The impact of low-immersion virtual reality on product sales: Insights from the real estate industry

Abstract

The transformation of information flow and shopping experiences on modern digital platforms has significantly shifted. Notably, the integration of low-immersion virtual reality (VR) technology has become a key driver in enhancing the immersive nature of online shopping experiences. The projected exponential growth of the VR market, with anticipated revenue surging from $11.64 billion in 2021 to $227.34 billion by 2029, further underscores the importance of understanding the impact of VR signals on product sales and profitability. Drawing upon signaling theory, this study examines the impact of VR signals on real estate transactions across different price tiers. Our empirical analysis suggests a positive correlation between the integration of low-immersion VR technology and real estate profitability. It is worth noting that this effect varies significantly across the level of real estate prices. Our research highlights the strategic benefits of adopting low-immersion VR technology as a decision support mechanism, enhancing the immersive shopping experience, and improving product profitability. Furthermore, this research also provides perspective on the broader applicability of VR technology in different business sectors, showing a promising future for its role in optimizing consumer experiences.