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Blended learning (BL) promises flexibility and personalization, yet sustaining motivation and performance remains challenging. In a 20-week experiment, 90 Chinese EFL learners (ages 8–10) experienced adaptive gamified assessment (AGA), standard gamified assessment (SGA), or non-gamified assessment (NGA) within the BL program. We asked: (1) Does AGA enhance performance and motivation? (2) How does AGA satisfy psychological needs? Using a Cambridge English YLE Starters–based test (α = .92) and an SDT-based questionnaire, mixed-methods analyses revealed AGA outperformed SGA and NGA on proficiency gains (d = 1.21–1.83) and intrinsic motivation (d = 1.05–1.64), while reducing amotivation. Interviews (n = 18) showed adaptive difficulty fostered competence satisfaction via optimally challenging tasks and growth feedback. Findings inform theory and design of gamified BL systems.