Virtual Good

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.

BREAKING DOWN '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. FANG Stocks (FB, AMZN)

    FANGs stands for the high-performing tech stocks Facebook, Amazon, ...
  6. Duty Free

    Goods that international travelers can purchase without paying ...
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. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  4. Stock Analysis

    Drone Wars: DJI Vs. Intel (INTC)

    Find out which drone technology leaders, Intel Corporation or DJI Innovations, is most likely to emerge victorious in the coming drone wars.
  5. Budgeting

    Blue Apron Review: Is It Worth It?

    Read about one of the top meal-kit delivery services in the United States, and learn more about what it offers and how much it costs.
  6. Investing

    Adobe Systems: A Company In Transition (ADBE)

    Adobe Systems is undergoing a major change to its business model. We take a look at its strategy, challenges, and performance.
  7. Retirement

    Is it Safe for Retirees to Invest in Technology?

    Tech stocks are volatile creatures, but there are ways even risk-adverse retirees can reap rewards from them. Here are some strategies.
  8. Stock Analysis

    Company Overview: Qlogic (QLGC)

    Learn more about the world's leading manufacturer of Fibre Channel network adapters, a key component in high-speed corporate storage networks and data centers.
  9. Stock Analysis

    JCPenney's Path To Profitability (JCP)

    Learn about what J.C. Penney's management team has been doing to profitably grow its business as the company recovers from years of revenue declines.
  10. Home & Auto

    The Latest Airbag Recalls: What to Do

    The latest warnings are from Honda/Acura and Dodge. How to look up your car – and what to do if you find it on the recall list.
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. How does a cost-of-living adjustment (COLA) affect my salary?

    Some companies build salary adjustments into their compensation structures to offset the effects of inflation on their employees. ... Read Full Answer >>
  3. Where can you buy NetSpend reload packs?

    You can only purchase NetSpend reload packs at Giant Eagle, Albertsons, Roundy's and Pathmark supermarkets. NetSpend cards ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center