Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지

The Effects of Virtual Reality Advertisement on Consumer's Intention to Purchase: Focused on Rational and Emotional Responses

가상현실(Virtual Reality) 광고가 소비자 구매의도에 미치는 영향: 이성적인 반응과 감성적인 반응의 통합

  • Published : 2009.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

According to Wikipedia, virtual reality (VR) is defined as a technology that allows a user to interact with a computer-simulated environment. Due to a rapid growth in information technology (IT), the cost of virtual reality has been decreasing while the utility of virtual reality advertisements has dramatically increased. Nevertheless, only a few studies have investigated the effects of virtual reality advertisement on consumer behaviors. Therefore, the objective of this study is to empirically examine the effects of virtual reality advertisement. Compared to traditional online advertisements, virtual reality advertisement enables consumers to experience products realistically over the Internet by providing high media richness, interactivity, and telepresence (Suh and Lee, 2005). Advertisements with high media richness facilitate consumers' understanding of advertised products by providing them with a large amount and a high variety of information on the products. Interactivity also provides consumers with a high level of control over the computer-simulated environment in terms of their abilities to adjust the information according to their individual interests and concerns and to be active rather than passive in their engagement with the information (Pimentel and Teixera, 1994). Through high media richness and interactivity, virtual reality advertisements can generate compelling feelings of "telepresence" (Suh and Lee, 2005). Telepresence is a sense of being there in an environment by means of a communication medium (Steuer, 1992). Virtual reality advertisements enable consumers to create a perceptual illusion of being present and highly engaged in a simulated environment, while they are in reality physically present in another place (Biocca, 1997). Based on the characteristics of virtual reality advertisements, a research model has been proposed to explain consumer responses to the virtual reality advertisements. The proposed model includes two dimensions of consumer responses. One dimension is consumers' rational response, which is based on the Information Processing Theory. Based on the Information Processing Theory, product knowledge and perceived risk are selected as antecedents of intention to purchase. The other dimension is emotional response of consumers, which is based on the Attitude-Structure Theory. Based on the Attitude-Structure Theory, arousal, flow, and positive affect are selected as antecedents of intention to purchase. Because it has been criticized to have investigated only one of the two dimensions of consumer response in prior studies, our research model has been built so as to incorporate both dimensions. Based on the Attitude-Structure Theory, we hypothesized the path of consumers' emotional responses to a virtual reality advertisement: (H1) Arousal by the virtual reality advertisement increases flow; (H2) Flow increases positive affect; and (H3) Positive affect increases intension to purchase. In addition, we hypothesized the path of consumers' rational responses to the virtual reality advertisement based on the Information Processing Theory: (H4) Increased product knowledge through the virtual reality advertisement decreases perceived risk; and (H5) Perceived risk decreases intension to purchase. Based on literature of flow, we additionally hypothesized the relationship between flow and product knowledge: (H6) Flow increases product knowledge. To test the hypotheses, we conducted a free simulation experiment [Fromkin and Streufert, 1976] with 300 people. Subjects were asked to use the virtual reality advertisement of a cellular phone on the Internet and then answer questions about the variables. To check whether subjects fully experienced the virtual reality advertisement, they were asked to answer a quiz about the virtual reality advertisement itself. Responses of 26 subjects were dropped because of their incomplete answers. Responses of 274 subjects were used to test the hypotheses. It was found that all of six hypotheses are accepted. In addition, we found that consumers' emotional response has stronger impact on their intention to purchase than their rational response does. This study sheds much light into practical implications for both IS researchers and managers. First of all, while most of previous research has analyzed only one of the customers' rational and emotional responses, we theoretically incorporated and empirically examined both of the two sides. Second, we empirically showed that mediators such as arousal, flow, positive affect, product knowledge, and perceived risk play an important role between virtual reality advertisement and customer's intention to purchase. In addition, the findings of this study can provide a basis of practical strategies for managers. It was found that consumers' emotional response is stronger than their rational response. This result indicates that advertisements using virtual reality should focus on the emotional side, and that virtual reality can be served as an appropriate advertisement tool for fancy products that require their online advertisements to give an impetus to customers' emotion. Finally, even if this study examined the effects of virtual reality advertisement of cellular phone, its findings could be applied to other products that are suited for virtual experience. However, this research has some limitations. We were unable to control different kinds of consumers and different attributes of products on consumers' intention to purchase. It is, therefore, deemed important for future research to control the consumer and product types for more reliable results. In addition to the consumer and product attributes, other variables could affect consumers' intention to purchase. Thus, the future research needs to find ways t control other variables.

Keywords

References

  1. Ajzen, Icek, Attitude Structure and Function, Lawrence Erlbaum Press, 1989, pp. 241-274
  2. Ajzen, Icek and Fishbein, Martin, 'Attitude-Behavior Relations: A Theoretical Analysis and Review of Empirical Research,' Psychological Bulletin, Vol. 84, No. 5, September 1977, pp. 888-918 https://doi.org/10.1037/0033-2909.84.5.888
  3. Alan, A.R. and Kinney, S.T., 'Testing Media Richness Theory in The New Media: The Effects of Cues, Feedback and Task Equivocality,' Information Systems Research, Vol. 9, No. 3, 1998, pp. 256-274 https://doi.org/10.1287/isre.9.3.256
  4. Allen, G. David and Griffeth, Rodger, W., 'Vertical and Lateral Information Processing: The Effects of Gender, Employee Classification Level, and Media Richness on Communication and Work Outcomes,' Human Relations, Vol. 50, No. 10, 1997, pp. 1239-1260
  5. Assael, H., Consumer Behavior and Marketing Action, Boston: Kent. Methuen and Co. Ltd., 1984
  6. Barber, P.J., Applied Cognitive Psychology: An Information Processing Approach, Routledge PRESS, January 1988
  7. Bearden, W.O., Lichtenstein, D.R., and Teel, J.E., 'Comparison Price, Coupon, and Brand Effects on Consumer Reactions to Retail Newspaper Advertisements,' Journal of Retailing, Vol. 60, No. 2, 1984, pp. 11-34
  8. Beatty, S. and Ferrell, E.M., 'Impulse Buying: Modeling Its Precursors,' Journal of Retailing, Vol. 74, No. 2, 1998, pp. 169-191 https://doi.org/10.1016/S0022-4359(99)80092-X
  9. Bettman, J.R., Capon, N., and Lutz, R.J., 'Multiattribute Measurement Models and Multiattribute Attitude Theory: A Test of Construct Validity,' Journal of Consumer Research, Vol. 1, March 1975, pp. 1-15 https://doi.org/10.1086/208602
  10. Campbell, C.M. and Goodstein, C.R., 'The Moderating Effect of Perceived Risk on Consumers’ Evaluations of Product Incongruity: Preference for the Norm,' Journal of Consumer Research, Vol. 28, December 2001, pp. 439-449 https://doi.org/10.1086/323731
  11. Celsi, R.L. and Olson, J.C., 'The Role of Involvement in Attention and Comprehension Processes,' Journal of Consumer Research, Vol. 15, No. 2, 1998, pp. 210-224 https://doi.org/10.1086/209158
  12. Chen, Rong and He, Feng, 'Examination of Brand Knowledge, Perceived Risk and Consumers' Intention to Adopt an Online Retailer,' TQM and Business Excellence, Vol. 14, No. 6, August 2003, pp. 677-693 https://doi.org/10.1080/1478336032000053825
  13. Chen, M. and Bargh, J.A., 'Nonconscious Approach and Avoidance Behavioral Consequences of the Automatic Evaluation Effect,' Personality and Social Psychology Bulletin, Vol. 25, 1999, pp. 215-224 https://doi.org/10.1177/0146167299025002007
  14. Cox, Donald F., Risk Taking and Information Handling in Consumer Behavior, Cambridge, MA: Harvard University Press, 1967
  15. Cunningham, Michael, 'Weather, Mood, and Helping Behavior: Quasi Experiments With the Sunshine Samaritan,' Journal of Personality and Social Psychology, Vol. 37, No. 11, 1979, pp. 1947-1956 https://doi.org/10.1037/0022-3514.37.11.1947
  16. Daft, R.L. and Lengel, R.H., 'Organizational Information Requirements, Media Richness and Structural Design,' Management Science, Vol. 32, No. 5, 1986, pp. 554-571 https://doi.org/10.1287/mnsc.32.5.554
  17. Day, G.S., 'Evaluating Models of Attitude Structure,' Journal of Marketing Research, Vol. 9, August 1972, pp. 279-286 https://doi.org/10.2307/3149538
  18. Erevelles, S., 'The Role of Affect in Marketing,' Journal of Business Research, Vol. 42, No. 3, July 1998, pp. 199-215 https://doi.org/10.1016/S0148-2963(97)00118-5
  19. Fausto, M. and Massimo, C., Optimal Experience: Psychological Studies of Flow in Consciousness, New York: Combridge University Press, 1988, pp. 288-306
  20. Flynn, L.R. and Goldsmith, R.E., 'A Short, Reliable Measure of Subjective Knowledge,' Journal of Business Research, Vol. 46, 1999, pp. 57-66 https://doi.org/10.1016/S0148-2963(98)00057-5
  21. Forsythe, M.S. and Shi, B., 'Consumer Patronage and Risk Perceptions in Internet Shopping,' Journal of Business Research, Vol. 56, 2003, pp. 867-875 https://doi.org/10.1016/S0148-2963(01)00273-9
  22. Fornell, C. and Lacker, D., 'Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,' Journal of Marketing Research, Vol. 18, February 1981, pp. 39-50 https://doi.org/10.2307/3151312
  23. Fortin, R.D. and Dholakia, R.R., 'Interactivity and Vividness Effects on Social Presence and Involvement with a Web-based Advertisement,' Journal of Business Research, Vol. 58, 2005, pp. 387-396 https://doi.org/10.1016/S0148-2963(03)00106-1
  24. Fromkin, H.L. and Streufert, S., 'Laboratory Experimentation,' in Dunnette, B.(Ed.) Handbook of Industrial and Organizational Psychology, Chicago, Rand McNally College Publishing Company, 1976, pp. 415-465
  25. Garber, J. and Dodge, K.A., 'The Development of Emotion Regulation and Dysregulation,' Cambridge University Press, 1991
  26. Gefen, D., Straub, D.W., and Boudreau, M. C., 'Structural Equation Modeling and Regression: Guidelines for Research Practice,' Communications of the Association for Information Systems, Vol. 4, No. 7, October 2000, pp. 1-77
  27. Hair, J.E., Anderson, R.E., Tatham, R.L., and Black, W.C., Multivariate Data Analysis (5th ed.), 1998, Prentice-Hall, Upper Saddle River, NJ
  28. Havlena, W.J. and Holbrook, M.B., 'The Varieties of Consumption Experience: Comparing Two Typologies of Emotion in Consumer Behavior,' Journal of Consumer Research, Vol. 13, December 1986, pp. 394-404 https://doi.org/10.1086/209078
  29. Hoffman, D.L. and Novak, T.P., 'Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations,' Journal of Marketing, Vol. 60, July 1996, pp. 50-68 https://doi.org/10.2307/1251841
  30. Holbrook, M.B. and Hirschman E., 'The Experiential Aspect of Consumption: Consumer Fantasies, Feelings and Fun,' Journal of Consumer Research, Vol. 9, 1982, pp. 132-140 https://doi.org/10.1086/208906
  31. Hu, L. and Bentler, P.M., 'Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria versus New Alternatives,' Structural Equation Modeling, Vol. 6, 1999, pp. 1-55 https://doi.org/10.1080/10705519909540118
  32. Isen, Alice, 'The Influence of Positive Affect on Decision-Making and Cognitive Organization,' Advances in Consumer Research, Vol. 11, No. 1, 1984, pp. 534-537
  33. Isen, Alice and Levin, Paula, 'Effects of Feeling Good and Helping: Cookies and Kindness,' Journal of Personality and Social Psychology, Vol. 3, 1972, pp. 384-388
  34. Johnson, Communication Multi-Media Encyclopedia, 1999
  35. Kempf, Deanne S. and Smith, Robert, E. 'Consumer Processing of Product Trial and the Influence of Prior Advertising: A Structural Modeling Approach Preview,' Journal of Marketing Research, Vol. 35, No. 3, August 1998, pp. 325-338 https://doi.org/10.2307/3152031
  36. Kim, T. and Biocca, F., 'Telepresence via Television: Two Dimensions of Telepresence May Have Different Connections to Memory and Persuasion,' Journal of Computer-Mediated Communications, Vol. 3, No. 2, September 1997, pp. 0-0(online Journal)
  37. Kroeber-Riel, W., 'Activation Research: Psychobiological Approaches in Consumer Research,' Journal of Consumer Research, Vol. 5, 1979, pp. 240-250 https://doi.org/10.1086/208736
  38. Lai, W. Albert, 'Consumption Situation and Product Knowledge in the Adoption of a New Product,' Asia Pacific Journal of Marketing and Logistics, Vol. 3, No. 1, 1991, pp. 55-67 https://doi.org/10.1108/eb010223
  39. Laroche, M. and Kim, C., and Zhou, L., 'Brand Familiarity and Confidence as Determinants of Purchase Intention: An Empirical Test in a Multiple Brand Context,' Journal of Business Research, Vol. 37, 1996, pp. 115-120 https://doi.org/10.1016/0148-2963(96)00056-2
  40. Li, H., Daugherty, T., and Biocca, F., 'The Role of Virtual Experience in Consumer Learning,' Journal of Consumer Psychology, Vol. 13, No. 4, 2003, pp. 395-408 https://doi.org/10.1207/S15327663JCP1304_07
  41. MacKenzie, S.B., Lutz, R.J., and Belch, G. E., 'The Role of Attitude Toward the Ad as a Mediator of Advertising Effectiveness: A Test of Competing Explanations,' Journal of Marketing Research, Vol. 23, No. 2, May 1986, pp. 130-143 https://doi.org/10.2307/3151660
  42. Mitchell, A. and Olson, J.C., 'Are Product Attribute Beliefs the Only Mediators of Advertising Effects on Brand Attitude?' Journal of Consumer Research, Vol. 18, August 1981, pp. 318-332
  43. Moon, J., Doren, C., and Surinder, T., 'Culture, Product Type, and Price Influences on Consumer Purchase Intention to Buy Personalized Products Online,' Journal of Business Research, Vol. 61, 2008, pp. 31-39 https://doi.org/10.1016/j.jbusres.2006.05.012
  44. Moris, B.H., 'Beyond Attitude Structure: Toward the Informational Determinants of Attitude,' Journal of Marketing Research, Vol. 15, November 1978, pp. 545-556 https://doi.org/10.2307/3150624
  45. Morrison, D.G., 'Purchase Intentions and Purchase Behavior,' Journal of Marketing, Vol. 43, No. 2, 1979, pp. 65-74 https://doi.org/10.2307/1250742
  46. Murphy, S.T. and Zajonc, R.B., 'Affect Cognition, and Awareness: Affective Priming with Optimal and Suboptimal Stimulus Exposures,' Journal of Personality and Social Psychology, Vol. 64, 1993, pp. 723-739 https://doi.org/10.1037/0022-3514.64.5.723
  47. Niedenthal, P.M., 'Implicit Perception of Affective Information,' Journal of Experimental Social Psychology, Vol. 26, 1990, pp. 505-527 https://doi.org/10.1016/0022-1031(90)90053-O
  48. Niedenthal, P.M. and Cantor, N., 'Affective Responses as Guides to Categorybased Influences', Motivation and Emotion, Vol. 10, 1986, pp. 217-231 https://doi.org/10.1007/BF00992317
  49. Novak, P.T. and Hoffman, L.D., 'Measuring the Flow Experience Among Web Users,' Presented at Interval Research Corporation, July 1997
  50. Oatley, K. and Jenkins, J.M., Understanding Emotions, Oxford, Blackwell Publishers, 1996
  51. Oglethorpe, J.E. and Monroe, K.B., 'Risk Perception and Risk Acceptability in Consumer Behavior: Conceptual Issues and an Agenda for Future Research,' Proceedings of AMA Winter Marketers Educators' Conference, Chicago: American Marketing Association, 1987, pp. 255-260
  52. Park, C.W., Mothersbaugh, L.D., and Feick, L., 'Consumer Knowledge Assessment,' Journal of Consumer Research, Vol. 21, June 1994, pp. 71-82 https://doi.org/10.1086/209383
  53. Privette, G. and Bundrick, C.M., 'Measurement of Experience: Construct and Content Validity of the Experience Questionnaire,' Perceptual and Motor Skills, Vol. 65, 1987, pp 315-332 https://doi.org/10.2466/pms.1987.65.1.315
  54. Richins, L.M., 'Measuring Emotions in the Consumption Experience,' Journal of Consumer Research, Vol. 24, September 1997, pp. 127-146 https://doi.org/10.1086/209499
  55. Rook, D. and Gardner, M., 'In the Mood: Impulse Buying's Affective Antecedents,' Research in consumer behavior, Vol. 6, 1993, pp. 1-28
  56. Sherman, A.M. and Ruth, B.S., 'Store Environment and Consumer Purchase Behavior: Mediating Role of Consumer Emotions Elaine,' Psychology and Marketing, Vol. 14, No. 4, 1998, pp. 361-378 https://doi.org/10.1002/(SICI)1520-6793(199707)14:4<361::AID-MAR4>3.0.CO;2-7
  57. Skadberg, Y.X. and Kimmel J.R., 'Visitors’ Flow Experience While Browsing a Web Site: Its Measurement, Contributing Factors and Consequences,' Computers in Human Behavior, Vol. 20, 2004, pp. 403-422 https://doi.org/10.1016/S0747-5632(03)00050-5
  58. Steenkamp, J.B.E.M. and van Trijp, H.C. M., 'The Use of LISREL in Validating Marketing Constructs,' International Journal of Research in Marketing, Vol. 8, No. 4, November 1991, pp. 283-299 https://doi.org/10.1016/0167-8116(91)90027-5
  59. Steuer, J., 'Defining Virtual Reality: Dimensions Determining Telepresence,' Journal of Communication, Vol. 42, No. 4, 1992, pp. 73-93 https://doi.org/10.1111/j.1460-2466.1992.tb00812.x
  60. Suh, Kil-Soo and Lee, Young Eun, 'The Effects of Virtual Reality on Consumer Learning: An Empirical Investigation,' MIS Quarterly, Vol. 29, No. 4, December 2005, pp. 673-697 https://doi.org/10.2307/25148705
  61. Vogt, C. Stewart and Fesenmaier, S.D., 'Developing Communication Strategies to Reach First-time Visitors,' Journal of Travel and Tourism Marketing, Vol. 7, No. 2, 1998, pp. 69-89 https://doi.org/10.1300/J073v07n02_04
  62. Yung, Yiu-Fai, 'Modeling the Structure of the Flow Experience Among Web Users,' Marketing Science and the Internet Mini-Conference, MIT, March 1997, pp. 1-14
  63. Zajonc, B. Robert and Markus, Hazel, 'Affective and Cognitive Factors in Preferences,' Journal of Consumer Research, Vol. 9, September 1982, pp. 123-131 https://doi.org/10.1086/208905