Exploring the Role of Virtual Reality in Retail

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Zhang_Yunen_Final Thesis.pdf
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Shao, Wei D

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Thaichon, Sara Q

Thaichon, Park

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2025-01-14
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Abstract

Purpose: This thesis investigates the effectiveness of virtual reality (VR) retail environments in shaping consumer cognitive processes and decision-making. Design/Methodology/Approach: A series of experimental studies were conducted. Study 1 examines VR's overall effectiveness compared to traditional media in enhancing mental imagery and purchase intention. Study 2 investigates how VR immersion influence consumer purchase decisions via facilitated product diagnosticity and enhanced psychological closeness. Study 3 explores the role of fantastical store designs in promoting cognitive flexibility and divergent choices. Individual-related attributes, product-related attributes, and VR interface-related attributes were considered as boundary conditions across three studies. Findings: Compared to traditional media, VR enhances mental imagery and purchase intention, particularly for consumers with low product knowledge, with experiential shopping orientation and high product involvement mitigating the negative impact of high product knowledge. Immersive VR does not outperform non-immersive VR in facilitating product diagnosticity, psychological closeness, and purchase intention under the high product interactivity condition, while product graspability and haptic information improve the effectiveness of immersive VR. Compared to realistic VR store designs, fantastical designs promote cognitive flexibility and divergent choices when digital avatars are presented in the virtual store. Research Limitations/Implications: This thesis contributes to the theoretical understanding of VR by examining its effectiveness across different dimensions, including overall effectiveness compared to traditional media, the impact of varying levels of immersion, and the influence of virtual environmental design. It offers valuable practical contributions for retailers seeking to leverage VR technology to enhance consumer cognitive evaluations and acquire tangible benefits. Originality/Value: This thesis provides a novel contribution to VR retail literature by systematically examining the overall, technological, and environmental attributes of VR technology. It also goes beyond prior research by uncovering how VR influences deeper cognitive processes and decision-making. The research also introduces new perspectives on boundary conditions, offering a more nuanced understanding of the effectiveness of VR retail.

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Thesis (PhD Doctorate)

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Doctor of Philosophy

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Dept of Marketing

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The author owns the copyright in this thesis, unless stated otherwise.

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Subject

decision-making

virtual reality (VR) retail

cognitive process

boundary conditions

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