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CHAPTER 1 INTRODUCTION
Application software, also known as an application or an “app“, is computer software designed to help the user to perform singular or multiple related specific tasks. Marketers and Designers have developed increased interest in creating branded apps, conceptually defined as software downloadable to a mobile device which prominently displays a brand identity, often via the name of the app and the appearance of a brand logo or icon, throughout the user experience.
One reason for the popularity of branded apps as a marketing device is their high level of user engagement and the positive impact this presumably has on attitudes toward the sponsoring brand (Hutton and Rodnick, 2009). And, in contrast to other forms of advertising, branded apps are welcomed as “useful”, which suggests that they may be one of the most powerful forms of advertising yet developed.
To date, however, no research has tested impact of branded apps on consumers. Previous research on the effectiveness of game-derived elements has largely concentrated on the effects of user engagement, especially within the game industry and the game studies community. However, various game design mechanics also have been used by companies for many years to encourage repeat purchasing and enhanced customer loyalty. For instance, airlines, hotel chains, and retail stores have created various loyalty programs for developing customers. These elements have shown to be successful for encouraging user participation and maintaining user contribution (Hunter, 2011). The increased application of social and mobile games plays an important trend in culture and technology, from our iPhones to our hybrid cars and primes consumers to be instinctive players. Enterprises should understand the value of adding game design elements into customer encounters. For instance, Foursquare offers a loyalty program as a service layer of reward and employs game design elements such as points, badges, levels, and leader boards.
Starbucks has been testing Foursquare by encouraging their customers to “check in.” With check in, Starbucks customers can receive a “Barista Badge” if they check in five times. Those who receive this badge will be eligible for rewards, similar to a frequent buyer card or other traditional loyalty programs. The common business goal of game design strategy is to pull together and engage a group of customers with a common passion or interest and bring their intention to buy or stay loyal to the brand (Bunchball Inc., 2010). Although diversified elements can be applied dynamically in designing interactions between companies and customers, the ultimate goal is acceptance by the target customers.
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Extension products often constitute physical products as well as the associated accessories or services (Gasós and Thoben, 2003). The combined package is supposed to make the purchase of product “attractive” to the customer. Thus, depending on the type and core competencies required to supply the associated services, there may be several business partners collaborating very closely towards the common goal of making the sale of the package attractive. Most importantly, companies widely employ strategies to target customers because of the belief that these establishments can build strong brand positioning, develop awareness and enhance customer loyalty by lessening new product risk for consumers. Successful strategies positively influence the parent brand and other extension products (Swaminathan, 2003). When managed well, extension products are great source of revenue, because they reinforce brand meaning and quality, thereby helping to build brand equity (Keller and Sood, 2003).
The objective of this study is to understand the relationship between game design elements and intention to buy extension products and to encourage further analyses into how different types of consumers may react to different design elements. The research question is focused on how different game design elements can affect consumers’ intention to buy the extension products and how customers of different attributes may moderate the effect on the relationship between game design elements and purchase intention for extension products. To answer these questions, we first reviewed the literature on game design and classified various game-design concepts into the taxonomy of game-design elements. Then we tested these elements on 20 game applications on the Web between 2010 and 2013 and identified customer profiles of different kinds of game activities. Based on the target customer profile of the 20 tested cases, the study proposed a relationship between game design elements and consumer intention to buy extension products and further proposed the moderating effect of different consumer attributes on the relationship between game design elements and consumer intention to buy extension products.
The study examines the impact of game design on consumer intention to buy promoted extension products or services and further analyzes the effects of consumer differences on the game-design impact. First, we review the literature on game design and identify motivational elements that have been incorporated in the design of game. We then verify the elements of 20 programs. The case analysis helped form seven propositions on the impact of game design on consumer-purchase intentions. Further findings from the case analysis helped form the eighth proposition that differences between consumers can affect the impact of game design on
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consumer-purchase intentions. A proposition about the differences of consumer demographics is also suggested. We developed a research model with which to test different types of online consumers.
As explained in the theory of planned behavior and verified in the cases studied, both personal and social factors can influence a consumer’s intention towards purchasing. However, it can be further inferred that instead of intrinsic and social factors influencing game design of consumers’
intentions directly and passes through consumer attitudes before impacting on intentions (Andrews and Kandel, 1979; Cheng Ang, Lim, and Tambyah, 2001).
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