Virtual Good

AAA

DEFINITION of 'Virtual Good'

A good or product traded in the non-physical realm, typically in online communities and games. A virtual good has no tangible substance and no real intrinsic value; its value resides solely in what the user is willing to pay for it. The virtual good industry has recorded exponential growth in recent years, in line with the surging popularity of Facebook and other social media sites.

INVESTOPEDIA EXPLAINS 'Virtual Good'

Prominent purveyors of virtual goods include Zynga, Tencent and Playfish. Zynga's Farmville, which requires the user to manage a virtual farm, is one of the most popular markets for virtual goods. The game owes much of its popularity to Facebook, where it has been offered as an application since June 2009.


The lines between the world of physical and virtual goods may get increasingly blurred in the years ahead. There have already been a few instances of some users spending outrageous amounts of cold, hard cash for virtual real estate or other virtual goods. In March 2012, Zynga announced a partnership with Frito-Lay through which buyers of the latter's chips and snacks would receive Farmville and other virtual goods through codes packaged in these snacks.

RELATED TERMS
  1. Virtual Assistant

    An independent contractor who provides administrative services ...
  2. Social Media

    Internet-based software and interfaces that allow individuals ...
  3. Virtual Office

    A business location that exists only in cyberspace. A virtual ...
  4. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  5. Duty Free

    Goods that international travelers can purchase without paying ...
  6. Fast-Moving Consumer Goods (FMCG)

    These are consumer goods products that sell quickly at relatively ...
RELATED FAQS
  1. What is a virtual trailing stop order (VTSO)?

    A virtual trailing stop order (VTSO), is a stop order that adjusts as the price of a security moves. The stop price is placed ... Read Full Answer >>
  2. What does marginal utility tell us about consumer choice?

    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
  3. What are some common ways product differentiation is achieved?

    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>
  4. What is the difference between an OEM (original equipment manufacturer) and a VAR ...

    An original equipment manufacturer (OEM) is a company that manufactures a basic product or a component product, such as a ... Read Full Answer >>
  5. Is the retail sector also affected by seasonal factors?

    Generally speaking, the retail sector is highly seasonal. Almost invariably, sales in the retail sector are highest in the ... Read Full Answer >>
  6. What has the retail sector evolved to its current structure?

    Retail is the catch-all phrase for the sale of final goods to consumers; a retail transaction is considered an "end" and ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.
  2. Personal Finance

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  3. Fundamental Analysis

    Vice Can Be Nice: 4 Sin Stocks to Consider

    These four sin stocks are likely to be resilient during a bear market.
  4. Stock Analysis

    Is Apple's (AAPL) Selloff Justifiable or Panic?

    Apple has minted millionaires over the past decade, but there is one current risk that might soon bring this to an end at least temporarily.
  5. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  6. Economics

    Why U.S. Consumers Aren’t Spending

    Despite continued improvement in the labor market and lower gasoline prices, consumers' activity remains soft: retail sales growth is close to its lowest.
  7. Investing

    Can Amazon Echo Compete With Siri?

    Amazon has introduced something totally new, Echo, and it has people wondering how this device stacks up against Apple’s Siri.
  8. Economics

    Investors Turn to Artificial Intelligence

    Since the Alan Turing developed the Turing Test, scientific researchers have worked to develop a computer with the ability to function like a human brain.
  9. Savings

    The Battle Between Apple Watch & Luxury Watches

    With prices starting at $10,000, will the 18-karat gold Apple Watch Edition threaten luxury watch brands like Rolex and Cartier?
  10. Entrepreneurship

    Are Tech Startups Overvalued?

    Tech companies with billion dollar valuations are mushrooming and the NASDAQ index passed 5,000. Is there an app to tell us if we are in a tech bubble?

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!