Impact of E-Commerce Gamification on Consumer Behavior

The primary objective of this thesis is to examine the impact of gamification on user engagement and purchase behavior in e-commerce, with a focus on two gamification features: "spin the wheel" and "raffles." The research aims to determine whether gamification enhances user engagement, increases the likelihood of making a purchase, and contributes to higher spending on an e-commerce platform. The study employs a comprehensive methodology following the CRISP-DM framework, utilizing machine learning models such as classification, regression, and ANOVA to analyze a dataset sourced from an e-commerce platform's Google Analytics (GA4) metrics. The classification models, including Gradient Boosting and Random Forest, were used to predict purchase likelihood, while regression models were applied to estimate total revenue differences between gamified and non-gamified users. The results reveal that gamification significantly improves user engagement metrics, such as session count and time spent on the platform, and increases the likelihood of a purchase. However, contrary to initial expectations, the regression analysis indicates that gamification does not lead to a substantial increase in total revenue, suggesting that while gamified experiences captivate users, they do not necessarily drive higher spending. The findings contribute to the existing literature by offering a nuanced understanding of how gamification influences consumer behavior, highlighting the distinction between engagement and revenue generation. This research provides valuable insights for e-commerce managers, emphasizing the need for carefully designed gamification strategies that align with business goals. While gamification can drive engagement and conversion, its direct impact on revenue requires further investigation. Future studies should explore additional gamification techniques and their long-term effects on customer loyalty and lifetime value.