Gamblified digital product offerings: an experimental study of loot box menu designs

Abstract

To augment traditional monetization strategies, digital platform providers increasingly draw on gamblification (i.e., the use of gambling design elements). By means of gambling design elements (e.g., lottery tickets, scratch cards, loot boxes), platform providers do not only entertain users but also incentivize them to purchase digital products. Yet, despite the increasing prevalence of gamblified digital platforms, little is known about how gamblification influences user purchase behaviors. Drawing on prospect theory, we investigate gamblification in the form of loot box menu designs and the associated effects of uncertainty, loss experience and behavioral control on user purchase behavior. Specifically, we conducted a contest-based online experiment with 159 participants, finding that platform providers can profit from offering loot boxes with certain (vs. uncertain) rewards in loot box menus. Furthermore, this effect intensifies when participants previously experienced a loss and decreases when they perceive to have more control over the result. Thus, our findings provide theoretical and practical insights for a better understanding of gamblification in general and of loot box menu designs for enhancing digital business models in particular.

No pain, no gain! The uncertainty-to-win effect on customer experience quality through gamified interaction

“…In addition, we highlight that the negative impact of losing may be lower when the contest is designed with high uncertaintyto-win. This observation was also reported by Adam et al (2021). We offer a fresh perspective to understand this effect through the Gambler Fallacy bias (Ayton and Fischer, 2004), arguing that losers have more favorable prospects for their next participations than winners.…”

Gamified monetary reward designs: Offering certain versus chance‐based rewards

“…Although previous IS research provided valuable insights into the effects of non‐gamified MRDs with certain rewards, our main focus is on how MRDs can be improved regarding the under‐investigated design mechanics of in‐game performance in combination with the conferral of chance‐based (vs. certain) monetary rewards. Considering the increasing proliferation of gamification (e.g., Liu et al, 2017; Lowry et al, 2020) and chance‐based rewards (e.g., Adam et al, 2021; Macey & Hamari, 2020), it is likely that gamified MRDs and particularly gamified MRDs with chance‐based rewards will become more important and may outperform non‐gamified MRDs. Therefore, it will be relevant for e‐tailers to understand better how gamified (vs. non‐gamified) MRDs affect user engagement.…”

“…In contrast, a gamified MRD with chance‐based monetary rewards incorporates chance‐based uncertainty in the monetary reward. This latter MRD relates to gamblification, a recently emerging concept that considers incorporating chance‐based design elements for gambling‐like experiences to engage users (e.g., Adam et al, 2021; King et al, 2015; Macey & Hamari, 2020). Therefore, gamified MRDs with chance‐based rewards include a game that allows the performance of a visitor to determine whether a monetary reward is provided, and they also incorporate the element of chance to determine what the monetary reward comprises.…”

Gamblification: A definition

“…Others have referred to specific games or activities themselves as gambling mechanics, for example, in discussions of gaming/gambling convergence loot boxes, skins lotteries and ‘simulated gambling’ have all been referred to as gambling mechanics (Adam et al, 2021; Zaman et al, 2020). There are notable problems with such an approach, the first of which is that a mechanic is a means of interacting with a game or game environment (Sicart, 2008), as such gambling games or activities cannot, themselves, constitute mechanics.…”