Uncertainty and Reward Proximity. The inclusion of elements of uncertainty comprises a major point of distinction between gamification systems and traditional loyalty programs. Compared to loyalty programs where consumer outcomes are usually explicitly defined based on spending levels, how players of gamified applications behave, in which outcomes are more uncertain, is unknown. Standard loyalty programs reward consumers with points for their purchases of a firm’s product, which consumers can accumulate to earn status or other benchmarks of achievement. Many researchers have examined how “points pressure” influences response within dynamic incentive schemes (Xxxxxx and Xxxxxx 2005; Xxxxxx, Xxxxxxxx, and Xxxxx 2006; Xxxxx 2004). Since the benefits of loyalty programs become more salient when members reach pre-specified thresholds, members are motivated to increase their expenditures the closer they are to such thresholds (Xxxxx and Drèze 2006; Xxxxxx and Xxxxxx 2005). This points pressure effect is due to economic and psychological reasons. Reward proximity boosts consumer motivation by increasing the expected value of participating in the program, even if consumer heuristics, rather than absolute expected value calculations, drive such expectations. Reward proximity can also increase effort and commitment towards achieving a goal since it becomes easier to visualize, and, consumers tend to infer higher goal values from higher goal progress (Zhang and Xxxxx 2010). While both loyalty programs and gamification systems involve the collection of points, participation rewards in gamification systems are contingent on game performance. The uncertainty of such reward outcomes begs the question of how goal proximity affects player motivations in gamified applications. An argument could be made that accumulated points may be less impactful in contexts where it is uncertain whether consumers will be able to acquire points in the future. My first research question for gamification is therefore as follows: RQ1: In gamification settings, what is the effect of proximity to the next reward level on player motivation to participate?
