Gamification and The Online Retail Experience
Gamification and The Online Retail Experience
Gamification and The Online Retail Experience
Insley, V. and Nunan, Daniel (2014) Gamification and the online retail
experience. International Journal of Retail and Distribution Management 42
(5), pp. 340-351. ISSN 0959-0552.
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Gamification and the online retail experience
Victoria Insley
Daniel Nunan
online customer experience. The purpose of this paper is to explore the role of
online retailers.
carrying out 16 in-depth interviews with individuals who are frequent online shoppers.
the retail experience. However, data also suggests that without appropriate
successfully 'gamify' their online retail stores and reduce incidences of undesirable
customer behaviour.
Originality / value: This paper provides empirical support to the current paucity of
research into the role of gamification in the context of the online retail experience.
Introduction
As online shopping has grown to become a critical channel for retailers there has been
significant body of research into online shopping the question of how customer
experiences are created and managed online has received less attention. Customer
requiring firms to look beyond pricing strategies and product innovation (Rose et al.
2011). Unlike price and product factors, transferring customer experience from an
offline to an online context creates challenges, especially when many of the factors
that create a successful physical shopping experience do not translate into the online
world. One way in which retailers have begun to enhance the online customer
popular web services such as Facebook, Twitter, Foursquare and Ebay all incorporate
towards, and experiences of, these mechanisms in an online retail environment. Given
important to develop a better understanding of the ways in which such techniques can
be applied.
This study extends understanding of the online customer experience through an
empirical exploration of the use of game elements within the online shopping process.
Following from Brown and Dants (2009) suggestion that the online retailing literature
would benefit through the application of concepts other than those normally used in
an online context, we extent the theoretical basis of this discussion by considering the
classifications of game types, and explore the extent to which retailers’ attempts to
formalise and codify their online games risk being subverted by consumers. This
study makes both an empirical and theoretical contribution to the retailing literature
This paper has four parts. Firstly, we review of both the theory and mechanics of the
the role of such game elements in influencing online customer experience and present
cases of existing retailers activities in this area. Thirdly, we present data from an in-
depth qualitative study into the role of such game elements in the online shopping
process. Finally, based on this evidence we discuss approaches that retailers might
Understanding gamification
"the process of adding game mechanics to processes, programs and platforms that
wouldn't traditionally use such concepts." (Swan 2012, p13). Yet whilst this describes
the process it is an unsatisfactory definition as it doesn’t indicate why one would want
to gamify a process. A more customer specific approach is to consider gamification as
a form of loyalty that gets users to make incremental choices to the benefit of a a
The enthusiasm over gamification amongst marketers has been driven by the
observation that games engage people, and that this engagement is sustained over a
period of time. Thus, a number of authors have considered the potential benefits that
gamification could bring to business processes, “what if you could reverse engineer
what makes games effective and graft it into a business environment?” (Werbach,
external customers, rather than employees, that this enthusiasm has become realised.
believe it is necessary to explore and clarify the origins of the concept. This is
retail environment. Secondly, much of the discussion into gamification has been
driven by the potential of new technology rather than the underlying theories that
The precursor to the current gamification movement can be seen in the emergence of
serious games in the early 1970’s (Abt, 1970). At the core of this concept was the idea
that games could play a role in enabling individuals to navigate the increasing
abstraction of everyday life driven and the facets of an ever more technologically
complex society. The use of the term 'serious' was designed to help reinforce the
educational purpose of such games. However, Abt recognised the effect of the
juxtaposition of the words 'game' and 'serious' and the need to reframe games as being
a useful, even essential, tool for dealing with important problems outside of the realm
of entertainment.
One early example of a 'serious' game was that of military war games, and it is
perhaps not surprising that many early adopters of serious games technology were in
the security and defence sector. For example, flight simulators were adopted as a
means of providing simulated training that would not be cost effective, or possible, in
Over time, the gap between commercial computer games and those used for specialist
training has narrowed. As the capabilities of home computer systems have advanced,
and software companies become able to hire the best developers, cost-conscious
clients in the military and security area are increasingly borrowing from commercial
games technology. For example, the US army has gone as far as creating its own
military game studio and game called ‘America's Army’ which it uses both for
a publicly accessible version which became one of the world’s 10 most popular games
(Hsu, 2010). However, within the areas of education and training the game concept
has typically taken on a very literal and realistic recreation of the physical world.
life. Key types of game mechanics include status, reward, competition and
achievement (Zichermann and Cunningham, 2011). The most basic form of game
mechanic is the provision of a reward mechanism for completing certain tasks (Swan,
opportunity for consumers to gain status through points or badges in return for posting.
For example, Amazon provides a number of badges for frequent reviewers including
“#1 Reviewer” and “Top 1000 reviewer”. Rewards can also be provided for
encouraging desirable behaviour, such as the Amazon “Real Name” badge given to
individuals who provide accurate data when leaving online reviews. Another example
is the online fashion retailer ASOS who enable users to create and then share ‘outfits’
with other online shoppers and compete to see who receives the most ‘follows’. These
examples highlight that gamification in a retail context is not about the application of
computer games but is rather through more subtle addition of game elements to
The emergence of gamification has come in the context of increasing interest amongst
researchers in consumer motivations when shopping online. The key question here
has been the extent to which offline models of consumer behavior can be seen as
analogous to online models. Whilst some studies have found that online consumers
could be segmented in similar ways to offline consumers based on key behavioural
traits, (Ganesh et al. 2010; Brown et al. 2003) others make the case for additional
choice available on the internet. However, the overall thrust of research into online
shopping to date has been around online shopping related to utilitarian and functional
motives (Brown et al. 2003; Dennis, 2009, p1121). For example, Rohm and
Swaminathan found that the need for social interaction was not significant compared
to the offline store environment; they suggest that ‘online shopping appeals to more
Liu and Forsythe’s findings that enjoyment is not a direct influence on online usage
and instead ‘online shoppers primarily perceive utilitarian, but not hedonic, benefits
as sure gains from using the channel’ (2010, p98). These findings create significant
challenges for retailers who, in order to succeed in a multi-channel market, must find
ways to move consumers beyond such utilitarian motivations (Rose et al. 2012).
delivering an effective customer experience, not simply focusing on price and product
innovation (Grewal et al. 2009). For retailers in industries such as fashion, the context
sectors where online retailers face difficulties recreating the more sensory experience
of apparel shopping (Elliott, 2002). Since clothes are an experiential product, the lack
Returning to the question of the gamification, this raises questions over how games
implication is that ‘game’ elements need to be built from, and integrated within, the
core utilitarian functions of the shopping task. We illustrate this through a number of
examples of the use of game elements by retailers that build upon the core shopping
function.
Online fashion retailers ASOS regularly ‘gamifies’ the online shopping experience
with competitions such as fashion bingo, matching celebrities with clothing and
Pinterest competitions to win prizes. Flash sales and leader boards to gain early bird
exclusivity to sales are also strategies used to encourage its customers to participate in
its retailing games. British fashion retailer Jack Wills also incorporates interactive
games into its Christmas period as customers can scan their gift guide calendar each
day for a chance to win prizes. Missguided, an online women’s fashion retailer, run
frequent competition through their Facebook site. As well as fashion retailers grocery
retailers such as Tesco encourage customers to participate and interact with each other
The discussion of gamification has so far been based about the creation of games,
something that is ‘done’ to consumers, another tool in the retail marketers toolbox
alongside other forms of promotional activity. However, theories around the concept
of games suggest that we are potentially missing a significant dimension if the role of
consumers in creating and adapting games is ignored. This is highlighted through the
between two characteristics of games, “Ludus” (games) and “paidia” (play). Whilst
games are highly structured, skill based and built upon formal rules play involves
improvisation and creativity. This identifies what is, perhaps, the major challenge in
“…play must be defined as a free and voluntary activity, a source of joy and
amusement. A game which one would be forced to play would at once cease
One example of this difference is the way that children play with toys such as Lego.
There is the ‘formal’ toy to be constructed based on the instructions, but then there are
the opportunities for children to improvise and create new models by recombining
elements in ways that differ from the original (McGonigal, 2012). Transferred to a
retail setting this perspective on games encourages, and indeed requires, a co-created
Research Questions
The research questions for this exploratory study are based on two core themes that
have emerged from the literature. The first is the extent to which consumers derive
game like experiences from online shopping. Grewal et al. (2009) refer to this aspect
Zichermann and Cunningham (2011) talk about the role of fun. Here we use the more
neutral term of entertainment. The second question explores the mechanisms through
the specific impact of game mechanics within these experiences. Reflecting this
experiential focus following research questions were used for the empirical study:
online shopping?
Method
Since the research context is an emergent area of research and seeks to discover
gain a deeper understanding into online shopper behaviour (Miles and Huberman,
1994, p10). Firstly, qualitative research is appropriate for this study because it is used
to study social phenomena in context and importantly continues to seek detailed and
elaborative explanations into ‘why’ a phenomenon occurs (Bryman and Bell, 2011).
naturally occurring and ordinary events (Mason, 2002; Rubin and Rubin, 2005). The
activity.
online. Respondents were selected via a snowball sampling process on the basis of
being individuals in employment with access to their own credit card. All respondents
stated that they had purchased fashion items online in the previous six months and
preferred online shopping over physical retail stores. This sampling decision aligns
with the exploratory nature of the research by giving a focus on individuals who
carried out the majority of their fashion purchasing online. Respondents were asked to
list stores where they had purchased fashion items in the previous six months and
these retailers’ current sites were checked for evidence of gamification strategies.
ordinary settings and so, wherever possible, interviews were be conducted in the
participant’s own home helping to make interviewees feel more comfortable and
confident throughout the process. It is also the natural place where interviewees tend
to shop for clothes online and so was used to help prompt respondents when recalling
experiences. Interviews and observation were carried out face-to-face and took an
shop for an item of their choice on a site identified as using gamification strategies
and discuss the motivations for engaging with the online store. Once interviews were
completed they were transcribed and refinement of themes then took place by
Findings are presented in relation to each research question with core thematic areas
Research Question 1
The first research question is concerned with the ways in which the online retail
two core themes, the first related to the way that online shopping is seen as a
shopping rather than watching a film. The second theme identifies the ways in which
As such, the motivation for shopping was not to carry out a specific purchase but
“In the evenings, where some people might watch a film, I shop”.
“If I’ve got a spare half an hour I will look online rather than read a book for
example”.
Respondents value avoiding the hassle of stores and being able to shop ‘whenever you
want, there’s no set opening hours’ enables shopping activities to be an option during
time slots that might have previously been reserved for entertainment activity.
“I shop a lot more but in shorter bursts or in the evening rather than one
afternoon”.
The convenience of the online channel seems to also have provided the foundations
for customers to be in the ‘position to enjoy it’ when it suits them. Respondents also
noted that they cumulatively spend longer shopping online but do not consider it as
such a big chore because it does not need to be planned and can better fit within their
lifestyles.
“If you’re working you don’t finish till five, it really limits where you can go
“I definitely shop more frequently online, but don’t spend a whole day on it
like before”.
“I shop a lot more but in shorter bursts or in the evening rather than one afternoon”
example, one common feeling was that of excitement, particularly around the delivery
of items.
“There’s more anticipation I guess so maybe this adds to the excitement for
me”.
“I get really excited about shopping and when things arrive. It’s a double hit.”
Respondents described how when they ‘feel down’ or are in a stressful situation,
shopping is mechanism through which to reward and distract themselves from the
larger task at hand. Respondents also spent time online fantasizing over what they
consider special, indulgent items of clothing. This evokes strong feelings of desire
“I find shopping online a great distraction from things at work, at home etc
“Spending money makes me feel good at the end of the day. If I’ve been
working hard, I deserve to see what I can spend the money on!”.
“I end up browsing most weekday lunchtimes to get me through the day”.
mood. Distraction activities such as reading a retailers own blogs on fashion trends or
creating possible outfits online in virtual changing rooms provide instant gratification.
For example, one respondent stated that they used functionality provided by one
online retailer to create collages of various product styles as it cheered them up. The
‘mini-breaks’ also act as an incentive to reach a bigger goal by focusing their escapist
goals on an item which can be eventually purchased as a reward. This adds to the
body of literature on self-gift giving behaviour in the retail context where consumers’
motivations for purchasing self-gift items are concerned with rewarding oneself and
Research Question 2.
The second research question considered the role of game elements within the
shopping experience. This was achieved through analyzing evidence of the existing of
the previously identified specific forms of games mechanism within the online
Cunningham, 2011). Whilst respondents did identify some interaction with specific
retailer implemented game mechanics, the majority of the discussion occurred over
the retail experience. Thus, whilst on the level of an individual retailer there was some
interaction with game elements these were subsumed by a larger element of macro
game where respondents co-created competition between multiple retailers. We
therefore focus on these forms of improvisation based around three key themes of
Respondents applied their knowledge and skills to get ‘better’ items or deals than
other shoppers. The online search process for the best deal, price or quality item was
frequent online shopping activity. Like other forms of competition there was a feeling
“I look for deals, or just wait and I will find something and keep searching.
The purchase doesn’t feel as good if I don’t get a discount, it’s like I’ve lost
out.”
“It’s like a race – my phone goes with an e-mail and there are only few items
in my size so I have to get there first. Especially, for example, Urban Outfitters.
I love their sales but they are so limited so you have to be quick [...] you have
retailers own online policies. This took a number of forms, for example taking
“That’s the other side to my online shopping which I find exciting. I sell things
for more than I bought them for, so technically the item was free”.
“I’ve found a new site recently actually which I found from buying a pair of
shoes from Misguided and the website which the shoes had come from was on
the box, so I Googled it. [...]I shop directly from them now and cut out the
middle person”.
Another strategic form of game was buying items to resell for a higher price at a later
date, for example when the items are no longer available. A further example was
“With Topshop, you get free delivery if you spend over £75 on orders but its
free returns. So I will spend £75 and then just return what I don’t
want. Normally I buy shoes because they are around £60-70 because if I buy
a bargain top and its £3 delivery, it’s no longer a bargain top. Then it’s quite
exciting because they come and I can try them on and see how amazing they
are but I know I’d never wear them. I take my top, thank you very much, and
the ‘middle-man’ and going straight to the wholesaler. Another described ‘a good
feeling and quite a lot of pride’ having ‘tricked’ websites into giving free postage.
and Dennis, 2006), defined as the ‘deliberate return of goods for reasons other than
actual faults in the product’ (Schmidt, 1999, p2). In an online environment, this
unethical behaviour is made easier because the absence of direct confrontation means
wear the items, unpick seams or ensure the garment is faulty before returning, (as
described in King and Dennis’ 2006 research) they do buy items with the pre-
mediated intention to return in order to get free postage for a cheaper item. They also
consider it a bonus to try on items they wouldn’t usually buy, such as expensive high
heels which are tried on for temporary fun and fantasy. Since the amount respondents
spent on clothes online far outweighed postage costs, the behaviour is more about the
thrill of ‘winning’ against the company. For these shoppers, it is not necessarily about
getting items cheaper, but about finding items that are unusual or difficult to
find. They enjoy manipulating the shopping process and gaining social approval from
their purchases.
Another group of respondents gained pleasure from the increased sense of self-control
over their purchases. For these shoppers, it was not only about purchasing items at
discounted prices but about carrying out sufficient research into a purchase that they
could be sure they were buying the right items. The increased time to evaluate their
purchases and reading blogs or reviews helped them to resist impulse buys, which
frequently caused feelings of regret and post-purchase dissonance associated with in-
store purchases.
shouldn’t have spent money treating myself on something I would wear once.
When I’m at home I don’t make as many rash decisions and I feel my
“As I’m typing in my details I start to think, is this sale item really worth it,
there is more time to reflect on it. In shops you can end up buying all sorts on
“Online when you look at your basket you can re-consider and have more
The reduced pressure to buy an item immediately made interviewees feel more in
control of their behaviour and they feel they have ‘made a proper decision, rather than
be pressurised into buying something for the sake of it’, which would often occur at
the end of a shopping trip. They also appreciate the flexibility online, for example by
using the shopping cart to evaluate items and prioritises them in order to purchase the
For some respondents exhibiting economic self-control on auction sites was a point of
pride. They were aware of getting caught up in bidding wars: ‘I think it’s quite easy to
get sucked into stuff, and if you watch the bidding you tend to pay more than you
wanted, so I don’t tend to do this’. The risks of paying more than initially planned on
auction sites was seen to spoil the excitement. Respondents therefore distanced
themselves from the bidding so they would win an item for a good price without the
feelings of regret of an impulse purchase. Regardless of the cost of the clothing item,
or the retail outlet, the respondents preferred the online experience because they find
joy in being able to control their behaviour online and becoming more intelligent with
their purchases.
Discussion
This study suggests that game elements can serve to enhance consumer engagement
with online shopping but that the relationship between consumers and ‘games’ is
somewhat more complex than has been suggested by those promoting gamification.
Before addressing this we first discuss two criticisms that have been directed at the
commercial use of gamification. The first is the consideration that the process
environments where competitor sites are just a click away. Such criticism may appear
similar to other generic ethical concerns over the collection of data by advertisers.
gamification is simply another form of digital ‘snake oil’ that makes little meaningful
the second point it is true that even proponents of gamification acknowledge its
limitations as a strategic driver, “if you expect gamification to fix your businesses’
core problems – bad products or poor product-market fit – it will not” (Zichermann
by the findings of this research. Here it is not the formalised game mechanics that
prove the most engaging, but rather the unstructured and improvised games that
customers create as a means to fulfill their own experiential needs when shopping
online. Significantly, despite being a part of such games retailers are unaware, and
for retailers still basing their online pricing and promotional decision on an
comparing prices and special offers between different types of retailers some
consumers in this study not only sought out information on different prices, but have
this study highlights the challenges of assuming that online retailing is overly
analogous with its offline counterpart. For example, the role of the online shopping
cart as an organisational tool used to help compare prices rather than as a means of
storing goods before purchase has potentially significant implications for retailers.
The exploratory nature of this study and small sample size limits the generalizability
of the findings. It does however suggest avenues for further empirical research that
consumers. The study also raises the possibility that retailers can use gamification
strategies to better manage ‘undesirable’ comparative shopping behavior between
online retailers. With this in mind, we suggest the follow strategies that retailers could
levels of responses to games and not all will have shopping motivations that
running games and competitions to get free postage could to save the retailer
integrate game elements into shopping carts, and make them a more persistent
sites. Whilst web analytics data can provide a partial picture, for example
through provision of data on search terms, retailers are likely to be left with
engagement with their own site, retailer could gamify the customer experience
retailers could challenge shoppers to find a cheaper prices elsewhere and ask
them to enter the data. This would not just provide information on pricing,
which the retailer may already be aware, but provide greater detail on the
Conclusions
successful digital strategy. This study suggests that gamification of online retail can
manipulating pricing or other policies. Overall, the research suggests that when
and consider the wider context, particularly where the retailer may be part of the
game. Whilst this study was limited in its generalisability by its exploratory and
qualitative nature, it suggests avenues for future quantitative research in assessing the
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