Gamification and Incentive Mechanisms Driving Generation Z’s Engagement in Return-and-Reuse Packaging: An Empirical Investigation within Vietnam’s Circular Economy

The escalating plastic waste crisis in Vietnam, where approximately 2.93 million tonnes of plastic waste are generated annually, underscores the urgent need for scalable circular economy interventions. Despite growing environmental awareness among Generation Z (Gen Z) consumers, participation in return-and-reuse packaging programs remains disproportionately low, revealing a persistent intention–behavior gap. This study investigates the psychological, motivational, and experiential determinants that drive Gen Z’s engagement and subsequent intention to participate in circular economy practices, specifically within the domain of return-and-reuse packaging systems in Vietnam. Grounded in incentive theory (Killeen, 1982) and gamification theory (Deterding et al., 2011), this research develops and empirically tests a structural model incorporating five antecedent constructs: monetary incentives (MTI), environmental knowledge (ENK), enjoyment (EJM), points and badges (PBD), and non-monetary incentives (NMI), with engagement (EGM) serving as the mediating construct influencing intention toward circular economy participation (TCE). Primary data were collected through an online cross-sectional survey administered to 252 Gen Z consumers in Vietnam and subsequently analyzed using partial least squares structural equation modeling (PLS-SEM). The findings reveal that non-monetary incentives (β = 0.502, p < 0.001), enjoyment (β = 0.227, p = 0.002), and environmental knowledge (β = 0.151, p = 0.023) significantly and positively influence engagement. Engagement, in turn, demonstrates a strong predictive effect on circular economy intention (β = 0.741, p < 0.001). Notably, monetary incentives and gamification elements (points and badges) do not exert statistically significant effects on engagement, challenging conventional assumptions derived from incentive and gamification theories (Dang et al., 2023). These results contribute to the behavioral science literature by elucidating the primacy of intrinsic and value-driven motivators over extrinsic financial rewards in the context of sustainable consumption among young consumers. The study offers actionable implications for policymakers and practitioners seeking to design more effective circular packaging initiatives tailored to Gen Z’s motivational profiles in emerging economies.