The Role of Gamification in Enhancing Intrinsic Motivation to Use a Loyalty Program

Abstract: Based on Self-Determination Theory (SDT), this study examined how rewards weaken intrinsic motivation to use a retail loyalty program. Two experiments were conducted. Study 1 revealed that individuals who received a salient reward (an explicit requirement and deadline for reward achievement and no reward options) reported lower intrinsic motivation to engage in the loyalty program than those who received a non-salient reward (a less explicit requirement, no deadline, and reward options). Study 2 found that the salient reward presented in the gamified form using interactive, graphical feedback enhanced the lowered intrinsic motivation. Implications for designing effective loyalty programs are discussed.