What’s behind a scratch card? Designing a mobile application using gamification to study customer loyalty: An experimental approach

Abstract

The use of game design elements (often called gamification) by firms to engage the customers has attracted attention in recent times. These game elements contribute to shaping up customer’s motivation and loyalty. Gamification is explored from the lens of both empirical as well as an experimental methodological standpoint. There still lacks substantial evidence that explains how and which types of rewards help to understand the customer's motivation. The study addresses this gap by designing an experimental study of 2x2 to address how gamified mobile apps used for making payments can help capture customer’s loyalty by offering them rewards. Data is collected from 385 customers who have been using mobile apps to make payments in the past. The data were tested to check if gamification positively helps the user hedonic and utilitarian motivation, which then positively impacts their loyalty. The study is also moderated by type of rewards (direct cash rewards v/s indirect third party partnered rewards) on the relationship of gamification and customer loyalty mediated through motivation. The results confirm that mobile payment apps' cash rewards are more useful, especially when the degree of uncertainty in the game element is high (scratch card). Additionally, they contribute to a higher degree of utilitarian benefits to the customers. The results contribute to the extension of the self-determination theory and stimulus organism response framework as well.