When Luxury Brands Go Digital: The Influence of Gamification

This thesis investigates the impact of gamification on luxury brands, focusing on brand perception and purchase intention among Millennials and Generation Z. The COVID-19 pandemic catalyzed significant changes in the luxury market, prompting brands to adopt digital strategies, particularly within video gaming and the metaverse, to sustain consumer engagement and brand awareness. As Millennials and Gen-Z are anticipated to constitute 50% of the luxury market by 2025, and with over 80% of these demographics being active gamers, luxury brands have recognized the potential of gamification to reach this digitally wired audience. Through a mixed-methods approach, this study combines quantitative surveys and sentiment analysis to explore how luxury brand integration in video games influences consumer attitudes and behaviors. The theoretical framework encompasses the democratization of luxury, digital-age luxury marketing, and the Theory of Planned Behavior, providing a comprehensive understanding of the interplay between luxury branding and gaming. Key findings reveal that self-congruity with in-game avatars positively correlates with virtual purchase intention, while attitudes towards luxury brand gamification significantly enhance both virtual and real-life purchase intentions. Furthermore, positive perceptions of luxury brand gamification elevate brand coolness and overall brand perception. Sentiment analysis of Reddit comments highlights a generally favorable reception of luxury brand collaborations within gaming environments. This research offers valuable insights for luxury brand managers on effectively leveraging gamification to engage younger, tech-savvy audiences without inciting brand aversion. Academically, it contributes to the discourse on digital marketing strategies, enriching the understanding of consumer behavior in the context of luxury brands in virtual spaces. The findings underscore the importance of strategic digital integration for luxury brands aiming to sustain relevance and appeal in an increasingly virtual consumer landscape.