Bravely into the unknown LOL. Things like Gacha (Hobbit gifts are a kind of these) work very well in South East Asia (Japan, South Korea, China, etc.). They seem to work in the USA somewhat. But less well in Europe. But the LOTRO community is a little bit strange (from a demographics point of view) and just because something works for Blizzard does not mean it will work here. I don't envy your task of keeping the players and company leadership happy and still find something that will actually generate the expected results.
My best input (based on nothing but the type of people I've met playing the game -- which is often very different than those on the forums

) NOTE: this is based on most players, not the few who raid, or do PVP, etc.
- LOTRO Players are less likely to buy something just to pretend they are uber
- LOTRO Players might buy things to avoid activities that feel like they are banging their head against the wall - but will be angry that they were forced to do that.
- LOTRO Players will buy things to look better - or make their house look better. - clothing, weapons, house items, NOTE: you may need to come up with mid range house option to get more people buying.
- LOTRO players will buy things to make their life easier (better horse, more storage space, etc.)
- LOTRO Players will buy things that let them explore new places/quests (but only if they can continue to level easily)
Now lets see people improve the list

I'm sure I have forgot a lot of things.
BTW the current approach of having to buy LOTRO Points or other things is probably not great for impulse buying. You need stuff that costs $3-$10 and can be done with a credit card/pay pal to get the impulse buys.