International Journal of Marketing & Financial Management

METAVERSE AS A PLATFORM FOR ENTREPRENEURS AND STARTUPS: EXPLORING OPPORTUNITIES AND CHALLENGES

Dr. SUBRAMANI SENTHIL KUMAR, Mr. HAROON RASHEED, Dr. SHUGAM SUNDARARAJAN , Dr. SANJOY KUMAR PAL

1Dr. SUBRAMANI SENTHIL KUMAR, 2Mr. ALIYU MOHAMMED 3Mr. HAROON RASHEED, 4Dr. SHUGAM SUNDARARAJAN , 5Dr. SANJOY KUMAR PAL

1Head and Associate Professor, Department of Management, Skyline University Nigeria, Kano, Nigeria, 700231 ORCID ID: https://orcid.org/0000-0003-1968-6877

2 PhD Scholar Department of Management, Skyline University Nigeria, Kano, Nigeria, 700231 ORCID ID: https://orcid.org/0000-0002-4800-0363

3 PhD Scholar Department of Management, Skyline University Nigeria, Kano, Nigeria, 700231 ORCID ID: https://orcid.org/0009-0000-8458-1321

4 Head, Department of Economics and Entrepreneurship, Skyline University Nigeria, Kano, Nigeria, 700231 ORCID ID: https://orcid.org/0000-0001-9712-6635

5 Professor and Head, Department of Biological Sciences, Skyline University Nigeria, Kano, Nigeria, 700231 ORCID ID: https://orcid.org/0000-0003-1436-638

DOI : https://doi.org/10.53882/IJMFM.2024.1201002 Page No :

Published Online : 2024-06-30

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Aim of the Study: This study explores marketing, branding, and monetization strategies for startups in the Metaverse. It focuses on how immersive digital environments can be leveraged to create engaging user experiences and sustainable revenue streams.

Design/Methodology: The study analyzes successful Metaverse platforms, such as Fortnite and Roblox, to identify innovative marketing tactics and monetization models. It investigates strategies like virtual product placements, influencer partnerships, storytelling, NFTs, and virtual currencies. Additionally, the study examines the role of user-centric approaches and the impact of technologies like AR and VR on digital marketing.

Practical Implications: Startups must adopt user-centric marketing strategies that build strong brand identities and emotional connections with users through storytelling and interactive experiences. Monetization strategies should include

Virtual real estate sales, in-app purchases, and subscription models, while balancing profitability with a seamless user experience to avoid alienating users. Startups also need to adapt to emerging technologies and regulatory frameworks to remain competitive. Ensuring effective management of dispersed teams and community engagement is crucial for building loyalty and driving long-term growth. The study provides practical recommendations for entrepreneurs and businesses looking to capitalize on opportunities in this dynamic digital landscape.

Keywords: Metaverse, marketing strategies, user engagement, NFTs, virtual real estate, revenue models, AR, VR, startups.

Type of paper: Research Paper

REFERENCES

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Bell, B. S., & Kozlowski, S. W.: A typology of virtual teams: Implications for effective leadership. Group & Organization Management, 27(1), 14-49 (2002). DOI: http://dx.doi.org/10.1177/1059601102027001003
Cable, D. M., & Judge, T. A.: Person–organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294-311 (1996). DOI: https://doi.org/10.1006/obhd.1996.0081
Chalmers, D., MacKenzie, N. G., Carter, S., & Kaufmann, F. (2023). The metaverse: Business opportunities and challenges for startups. Journal of Digital Entrepreneurship, 1(2), 102-118.
Dellarocas, C., & Narayan, R.: A statistical measure of a population's propensity to engage in post purchase online word-of-mouth. Journal of Marketing Research, 43(3), 386-397 (2006). Retrieved From: https://arxiv.org/abs/math/0609228
Dwivedi, Y. K., Hughes, D. L., Baabdullah, A. M., Ribeiro-Navarrete, S., & Metri, B. (2022). Metaverse: Opportunities and challenges for business. Journal of Business Research, 146, 472-478.
Gunkel, D. J., & Sánchez, M. (2022). Digital divide and inclusivity challenges in the metaverse. New Media & Society, 24(7), 1490-1510. DOI: http://dx.doi.org/10.31341/jios.45.2.14
Hamari, J., Koivisto, J., & Sarsa, H.: Does gamification work? a literature review of empirical studies on gamification. In: 47th Hawaii international conference on system sciences (pp. 3025-3034). IEEE, USA (2014). DOI: http://dx.doi.org/10.1109/HICSS.2014.377
Jaakkola, E., & Alexander, M.: The role of customer engagement behavior in value co-creation: A service system perspective. Journal of Service Research, 17(3), 247-261 (2014). DOI: http://dx.doi.org/10.1177/1094670514529187
Lee, S., Park, H., & Kim, J. (2023). The metaverse economy: Analyzing startup strategies and monetization models. Entrepreneurial Studies Journal, 5(4), 67-89.
Mäkelä, V., Gustafsson, A., & Jaakkola, E.: Virtual reality, augmented reality, and 360-degree videos in marketing: A review, analysis, and research agenda. Journal of Business Research, 100, 547-563 (2019).
Mougayar, W.: The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology. 1st edition, Wiley, Unites States, (2016). Retrieved From: https://www.wiley.com/en-be/The+Business+Blockchain%3A+Promise%2C+Practice%2C+and+Application+of+the+Next+Internet+Technology-p-9781119300311
Park, H., & Kim, Y. (2023). Metaverse marketing: Exploring brand engagement and consumer interaction in virtual environments. Journal of Marketing Theory and Practice, 31(1), 23-39.
Sennett, R.: Together: The rituals, pleasures, and politics of cooperation. 1st edition, Yale University Press, UK (2012). Retrieved From: https://www.amazon.com/Together-Rituals-Pleasures-Politics-Cooperation/dp/0300116330
Zhu, J., & Dai, L. (2023). Navigating legal challenges in the metaverse: Implications for startups. Journal of Virtual Economics, 12(3), 85-97.

Article History

Received on: 25 Jan 2024

Revised on: 25-Feb-2024

Accepted on: 20 Mar 2024

First Published:30-Jun-2024

Cite this Article as

Dr Senthil S. Kumar et al. (2024), “Metaverse As A Platform For Entrepreneurs And Startups: Exploring Opportunities And Challenges”, International Journal of Marketing & Financial Management, Volume 12, Issue 1, 2024, pp 33-50.

DOI : https://doi.org/10.53882/IJMFM.2024.1201002

Article View: 132
PDF Download: 15

REFERENCES

Bagozzi, R. P., Dholakia, U. M., & Basuroy, S.: How effortful decisions get enacted: The motivating role of decision processes, desires, and anticipated emotions. Journal of Behavioral Decision Making, 16(4), 273-295 (2003). DOI: https://doi.org/10.1002/bdm.446
Bell, B. S., & Kozlowski, S. W.: A typology of virtual teams: Implications for effective leadership. Group & Organization Management, 27(1), 14-49 (2002). DOI: http://dx.doi.org/10.1177/1059601102027001003
Cable, D. M., & Judge, T. A.: Person–organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294-311 (1996). DOI: https://doi.org/10.1006/obhd.1996.0081
Chalmers, D., MacKenzie, N. G., Carter, S., & Kaufmann, F. (2023). The metaverse: Business opportunities and challenges for startups. Journal of Digital Entrepreneurship, 1(2), 102-118.
Dellarocas, C., & Narayan, R.: A statistical measure of a population's propensity to engage in post purchase online word-of-mouth. Journal of Marketing Research, 43(3), 386-397 (2006). Retrieved From: https://arxiv.org/abs/math/0609228
Dwivedi, Y. K., Hughes, D. L., Baabdullah, A. M., Ribeiro-Navarrete, S., & Metri, B. (2022). Metaverse: Opportunities and challenges for business. Journal of Business Research, 146, 472-478.
Gunkel, D. J., & Sánchez, M. (2022). Digital divide and inclusivity challenges in the metaverse. New Media & Society, 24(7), 1490-1510. DOI: http://dx.doi.org/10.31341/jios.45.2.14
Hamari, J., Koivisto, J., & Sarsa, H.: Does gamification work? a literature review of empirical studies on gamification. In: 47th Hawaii international conference on system sciences (pp. 3025-3034). IEEE, USA (2014). DOI: http://dx.doi.org/10.1109/HICSS.2014.377
Jaakkola, E., & Alexander, M.: The role of customer engagement behavior in value co-creation: A service system perspective. Journal of Service Research, 17(3), 247-261 (2014). DOI: http://dx.doi.org/10.1177/1094670514529187
Lee, S., Park, H., & Kim, J. (2023). The metaverse economy: Analyzing startup strategies and monetization models. Entrepreneurial Studies Journal, 5(4), 67-89.
Mäkelä, V., Gustafsson, A., & Jaakkola, E.: Virtual reality, augmented reality, and 360-degree videos in marketing: A review, analysis, and research agenda. Journal of Business Research, 100, 547-563 (2019).
Mougayar, W.: The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology. 1st edition, Wiley, Unites States, (2016). Retrieved From: https://www.wiley.com/en-be/The+Business+Blockchain%3A+Promise%2C+Practice%2C+and+Application+of+the+Next+Internet+Technology-p-9781119300311
Park, H., & Kim, Y. (2023). Metaverse marketing: Exploring brand engagement and consumer interaction in virtual environments. Journal of Marketing Theory and Practice, 31(1), 23-39.
Sennett, R.: Together: The rituals, pleasures, and politics of cooperation. 1st edition, Yale University Press, UK (2012). Retrieved From: https://www.amazon.com/Together-Rituals-Pleasures-Politics-Cooperation/dp/0300116330
Zhu, J., & Dai, L. (2023). Navigating legal challenges in the metaverse: Implications for startups. Journal of Virtual Economics, 12(3), 85-97.

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