The Effect of Gamification toward Customer Engagement in Shopee E-Commerce

: Customer engagement is one of the factors that influences a company's overall performance, this aspect reflects the interaction between customers and brands. Gamification is one method that can be used to increase customer engagement. This research examines the influence of gamification on customer engagement on the Shopee e-commerce platform. In the rapidly evolving digital era, gamification has become a popular strategy to increase customer engagement by creating fun and interactive experiences. Shopee, as one of the leading e-commerce platforms in Indonesia, has implemented various gamification elements to attract customer attention. This research uses a quantitative approach with an online survey method involving 212 active Shopee user respondents from Jakarta and Bandung aged between 18 - 35 years. The data collected was analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM) technique to test the relationship between the constructs of gameful experience, game satisfaction, and customer engagement. The research results show that all dimensions of the gameful experience, which include achievement, challenge, competition, immersion, fun, and social experience, have a positive influence on game satisfaction. Furthermore, game satisfaction also has a strong positive influence on customer engagement. This research provides insight for Shopee and other e-commerce about the importance of gamification to increase customer satisfaction and engagement. Effective implementation of gamification strategies can encourage e-commerce platforms to create more engaging user experiences.

Customer satisfaction is a key driver of engagement, reflecting how well user expectations are met (Higgins & Scholer, 2009).Higher satisfaction levels encourage users to continue interacting with the platform, leading to increased engagement (Agyei, 2021).
In e-commerce, satisfied customers are more likely to revisit and engage with the platform, while dissatisfied ones may seek alternatives (Thakur, 2018;Monferrer, 2019).Engaged customers actively participate in brand activities, often influenced by their satisfaction with the experience (Busalim, 2021).
Game satisfaction, derived from a positive gaming experience, enhances customer engagement by motivating users to interact more frequently with the brand (Kumar & Shah, 2004).Satisfied users are also more likely to engage in word-of-mouth marketing, promoting the brand and attracting new users (Hollebeek et al., 2019).H2: Game Satisfaction has a positive effect on Customer Engagement.

METHODOLOGY
Based on the research design, this study employs a quantitative research approach to investigate the impact of gamification on customer engagement in Shopee's e-commerce platform.The primary method involves collecting data through online surveys using Google Forms, targeting specific demographic groups to test the proposed hypotheses.The quantitative approach allows for efficient data collection and analysis of relationships between variables, utilizing hypothesis testing to draw conclusions (Tahir, n.d.).Online surveys are favored for their systematic nature, ensuring respondents complete questions sequentially, which helps maintain data integrity and reduces inappropriate responses (Healey, 2016).
The study's sample comprises Shopee e-commerce users aged 18-35, with data collection starting in October 2023 and concluding in June 2024.The survey utilizes a non-probability sampling technique, specifically purposive sampling, to ensure respondents meet the research criteria.Questions are designed around variables identified in the literature review, and the data collected is analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and descriptive statistics.This analysis aims to uncover the causal relationships between gamification elements, game satisfaction, and customer engagement, helping Shopee Indonesia refine its gamification strategies to enhance user engagement (Bryman et al., 2021;Rana, 2021).

DATA ANALYSIS
Chapter 3 outlines the methodology used to study the impact of gameful experiences on customer engagement within Shopee Indonesia's platform.A quantitative research approach was adopted, utilizing online surveys to collect data from 212 Shopee users aged 18 to 35 who engage with Shopee Games.The survey comprised two sections: one for demographic and behavioral data, and another for assessing key variables related to gameful experiences, such as accomplishment, challenge, competition, immersion, playfulness, and social experience.The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) to explore the relationships between game satisfaction and customer engagement.
The sample was drawn from major Indonesian cities, including Jakarta and Bandung, to ensure representation across diverse demographic segments.Descriptive statistics were used to analyze demographic data, revealing a balanced gender distribution and a predominance of respondents in the 18-25 age range.This demographic profile reflects a youthful user base engaged with gamified elements on Shopee.The socioeconomic background of respondents varied, with diverse occupations and income levels, providing a comprehensive understanding of the Shopee Games' consumer base.
Behavioral analysis showed that users frequently played Shopee Games during their leisure time, offering insights into their motivations and preferences.These findings highlight how various dimensions of the gaming experience contribute to overall satisfaction and engagement with Shopee.The methodology provided a robust framework for understanding the significant role of gamification in enhancing user interaction and engagement on the platform.The convergent validity is using the AVE in order to see the result.For the variables to be considered valid, the AVE values have to be more than 0.50 (Wong, 2013).The result of Average Variance Extracted (AVE) in Table 4.4 below shows that they are all above the value of 0.50, showing that they can be considered valid.(Triwidyati & Tentama, 2020).This research uses the Fornell-Larcker criterion to analyze the discriminant validity.This method involves comparing the square root of the average variance extracted (AVE) with the correlations between latent constructs.A latent construct should account for more variance in its own indicators than in the indicators of other latent constructs (Hamid et al., 2017).Table 4 showing the result of discriminant validity with the number being bold being higher than the other correlations shows that they are valid.According to Dufour (2011), R-squared (R²) is a statistical measure that indicates the proportion of variance in a dependent variable that can be explained by the relationship with two or more independent variables in a regression model.Meanwhile, the Stone-Geisser test, or predictive analysis, uses a blindfolding procedure to measure the accuracy of the produced observation value through the Q-square value (Vartak & Sapre, 2020).The goodness of fit result can be obtained by multiplying the square root of R2 average with Q2 (Wong, 2013)

H1a: Accomplishment has a positive effect on Game Satisfaction
The hypothesis H1a, which states that accomplishment has a positive effect on game satisfaction, is supported by a T-statistic of 2.158 and a p-value of 0.031.This indicates that the sense of achievement from games like Shopee Tanam and Shopee Capit significantly contributes to game satisfaction, aligning with previous research by Chen & Lin (2015), Kim (2005), Klaus (2013), Sabrina et al. (2023), and Ha (2021).Users are motivated by reaching goals and completing tasks, which enhances their satisfaction with the gaming experience.

H1b: Challenge has a positive effect on Game Satisfaction
Hypothesis H1b, which posits that challenge positively affects game satisfaction, is confirmed with a T-statistic of 2.484 and a p-value of 0.013.This finding is consistent with studies by Chen & Lin (2015), Kim (2005), and Ha (2021), demonstrating that users are drawn to games offering a balanced level of challenge.Regular engagement with Shopee games suggests users find game challenges both stimulating and satisfying, supporting the hypothesis that challenge enhances game satisfaction.

H2: Game Satisfaction has a positive effect on Customer Engagement
The hypothesis H2, which posits that game satisfaction positively influences customer engagement, is strongly supported by a T-statistic of 13.716 and a p-value of 0.000.Higher satisfaction levels with Shopee games lead to increased engagement, as satisfied users are more likely to interact frequently and deeply with the platform (Higgins & Scholer, 2009;Agyei, 2021).Users' motivations, such as earning Shopee Coins and obtaining discounts, indicate satisfaction with the rewards, fostering greater engagement with Shopee.

CONCLUSION
This research aimed to explore the impact of gameful experiences in Shopee Games on game satisfaction and subsequent customer engagement within Shopee Indonesia's e-commerce platform.The study revealed that various dimensions of gameful experience, such as accomplishment, challenge, competition, immersion, playfulness, and social interaction, significantly enhance game satisfaction.The sense of accomplishment was particularly influential, with a T-statistic of 2.158 and a p-value of 0.031, affirming its positive contribution to game satisfaction.Similarly, challenges and competitive elements with T-statistics of 2.484 and 2.984 respectively, along with respective p-values of 0.013 and 0.003, were found to enhance satisfaction by providing engaging and stimulating experiences.
Moreover, immersion and playfulness also played vital roles in increasing satisfaction, as indicated by T-statistics of 2.277 and 3.047, and p-values of 0.023 and 0.002, respectively.The social experience, which facilitates interaction among players, further boosted satisfaction, supported by a T-statistic of 3.267 and a p-value of 0.001.These findings align with existing literature, reinforcing the idea that diverse gameful experiences significantly contribute to player satisfaction.
The study further established a robust positive relationship between game satisfaction and customer engagement, as evidenced by a T-statistic of 13.716 and a p-value of 0.000.Higher satisfaction levels drive increased interaction and engagement with the Shopee platform, demonstrating that satisfied users are more inclined to return and engage frequently.This supports previous research that links satisfaction with enhanced customer engagement and highlights the importance of integrating welldesigned gamification elements to sustain user interest and participation.In conclusion, the integration of thoughtfully designed gamification elements in e-commerce platforms like Shopee not only enhances game satisfaction but also fosters deeper customer engagement, thereby offering valuable insights for businesses looking to improve user experience and engagement metrics.

RECOMMENDATION
The study highlights that a positive game experience significantly influences customer engagement via increased game satisfaction.Therefore, enhancing the game experience can lead to better customer retention and engagement.Here are several recommendations for Shopee to improve their gamification strategy: 1. Achievement Badges: Introduce a badge feature for player achievements, allowing users to showcase their progress on their profiles, which can motivate continued engagement and competition.2. Time-Limited Challenges: Implement time-limited mechanics with additional rewards for completing tasks quickly, adding urgency and excitement to the gaming experience.3. Competitive Systems: Develop a 1vs1 competitive system with an elimination feature and spectate option to increase excitement and user participation.4. Augmented Reality Games: Create treasure hunt games that use augmented reality, leveraging the user's phone camera for a realistic treasure hunting experience with rewards like Shopee Coins or Coupons. 5. Virtual Pets: Design light games with engaging mechanics, such as virtual pets that grow with user interaction, encouraging daily logins and sharing.6. Virtual Spaces: Develop virtual spaces where users can meet online to engage in activities such as building houses, playing games, or watching movies together, fostering community and interaction.This research focused on specific variables like game experience, game satisfaction, and customer engagement within a limited geographical scope of Jakarta and Bandung.Future research could expand the scope to include more diverse variables and encompass a broader geographic area across Indonesia to capture a wider range of user behaviors.Additionally, exploring different age groups could provide insights into varying engagement patterns, offering valuable input for enhancing gamification strategies.

H1c:
Competition has a positive effect on Game Satisfaction The hypothesis H1c states that competition positively impacts game satisfaction, supported by a T-statistic of 2.984 and a pvalue of 0.003.This aligns with prior research on the motivational effects of competition in gamified environments, such as those by Hamari & Koivisto (2015) and Kim & Ahn (2017), highlighting its role in boosting engagement and satisfaction.The popularity of competitive games like Shopee Capit suggests that users are motivated by competition, reinforcing the hypothesis that competition enhances satisfaction.H1d: Immersion has a positive effect on Game Satisfaction Hypothesis H1d, suggesting that immersion positively affects game satisfaction, is validated by a T-statistic of 2.277 and a pvalue of 0.023.Immersive experiences that captivate users and make them lose track of time significantly enhance game satisfaction, as supported by studies from Batat (2019) and Novak et al. (2020).Users spending 11-15 minutes daily on Shopee games indicate a level of immersion that supports the hypothesis.H1e: Playfulness has a positive effect on Game Satisfaction Hypothesis H1e, which suggests that playfulness positively affects game satisfaction, is supported by a T-statistic of 3.047 and a p-value of 0.002.This result aligns with research by Barnes & Coates (2016) and Kim & Ahn (2017) that highlights the role of playfulness in enhancing user experiences and satisfaction.Users' preference for playing games during leisure time indicates a desire for playful and enjoyable experiences, supporting the hypothesis.H1f: Customer Satisfaction has a significant effect on Customer Loyalty.H1f: Playfulness has a positive effect on Game Satisfaction The hypothesis H1f, stating that social experience positively impacts game satisfaction, is confirmed by a T-statistic of 3.267 and a p-value of 0.001.Social interactions in Shopee games, such as forming teams or competing with friends, are crucial for enhancing satisfaction, consistent with prior studies by Chandler & Lusch (2014) and Hollebeek et al. (2019).The social aspects of Shopee games contribute significantly to user satisfaction.

Table 2 . Internal Consistency Reliability Variable Composite Reliability Reliability
Values in the range of 0.60 to 0.70 in composite reliability are considered acceptable, while values in the range of 0.70 to 0.95 might be considered enough to have good reliability levels.If the values are more than 0.95, it could cause concern(Sarstedt  et al., 2021).This research has composite reliability that's above 0.70, with the lowest being 0.801 in the competition variable, and the highest is 0.862 in the game satisfaction variable.The composite reliability result indicates that they are all reliable.

Table 4 . Discriminant Validity
Discriminant validity was assessed by comparing the square roots of the AVE values, ensuring they are greater than the correlations between the respective constructs

Table 5 . Structural Path Significant
Wong (2013)o Hair (2010), the significance of structural paths in bootstrapping is a method used to statistically determine the coefficient and importance of each variable within the model structure.The structural path significance is done with bootstrapping analysis.Researchers can assess the significance of both internal and external models to obtain T-statistics.According toWong (2013), the resulting T-value must exceed 1.96 to confirm the significance of the path coefficient.6292 * Corresponding Author: William Octavius Halim Volume 07 Issue 08 August 2024 Available at: www.ijcsrr.orgPage No. 6286-6296