Branding in the time of virtual reality: Are virtual store brand perceptions real?

Abstract

This research investigates whether consumers display similar brand perceptions between physical and virtual store environments. Specifically, it explores the set of causal relationships through which the virtual store experience affects consumers’ perceptions and intentions toward the retailer’s brand. The results from an experimental study manipulating the store environment (virtual vs. physical) reveal that individuals exposed to a virtual-reality-based retail environment perceive higher levels of presence than those exposed to a more traditional, physical store environment; moreover, this positive effect does not depend on individuals’ technological self-efficacy perceptions. Higher levels of presence positively affect the shopping experience, which then produces a positive change in value perceptions, which ultimately lead to higher patronage intentions and WOM referral. Despite the presence of inattentional blindness found in the virtual environment, the results show that such an image transfer from the store environment to patronage intention holds even when individuals cannot correctly recall the store brand.