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The Effects of Virtual Reality on Consumer LearningAn empirical InvestigationKil-Soo Suh Yonsei University - KOREAYoung Eun Lee University of British Columbia CANADA2005 - School of Business

Presented by: Alyaa HussienGood Morning Everyone, Today Im gonna present the article The Effects of Virtual Reality on Consumer Learning , Its basically a study conducted by . The article is very interesting but it was a little bit detailed, so please bear with me. 1Goals of the StudyExamine whether the use of VR in Web-based storefronts positively influences consumer learning, including consumer intentions to purchase.

Investigate whether and how the impact of VR on consumer learning may be contingent upon product type.

They basically had 2 goals, First, .2OutlineReview previous research on VR and consumer learning.Present a review of existing literature on the theory of cognitive fit and product attributes.Explicate product types and predict the moderating effects of the different product types on consumer learning.Explaining research method and presenting data analysis.Summary of the results of the experiment.They started by reviewing Review previous research on VR and consumer learning in order to derive hypotheses on the overall impact of VR on consumer learning. Then they Presented a review of existing literature on the theory of cognitive fit and product attributes, which provides a foundation for the theories on the relations between different product types and VR. then they explained product types and predicted the moderating effects of the different product types on consumer learning.Then they explained their research method including the operationalization of independent and dependent variables and the experimental design and procedures. Then they presented the Data analysis and results.Finally, they conclude with a summary of the results of the experiment, the implications for theory and practice, and suggestions for future research.3

Theoretical Background and HypothesesFirst, the Research model developed and applied in the study: The figure illustrates that VR, with high media richness, interactivity, and telepresence, enhances consumer learning about products. In addition, VR can best replicate consumer inspections of products that require vision and hearing, because VR on desktop computers generally uses only these two sensory modalities to deliver information. Hence, the effects of VR are more pronounced when it exhibits VHE products whose salient attributes are completely apparent through visual and auditory cues, while the effects are limited in regards to VLE products whose salient attributes are best described by other sensory cues or from secondary sources.

All this will be explained as we go on.4

What is Virtual Reality ?VR is a computer-generated, interactive, 3D environment in which people become immersed. It provides interaction with the product & increased telepresence.

5Virtual Reality (contd)It enables users to experience product virtually by examining and manipulating the visual images, functions, and features of products in a variety of ways.

VR brings truth-likeness to Web-based stores, partially alleviating the major constraints caused by the lack of contact between consumers and products online.

Compared to products presented in 2D modes, consumers tend to understand products better, prefer them to other products, and are more inclined to buy products when they are presented with 3D advertising.

6Types of Virtual RealityDepending on the extent of this immersion, VR applications can be classified into 2 categories:

Immersive Virtual Reality

Non-Immersive Virtual RealityImmersive Virtual RealityUsers wearing head-mounted displays are totally surrounded by enclosed virtual environments.

Non-Immersive Virtual RealityIts most commonly conveyed by desktop or laptop computers. Thus, users VR experiences are limited to what they see on their display monitors and what they hear from their speakers.

The present study focuses on non-immersive VR interfaces, because most Web-based stores have implemented non immersive VR, generally due to the high expense and burdensome equipment required for immersive VR.9Strengths of VR Interfaces

High Media RichnessVR provides high levels of representational quality and volume of content in a mediated environment.

The degree of media richness is determined by the sensory depth and breadth of an interface.

VR has the capability to increase depth and breadth of an interface.Depth refers to the quality of information within each channel. Breadth, refers to the number of sensory dimensions simultaneously presented.

VR increases sensory depth, especially in the visual sense, as it can transmit more detailed 3D images than 2D static images, particularly through zoom and rotation functions.It also increase the breadth of a sensory interface inasmuch as it often stimulates multiple sensory channels.11High InteractivityThe degree to which users can manipulate the form and content of a mediated environment in real time.

Interactivity is achieved when users are provided with immediate feedback through their perceptions that a mediated environment is modified based on their input.

It offers a high level of control over computer-mediated environments in terms of user abilities to be active rather than passive.12TelepresenceVR can generate a sense of being there in an environment by means of a communication medium.

Sensory stimuli conveyed by a VR interface, can create a perceptual illusion of being present and highly engaged in a mediated environment, while in reality were physically present in another place.

13Consumer LearningConsumer learning refers to any process that changes a consumers memory and behavior as a result of information processing.

VR reduces ambiguity by providing rich information, and it motivates consumers by enabling them to interact with products.

Thus, by providing VR, Web retailers can positively influence consumer learning about products.

Learning remains vulnerable to external factors such as consumers familiarity with particular products, their motivations, and the ambiguity of various information environments.

14Consumer Learning (contd)Effective consumer learning is assumed to be a critical mediator of consumption and ascertained from : Cognitive, Affective, Conative Dimensions.

In practice, consumers first comprehend cognitively a given message and form positive, neutral, or negative attitudes toward products. They then develop their intentions for action.15Cognitive DimensionThe cognitive dimension determines the extent to which information about products enhances consumer comprehension. It can be measured based on either actual or perceived knowledge.

H1a. Compared to static interfaces, VR interfaces increase consumers actual product knowledge.

H1b. Compared to static interfaces, VR interfaces increase consumers perceived product knowledge

Virtual interfaces allows consumers to experienceRealistic 3D images of products from various angles and distances. Sample various product functions and features.Engaged in learning processes and increased comprehension of the objects.

While consumers feel less telepresence in static interfaces consisting of still pictures, inasmuch as pictures are relatively lean media compared to VR. Moreover, they are rarely interactive..

16Affective & Conative DimensionThe affective dimension identifies whether or not consumer attitudes are influenced by particular stimuli.

The conative measurements investigate behavioral responses to various stimuli, such as purchase intentions that may be invoked by the stimuli.

Consumers form either positive, neutral, or negative attitudes and purchase intentions toward products as they examine the products. VR affects consumers attitudes and purchase intentions regarding products more significantly than static pictures, but not necessarily in a positive way as if consumers realize the drawbacks of a product, the influence on their attitudes and purchase intentions is negative.

17Affective & Conative Dimension (contd) H2. Consumers attitudes toward products presented with VR interfaces differ from their attitudes toward products presented with static interfaces.

H3. Consumers purchase intentions toward products presented with VR interfaces differ from their purchase intentions toward products presented with static interfaces.

Regardless of whether the influence is positive or negative, the enhanced examination of products possible with VR can change consumers attitudes and purchase intentions.18Theory of Cognitive Fit and Product TypesThe theory of cognitive fit posits that a match between IT applications and users tasks is important for the realization of positive results from IT.Marketing research has demonstrated that an important influence on the consumer task is the nature of the product.So, the advantages of VR are augmented only in relation to products whose critical attributes can be assessed adequately by the characteristics of VR.

when users perceive that the characteristics of a technology match the characteristics of their tasks, they believe the technology exerts a more positive impact on their effectiveness and productivity in achieving their goals.

That is, the attributes of products affect consumers tasks of searching for and acquiring information and making decisions about their purchases.19Product Experience and Attributes

Consumers can experience products in three ways: directly, indirectly, and virtuallyThe primary difference between the three lies in the human senses that are involved.All five senses of active organisms can be used in direct experience.Conversely; none of these senses are used directly in indirect experience, because no physical contact with products is involved. Two senses are used in virtual experiences, because the VR adopted by most Web-based stores uses only monitors and speakers.Direct experiences are most suitable for experience attributes because the use of one or more of the five senses is often requiredIndirect experiences, are sufficient for search attributes that do not involve the direct use of these senses

Virtual experiences, are suitable for virtually experience attributes that can be experienced with visual and auditory senses. These include the shape and appearance of a product ex1, possible changes in the form of a product and possible change in its content ex 2, and the sound of a product ex3.20Salient attributes of productsAttributes that are most prominent & important when consumers make decisions about purchasing the products.

Virtually High Experiential (VHE): products whose salient attributes are mainly virtually experientialVirtually Low Experiential (VLE): products whose salient attributes are not primarily virtually experiential

For example, with clothing and similar products, consumers emphasize the ability to examine the designs of the products, while with products like compact disks they like to listen to the products.

These types of products moderate the degree to which VR affects consumer learning.

When VR is applied to VHE products, consumers are able to visually examine and interact with products by sampling features of the products. However, when VR is used for VLE products, the functionality of VR may not be as useful because the salient attributes cannot be represented effectively through vision and hearing. Thus, VR for VLE products does not contribute as much to consumers knowledge, attitudes, and purchase intentions as it does for VHE products.

21Salient attributes of productsH4a. Increases in consumers actual knowledge, effected by VR interfaces, are more significant for VHE products than VLE products.H4b. Increases in consumers perceived knowledge, effected by VR interfaces, are more significant for VHE products than VLE products.H5. The impacts of VR interfaces on consumer attitudes toward products are more significant for VHE products than VLE products.H6. The impacts of VR interfaces on consumer purchase intentions toward products are more significant for VHE products than VLE products.

22Research MethodA laboratory experiment was employed to empirically test the effects of VR on consumer learning and the moderating effect of product types.

To enhance realism, the similarity of experimental events to real experiences and the generalizability of the findings, They selected products sold in real Web-based stores and interfaces developed by a commercial VR application provider.

Experimental DesignA 2 2 factorial design with a

Within-subject factor : The Interface Design > had 2 levels: VR & Static.

Between-subject factor: The Product Type > had 2 levels: VHE and VLE.

the use of a within-subject design for the interface design enabled control over individual differences in comprehension and memory abilities, which could have significantly influenced the dependent variables.It also employed different products for each interface design: This prevented the learning effect that could occur through repeated searches for information about the same products.24Counterbalancing Products

A thing they had to have into consideration is that If consumers preferred certain products much more strongly than others, for example, it would be unlikely that interface design would change their attitudes. Therefore, controlling for consumers previous attitudes toward products was essential. So, they did a pretest of the experiment on a pilot group that was demographically similar to the actual experiment participants. They measured the Purchase intentions for 10 VHE and 10 VLE products, then in each product type they chose the 4 products ranking 4th to 7th as not to include the most or the least preferred products so they dont affect the realization of the interface effect.

Under the VHE (and VLE) conditions, half the participants were presented the first and third products in VR and the second and fourth products in static pictures. The other half was presented the interfaces in the reverse order.

25Web-Based Store Interface DesignFour Web-based stores, each offering four products. Two used a VR interface; two used a static interface. The two stores for each product type were identical. They contained the same products, information, and design, thereby ensuring information symmetry.Choice of Products

They chose a computer table as a VHE product because the salient attributes center on external appearance and functionality that can be fully represented by visual stimuli. Consumers could examine the external appearance, such as the table design, by rotating the image and by magnifying or diminishing it. In addition, they could examine alterations to the table, for example, by adjusting the height or angle of the table, opening and closing drawers, and pulling out keyboard trays.27Choice of Products

They selected a desktop computer for our VLE product because most of its salient features cannot be effectively described by vision and hearing, they can only be described by secondary sources as CPU type, memory size, and hard-disk storage capacity.28Dependant VariablesActual knowledge was measured by a comprehension test.Perceived product knowledge was assed by three existing Likert-scale items.Participants attitudes toward the products were measured by adopting an established scale using seven-point semantic differential items .Participants purchase intentions were assessed using an existing seven-point semantic differential scale.Experimental ProcedureAfter the participants fully understood how to manipulate the interfaces, they were asked to navigate freely around the Web-based store for as long as they wanted.After navigating around the store, participants were asked to minimize their browser windows and to complete the actual knowledge test.

Hypothesis TestingParticipants reported significantly higher scores for the Actual Product Knowledge test in the VR treatment than the static treatment. H1a is supported.

Perceived Product Knowledge in the VR treatment was also higher than the static treatment.H1b is supported.

The interface design significantly affected all the dependent variables.31Hypothesis Testing (contd)The participants reported more Positive Product Attitudes in the VR treatment compared to those in the static treatment.H2 is supported.

Purchase Intentions for products in the VR treatment were more pronounced than those in the static treatment.H3 is supported.

Hypothesis Testing (contd) Although the enhancement of Actual Product Knowledge by the VR treatment for VHE products (12.4%) was greater than that for VLE products (1.6 %).H4a is NOT supported.

The enhancement of Perceived Product Knowledge by the VR treatment for VHE (60%) was greater than that for VLE Products (8%).H4b is supported.

Product type exhibited a significant moderating effect in the interface designs for all of the dependent variables except actual product knowledge.

H4a is not supported at the conservative significance level of .0125.33Hypothesis Testing (contd) The enhancement of Product Attitudes by the VR treatment for VHE (29%) was greater than that for VLE Products (11%).H5 is supported.

The enhancement of Purchase Intensions by the VR treatment for VHE (41%) was greater than that for VLE Products (14%).H6 is supported.

In summary, the results demonstrate that the VR interface increases consumer learning about VHE products more than it does for VLE products, but it does not promote purchase intentions for VLE products.34ConclusionVR enables consumers to experience products virtually over the Internet, alleviating consumers lack of physical contact with products.Compared to static interfaces, consumers exhibit significantly higher levels of actual and perceived product knowledge, product attitude, and purchase intentions with a VR interface. The type of a product, either VHE or VLE, moderates the effects of VR interfaces on consumer learning, except for the consumers actual product knowledge. HOWEVER,Increases in purchase intentions do not always result in corresponding increases in actual purchases. It is difficult to estimate what increase in purchase intentions will be sufficient to compensate businesses for the costs involved in providing VR interfaces.

Conclusion (contd)If Web-based stores want to enhance consumer learning with less concern for the costs necessary to achieve this goal, they can achieve it by adopting VR for all products. However, it might not be worthwhile for e-commerce sites dealing in VLE products to introduce VR because the costs may exceed the benefits.So, Vendors can use VR to represent only those VHE products that they want to highlight in a Web-based store, or display selected attributes only through VR, while displaying other qualities in static modes.

As e-commerce becomes more pervasive, advanced Web technologies, including VR interfaces, will be more widely adopted for Web-based stores.37