesia market has generated 1.1 Billion in revenues. Indonesia positioned itself to be in the 17th position of gamer population, India has positioned itself to be in the 16th position, and Taiwan in the 15th position, China is on the top. Director of Synnex Metrodata Indonesia, Ronaldy Suhendra, believes that Indonesia will soon pass the number 17, from 266 million of population, there are 82 million that already online (Antara, 2019). In 2020 gaming user was predicted to increase by 17.5% and 20.4% by 2024 (“Mobile Games - Indonesia: Statista Market Forecast”, 2019). The Indonesia’s government also supports the growth of gaming industry, resulting the growth to be much faster.

Additionally, the biggest video game platform in Indonesia is mobile games, reaching the number of 74% and 94% of those population has spent amount of money in their gaming platform. The average spending of Indonesian video gamers are Rp200,000 on one game alone (Antara, 2019).

Problem Statement and research gap

The original research paper written by Santos (2018) tried to analysed fan engagement of sport industry in Portuguese through SNS (Social Networking Sites). The research paper analysed and observed how fan engagement affects the overall online and offline behaviour of fans towards their favorite sports team.

The gap of the original research with this paper is the difference between the participants and the subject sample. The previous study was researching about football fans engagement through social media in Portuguese. The data collection method was through Facebook only, which limits the data sampling collection, because there are multiple social media that fans use, this decrease the reach and cause generalisability of the findings. (Santos, 2018)

The original journal mentioned that most previous research did not specify that fandom engagement is voluntary behaviour that could lead to positive responses in EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

both online and offline contexts. Thus, the author of this research paper conducted this study, to observe and to measure fan engagement in gaming industry through social media in Indonesia market.

It is about the relationship between the fan and gaming brand that enters Indonesia market. The reason for analysing video game fandom in Indonesia is because gaming brands enter Indonesia market and causing video game fandom to exist in Indonesia. Furthermore, it is also to describe the potential of video game industry to grow in Indonesia through fandom marketing. As well as, the potential for fandom marketing to be a strong marketing strategies.

Additionally, from the knowledge of the author, fandom is very uncommon in Indonesia. Meanwhile, fandom is very common in Western culture. Moreover, the studies of fandom marketing in Western are plenty; while there is almost none in Indonesia. This was concluded by the author due to difficulties of finding data and information regarding fandom in Indonesia, however it was much easier when finding it from Western sources.

Scope

Since the topic is about video game industry in Indonesia market, the scope of this study is primarily located in Indonesia. The respondent must be people who play video games. There is no specific social media nor video game platform, since one individual can use multiple platforms. The focus age range will be 18 – 35 years’ old, because that age range dominates Indonesia’s video gamer population (Moh & Irwansyah, 2018).

Aims and Benefits

The aim of this research paper is to investigate the relationship between fan engagement and their behavioural intention on both online and offline, in gaming industry through social media. The fan engagement is divided into three items; fan- to-fan, Brand-to-fan, and fan co-creation. This paper purpose is to help conceptualizing fan engagement and its role in video game brand. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Benefits to video game industry in Indonesia:

 To provide Conceptualize fandom marketing for marketing strategies.  To give insights about the importance of providing and maintaining environment that stimulates engagement for both offline and online.  To act as an information and outlooks for future reference for marketers for both video game business and business in general.

Benefits to managerial application for non – video gaming industry:

 To apply fandom marketing for marketing strategies similar to Hagerty car Insurance in the previous example.  To gain understanding to further build relationship between customer through social media.

Research Questions

From the research paper the established research questions are as follow:

 RQ1 Does fan-to-fan engagement have positive impact on online behavior?  RQ2 Does Brand-to-fan engagement have positive impact on online behavior?  RQ3 Does fan co-creation engagement have positive impact on online behavior?  RQ4 Does fan-to-fan engagement have positive impact on offline behavior?  RQ5 Does Brand-to-fan engagement have positive impact on offline behavior?  RQ6 Does fan co-creation engagement have positive impact on offline behavior?

LITERATURE REVIEW

First of all, video game is defined as a game which use audio visual elements electronically. Definition by Owen (2016) is the voluntary interactive activity, for EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

players to follow rules that was provided. Additionally, video game does not have physical interactivity, since it is done digitally.

Social media is defined as a form of communication that utilizes electronic, which resulting in online communities. As well as allowing users to create and share information, ideas, and messages (Manning, 2014). There are two characteristics that distinguish social media from other digital platform. First, is the characteristic of enabling user in some form of participation, all social media requires user to create personal profile. Second, characteristic is interaction, allowing users to be able to make some form of interactions between other users (Manning, 2014).

The main arching theme of this research paper is customer engagement. It is defined as the dynamic interaction between customer and business, that leads to corporate performance, including the growth of sales, competitive advantage and the profitability of the business (Brodie., Hollebeek., Juric., & Ilic., 2011). There is relationship between customer engagement towards customer loyalty, “there is an important place contributing to understanding of customer outcomes, namely loyalty- related outcomes” (Fernandes & Esteves, 2016).

Customer loyalty is defined as the desire of customer to be committed to the brand, it is a state of customer wanting to maintain relationships with particular company. This customer continues to make repeat purchase, the desire and their willingness to keep purchasing and using the product/service of the particular company (Chung., Beverland., Farrelly., & Karpen., 2017)

Fan also shares similar definition from both customer engagement and customer loyalty, “fan is a customer who go to extremes to support or pursue their favorite product, brand, or consumption activity or experience” (Chung., Beverland., Farrelly., & Karpen., 2017). What makes loyal customer and a fan different is their extreme commitment and engagement towards the relationship between the brand. Fan commitment is positive individual’s attitude towards a brand and their resistance to change (Sumida., Fujimoto., & Sakata, 2014). Fan engagement is the behaviour of individual interaction for transactional (purchasing products/service) and non- EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

transactional, both online and offline engagement. Online engagement involves the behaviour of individual to customer, contributing, and creating brand related social media content; offline on the other hand is engagement behaviour by attending meeting, events, volunteering, and recommending other customer (Sumida et al., 2019). This leads to participatory cultures, and one of the example of participatory cultures is fan culture or fandom.

Fan-to-fan defined as the interaction between two or more fans both online and offline settings, further definition by Derbaix & Korchia (2019) includes the sharing of information, communicating to another fan, helping another fan when interacting with the product or service. The interaction between consumer further improve one’s welfare, with providing benefit, usually with little or no reward in return (Santos, 2018). Fan-to-fan becomes much more effective due to the availability of social media platform, hence the exploration of online activity for fan-to-fan interaction.

Team-to-fan was one of the independent variable in the original research paper, the paper defined Team-to-fan as the interaction and maintaining relationships between the professional sports team with their fans (Santos, 2018). In the context of the paper professional sport team act as a brand, where they established a name (ex. Arsenal, Liverpool, Manchester United, etc.), symbol or logo, and have their own merchandises, this aligned with the definition of brand (Bauer, Stokburger-Sauner, & Exler., 2008).

Hence, for this research paper that explores the gaming industry, the term team is not a familiar term when relating it to a brand of a video game, therefore the term Team- to-fan is changed into Brand-to-fan, since it does not pose any difference. The purpose of the change is to avoid confusion among video game fans.

Brand-to-fan is defined as how brand and fans interacts, part of relationship building between company with their customer (Santos, 2018). Establishing relationships EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

between company and brand is very important, the task is much easier with the availability of social network.

The definition of fan co-creation is the benefits obtained by effectively integrating resources through fans interaction (Nikolinakou & Phua, 2019). This opportunity needs to be utilize more by businesses, in which they create an environment that encourage fans to strengthen their relationship with another fan and with the brand. Fan co-creation is an important variable in customer engagement through social media. It is fans behavior in which they share content, create content, and giving impression to another fans. In fact, the higher the involvement of customer in co- creation process, the more engage they are with the brand (Hur et al., 2011).

Online behavioural intention is defined as customer’s motivation to continuously supports the brand that they are a fan of. By recommending, continuous usage of product and service, generating content related to the brand, creating statement or opinion towards the brand to other fans, and their purchase intention through online platform (Carlson & O’Cass, 2012).

Offline behavioural intention is defined similarly with online behavioural intention, where customer would continuously support the brand that they are loyal too, but the difference is the platform of this behaviour (Trail., Anderson., & Pik 2005).

Hypothesis

H1a. Fan-to-fan is positively associated with customer online behavioural intention

It was cited about a previous study that when fan-to-fan occurred positively, fan would have more positive experience towards the brand, resulting in their positive online behavioural intention (Bartikowski & Walsh, 2011). This also includes fandom community interaction between each other, there is positive relationships between customer behaviour (Ding & Tseng, 2015).

H1b. Fan-to-fan is positively associated with customer offline behavioural intention EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Offline behavioural intention is similar to online behavioural intention, the difference is that offline does not use digital platform. Instead of attending football games, its gaming convention and social and community gathering. Fan-to-fan interaction will establish fan’s social circle, which lead to their experience (Trail et al. 2005). Therefore, the positive result towards offline behavioural intention.

H2a. Brand-to-fan is positively associated with customer online behavioural intention

Brand-to-fan is basically about the interactivity between the brand and the fans, hence building and maintaining relationship. A positive relationship between the fans and brand, can help improving customer experience, because there is two-way communication between the brand and the customer (Santos, 2018). Most cases, online engagement would automatically create brand relationships, therefore it is predicted that there are positive relationships between customer behavioural intentions.

H2b. Brand-to-fan is positively associated with customer offline behavioural intention

The only brand’s offline touchpoint with the customer is when there is a convention or event held by the company. Face-to-face interaction with another fan is much more beneficial than online, because it creates a sense of belonging from the fans, a place to celebrate their hobbies (Ray., Plante., & Reysen., 2017). Hence, the prediction towards positive relationship towards offline behavioural intention.

H3a. Fan co-creation is positively associated with customer online behavioural intention

Fan co-creation as explained before, is the condition of fan creating content for the brand and share it to the other fans. This type of engagement shows that the fan is loyal to the brand and willing to create user generated content voluntarily. This generated unique experiences for the fans, hence the positive relationship of fan co- creation to their online behavioural. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

H3b. Fan co-creation is positively associated with customer offline behavioural intention

Most of the time, convention opened a space for different or same communities to interact with one another, some even allow fans to sell their own fan creation to another fan. Such as; fan art, fan merchandise, fan novel, based on the brand that they like (Ray et al., 2018). This enhance benefits to these fans which affects the positive relationship towards offline behavioural intention.

Theoretical Model

Figure 2.1 Theoretical Model

Source: Santos (2018)

METHODS

The objective of this research is to investigate whether the independent variables (fan-to-fan, Brand-to-fan, and fan co-creation) had positive relationships with the dependent variables (online behavior intentions and offline behavior intentions).

This research paper is a descriptive study, because this study observes variables on research subject, but does not manipulates the variables in any way. To put simply, this study is not an experimental research (Creswell & Gutterman, 2019). The research subject is observed in natural environment; the subject and variables are not under an experiment nor being manipulated. To observe the research subject, survey method will be use through online distribution. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

This research paper uses Inferential statistics, its purpose is to analyse data from sample to make a conclusion about a not known population (Cresswell & Gutterman, 2019).

Sampling

This paper uses Non – Probability sampling, because it studies video game fandom. The sample need to be people who play video games and follow a fandom. These people who follow a fandom also means that these people belong to a certain community or club. This paper uses Convenience Sampling, because it is easy, cheap, and the convenient. Another technique to collect sample is Snowball Sampling. The sample would recommend another sample that are similar to the sample’s characteristics, the researcher can ask the subject or the subject can recommend another sample on their own (Glen, 2014). Judgement Sampling is a sampling method of setting criteria that is suitable for the research, this method is effective in obtaining information from specific group of people (Fleetwood, 2020). In this research paper the criteria are sample who play video games and would be better if the sample experienced interaction with another video gamer.

Unit of Analysis

The age of 18 – 35 years’ old, Indonesian citizen. The reason is because this research wants to observe Indonesian market, and the suitable age is 18 – 35 years’ old. Based on the information in chapter 1, this age range is the most dominant in the video game market (Moh & Irwansyah, 2018). Since the topic is about video game, the suitable sample is video gamers. It would be more suitable if the sample is part of a video game community in Indonesia.

Data Collection Method

The data that were collected for this paper comes from two type of sources, which are;

1. Primary data, this involves the data being collected by the researcher. Primary data includes questionnaire that will be distributed to the samples. There are more EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

methods of primary data collection, such as interview directly to the respondent or an expert of the subject, direct observation, direct experiment, any method where the researcher would collect the data (McDaniel & Gates, 2015). Quantitative data was used for this research paper, the main data collection method for this research is using questionnaire distribution through survey. It is a questionnaire form which contains questions based on the variables, using Likert scale. 2. Secondary data, in the other hand is the opposite of primary data, meaning that the data already exist, another researcher had collected the data, which another researcher would use that existing data to the research (McDaniel & Gates, 2015). This paper main secondary data is from an existing research paper that was conducted by Thiago (2018) titled Examining Fan Engagement through Social Networking Sites. Book, journal, article, etc. Furthermore, the secondary data also consists of articles from internet sources, books about research methodology.

RESULTS AND DISCUSSIONS

First, pilot test to test the survey wording was conducted and distributed through online chatting to 6 respondents. The feedback that were received pose no major problem and the questions was understandable by the respondent. A pre-test involving 30 respondents was also conducted to test the validity and realibility. All variables used in this study were valid and reliable showing cornbach alpha is above 0.59.

The main study was conducted online and supported by 214 respondents who majority are male respondents. Mostly, theses respondents were between 18 -35 years old and they play game everyday.

Regression Analysis

The analysis that applied to this research is Multiple Linear Regression that the regression analyzes more than two variables, and determines the relationship between the variables. In this case the independent variables are fan-to-fan, brand-to-fan, and EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

fan co-creation, whereas the dependent variable is the Online behavior. the purpose of this analysis is to determine how each variable are influencing one another. The goal is to predict or estimate whether the independent variables and the dependent variables has relationship. The analysis and calculation were done using IBM SPSS 22 software.

Multiple regression analysed more than two variables, and determine the relationship between the variables. In this case the independent variables are fan-to-fan, brand-to- fan, and fan co-creation, whereas the dependent variable is the Online behavior.

H1a. Fan-to-fan is positively associated with customer online behavioural intention H2a. Brand-to-fan is positively associated with customer online behavioural intention H3a. Fan co-creation is positively associated with customer online behavioural intention Multiple Regression Online Behavior

R Dependent Independent Square B constant B ANOVA Sig Meaning Accept Fan-to-fan 0.236 0.000 H1a Accept Brand-to-fan 0.458 0.000 H2a Online Fan co- Accept Behavior creation 0.59 0.505 0.231 0.000 0.000 H3a

Thea table shows the multiple regression analysis results, the R square shows the value of 0.59, which also means 59%, it means that the total variation of the result is can be explained by the independent variables (fan-to-fan, brand-to-fan, fan co- creation). But the rest of 41% are indecisive. Based on the ANOVA value is 0.000, this value is lower than 0.05 which mean that the independent variables have significant impact on the dependent variable.

Looking at the significant value for fan-to-fan is 0.000, Brand-to-fan is 0.000, and lastly the fan co-creation is 0.000, this shows a significant impact of Fan-to-fan, EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Brand-to-fan and fan co-creation towards Online behavior. So H1a, H2a, and H3a can be accepted. The equation is as follows:

Online Behavior = 0.505 + 0.236 (FF) + 0.458 (BF) + 0.231 (FC)

A second Multiple Linear Regression was conducted for the second dependent variable, which is Offline Behavior. The analysis process is the same, the independent variables are also the same, the only difference is the dependent variable. The theoretical model illustrates that Online and Offline behavior were separated.

H1b. Fan-to-fan is positively associated with customer offline behavioural intention H2b. Brand-to-fan is positively associated with customer offline behavioural intention H3b. Fan co-creation is positively associated with customer offline behavioural intention Multiple Regression Offline Behavior

R Dependent Independent Square B constant B ANOVA Sig Meaning Accept Fan-to-fan 0.251 0.019 H1b Reject Brand-to-fan 0.148 0.126 H2b Offline Fan co- Accept Behavior creation 0.36 0.435 0.431 0.000 0.000 H3b It shows the multiple regression analysis results, the R square shows the value of 0.36, which also means 36%, so the total variation can be explained by the independent variables (fan-to-fan, brand-to-fan, fan co-creation). But the rest of 64% are indecisive, which means there are others variables that could affect the dependent variable. Based on the ANOVA value is 0.000, this value is lower than 0.05 which mean that the independent variables have significant impact on the dependent variable.

EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Code Hypothesis Result Fan-to-fan is positively associated with customer online behavioural intention H1a Accepted Brand-to-fan is positively associated with customer online H2a behavioural intention Accepted Fan co-creation is positively associated with customer online H3a behavioural intention. Accepted Fan-to-fan is positively associated with customer offline behavioural intention H1b Accepted Brand-to-fan is positively associated with customer offline H2b behavioural intention Rejected Fan co-creation is positively associated with customer offline H3b behavioural intention. Accepted

It is assumed that the result is different because the interaction platform between sport and video game is contrasting. Brand-to-fan is the interaction between the brand with the fan, that itself is complicated in the gaming industry. The reason being, video game is 100% a digital platform. The interaction between the company and their customer is much rare. However, football is an offline activity. Football fans will most likely attend football game, the interaction likelihood between the players and attendees are much higher. This may cause the rejection of H2b, because offline interaction in gaming is rare.

EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Figure 4.9 Theoretical Model of this paper

CONCLUSION AND RECOMMENDATION

This chapter will discuss about the final conclusion for this report, based on the research questions that were developed in the earlier chapter. This chapter will answer the research questions, also provide a managerial application that can be use in business, research limitation will also be highlighted, and lastly future research recommendation.

Finding and Discussion

The results that were shown in chapter 4 indicates that 5 out of 6 hypotheses are accepted. This means that fan-to-fan, brand-to-fan, and fan co-creation has positive relationships with customer online behavior, additionally fan-to-fan and fan co- creation has positive relationship with offline behavior; while brand-to-fan cannot be accepted.

RQ1: Does fan-to-fan engagement have positive impact on online behavior?

The result of the analysis shows that the relationship between fan-to-fan engagement have positive impact on customer online behavior. When a fan acknowledges a brand as their identity, their relationship with another fans, will be more likely to be more positive. Social media plays a crucial role to establish and maintaining relationships between fans. This creates positive customer online behavior, such as positive word- of-mouth, user generated content and to recommend other fans. Therefore, this EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

relationship behavior development is promoting engagement with their brand and strengthening their interaction.

The analysis of the original research paper also shows that there is positive relationship between fan-to-fan and online behavior. The original research paper also cited a positive result of this relationship from Carlson & O’Cass (2012).

RQ2: Does fan-to-fan engagement have positive impact on offline behavior?

The analysis result shows that fan-to-fan engagement have positive relationship with offline behavior. In offline context, fan is interacting with another fan outside virtual environment. This brings new experience and emotional values towards fan-to-fan interaction. Santos (2018) mentioned that the more effective the communication and information sharing between fans, can result a positive offline behavioral from the fan.

RQ3: Does Brand-to-fan engagement have positive impact on online behavior?

As mentioned before, in the original paper the variable was called team-to-fan, but it was changed due to same definition as brand-to-fan, the label was changed to avoid any confusion from the respondent. The data analysis result shows that brand-to-fan have positive relationship on online behavior, it indicates the importance of this variable for customer engagement. As a matter of fact, social media proven to be an important marketing tools for fan and brand, in the purpose to enhance their interaction and knowledge. The original research cited a previous study that also have the same result, indicating the interaction of a brand by the business in social media, could lead to positive experience. Therefore, this positive experience from the interactivity and information can increase positive fan engagement. Additionally, a strong interactivity through social media can strengthening the fan belonging in a community.

RQ4: Does Brand-to-fan engagement have positive impact on offline behavior?

The analysis result shows that brand-to-fan engagement does not have positive impact on offline behavior. On the other hand, Santos (2018) show a different result. Because the industry is different from the original. The original study said that brand- EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

to-fan relationship with offline behavior is lower compared to online behavior, and this was in the context of sport industry. Meanwhile, this study refers to video game, and video game is a digital based entertainment, this may explain why brand-to-fan does not have positive relationship towards offline behavior. Because formal offline activity in gaming industry is limited to offline events that held annually by the industry, for example Comicon. While, informal offline activity is limited to community and these communities prefer to do it digitally. In contrast to football, fans have to attend football match to fully gained the experience.

RQ5: Does fan co-creation engagement have positive impact on online behavior?

The data analysis indicates that fan co-creation has positive relationships between online behavior. Fan co-creation plays an important role for fan engagement, and the result aligned with the previous studies. The studies were highlighting the importance of fan co-creation. Because, it is important for a brand to be involved with co- creating through interactive experience. Such as, sharing, posting, feedback, review, etc. (Biscaia et al., 2012). The original research mentioned that the use of internet and emerging interactive platforms can increase the potential co-create consumer services, this activity can increase the value of the brand. This can be seen from the Touhou Projects case from chapter 1 in which the brand is alive not because of the creator, but the fan who keeps the brand alive until today. the fans are the one who innovate the brand and make it bigger.

RQ6: Does fan co-creation engagement have positive impact on offline behavior?

The data analysis indicates that fan co-creation has positive relationships between offline behavior. To illustrate, offline interaction happens when fans meeting another fans outside virtual environment, it could be because an event like Comicon or simply just socializing with other fans to engage with their passion. Furthermore, event like Comicon is a celebration for fan’s passion, and usually socializing is a sharing session between fans. This interactivity further improves positive offline behavior from the fans. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Often, convention opened a space for communities to socialize, some fans are allowed to sell their fan creation, such as: fan art, fan merchandise, fan novel, etc. These enhance the benefits to offline behavioral intention.

Managerial Implications This part will explain how these research findings can be applied to real industry for a company, also how manager can utilize these research findings to improve what need to be improve in the industry. The research findings will act as a guidance for manager to specifically know what kind of activity that can enhance customer online and offline behavior for the business. This implies to , for both Indonesia and globally. Because, all video gamer behavior is similar to one another, even if they are in a different country. Video game is an international market, the likelihood of a gamer from a different country is high, thus the similar behavior they shared. This also applies to video game developer; the market is similar that their strategies are also similar. However, there are a need of an improvement for an existing strategy.

Establishing Effective Online Environment for Fans

The result shows that for each variable, there is a need of a better and more effective online environment for the brand and fans. The brand has to improve certain features for their online platform, one example of this was Discord. Discord is social media platform designed exclusively for video gamer and game developers because Discord can act as function for both parties. The fans can create their own server and communities, design their own BOTs function and assigning roles for community members. The game developers that are using Discord can share news and information about their product. It also allows game developer to live stream their activities through the platform. These activities enhance fan-to-fan, brand-to-fan, and fan co-creation. So, it is not only limited in creating interactive online environment as shown by Discord, the platforms need to develop tools or features to increase the effectiveness of the interactions and enable to bond between the brand and fan even further. There are numerous platforms like this in video game industry, such as , EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Origin, Uplay, Twitch, YouTube, Amino, etc. The company does not need to build an online platform from scratch, company can utilize existing platform to enhance their interactivity.

In Indonesia, video gaming communities are plenty. Indonesia becomes one of the highest video gaming population in Asia (Antara, 2019). The highest gaming platform in Indonesia is mobile devices. This is due to, high number of mobile population in Indonesia making mobile game to be accessible. In Discord the population of Indonesia video game community is about 491 servers (official server), excluding unofficial server, and each of this server have the population of 400+ members. Indonesia’s game developer could utilize this potential market to enhance their interactivity to improve their brand in the market. Because currently in Indonesia, the developers are mostly active on official social media platform like Instagram, , and Facebook. Most Discord servers are the unofficial one that were operated by a fan. Indonesia game developer should starts using Discord features that allows them to connect with the fans. For example, the streaming feature.

Easing Copyright

There are numerous cases where customer would be strike by copyright law because they are using company’s brand without legal consent. In entertainment media, fandom tends to create fan fiction and fan art. This is a positive activity done by the fandom to improve the brand value and it acts as a free marketing tool for the company, but the problem is that there are some cases in which fan co-created product would be filed by copyright law. This is an understandable action by the company because this protects their brand from illegal brand stealing and reselling by public. Thus, the creation of fair use was established for the purpose of protecting fan co-created product from copyright strike. Fair use is defined as a permit to use limited copyrighted materials established by the brand. In simple term, the company allows fan co-creation but the public have to follow the rule sets by the company (Balley, 2010). The more restrictive the fair use established by the company, the more it will affect fan-to-fan, brand-to-fan and fan co-creation negatively. Because EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

fans cannot make, post, review, share content freely. As a result, it can shorten the relationship

For example, in 2018, Ubisoft issued copyright strike numerous YouTubers who were streaming their video game online, even though streaming video game online should not be illegal nor it violates copyright law (PunchNpie, 2018). In 2019, Nintendo issued hundred copyright strike against YouTube creators because they were playing Nintendo games on YouTube (Blake, 2019). In 2020, Sony was filing copyright law to every bad review by the fan on the game they published, to even further taking down YouTube videos that discusses about their game (Rankovic, 2020). These kind of cases happened very often, and video game company should instead support the fan not attacking the fan. This can result negative bad word-of-mouth, and even fans boycotting the company.

So as a manager, the appropriate action would be to easing the copyright rule. There are few company who did this, for example Digital Extremes created Warframe Partnership Program it is a program to support fan artist and content creator online, the program allows these fan creators to be able to publish their work and Digital Extreme will create a platform promoting it. Digital Extreme would hold Dev Stream every month using Discord or Twitch, allowing the fans and the developer to bond. This Dev Stream is a program where the game developer would talk live with fans online, showcasing their plan for the future, promoting fan work, and even playing games together with the fans. The most interesting part about this activity is the cost, because there is no cost, this activity is 100% free for both the developers and the fans.

This kind of program that were applied by Digital Extreme is not present in Indonesia. Indonesia’s game developer could use streaming features to connect with their customer. Easiest platform that they can use is YouTube live features, which allows developer to do live streaming using YouTube as platform, and it work similarly like Discord. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

Open minded on Fan Feedback

When customer becomes fan, they care about the brand that they like. Often, the fans would give feedback towards the brand to the company. This can improve brand-to- fan and also improving their product. But, in the case of video game, listening customer feedback sometimes does not lead to a good product innovation. Because video game is an art form, it is built on very abstract ideas, and so it was carefully crafted to create a suitable experience that they want to deliver from the game. One example is Star Wars sequel trilogy. Which it had a bad reception with audiences and fans. Resulting in big population of Star Wars fans voicing their feedback and opinion on the last episode for the movie. The director had no choice but to listen to the fans, but because there are so many different feedback and opinion from fans, the original script became unfocused, consequently the last episode of the movie becomes a very messy product (Walker, 2020). This is a very common occurrence in the industry, that the phrase “we listen to your feedback and we learnt from it” becomes a trope in gaming industry, and sometimes by listening to the feedback the product becomes bad. In summary, it is not easy to listen to feedback in the gaming industry.

However, when video game developer managed to applied fans feedback and created a better product from it, the reward would be worthwhile. The product would have growing sale, attracting new customer, creating new fan base, pleasing existing fans, strengthening bonds between fans and brand, and better value proposition (Tassi, 2016). There are numerous cases where this happened in video game, such as Division 2; Destiny 2; 2; Star Wars Battlefront 2 2020, Warframe, etc. The title from the list are mostly a sequel title, because when game developer created their first game the reception they got was below average. Therefore, the fans voiced their feedbacks to improve the game. The developers took note of this and work side-by- side with fans to create better product, in which they did. Hence, the sequel title of their video games. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

So, what managers can do is instead of following fans feedback, they need to stay focus on the vision of their product, not solely pleasing their fan base. The video game company should keep an open mind, and focus on the vision of what product and experience that they want to deliver. However, there are some number of game developer who are not open minded. They blatantly tell their fans to not give any feedback and not to voice their opinion, for example , Epic Games, ND, Nintendo, Blizzard, etc. When there is a feedback from the fans, the video game company should try to incorporate it to the product, and if it does not suit the vision then acknowledge it with the fans. Additionally, the most important aspect of being video game company is to become a responsive company.

5.2.4 Embrace Fan co-creation

The example in chapter 1 mentioned X-COM 2 and how they established a mod sharing platform where the fans can make some tweaks to the original game, and they can share that with another fans. Additionally, the game developer actually promotes X-COM Long War 2 in their official online channel. Instead of filing copyright strike to the fan, they promote their fan creation into their channel. This is an ideal way to strengthen brand-to-fan and fan co-creation. This becomes a trend in video game industry because of numerous numbers of game title that also apply this strategy, for examples, Elder Scroll, Witcher, Counter Strike, DOTA, etc. This is not only limited with mods, there are some cases where video game developer would use fan art for their promotional material, and promotes the artist who drew it.

Indonesian video game developer has not implement this complex fan creation strategy, it is still limited to fan art and fan work.

Managerial Implication Conclusion

So in conclusion, the strategy for manager towards fan-to-fan is to create an environment that supports the interactivity of the customer. For Brand-to-fan manager should established a solid communication between the customer and the employee, because this will affect how the brand will be perceived by the customer. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

For fan co-creation manager should allow, appreciate, and supportive so that customer will be more willing to support the brand.

Limitation

The problem of the data collection process was the lack number of respondents received. The number of data that this research paper was aiming for was 250 samples, instead this research paper only got 214 samples.

The demographic data regarding gender, lacks balance. There are more male compared to female. There might be a chance that gender can cause different online and offline behavior.

This research paper only used multiple regression analysis for its testing. The original research was using CFA method for its reliability and validity; and subsequent structural equation model for hypothesis testing. There could be more hypothesis testing that can be applied to this research model.

This research might need more comparison for its research. This research only compared itself with Santos (2018) paper and previous studies that were cited by the original paper. There could be numerous different research model that can be used as a comparison.

The results of the variable testing show that there is significant relationship between fan engagement with both online and offline behavior, but there are still number of variance that could affect this behavioral intention. The multiple regression analysis for online behavioral shows that there still 41% of variance; while offline behavior shows 64% of variance. This means that there are still more variables that could affect the relationships.

Future Recommendations

The demographic could be more balance in terms of gender. The future research could collect data based on 50:50 ratios between male and female. The gender might affect the overall result. EXAMINING VIDEO GAME FAN ENGAGEMENT THROUGH SOCIAL MEDIA IN INDONESIA

This research is a replication study, instead of replication it could be synthesis research. This is due to small percentage of R square variance, this indicates that there are more variables that could affect online and offline behavioral intention. This research only examined customer engagement. Cognitive and emotional variables could be added to the research.

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