Abstract:
The growing use of gamification in mobile telecommunications has raised questions
about whether such strategies foster genuine brand loyalty or simply short-term
interaction. This study explained the effect of online gamification on brand loyalty
with the customer engagement factor as a mediating factor and focuses on the youth
user group (18–24) in Kandy District, Sri Lanka. The problem arised due to the
absence of empirical evidence in the Sri Lankan telecom sector, despite the growing
popularity of gamified applications. This study sought to investigate the direct
influence gamification dimensions of game design, entertainment gameplay
experience, and narrativity have on brand loyalty, as well as the mediating role
customer engagement plays between these variables. A cross-sectional, quantitative
survey design based on the Stimulus-Organism-Response (S-O-R) conceptualisation
was utilised. Using convenience sampling because of the niche target group and in
accordance with similar studies, data were collected from 180 respondents through
structured online questionnaires. The data were analysed with SPSS to run reliability
and validity tests, correlation, simple and multiple regression, as well as mediation
tests using the PROCESS Macro. The results revealed significant positive effects of
online gamification on customer engagement (β = 0.874, p < 0.001) and brand loyalty
(β = 0.905, p < 0.001). Customer engagement positively impacts brand loyalty (β =
0.909, p < 0.001), which shows it as a partial mediator (indirect β = 0.795). The model
explains 76% and 68% of the variance in engagement and loyalty, respectively. The
study concluded that gamified telecom platforms develop sustained loyalty by
immersing users in an engaging, story-based, and rewarding digital experience. The
study thereby extends the S-O-R model into an emerging market context, also giving
telecom operators a concrete road map for creating long-term brand loyalty.
