3.2 Extrinsic Motivation and Rewards

Extrinsic motivation drives behavior through external rewards, not internal satisfaction. Gamification uses points, badges, and leaderboards to encourage desired actions, serving as powerful initial engagement tools. However, the overjustification effect suggests that introducing extrinsic rewards may decrease intrinsic motivation over time.

Balancing extrinsic motivators with opportunities for autonomy, competence, and relatedness is crucial in gamification design. Gradually shifting from extrinsic to intrinsic motivators as users progress helps maintain long-term engagement. Implementing adaptive systems that adjust rewards based on individual performance and preferences can create personalized experiences.

Extrinsic Motivation in Gamification

Understanding Extrinsic Motivation

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• Extrinsic motivation drives behavior through external rewards or consequences, not internal satisfaction
• Self-Determination Theory (SDT) framework explains how extrinsic motivation internalizes into an individual's sense of self
• Gamification leverages extrinsic motivation using points, badges, and leaderboards to encourage desired behaviors
• Extrinsic motivators serve as powerful initial engagement tools, especially for less inherently interesting tasks
• Overjustification effect suggests introducing extrinsic rewards may decrease intrinsic motivation over time (painting hobby becomes less enjoyable when monetized)

Balancing Extrinsic and Intrinsic Motivators

• Gamification designers must balance extrinsic motivators with opportunities for autonomy, competence, and relatedness
• Autonomy fostered through providing choices in gameplay (character customization)
• Competence developed by offering progressively challenging tasks (leveling up in language learning apps)
• Relatedness encouraged through social features and collaborative goals (team-based fitness challenges)
• Gradual shift from extrinsic to intrinsic motivators as users progress maintains long-term engagement
• Implement adaptive systems adjusting rewards based on individual performance and preferences (personalized learning paths)

Types of Extrinsic Rewards

Tangible vs. Intangible Rewards

• Tangible rewards include physical items or monetary compensation (gift cards, merchandise)
  • Highly motivating but may lead to expectancy and diminishing returns over time
• Intangible rewards involve praise, recognition, or status symbols (badges, titles)
  • Foster sense of achievement and social validation
  • Often more sustainable than tangible rewards
• Effectiveness varies based on individual preferences and cultural context
• Combine both types for a well-rounded reward system (employee recognition program with both bonuses and public acknowledgment)

Reward Schedules and Timing

• Fixed ratio rewards given after specific number of actions (every 5 tasks completed)
• Variable ratio rewards given after unpredictable number of actions, more engaging due to surprise element (slot machine mechanics)
• Time-based rewards given after specific duration, encourage consistent engagement (daily login bonuses)
  • May lead to minimum effort strategies
• Performance-based rewards tied to specific achievements or quality of work (reaching sales targets)
  • Drive higher levels of effort and skill development
• Social rewards involve peer recognition or collaborative achievements (team MVP awards)
  • Particularly effective in fostering community and long-term engagement

Drawbacks of Extrinsic Motivation

Psychological Effects

• Motivation crowding out effect diminishes intrinsic motivation when replaced by extrinsic rewards
• Reward addiction creates dependence on external incentives to maintain engagement
  • Potentially decreases performance when rewards are removed
• Hedonic treadmill effect habituates users to rewards over time
  • Requires increasingly larger or more frequent rewards to maintain motivation
• Overreliance on extrinsic motivators may trivialize serious tasks, reducing perceived value (gamifying critical medical procedures)

Unintended Consequences

• Leaderboards and competitive rewards can demotivate lower-performing users
  • Potentially leads to disengagement or unethical behavior to climb rankings
• Excessively complex reward systems may overwhelm users
  • Causes cognitive overload and reduces effectiveness of gamification strategy
• Misaligned reward structures inadvertently incentivize undesired behaviors
  • Undermines original goals of gamified system (focusing on quantity over quality in customer service metrics)

Designing Extrinsic Reward Systems

User-Centered Approach

• Conduct thorough user research to understand target audience's motivations and preferences
• Align reward structures with overarching goals and desired behaviors of gamified system
• Implement balanced mix of reward types to cater to diverse motivational needs
• Incorporate elements of surprise and discovery to maintain user interest (mystery rewards, hidden achievements)
• Create meaningful and contextually relevant rewards reinforcing value and purpose of gamified system
  • Avoid relying solely on generic point systems or badges

Continuous Improvement

• Regularly evaluate and iterate reward system based on user feedback and performance metrics
• Implement adaptive reward systems adjusting to individual user performance and preferences
• Design reward schedules gradually shifting from extrinsic to more intrinsic motivators
• Monitor for unintended consequences and adjust system to mitigate negative effects
• Conduct A/B testing to optimize reward structures and timing (comparing different badge designs or point allocation methods)