Good becomes better? Temporarily acquired virtual badges and the signaling effects on online healthcare platforms

Abstract

Online healthcare platforms (OHPs) have become increasingly popular among physicians and patients. To facilitate patients’ demand for physicians’ services, some OHPs introduce non-financial, gamification designs such as temporarily acquired virtual badges. These badges are awarded periodically based on physicians’ recent performance, subject to acquisition, retention, and loss. However, the impact of such strategies on patients is unclear and is understudied. We fill this gap by examining the signaling effects of temporarily acquired virtual badges on patients’ subsequent participation in online consultations. We find that the acquisition and retention of such badges can improve patients’ participation in online consultations. In addition, we identify factors that moderate these effects, including physicians’ seniority and altruism. Our findings provide theoretical explanations and practical implications.