The dark side of virtual status systems: Exploring the impact of status loss on user engagement

Abstract

In the contemporary landscape of online platforms, virtual status systems, represented by badges, titles, and ranks, play a crucial role in user identification and engagement. Prior research highlights the positive impacts of virtual status awards on user engagement. However, the potential negative effects of status loss remain underexplored. This study addresses this gap by examining the detrimental impact of virtual status loss on user engagement, emphasizing the varying intensity of the impact across multiple successive time points during users’ subsequent engagements. Utilizing reinforcement theory and accountability theory, it investigates how status loss affects user engagement. The findings suggest that status loss reduces the frequency of user engagement significantly and results in a stronger short-term shock that gradually diminishes. This effect is more intense for users with newly gained status, while those who have gained status multiple times experience weaker shocks. Additionally, losing status leads to a decline in the effort and quality of users’ contributions, with stronger negative impacts on engagement dimensions that users previously valued more. This study provides a nuanced understanding of the dual nature of virtual status systems, offering insights to optimize status-related user engagement strategies and enhance the development of online platforms.