Designing a Gamification Model Based on Customer Engagement Indicators to Increase Loyalty and Revenue in Small and Medium-Sized Online Businesses
Keywords:
Gamification, Customer Engagement, Customer Loyalty, Online Businesses, Performance IndicatorsAbstract
This study aimed to design and empirically test a gamification model based on customer engagement indicators to enhance customer loyalty and improve business performance in small and medium-sized online businesses. A mixed-methods research design was employed, combining qualitative and quantitative approaches. In the qualitative phase, semi-structured interviews were conducted with 12 experts in digital marketing, user experience design, and online business management to identify key gamification components and mechanisms. Data were analyzed using thematic analysis with open, axial, and selective coding. In the quantitative phase, a researcher-developed questionnaire, informed by the qualitative findings and theoretical literature, was distributed to 384 active customers of Iranian online businesses who interacted with gamified elements through e-commerce platforms. Convenience sampling was used, and data were analyzed using SmartPLS 3.2 for confirmatory factor analysis, structural equation modeling (SEM), and model fit assessment. Inferential analysis showed that gamification had a significant positive effect on customer engagement (β = 0.72, t = 12.58, p < 0.001) and that customer engagement significantly influenced customer loyalty (β = 0.69, t = 11.76, p < 0.001). Gamification also had a direct positive effect on loyalty (β = 0.34, t = 6.32, p < 0.001), with a substantial total effect (β = 0.83, t = 15.89, p < 0.001). R² values indicated that gamification explained 52% of the variance in engagement and, with engagement, 61% of the variance in loyalty. The Q² value (0.440) demonstrated strong predictive relevance, and model fit indices (SRMR = 0.068; GoF = 0.470) confirmed good model adequacy. Gamification is an effective strategy for increasing customer engagement and loyalty in small and medium-sized online businesses, with engagement serving as a partial mediator in the gamification–loyalty relationship. These findings support the integration of gamification into SME digital marketing strategies to strengthen customer relationships and enhance performance outcomes.
Downloads
References
Afshari, M., Kazemi, S., & Yarmohammadi, R. (2019). The impact of gamification on customer loyalty in online stores. Journal of Modern Marketing Research, 9(3), 21-34.
Al-Zyoud, M. F. (2021). The impact of gamification on consumer loyalty, electronic word-of mouth sharing and purchase behavior. Journal of Public Affairs, 21(3), e2263. https://doi.org/10.1002/pa.2263
Barari, M. (2024). How and When Does Gamification Level Up Mobile App Effectiveness? Meta-Analytics Review. Marketing Intelligence & Planning, 42(6), 1093-1114. https://doi.org/10.1108/mip-10-2023-0569
Başaran, Ü. (2022). Gamification in Marketing. 137-165. https://doi.org/10.4018/978-1-7998-9223-6.ch007
Behl, A., Jayawardena, N. S., Shankar, A., Gupta, M., & Lang, L. D. (2023). Gamification and Neuromarketing: A Unified Approach for Improving User Experience. Journal of Consumer Behaviour, 23(1), 218-228. https://doi.org/10.1002/cb.2178
Girdauskiene, L. (2022). Gamification as an Innovative Instrument for Employee Engagement. Marketing and Management of Innovations, 1(1), 10-17. https://doi.org/10.21272/mmi.2022.1-01
Haryanti, D. (2023). Optimizing Marketing Learning Evaluation: Gamification With CIPP Model at SMKN 1 Bandung. J. Curric. Dev., 2(2), 251-268. https://doi.org/10.17509/curricula.v2i2.63765
Hass, D., Hass, A., & Joseph, M. (2021). A Preliminary Investigation of Gamification From the Young Consumer’s Perspective. Young Consumers Insight and Ideas for Responsible Marketers, 22(3), 413-428. https://doi.org/10.1108/yc-10-2020-1221
Justin, E., & Joy, M. M. (2022). Application of Gamification in a Marketing Context. 121-136. https://doi.org/10.4018/978-1-7998-9223-6.ch006
Kusumawardani, K. A., Widyanto, H. A., & Tambunan, J. E. G. (2023). The Role of Gamification, Social, Hedonic and Utilitarian Values on E-Commerce Adoption. Spanish Journal of Marketing - Esic, 27(2), 158-177. https://doi.org/10.1108/sjme-09-2022-0188
Loureiro, S. M. C., Bilro, R. G., & Angelino, F. (2020). Virtual Reality and Gamification in Marketing Higher Education: A Review and Research Agenda. Spanish Journal of Marketing - Esic, 25(2), 179-216. https://doi.org/10.1108/sjme-01-2020-0013
Milanesi, M., Guercini, S., & Runfola, A. (2022). Let’s Play! Gamification as a Marketing Tool to Deliver a Digital Luxury Experience. Electronic Commerce Research, 23(4), 2135-2152. https://doi.org/10.1007/s10660-021-09529-1
Mok, T. L. (2024). Fun as the Principle Experience: A Systematic Review of Gamification in Marketing. https://doi.org/10.32920/25164581.v1
Mousavi, S., & Bahrami, N. (2022). Designing a gamification model in digital marketing for small businesses. Management and Entrepreneurship Research, 8(1), 67-85.
Mulcahy, R., McAndrew, R., Russell‐Bennett, R., & Iacobucci, D. (2021). “Game On!” Pushing Consumer Buttons to Change Sustainable Behavior: A Gamification Field Study. European Journal of Marketing, 55(10), 2593-2619. https://doi.org/10.1108/ejm-05-2020-0341
Ndi, A. (2018). Digital Marketing Gamification and Limitations of Its Strategic Power: Exploring the Online Universe of the Consumer in Critical Contexts of Political Economy. Greener Journal of Internet Information and Communication Systems, 4(1), 20-29. https://doi.org/10.15580/gjiics.2018.1.112018162
Noorbehbahani, F., Salehi, F., & Zadeh, R. J. (2019). A Systematic Mapping Study on Gamification Applied to E-Marketing. Journal of Research in Interactive Marketing, 13(3), 392-410. https://doi.org/10.1108/jrim-08-2018-0103
Santy, R. D., & Iffan, M. (2023). The Effect of Artificial Intelligence and Gamification on Online Purchase Intention Mediated by Customer Experience: Study on Indonesian Marketplace Users. Mix Jurnal Ilmiah Manajemen, 13(1), 227. https://doi.org/10.22441/jurnal_mix.2023.v13i1.015
Saprikis, V., Spanou, M. S., Despotakis, N., & Katos, G. (2023). Evaluating customer perceptions toward AR-based online shopping: An analysis of the effects of gamification on brand engagement. European Journal of Marketing, 57(6), 1465-1492. https://doi.org/10.1108/EJM-12-2021-0923
Tsou, H.-T. (2023). How Gamification Elements Benefit brand Love: The Moderating Effect of Immersion. Marketing Intelligence & Planning, 41(7), 1015-1036. https://doi.org/10.1108/mip-04-2023-0143
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Mohammad Saeed Gullshenas (Author); Mohsen Akbarpour Shirazi (Corresponding author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
