Consumer Response to Virtual CSR Experiences

Abstract

This study examines a unique context for corporate social responsibility (CSR) initiatives in the form of a virtual reality (VR) video featuring a quasi-experimental design that was sponsored by an alcohol company. The study examines whether individual variation in the immersive tendency plays a role in the perception of CSR initiatives in VR videos. This study reveals that consumers (i.e., college students) with a higher level of immersive tendency are more likely to have positive attitudes toward CSR ads, via emotional engagement and telepresence, than those with a lower level of immersive tendency. However, our results show that consumer immersive tendency and emotional engagement with the VR video have no influence on purchase intention. Further, this study reveals that unique characteristics of VR video (e.g., telepresence and emotional engagement) can play a role in evaluating cognitive, attitudinal, and purchase intention in the unique context of VR video by adopting dialogic (emotional) engagement and the hierarchy-of-effect (HOE) model. Theoretical and managerial implications are discussed.