When Virtual Meets Real: The Effect of Pokémon Go on Local Restaurants

Pamuru, Vandith and Khern-am-nuai, Warut and Kannan, Karthik (2017) When Virtual Meets Real: The Effect of Pokémon Go on Local Restaurants. International Conference On Information (ICIS).

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Abstract

Pokémon Go, an augmented reality game, garnered tremendous interest with an average of 20 million daily active users upon release. The game combines geo-spatial elements along with gamification to incentivize its players to interact in the physical world. As a consequence, such incentives can have implications to businesses such as restaurants when they are located near the game locations. In this paper, we study the impact of Pokémon Go on local restaurants by using online review measures as proxies for sales and quality. Specifically, we treat the release of Pokémon Go as a natural experiment and study the post- versus pre-release impact. We find that restaurants that are located near PokéStops indeed observe a higher number of customers. However, in aggregate, there is no significant difference in the customer perceptions between restaurants that have PokéStops nearby and those that do not. To the best of our knowledge, we are the first academic research attempting to study the business problem at the intersection of real- and virtual-worlds. We provide insights into potential value of such associations for business owners as well as policy makers.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
T Technology > T Technology (General)
Z Bibliography. Library Science. Information Resources > ZA Information resources
Divisions: Faculty of Industrial Engineering and Informatics > Information System
Depositing User: staff repository 3
Date Deposited: 10 Aug 2018 20:02
Last Modified: 10 Aug 2018 20:02
URI: http://repository.ittelkom-pwt.ac.id/id/eprint/3009

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