The super engagers of freemium gamified services: using multimethod approach to examine why highly interactive consumers become paying consumers

Purpose Online services are increasingly utilizing gamification techniques to encourage consumer loyalty and engagement. However, the majority of the gamified services fail to be financially sustainable. Existing freemium and gamified services literature provides scant knowledge on behavioral predictors of in-app purchases in freemium gamified services. The research examines highly interactive consumers' in-app behaviors using competition-based motivational affordances, daily usage behavior and social competition motivation that convert them into super engagers. Design/methodology/approach The authors applied a multimethod approach by using Multivariate Logistic Regression (n = 685) to analyze in-app behavioral data and Qualitative Comparative Analysis (n = 94) to examine survey and in-app behavioral data of highly interactive consumers of a freemium gamified service to explain paying behaviors. Findings Results reveal highly interactive consumers that elicit heavy daily usage of the application or excel at in-app challenges are less likely to convert to super engagers. Among super engagers, some are socially competitive, and their inability to advance in the leaderboard corresponds to in-app purchases, while non-socially competitive consumers make purchases to collect extrinsic rewards. Additionally, highly interactive consumers who possess more knowledge about the gamified service become super engagers to increase their chances to be socially competitive. Originality/value This research examines in-app behaviors of highly interactive consumers of a freemium gamified service that lead to in-app purchases following varying levels of daily usage behavior and social competition motivation. The authors contribute to the previous literature by defining and examining a new consumer segment - super engagers - that is financially beneficial for freemium services because of their in-app purchases. The authors provide insight on in-app behaviors that convert highly interactive consumers to super engagers and demonstrate that the reason for highly interactive consumers to make in-app purchases is a function of acquiring specific internal and external rewards based on their level of social competition.

Automated summary

This research analyzes the in-app behaviors of highly interactive consumers in a freemium gamified service and finds that consumers who heavily use the application or excel at in-app challenges are less likely to become super engagers. Among super engagers, some are socially competitive and make in-app purchases due to their inability to advance in the leaderboard, while others make purchases to collect extrinsic rewards. Additionally, highly interactive consumers who have more knowledge about the gamified service become super engagers in order to increase their chances of being socially competitive.