Electronic Commerce Research (2023) 23:2135–2152

https://doi.org/10.1007/s10660-021-09529-1

Let’s play! Gamification as a marketing tool to deliver

a digital luxury experience

Matilde Milanesi1 · Simone Guercini1 · Andrea Runfola2

Accepted: 17 December 2021 / Published online: 17 January 2022

© The Author(s) 2022

Abstract
This paper aims to investigate the features of gamification as a digital market-
ing tool to deliver a digital luxury experience. The paper employs the qualitative
methodology of case study and presents a case of a multi-brand luxury company
adopting gamification through the development of a game app. Four features of the
gaming luxury experience are discussed: individual and collective gaming experi-
ences, exclusiveness through rarity in luxury gaming, social networking and virtual
influencing marketing mechanisms, and cross-fertilization between gaming and
e-commerce. The paper expands the knowledge on gamification by highlighting its
main features as a digital marketing tool for luxury companies and the benefits it can
bring in terms of consumer experience, engagement, and sales. It also contributes to
studies on luxury companies by discussing gamification as a means to create digital
luxury experiences, particularly suitable for the new generations of consumers, such
as Generation Z.

Keywords Luxury · Gamification · Digital experience · E-commerce · Retail

1 Introduction

The COVID-19 crisis has heavily affected the luxury goods industry in 2020. The
findings from the 19th edition of the Bain & Company Luxury Study, released in
collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’

* Simone Guercini
[email protected]
Matilde Milanesi
[email protected]
Andrea Runfola
[email protected]
1
Department of Economics and Management, University of Florence, Via delle Pandette, 9,
50127 Florence, Italy
2
Department of Economics, University of Perugia, Via Pascoli, 20, 06123 Perugia, Italy

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Vol.:(0123456789)
2136 M. Milanesi et al.

industry foundation, show that the personal luxury goods market experienced a
large drop in 2020, with a loss in sales of 23% compared to the previous year. The
overall luxury market contracted at a similar pace, and it is expected to recover by
2022–2023 [1]. The turmoil of COVID-19 has been the trigger for change for the
luxury industry, both for companies and consumers. For luxury companies, the
COVID-19 crisis accelerated the online sales that nearly doubled from 12% in 2019
to 23% in 2020, and the online is expected to become the leading channel for luxury
purchases by 2025, especially for younger generations (Millennials and Generation
Z) [1]. Thus, a suggestion is to put digital, besides internationalization [2], at the
center of a company’s business model. In the case of luxury, since luxury consum-
ers are used to high standards in-store services, a personalized and engaging digital
experience should be created [3].
These last months have led to identifying new ways to engage consumers for
many luxury fashion brands. In a year, 2020, made up of digital catwalks, live
shows on social networks, and new e-commerce mechanisms, such as Shop Stream-
ing, a phenomenon that has undergone a significant acceleration in luxury fashion
is gamification that consists of turning customers’ everyday interactions into games
for business purposes [4]. Gamification makes it possible to provide an immersive
experience by developing innovative and customized customer journeys and high
levels of engagement [5, 6]. However, most research investigates the general effects
of gamification on branding e.g. [7–11] but there is a lack of studies that consider
gamification as a strategic digital marketing tool and investigate the features to
deliver digital experiences. Additionally, while conceptual papers have been recently
developed e.g., [12, 13], this issue requires additional empirical evidence to better
understand the implications of the adoption of gamification for companies.
In the luxury fashion domain, numerous Maisons have chosen gamification as
a tool to express their values interactively, especially with younger generations.
According to the data published by Fashionnetwork,1 people between the ages of 18
and 34 will represent 50% of the luxury market in 2025, up from 32% today. There-
fore, it is a target on which fashion luxury companies should invest through new
and original tools to deliver a luxury digital experience. During the Paris Fashion
Week in 2020, Christian Louboutin created a virtual presentation with Zepeto, an
app designed in South Korea with which people can interact on a social network, but
with a three-dimensional avatar created from a selfie. In March 2020, Valentino cre-
ated, together with Nintendo and photographer Kara Chung, an idyllic reality popu-
lated by deserted islands on which to build houses and shops, engage in gardening
or go virtual shopping. Hermes created the Saut Hermès game, a virtual version of
the annual show jumping competition at the Grand Palais in Paris. Burberry has
entered the world of video games by including the ’B-Bounce’ game on the web-
site’s homepage, where it is possible to accumulate points and even win items from
the collection. Gucci has launched, within its app, the ’Gucci Arcade’ platform. It is
a section dedicated to video games in the style of the 70 s and 80 s. Game apps were

1
https://​uk.​fashi​onnet​work.​com/​news/​Luxury-​indus​try-​comes-​to-​terms-​with-​gen-z-​s-​appet​ite-​for-​colla​
borat​ions-​resal​e,10910​93.​html.

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Let’s play! Gamification as a marketing tool to deliver a digital… 2137

also created, such as Drest and Covet Fashion. They have entered into agreements
with the leading global luxury brands and online luxury fashion multi-brand retail-
ers, such as Farfetch.
Thus, despite the numerous examples of the integration of gamification into
luxury companies’ marketing strategies, the academic research on gamification and
luxury is limited and mainly focused on branding e.g., [7], but there is a dearth of
empirical evidence supporting the features and implications of gamification for lux-
ury companies, especially in terms of delivering a digital luxury experience. Addi-
tionally, while there are many studies on online shopping, how online experiences
are created and managed by companies, especially those in the luxury industry, is
an under-investigated issue Homqvist et al. [14]. To fill the abovementioned gaps,
this paper aims to investigate gamification by adopting the perspective of a luxury
company integrating gamification tools in its marketing strategy. Thus, the paper
answers the following research question: what are the features of gamification as a
marketing tool to deliver a digital luxury experience?
To this aim, the paper employs the qualitative methodology of case study and
presents a case of a multi-brand luxury retailer based in Italy. The company has
recently launched a game app for international customers, representing a unique
case in the current luxury panorama. The paper provides a twofold contribution.
First, it expands the knowledge on gamification by highlighting the features that
gamification, as a marketing tool, should have in the context of luxury. In doing
this, the paper answers the request of providing empirical investigation on gamifica-
tion aimed at understanding the tangible benefits it can bring to companies in terms
of consumer experience, engagement, and, to a later extent, conversions into sales,
which are particularly relevant for luxury companies with an e-commerce website.
Second, it contributes to studies on digital luxury experiences particularly suitable
for the online world and the new generations of consumers, such as Generation Z.
The next section of the paper analyzes the marketing content emerging from the lit-
erature on gamification to understand what is known so far about the adoption of
game design elements in a non-game context such as the marketing one. Section 3
concerns the methodology of the case study. Section 4 presents the case analysis.
Finally, the paper discusses findings and concludes with theoretical, managerial
implications, and future research directions.

2 Theoretical background

2.1 The application of gamification to marketing contexts

Gamification uses game design elements in non-game contexts to make an

application, product, or service funnier, motivating and engaging [15]. Zicher-
mann and Linder [4] defined it as the art and science of turning your customer’s
everyday interactions into games that serve your business purposes [4], p. 20).
Some scholars describe gamification as several design principles, processes, and
systems that can be used to influence, engage and motivate individuals, groups,
and communities, drive their behaviors, or generate the desired effect [16, 17].

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The dynamics, gaming techniques, and game-style rewards have been transferred
from the gaming software origins to business contexts [6], with the initial aim
of increasing customer engagement [11]. Thus, gamification implies the develop-
ment of applications with games features and has become a fast-emerging trend
in non-gaming contexts, especially marketing [18].
Most marketing studies on gamification have focused on branding and out-
lined other benefits of applying gaming mechanisms. Gamification seems to be
positively associated not only with brand engagement [19] but also with brand
attitude [11], brand awareness [18], brand co-creation experiences [9], and brand
love [7]. It has also been shown that the application of game dynamics in market-
ing contexts allows to achieve greater customer loyalty [20] and to increase sales
[21, 22]. Thus, gamification tools can be used on e-commerce websites to create
content, generate conversion, and promote loyalty [23].
In addition to the benefits of gamification related to branding, a relevant issue
related to gamification concerns game mechanics and game design-related gam-
ing motivations: immersion-related, achievement-related, and social interaction-
related dimensions [24–27]. The immersion-related features concern the player’s
immersion in self-directed, inquisitive activity through game mechanics such
as roleplay, avatars, narrative structures, etc. The achievement-related features
enhance the players’ sense of accomplishment through game mechanics such as
challenges, missions, goals, badges, progression metrics, etc. Finally, the social
interaction-related features attempt to enable the players’ social interaction
through game mechanisms such as teams, communities, groups, and competition
[25, 28]. In the marketing context, Xi and Hamari [10] show that achievement
and social interaction-related gamification features are positively associated with
emotional, cognitive, and social brand engagement, with a positive effect also on
brand equity. Thus, the authors conclude that gamification appears to be an effec-
tive technique for brand management.
Research on gamification suggests that motivational and emotional involve-
ment during playing can reach very high levels [29]. Concerning motivation, a
distinction is between intrinsic and extrinsic motivation [30]. Intrinsic motivation
concerns internal achievement related to positive feelings and enjoyment, while
extrinsic motivation is more related to external rewards like money or other tan-
gibles (Denny 2014). Yang et al. [11] observe that as gamification marketing pro-
cess is normally committed to instill products or brands information to users, it
is a drive for participants to learn the information and further join or continue
an action—in our case, engaging with gamification—because of the effects it has.
Therefore, when people are intrinsically motivated, they have a genuine desire
for the activity itself and enjoy it tremendously [11], p. 460). The role of intrinsic
motivation is connected to loyalty. In particular, it has been observed that many
marketing attempts to engage consumers, including loyalty programs, member-
ship systems, and point-based management, which are based on monetary and
tangible awards, are less efficient in generating loyalty in the long term compared
to marketing strategies based on intrinsic motivation, such as gamification [31,
32].

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2.2 Gamification and digital experiences

With consumers surrounded by new and fast-evolving technologies, more and more
selective, and ponder how to spend their time and money, companies are put under
pressure to adopt marketing tools capable of attracting consumers’ attention and
engaging them [11]. As outlined in the previous section, consumers are willing to
adopt gamified systems in search of fun, rewards, competition, social interaction,
and a sense of membership in a community. Nobre and Ferreira [9] also suggest that
gamification can be used as an innovative branding tool to promote consumer par-
ticipation and interaction in brand experiences.
The creation of experiences is a compelling issue and a relevant factor of suc-
cess for all companies, especially when such experiences must be translated into a
digital context with a proper shopping atmosphere [33, 34]. This aspect is particu-
larly true for luxury companies, for which digitalization and online sales are still a
challenge for exclusivity and identity [35]. Batat [36] agrees that gamification is one
of the possible digital marketing tools for luxury companies to deliver luxury expe-
riences. Desmichel and Kocher [37] suggest that multi-brand luxury stores should
take more significant effort to promote offline and online hedonic shopping experi-
ences to make consumers less price-sensitive and improve profitability. Insley and
Nunan [38] observed in their study on online retailers that the transfer of customer
experience from an offline to an online context creates challenges, as many of the
factors that create a successful physical shopping experience are lost when moved
to the online world. However, gamification can make up for this issue by creating
gameful experiences [13], as retailers—Amazon and ASOS are two examples—are
increasingly applying game techniques in their online store to create reward mecha-
nisms and turn online shopping into an entertainment experience [38]. Mobile tech-
nologies can enhance such an experience [12]. Online retailers often apply basic
game mechanisms, such as reward mechanisms for completing specific tasks [39].
It appears that the application of gamification in an online retail context is not about
gaming, but it concerns the addition of game elements, such as reward mechanisms,
to enrich the existing shopping process. A step forward could be the development of
brand-related game apps to deliver brand-related online experiences that make use
of mobile technologies and apply more complex game mechanisms [40].

3 Methodology

To investigate the features of gamification as a marketing tool to deliver a digital

luxury experience, case study methodology was selected. Since there is a dearth of
empirical studies on this topic, especially in the luxury domain, the case study was
deemed the appropriate methodology to gather in-depth data to reveal the features
of gamification developed by luxury companies. Hence, the nature of the research
question and the novelty of the subject called for the choice of an explorative meth-
odology [41]. The choice of the case study method also relies on the interest in
reconstructing the dynamics of a process (the origins of the idea, the design, and of
a game app in the case under study), which is an objective for which the case study

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method appears particularly suitable [42]. The paper proposes a single case study
to reconstruct the features of a game app developed by an Italian company—MZQ
from here on for confidentiality reasons—to deliver a digital luxury experience to its
customers.
The MZQ case was purposely selected for two reasons. First, the company is one
of the most relevant Italian multi-brand luxury retailers with a strong international
profile; it represents an emblematic case for the development of its game app, called
VER5 (a fictitious name), which develops a gaming universe centered on luxury
products and closely connected with the company’s e-commerce website. Thus, the
case has been selected for its revelatory potential.
Data collection started in 2013, in the context of a broader research process ini-
tiated before the introduction of the game app, aimed at monitoring a company—
MZQ—the presented characteristics of particular interest for the success and rapid
growth achieved in the luxury fashion e-commerce, starting from a traditional lux-
ury clothing retail business. The first in-depth semi-structured interviews were initi-
ated by one of the authors in November 2013. They continued over the years, with
the involvement of the other authors, according to the scheme indicated in Table 1.
The initial interviews concerned the international development of the company, its
business model, and its marketing strategies. For this study, such content has been
employed to depict the company profile described at the beginning of the next
section.
Starting from 2017, when the company began to think about the development
of a game app, the interviews focused on gamification. Interviews involved differ-
ent informants (entrepreneur, general director, marketing manager, web designer)
to ensure multiple perspectives. All interviews, conducted face-to-face, by tele-
phone or videoconference, were recorded and transcribed and supplemented with
the exchange of emails. However, a hallmark of rigorous case study research is the
use of multiple data sources that enhance data credibility and allow triangulation
[43–45], with each data source as one piece of the puzzle that contributes to the
researcher’s understanding of the whole phenomenon (Yin 1994). Thus, in addition
to the interviews, data collection included: annual reports, internal documents pro-
vided by the company, participation in MZQ events, company website, and other
online documents such as articles in the specialized press and published interviews.
The participation to the company’s events represented a social activity that allowed
interactions with the entrepreneur and other managers in a less formal way that, in
the following steps of the research, simplified the establishment of channels of com-
munication and the researcher–manager interface [46, 47].
Furthermore, to better understand the functioning mechanisms of the game app,
we downloaded it and played it for nine months. This active participation made it
possible to fully understand the functioning mechanisms (creation of the avatar,
challenges, levels, awards, community interaction). It would not have been possible
to grasp such details from the interviews and secondary material only.
Data from the abovementioned sources were the object of systematization by
developing a complete chronology of events involving the company, its growth as
a luxury multi-brand retailer, and the development of the game app. This analysis
has been translated into the company profile and the origins of the idea of VER5.

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 Table 1  Data collection
Source Method Dates Data

Entrepreneur and owner Face-to-face meeting April 2015 About 1 h of colloquium

February 2016
General director Face-to-face interviews November 2013 About 5 h of interviews
Email exchange October 2014 Contents of 8 e-mails
November2015
March 2017
Marketing director Face-to-face and telephone interviews February 2014 About 9 h of interviews
Email exchange October 2014 Contents of 9 e-mails
Videoconference June 2015
November 2017
September 2019
January 2021
Let’s play! Gamification as a marketing tool to deliver a digital…

February 2021
September 2021
Web designer Videoconference February 2021 About 2 h of interviews
Annual reports and internal Content analysis 7 annual reports, from 2013 to 2020 About 360 pages of text and schemes
documents Internal documents from 2019 to 2021
Events Participation May 2015 About 6 h of participation
January 2016
Company website Content analysis Different moments from November 2013 to View of webpages in 8 different languages
October 2021 Products and promotions
Game app VER5 Active participant observation From February to October 2021 Download and play, game mechanisms
2141

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We then proceeded with an in-depth analysis of the process of design and devel-
opment of the game app. In this phase, data were analyzed through a coding pro-
cedure into common themes and pattern matching [48]. We analyzed the material
individually to bring out some themes corresponding to the main features of the
game app, then discussed them to converge on common themes with full agree-
ment. The structure of the next section is based on the following themes: indi-
vidual and collective gaming experiences, exclusiveness through rarity in luxury
gaming, social networking and virtual influencing marketing mechanisms, cross-
fertilization between gaming and e-commerce. Thus, in this paper, the case study
emerged from a research process and interaction path with the company, based on
two levels: the first level concerns the company within which the process of gen-
eration and dissemination of the game app is developed,the second level relates
to the game app project, with attention to its features and outcomes. The study of
the company represents the context in which the gamification process develops.

4 The case of MZQ and VER5

4.1 MZQ and the launch of VER5

MZQ is a luxury multi-brand retailer with one boutique in an Italian city and an
e-commerce website. The company’s origin dates to the 1920s with the opening
of the boutique. In 1999, the company made the pioneering decision to invest in
the digital channel through the development of an e-commerce website to sell
luxury items, which today generates about 90% of the company’s overall turno-
ver. Over time, MZQ has become one of the leading players in international lux-
ury fashion retailing. The e-commerce website is developed in 9 languages and
sells in 130 countries. In 2020, it recorded over 100 million hits from all over the
world. The total turnover of MZQ stood at around 145 million euros in 2019, with
a preponderant weight of sales on foreign markets and a lower incidence of the
domestic market. The company’s decision to invest in gamification dates to four
years ago, when in 2017 MZQ decided to develop a mobile fashion game applica-
tion through an agreement with a specialized gaming company. MZQ launched
VER5 at the end of 2020 after a testing period. The app initially included wom-
enswear in the game, menswear was added a few months later. It is currently
available in two languages (Italian and English). As underlined by the company, it
was the first app based on an innovative ecosystem that offers users the opportu-
nity to combine the gaming, social and shopping experiences (source: company’s
internal report). As one of the informants points out, the game app represents
an element of absolute novelty in fashion and luxury. Through their avatar, the
app users take part in the challenges, collect, socialize and buy favorite items by
creating virtual wardrobes, continues the interviewee, who emphasizes that the
intention was not to create a fashion game app exclusively for branding purposes,
but a new channel to generate sales in the e-commerce website.

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4.2 Some results of VER5: engagement, retention, and revenues

VER5 has reached some relevant results. They can be considered both in terms of
users’ engagement in the game app and contribution to turnover. Concerning user
engagement, the objectives were to create a community of players and offer a new
digital experience to consumers. The company succeeded in creating a commu-
nity of players. After a few months from the launch, the app reached a commu-
nity of approximately 50,000 players. While managers estimated to reach 200,000
players at the end of the year, in October 2021 the app already reached 350,000
users. Currently, the primary users of the app are in the age group 18–24 years
(40% of the total), followed by users in the age group 25–34 (30% of the total),
users in the age group 35–44 (17% of the total), users in the age group 45–54
(10%), and over 55 (3%). Before the extension to the menswear collections, which
happened during 2021, one informant pointed out, although the gaming platform
currently includes only the female world of the company retail assortment, about
20% of users are men, which confirms the extreme interest in luxury and gam-
ing also among this target. After an initial launch phase in the national market,
data shows an increasing share of international users (30% of current app users).
The key performance indicators (KPIs) show a significant positioning of the app.
There is a noteworthy engagement performance with percentage rates of daily
active users above 20% and weekly stickiness of more than 50%, which is a high
engagement compared to the average rate of free-to-play games (source: com-
pany’s internal report).
The one-day retention rate (the retention of players after the first day of gaming)
is nearly 32%, which is above the average of free-to-play games (source: company’s
internal report). In addition, the average time spent on the app by users is ten times
compared to that spent per session on the e-commerce website. The company clas-
sifies users into three prevailing segments: those who use the app as a source of
inspiration for their fashion style; those who use the app to become popular through
the game; those interested in both fashion and gaming that later purchase through
the app.
The app represents a means to generate additional sales for the e-commerce web-
site. It also represents a new channel for generating direct revenues. Regarding addi-
tional sales in the online store, conversions from the app to the e-commerce website
have already generated a turnover exceeding one million euros. It is also interesting
to note that, on average, those who are already MZQ customers tend to double their
orders since they start playing with the app. Hence, additional sales refer to both
new sales from new app users and upselling from existing customers. Furthermore,
the app generates direct revenues, as users can have in-app purchases. For example,
they can buy virtual currencies to play the game. Users can spend virtual currencies
to buy fashion items (even from other players) and regenerate (for reusing) digital
items already collected, as the number of uses within the app of any item is lim-
ited. The company also aims to create new revenue sources through the app, such as
those generated by collaboration with potential partners (fashion brands) or advertis-
ing in the game. Four main features enable the company to pursue these results, as
discussed in the following sections.

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4.3 Individual and collective gaming experiences

The game design developed by the company includes different levels of players’
involvement and, consequently, different luxury gaming experiences. Users can
jointly go through individual and collective gaming experiences. At the individual
level, the app allows players to create customized virtual avatars and outfits. Play-
ers can create outfits by collecting virtual replicas of real products from more than
600 designers and fashion brands sold on MZQ e-commerce. As noted by one of the
interviewees, this lets the consumers experience an individual sense of luxury, by
personalizing the avatar and expressing personal fashion styles through the selec-
tion of the luxury fashion items proposed in the app. This essential app feature rep-
resents the first dimension of emotional engagement. The game then can be expe-
rienced individually, with users that can play customizing both the avatar and the
outfits. At the collective level, the app proposes missions and periodic challenges
where users can compete. During challenges, for example, users can participate
and interact, creating ad-hoc outfits. Participating in the challenges contributes to
the users’ ranking in the app. Some challenges are free-to-play and concern various
topics (such as competitions about favorite total-look for a gala dinner). Challenges
end with winners selected by users that positively or negatively evaluate the outfits
of other players. In this way, the game, from an individual level (personal avatar),
becomes collective (avatars that interact and compete in challenges). The gaming
experience, therefore, mixes individual and collective experiences.

4.4 Exclusiveness through rarity in luxury gaming

The concept of exclusivity is crucial as a mechanism capable of generating a luxury

gaming experience. Exclusivity is achieved in the game through the rarity of the
collectible items. This aspect of fundamental importance differentiates the app from
other gaming experiences since it allows the company to maintain a luster even in
the mobile platform. In other words, exclusivity permeates the gaming experience
and feeds the interaction mechanism between users and the app usage. As an inter-
viewee notes, we implemented different rarity levels of the products in the game. The
game is free-to-play, but the use of virtual currencies makes it possible to buy fash-
ion boxes with rare items. Rare items can let players differentiate their outfits and
give bonuses to win challenges. Hence, the way in which exclusivity permeates the
game is twofold. First, users can pursue hedonic goals by collecting more rare items
as possible to create exclusive outfits. At the same time, exclusivity feeds players’
competitive goals by using rare items during challenges. Furthermore, players can
use virtual currency to buy (and sell) items through a market-based mechanism. In
this sense, the rarity concept evolves through the interactions among players, as they
can buy items from other users.
Exclusivity is then a key driver of app usage. The app measures the exclusiveness
of players’ virtual wardrobe by assigning a rarity score that shows the percentage of
rare items collected by the player compared to all those available in the game app.

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In addition, the company releases new fashion items in the game app every week,
constantly feeding the players’ search for rare products. One of the main strengths
is the exclusive fine selections of fashion items of luxury brands that the company
proposes in the game app. One interviewee observes that the fact that MZQ is a
multi-brand retailer allows fueling the rarity by entering a broad set of alternatives
into the game.

4.5 Social networking and virtual influencing marketing mechanisms

Social networking and virtual influencing enrich the luxury experience offered
by the game app. The interviewees stress the intention to exploit social network-
ing mechanisms to strengthen players’ engagement. Beyond the individual gaming
experience, MZQ conceived VER5 as a social network. Consequently, it has imple-
mented mechanisms to stimulate the creation of a community of users who interact
with each other and discuss fashion issues.
The app includes a social network section. The company feeds this section sev-
eral times a week with posts about information and updates on the world of fashion
or game news. In this way, it stimulates comments and reactions from users. Addi-
tionally, in this section of the app users can post their avatar with different outfits to
share them with the community. Therefore, in addition to company-generated con-
tent, the social section of the app is enriched by user-generated content, thus repre-
senting a hybrid social network that combines company posts and user posts.
Hence, there is the possibility of leveraging the community to become fashion
influencers through avatars. The outfits created can be judged by other users. In this
sense, each user can potentially increase popularity within the community by show-
ing outfits and moodboards of the items collected, meaning that each virtual avatar
can have a base of followers and receive reactions and comments from other users.
Interestingly, there is a mix between virtuality and reality, namely between a virtual
entity (the avatar) and the real person (the user). In essence, as an informant points
out, the user can combine gaming with social networking and virtual influencing
by using the virtual avatar. It is a peculiar aspect that takes its cue from very recent
fashion trends, as one informant explains, think for example that Lil Miquela, a vir-
tual influencer created via computer graphics, reached 3 million followers in three
years.

4.6 Cross‑fertilization between gaming and e‑commerce

The gaming experience allows players to visit the e-commerce website to make
purchases. Hence, the gaming experience integrates luxury shopping experiences.
The app offers a close connection with the e-commerce website in all the sections
of the game. Users can buy real versions of virtual items collected in their virtual
wardrobe. Simply by clicking on the item, they can buy it on the MZQ e-commerce
website. Hence, the luxury shopping experience is a fundamental component of the
app. As an informant points out, users spend on average 30 minutes a day to play on
VER5, which is about ten times more than the average time spent per session on the

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Fig. 1  The levels of luxury gaming experience

MZQ e-commerce website. The longer the user spends time on the app, the more are
the conversions to the e-commerce. Hence, while the company conceived the app as
a channel capable of generating autonomous revenues, at the same time it represents
a new channel to promote the e-commerce website and generate sales. For example,
users can collect points that are part of the loyalty programs of the e-commerce
website. However, the connection between the e-commerce and the app is two-way,
as the app benefits from the e-commerce website too in terms of promotion and new
items for the game.

5 Discussion

5.1 Digital luxury experience through gamification: three co‑existing levels

The MZQ case with the development of the VER5 game app allows us to advance
some reflections on the relationship between gamification and the digital luxury
experience. Our study shows three levels of players’ involvement that bring to a sat-
isfying experience. These levels co-exist as the users can move from one to another
while playing. At each level, gamification feeds the digital luxury experience with a
different mechanism. Figure 1 shows the three levels and how gamification shapes
the digital luxury experience.
At the first level, players can create their virtual avatar to start their immersion
in the game. The avatar represents a virtual transposition of oneself and, therefore,
allows a greater immersion and involvement in the game from the beginning. Creat-
ing a customized avatar is consistent with a playing mechanism that allows pursuing
aesthetic and hedonic goals. Players can experience their interpretation of luxury
styles by creating virtual outfits and enhance this experience by continuously using

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new items. Hence, the luxury digital experience is connected to virtual interpreta-
tions of oneself and personal gratification.
The second level of involvement refers to the possibility of competing in fashion
challenges. Players can test their styles, challenging other players. Thus, gaming is
not only an individual experience, but it also implies participation with others while
playing. Therefore, this second level contributes to players’ engagement through
competition, providing interaction and rewards for future challenges. The mecha-
nism that guides competition is the items’ rarity. Thus, exclusivity—a typical feature
of luxury positioning—represents a pillar of the competition between players. The
luxury digital experience is then competing and interacting with others by taking the
lever of exclusiveness.
Finally, there is a third level of involvement. Players can aspire to be virtual influ-
encers. They can become fashion trendsetters of a community of players. Playing
the game with others lets players’ popularity increase through the proposed outfits
and styles. As for any social network, users can post their virtual avatars and gener-
ate followers in the community. The engagement and the collective dimension in
this level reach the top and the luxury digital experience is expressed as the player’s
ambition to lead a community of followers.
The three levels described are consistent with the literature on gamification that
distinguishes three categories of game mechanics and game design-related gaming
motivations: immersion-related, achievement-related, and social interaction-related
dimensions [24–27]. In the case study, we found all these three dimensions. First,
VER5 users can pursue immersion-related motivations by customizing avatars and
outfits. Second, they can pursue achievement-related motivation by participating in
challenges. Finally, they can reach social interaction-related goals by posting, com-
menting, and becoming popular influencers in the community of players. In the case
of VER5, these three experiential dimensions co-exist, as players can contempora-
neously achieve all three dimensions. They are not mutually exclusive, but players
can jointly achieve them in the game.

5.2 Designing gamification for a digital luxury experience

The case allows putting forward some considerations about the research question
of this study: what are the features of gamification as a marketing tool to deliver a
digital luxury experience?
From the theoretical point of view, we propose four features that characterize
gamification for a satisfying digital luxury experience. We argue that the interplay
among these features allows understanding how to design gamification for luxury
companies.
First, gamification provides different levels of digital experience. Luxury
requires innovative experiences [49] and gamification represents a source to
deliver new and playful customer experiences. While previous literature [24–27]
has pointed out the importance of immersion-related, social interaction-related,
and achievement-related features, our study emphasizes the need to treat them
not as alternatives but as co-existing dimensions of the game. An innovative

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digital luxury experience implies the offering of a set of interconnected experi-

ences. In other words, the co-existence of different dimensions drives the luxury
gaming experience. Furthermore, considering the case of online multi-brand
retailers that operate globally, this gamification feature represents a further
dimension of the overall luxury retail strategy [33].
Second, gamification in the luxury context needs exclusivity as a gaming
thread. The academic debate posits that one of the crucial aspects of luxury is
the need to maintain the character of exclusivity, especially for retailers that tar-
get global markets and new luxury consumers as Generation Z and Millennials.
Therefore, delivering exclusivity online is a real challenge for luxury companies
[35, 36]. The case study shows that the app has exclusiveness as its fundamen-
tal feature and the central dynamic of the game. The game design implements
mechanisms and tools (such as the exchange of rare items among players) that
allow consumers to explore and exploit the rarity of virtual items. For players,
while exploring exclusivity calls for finding new items and outfits within the
international retailer’s assortment, exploiting exclusivity implies benefiting from
it within the game. Therefore, like in any other offline and online activities of
luxury companies, the gaming experience finds expression in the searching for
exclusivity.
Third, gamification involves social networking and virtual influencing. Pre-
vious literature has emphasized the importance of intrinsic motivations related
to gamification [11]. We argue that gamification in luxury goes a step forward
along the motivation continuum. The academic debate widely accepts the
strategic role of social networks and influencer marketing [50, 51]. We argue
that luxury gaming can exploit social networking and influencer marketing as
additional motivations for consumer engagement and this is essential to target
younger consumers. Considering that younger generations show great interest in
social networks, social influencing, and mobile games, we argue that the inter-
play between gamification, social networking, and virtual influencing represents
the keystone to reaching these consumer targets globally. Thus, gamification can
ensure a connection with consumers who will drive luxury consumption in the
future.
Fourth, gamification benefits from cross-fertilization between gaming and
e-commerce. We argue that gamification represents a new channel to meet sales
objectives. While previous literature has showed the role of gamification as a
marketing tool for branding purposes [9], this study also considers gamification
as a channel to renew and reinforce e-commerce strategies. Therefore, gamifica-
tion can jointly achieve branding and online sales aims and it constitutes a driver
for luxury companies’ business model development, especially for online multi-
brand retailers, as it allows expanding online sales on a global scale [23]. Gami-
fication is an opportunity for the e-commerce website to benefit from a play-
ful online shopping experience. At the same time, the e-commerce website may
feed the game with new exclusive items and new content to support innovative-
ness and exclusivity. Thus, gaming and shopping experiences co-exist and co-
evolve together in the interaction between game apps and e-commerce websites.

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6 Conclusion, limits, and avenues for future research

The paper allows drawing some managerial implications. Gamification can be an

appropriate digital marketing tool for all those companies that intend to involve
their consumers and increase their level of engagement. Specifically, gamification
can take on different characteristics and levels of complexity, from adding game
elements in order to enrich the existing shopping process to developing ad-hoc
brand-related game apps aimed at delivering brand-related online experiences
through mobile technologies and more complex game mechanisms. Marketing
managers must consider the need to develop specific skills in the field of mobile
technologies and game design, the latter being so specific that they require part-
nerships with specialized companies such as game developers. Moreover, gami-
fication as a digital marketing tool should be considered by online multi-brand
retailers, especially in the luxury and fashion sectors as, in recent years and after
the pandemic crisis, they have to face an increasingly harsh online competition
at a global scale. The competition is not only between online multi-brand retail-
ers but also between them and the global luxury brands that increasingly invest
in e-commerce websites and marketing tools capable of engaging the consumer
more and more. In this competitive scenario, gamification represents a digital
marketing tool that strongly differentiates a company and creates value for its cus-
tomers. To further differentiate and create a unique experience, luxury companies
may consider developing and integrating a game app with the e-commerce web-
site, to the point that the e-commerce website could evolve into a luxury gaming
experience. This experience would take into account the current preferences of
the new generation of luxury consumers, specifically Millennials and Generation
Z. The evolution of the e-commerce website towards an engaging luxury gaming
experience may include not only playful and personalization elements but new
values that new generations are seeking in luxuries, such as inclusion and the
enhancement of diversity. This latter issue, concerning the inclusion of in-game
mechanisms of relevant values for the new generations, represents a possible ave-
nue for future research.
Finally, this paper shows some limitations that can be the basis for further
studies. An evident limitation of our study is that it builds on a single case study
of an online multi-brand retailer in the luxury context. That means the external
validity of our findings in other contexts, such as the non-luxury or non-retailing
ones, needs to be verified. Furthermore, the development and adoption of gami-
fication techniques and the features may be different beyond the boundaries of
luxury and retailing. Additionally, the paper considered only one emblematic
case of an innovative player in multi-brand retailing that succeeded in launching
a game app. A multiple-case study approach might be helpful to build a com-
parison and allow generalization. Moreover, future research could study the role
of gamification for analytics purposes. For example, it could be interesting to
understand the player’s behavior in the game in terms of products selection and
different combinations. Hence, how gamification can enhance the understanding
of consumers’ digital behavior represents a valuable avenue for future research.

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2150 M. Milanesi et al.

Finally, this paper addressed the topic of gamification from an online multi-brand
luxury retailer’s perspective by highlighting the benefits and, more in general,
the positive side of gamification as an effective digital marketing tool. However,
future research should reverse this perspective by investigating gamification’s
’dark side’ regarding risks and difficulties for business purposes.

Author contribution The authors share the final responsibility for this paper. Matilde Milanesi wrote
paragraphs 1, 2 and 6. Simone Guercini wrote paragraph 3. Andrea Runfola wrote paragraphs 4 and 5.

Declarations

Conflict of interest On behalf of all authors, the corresponding author states that there is no conflict of
interest.

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License,
which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as
you give appropriate credit to the original author(s) and the source, provide a link to the Creative Com-
mons licence, and indicate if changes were made. The images or other third party material in this article
are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the
material. If material is not included in the article’s Creative Commons licence and your intended use is
not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission
directly from the copyright holder. To view a copy of this licence, visit http://​creat​iveco​mmons.​org/​licen​
ses/​by/4.​0/.

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