Diffusion of innovation in direct-to-avatar (D2A): A study of immersive communication and branding in the metaverse

Abstract

Direct-to-Avatar (D2A) is the new phenomenon in the online retail segment. Brands are moving towards immersive commerce in which the central focus is on immersive communication for better customer experience in the metaverse. Diffusion of innovation theory acted as a theoretical framework to understand the premiums that the brands can enjoy from the customers by moving towards immersive commerce. 948 tweets on metaverse were analysed and five in-depth interviews with the experts on metaverse were conducted. For the quantitative study, the data were collected from a select metaverse Facebook group. The findings of PLS-SEM revealed that four factors - customer engagement, customer experience, value co-creation and customer empowerment - have statistically positive impact on customer citizenship behavior which ultimately affects customer satisfaction and loyalty towards the brands. The study extends the applications of diffusion of innovation theory in the content of immersive communication. It enriches the literature on technological advancements in immersive commerce. This is one of the first studies that focus on lifestyle brands in the metaverse. Also, this study depicts how socializing the digital brand communication with experience economy can be a key factor for lifestyle brands.