Journal of Business Research xxx (xxxx) xxx–xxx

Contents lists available at ScienceDirect

Journal of Business Research

journal homepage: www.elsevier.com/locate/jbusres

A dual model of product involvement for effective virtual reality: The roles
of imagination, co-creation, telepresence, and interactivity
⁎,1
Kirsten Cowana,1, Seth Ketronb,
a
University of Edinburgh, Department of Marketing, Edinburgh, Scotland, UK
b
East Carolina University, Department of Marketing and Supply Chain Management, Greenville, NC, USA

A R T I C LE I N FO A B S T R A C T

Keywords: Virtual reality (VR) is receiving increasing interest from marketers as this technology provides significant op-
Virtual reality portunities for enhancing consumer engagement and responses. However, to date, the field lacks a cohesive
Co-creation description of available VR technologies, especially in the marketing domain, and needs a framework for ef-
Retailing fective VR based on consumer product involvement. Therefore, we first outline a typology of VR by level of
Involvement
product involvement, delineating how brands might implement VR. Second, after a comprehensive literature
E-commerce
Brand experiences
review, we propose a dual model of product involvement for VR strategies. High product involvement strategies
directly influence consumer responses through imagination, co-creation, and telepresence. Meanwhile, low-in-
volvement strategies increase brand engagement and indirectly influence consumer responses through the less
cognitively taxing process of interactivity. This work includes nine propositions for effective strategies in each
route and offers several implications for theory and practice.

1. Introduction Chatelier, 1997), marketing has not yet fully addressed the topic (Saren,
Harwood, Ward, & Venkatesh, 2013; Cowan and Ketron, forthcoming).
Virtual reality (VR) is receiving increasing attention from marketers. Further, VR research in marketing tends to focus on consumer char-
Formally defined, VR is the application of three-dimensional computer acteristics and motivations within single applications of VR (e.g. Bates,
technology to generate a virtual environment (VE) within which users Istance, & Vickers, 2008; Buhalis & Law, 2008; Eisenbeiss,
navigate and interact (Berg & Vance, 2016; Guttentag, 2010). In fact, by Blechschmidt, Backhaus, & Freund, 2012; Schlosser, 2003).
2020, the retail VR market is expected to rise to $41.5 billion (Blum, Why the recent focus on VR in marketing? VR is useful for brands
2017). Interestingly, VR will likely expand beyond current capabilities because it allows consumers to view a different, virtual dimension,
in the next decade to include multisensory product interactions (Dalton, providing substantial potential for both selling products and creating
2017; Pantano & Servidio, 2012). consumer-brand relationships. VR allows for higher user control than
Brands already incorporate VR into their strategies. For instance, 2D environments do. It incorporates enhanced sensory elements and, in
real estate agents use VR to entice clients to view properties, and even high-involvement situations, elicits telepresence, the feeling of being
the New York Times has used virtual storytelling with Google Cardboard present in another world (Berg & Vance, 2016). Subsequently, the ex-
as part of a campaign to enhance readership. Though more brands are periences and visceral reactions felt in VR are tantamount to actual,
using VR technologies to connect with consumers (Clark, 2017), little is physical experiences (Baird, 2017; Van Herpen, van den Broek, van
understood about how they should use VR to engage consumers. The Trijp, & Yu, 2016). Importantly, effective VR can generate more posi-
same was once considered digitally: should brands craft websites to sell tive brand attitudes and purchase intentions (Choi, Ko, & Kim, 2016).
online or to foster engagement? Similarly, brands have had to decide However, the combined lack of understanding and research on VR,
whether to join existing social networks or to build their own. VR raises despite its opportunities, merits further examination.
similar questions – should brands use VR technologies to create re- The aim of this research is to examine VR marketing opportunities
lationships or to sell offerings? More importantly, how can brands fa- by conducting a comprehensive literature review and then proposing a
cilitate sales or engagement? While VR research exists in other do- VR typology and a dual-route involvement model for effective strate-
mains, such as education (Winn et al., 1999) and management (Seidel & gies, including nine propositions for optimal strategies at each

⁎
Corresponding author.
E-mail addresses: kirstcowan@gmail.com (K. Cowan), ketrons17@ecu.edu (S. Ketron).
1
Authors are listed in alphabetical order. Both authors contributed equally to the manuscript.

https://doi.org/10.1016/j.jbusres.2018.10.063
Received 31 January 2018; Received in revised form 29 October 2018; Accepted 31 October 2018
0148-2963/ © 2018 Elsevier Inc. All rights reserved.

Please cite this article as: Cowan, K., Journal of Business Research, https://doi.org/10.1016/j.jbusres.2018.10.063
K. Cowan, S. Ketron Journal of Business Research xxx (xxxx) xxx–xxx

Table 1
Typology of VR technology.
VR Technology

Simulations Automated Virtual Environments (AVEs) Virtual Worlds (VWs)

High Involvement Product Display on Websites CAVEs and HMDs: V-commerce Marketer-created virtual worlds (Branded Entertainment)

Engagement Advertisements Retail in SVWs

Low Involvement Mobile Applications CAVEs and HMDs: Pop ups MMORPGs

Product Placement

Sponsorship

Endorsers

involvement level. Specifically, this conceptual article considers several features such as rotation, zooming, and in some cases virtual use
VR moderators and mediators that can enhance consumer brand atti- (Algharabat & Dennis, 2010). AVEs allow firms to test product ideas
tudes via two routes: high involvement, which relies on the imagination and retail layouts using virtual spaces or headsets. VWs, such as Second
and telepresence, and low involvement, which focuses on interactivity. Life and World of Warcraft, consist of a network of users in a virtual
The propositions herein elucidate the psychological underpinnings of space that incorporates elements of play, creativity, and ritual
VR, provide directions for future study, and suggest avenues for mar- (Boellstorff, Nardi, Pearce, & Taylor, 2012).
keters to optimize the impact of VR on consumer responses. As mentioned earlier, a brand may consider engaging with con-
sumers using VR directly, such that the consumer opts to communicate
2. Procedure for development of the research model with the brand (e.g., visiting a virtual store). In other words, the brand's
intention is to motivate high consumer involvement, potentially leading
Before developing the typology and conceptual model, we under- to a product purchase. In contrast, the consumer may be motivated to
took a representative literature review of VR, beginning with a biblio- play and have fun, focusing merely on immersion in VR technology, and
graphic keyword search using the online library services of Google involvement with the brand would be a byproduct of the experience
Scholar, Web of Science, and Scopus, following the example of (e.g., brand advertisements in Second Life). In these low-involvement
Choudrie, Junior, McKenna, and Richter (2018). The goal of this review situations, interactions with the brands' products would be few and far
was not to document all works with ties to VR; rather, we sought to between, and brand engagement itself would be indirect.
locate sources most relevant to our research goals. To locate articles and Based on the three types of VR applications (e.g., simulations, AVEs,
other relevant sources, we entered specific terms in the search criteria, and VWs), we propose a typology of brand engagement opportunities
where one word was an author-supplied keyword and each of the others with VR (see Table 1 below). A discussion of each VR technology fol-
appeared in the text. The search involved the following words: “virtual lows, describing instances of using direct (high involvement) or indirect
reality,” “automated virtual environment,” HMD, CAVE, “virtual (low involvement) strategies.
world,” “social world,” “MMORPG,” “electronic commerce,” “avatars,”
“simulation,” “telepresence,” “imagination,” “product involvement,” 3.1. Simulations
“consumption,” and “retail.” We crosschecked our results using other
scholarly search engines (Emerald, EBSCO, ProQuest, etc.). Simulations, defined as virtual interactions with virtual objects in
After filtering the results to select only peer-reviewed publications realistic settings (Aurich, Ostermayer, & Wagenknecht, 2009), can im-
in English, we further scrutinized the initial list of journal articles to prove consumer engagement, learning experiences, future satisfaction,
identify whether they were relevant to this paper. We individually and purchase intentions, and the relationship between the retailer and the
independently evaluated each paper to decide whether it was relevant user (Algharabat & Dennis, 2010; Li, Daugherty, & Biocca, 2002;
for inclusion in the literature review. This process resulted in 66 re- Papagiannidis et al., 2014). Jiang and Benbasat (2005) classified types
levant articles spanning 1992 to 2018. To assist with development and of online simulation applications: visual control (e.g., move, rotate, and
illustration of the typology, we also located relevant industry examples zoom to evaluate a product) and functional control (e.g., test how a
using both identified publications and news articles from Google. camera works and the sounds it emits). Higher quality controls increase
the perceived helpfulness of the simulation, affective responses, and
3. A typology of virtual reality individual learning (Algharabat, Alalwan, Rana, & Dwivedi, 2017).
Retailers have invested in simulating real experiences using web
First, we discuss the VR typology before introducing the resulting technology that affords realistic perception of a product, typically in
model. VR simulates a realistic world in a digital realm, providing three-dimensions (e.g., Krasonikolakis, Vrechopoulos, Pouloudi, &
physical and psychological immersion to isolate the user within another Dimitriadis, 2018; Lee, 2012; Li, Daugherty, & Biocca, 2001). For ex-
world (Gutierrez, Vexo, & Thalmann, 2008). Naturally, the more sen- ample, StubHub, an online ticket vendor, gives consumers virtual views
sory inputs (haptic, visual, olfactory, etc.) present in a virtual en- of their seats before committing to purchase (i.e., visual control).
vironment (VE), the easier it is for the user to visualize and feel in- Likewise, Japanese cosmetic retailer Shiseido has invested in “cosmetic
corporated into the world (Loomis, Blascovich, & Beall, 1999; Martins mirrors,” digital screens that allow customers to try on cosmetics via a
et al., 2017). Thus, industry has been motivated to create VEs that virtual image of their face with the product applied. These “cosmetic
stimulate all five senses (Price, Jewitt, & Brown, 2013). Though users mirrors” provide advice, recommendations, virtual makeovers, and
only indirectly experience senses such as touch or sight in a VE (Heeter, shopping lists (Reddy, 2015), though misattributions based on psy-
2000), those sensory experiences are nevertheless felt. chological effects, such as liking the image rather than the actual brand
VR applications encompass three areas: product simulations, auto- or technology, tend to inform product favorability and evaluations (i.e.,
mated virtual environments (AVEs), and virtual worlds (VWs). Product Cho & Schwarz, 2012). Additionally, several home improvement web-
simulations enable consumers to view objects in a 3D world, including sites allow users to design their home spaces, including 360° views and

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lifelike trials, such as remodeled kitchens, and to try different functions capability, HMDs can provide visual and auditory input based on user
inside virtual home spaces (i.e., functional control). position and orientation (Meissner et al., 2017). Moreover, HMDs are
Retailers and brands have begun experimenting with more im- less expensive than CAVEs, and so require fewer spatial resources and
mersive advertising technology. For example, engagement advertising may be a more appropriate source of automated VR for retailers. In this
allows users to opt to view an advertisement, which enhances positive vein, v-commerce presents opportunities for HMDs, and in fact, several
word of mouth and brand attitudes (Cassinelli, 2017). The television brands (including supermarkets, Swarovski, and Marriott) are exploring
network USA offered Facebook consumers a virtual tour of the house in HMD integration, because consumers may be more prone to buy im-
its drama Graceland, in exchange for watching a trailer about the show pulsively in v-commerce due to artificial intelligence algorithms that
(Tune, 2013). Mobile advertising incorporates greater sensory input place relevant items in the consumer's VR path (Li, 2016; Pham, 2016;
and helps consumers experience products in innovative ways. For in- Slefo, 2017). Continued investments by retailers (e.g., Alibaba,
stance, haptic ads use vibrations in tandem with audible and visual Amazon, and eBay) suggest that HMDs are low-risk yet innovative ways
cues, such as the rumble of a car engine or the working of food pro- to engage consumers in v-commerce (Blum, 2017).
cessor, which boosts involvement and emotional engagement, and From a low-involvement perspective, HMDs can be used to enhance
captures attention (AdBiz, 2017; Yalch & Spangenberg, 2000). In all experiential aspects unrelated to buying products. As it is currently
these cases, the experiences aim to lead consumers to a decision. difficult to replicate the quality of HMD features at home, consumers
With low-involvement simulation experiences, users may want to are coming to pop-up shops and ephemeral in-store experiences (Li,
have a fun experience or learn more about a brand; when they are 2016). Nordstrom and Hermès, for example, have created a “pop-in”
looking for less product-focused experiences, mobile applications pro- experience showcasing experiences with a theme (Tran, 2017). Ad-
vide a suitable alternative. Mobile applications have afforded retailers ditionally, TOMS has HMDs in 100 stores that allow consumers to see
the ability to enhance brand experiences while avoiding specific pro- children being handed boxes of shoes. In North Face, consumers can see
duct information. As one such example, Swedish McDonald's includes the wilderness through HMD technology (Li, 2016). In these situations,
VR goggles in Happy Meal boxes to be used with a special app. In these the focus is less brand- and product-centric and more on creating con-
instances, the brands focus on the brand experience and not just on sumer experiences.
selling a product or service. Thus, these situations use technology to
develop links between the brand and consumers. 3.3. Virtual worlds (VWs)

3.2. Automated virtual environments (AVEs) VWs, computer-simulated spatial environments supporting com-
munication between users via avatars, can be segmented into social
AVEs are full reality-based environments that promote user control virtual worlds (SVWs) and Massively Multiplayer Online Role Playing
over and interaction with a VE to which the consumer is transported Games (MMORPGs). All VWs can be classified along two dimensions:
alone without any visuals of the real world. These AVEs use the five fantasy-realism and progression-emergence. While MMORPGs tend to
senses (Gutierrez et al., 2008) and come in two forms: Cave Automatic involve more progression, since the game is scripted and determined by
Virtual Environments (CAVEs) and head-mounted displays (HMDs; the game creator, and while SVWs tend to provide more emergence
Loomis et al., 1999). While both can be used in retail stores to directly with natural interactions and results, each VW may have varying
encourage high-involvement consumer purchases, these they can also components of fantasy and realism (Schultze & Rennecker, 2007).
be used in a low-involvement context to inspire less product-specific Further, VWs tend to draw more participation from consumers seeking
experiences. to fulfill socialization or escape needs than simulations and AVEs do
CAVEs involve stationary display surfaces enabled by multiple (e.g., Eisenbeiss et al., 2012; Vrechopoulos, Apostolou, & Koutsiouris,
projectors and loudspeakers surrounding the consumer. The technology 2009), which can reinforce existing brand meaning or lend new
involves glasses that provide stereoscopic stimulation (i.e., displaying meaning to the brand through co-creation processes (Vallaster & von
different images of the same scene designed for each eye) of projections Wallpach, 2013). However, research suggests that the nature of SVWs
onto the room's surfaces, with quality varying by pixel size, and the makes it difficult for brands to communicate effectively or connect with
floor integrating perspectives for users to manipulate objects (Meissner, users, since the world itself may incorporate distracting elements
Pfeiffer, Pfeiffer, & Oppewal, 2017). Less complex versions are avail- (Barnes, Mattsson, & Hartley, 2015; Wasko, Teigland, Leidner, &
able, such as single projection screens (Power Walls) that may be Jarvenpaa, 2011). And yet feelings of telepresence can boost immersion
combined with floor projections (L-Shape). (Faiola, Newlon, Pfaff, & Smyslova, 2013), thereby enhancing the
In effect, the user can walk around the room and feel more present persuasiveness of brand messages (Burrows & Blanton, 2014) and
in the environment than in other types of VR. Therefore, research has brand-related consumer responses (Cheung, Shen, Lee, & Chan, 2015;
used CAVEs for behavior tracking, product manipulations, and eye Nah, Eschenbrenner, Dewester, & Park, 2010).
tracking (Bigne, Llinares, & Torrecilla, 2016; Meissner et al., 2017). Although brands can choose to enter existing SVWs (e.g. Second
From a consumer perspective, CAVEs can engage customers, improving Life, Habbo Hotel) or may look to future social worlds (Eadicicco,
brand attitudes through v-commerce, defined as commercial transac- 2017), they also can invest in creating their own worlds to enrich brand
tions occurring in a virtual environment. For example, IKEA launched engagement (Addis, 2005). Importantly, from a high product involve-
VR in stores, allowing customers to walk around kitchens, customize ment perspective, brand involvement determines willingness to visit
views, and even cook (Dalton, 2017). Similarly, Lowe's installed spaces virtual stores in SVWs (Krasonikolakis, Vrechopoulos, & Pouloudi,
that show shoppers virtual representations of renovations (Li, 2016). 2014), where users are commonly involved in virtual consumption
Even pop-up stores can provide unique experiences using CAVEs, such activities that resemble actual experiences (Bloomfield & Rennekamp,
as virtual visits to corporate offices and test drives of rare, expensive 2009). In addition to selecting virtual stores, users can spend virtual
cars (e.g., Porsche). Retailer Kith created a pop-up shop in Aspen, money, visit virtual shopping malls, and shop for brands with estab-
merging Instagram stories and products with a CAVE experience of lished retail shops inside existing SVWs (e.g., Toyota, Reuters, Nokia,
Aspen (Tran, 2017). Because CAVEs require significant investment in and Dell). Brands use feedback from these experiences for concept
equipment and face-to-face engagement with consumers, they are testing and product development (Hemp, 2006). Within these shops,
better suited for environments in which consumer interactions occur in brand avatars interact with users to communicate personalized mar-
physical spaces (i.e., brick-and-mortar retailers). keting messages and provide customer service (Bélisle & Bodur, 2010;
Like CAVEs, HMDs change position and orientation as the user Hanus & Fox, 2015). Although little research exists on virtual con-
moves, and though they have reduced field of vision and less interactive sumption in SVWs (Animesh, Pinsonneault, Yang, & Oh, 2011), most

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Fig. 1. The dual model of involvement for VR.

recent research demonstrates that virtual product and brand pre- 4. A dual model of effective VR: high & low involvement
ferences reflect real-world preferences (Jung & Pawloski, 2014a), such
that experiential factors impact users' intention to purchase items in an Consumers may engage with VEs in states of either high or low
SVW (Animesh et al., 2011). However, the social dynamics of the VW product brand involvement. Again, we define involvement as the extent
can bring new meaning to the brand through co-creation processes of a user's engagement with the brand's offerings to motivate purchase
depending on brand involvement (Vallaster & von Wallpach, 2013). in an environment and/or the situation (Vorderer, 1992). High (low)
MMORPGs offer a less-involving brand experience. Approximately involvement, therefore, refers to situations in which a user interacts
20 million users play MMORPGs (Mmodata, 2012), and thousands of with the products and retail environment at greater (lesser) levels than
players interact through avatars in detailed 3D VWs independent of other engaging experiences (Jin, 2009).
other worlds (Billieux et al., 2013). Members often develop strong Involvement may precede the experience or be induced by the en-
bonds with one another (Blanchard & Markus, 2004) and exhibit the vironment (Goh & Ping, 2014). Consumers with high antecedent in-
same social group rules as those who meet face-to-face (McKenna & volvement are probably highly interested in the technology application
Bargh, 1998). In both MMORPGs and SVWs, brands have several op- aside from the sensory experience (e.g., an interesting virtual world or a
tions for reaching consumers indirectly, including endorsement deals, highly-anticipated remodeling of one's house). Contextual involvement,
product placement, and sponsorship. by contrast, can be spurred through greater sensory input: the extent to
Marketers can engage social influencers to speak about products or which a user's real senses are engaged by a VE directly influences their
give information (Barnes & Pressey, 2012). As credible sources, social engagement with the overall experience (Gutierrez et al., 2008;
media influencers can speak about certain brands in MMORPGs, use the Guttentag, 2010), especially when this engagement leads to flow (e.g.,
brand in the virtual world, or spread vWOM (virtual world of mouth) as Cheon, 2013; Huang, Backman, & Backman, 2011; Papagiannidis,
an avatar. More relevant for MMORPGs, brands can engage in product Pantano, See-To, & Bourlakis, 2013).
placements or sponsorships. In fact, avatar clothing, accessories, ani- Antecedent involvement arises from consumer interest in the brand
mation, and virtual real estate or furniture jointly represent 85% of context and affords opportunities for compelling VR-based strategies.
virtual good sales (Jung & Pawloski, 2014b). However, product place- Marketers seeking to enhance antecedent involvement should ensure
ment requires great care. Product placement in VWs (e.g., purchasing that brand-oriented VR applications target consumer segments that are
Nike shoes win the game) can improve brand attitudes and brand sal- likely to respond well to the brand. Conversely, contextual involvement
iency, but can backfire if irrelevant to the game (Homer, 2009). arises from the VR experience itself. Even if consumers do not begin a
Brands can choose to sponsor a special edition of a game or a pro- VR experience with antecedent brand involvement, marketers can in-
duct line if their products fit the type of MMORPG chosen. Tiffany duce states of high involvement through multisensory environments.
Cartier, a blend of two luxury jewelry retailers, is present in World of Thus, marketers should aim the sensory experience at consumer seg-
Warcraft's Dalaran. The number of message boards about the products ments with low antecedent brand involvement and ensure that the
available at this store indicates high user interest. While no brand has experience delivers on its sensory promise.
yet sponsored a level, such sponsorship provides additional opportu- Brands can use VR through both routes – high and low involvement
nities for marketers (Meta Gamer, 2015). – to boost consumer outcomes, such as purchase behavior, satisfaction,
and brand loyalty. We propose that consumers may follow one of these
two involvement routes in their engagement with VR, as illustrated in
Fig. 1 below. One route, high involvement, influences consumer

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responses through the imagination and telepresence. The low-involve- 2008).

ment route, on the other hand, operates through interactivity. As in- Olfactory stimulation, while not easily integrated into VR, can be
dicated in prior research, the high-involvement route with imagination achieved with olfactory displays (Gutierrez et al., 2008; Washburn &
(versus interactivity) leads to more enduring consumer attitudes and Jones, 2004). Smells in VR can increase product focus and enhance
responses toward the brand (Coyle & Thorson, 2001). Below, we discuss awareness and memorability of product features due to heightened
each of these routes in turn. immersivity and, therefore, telepresence (Tomono, Kanda, & Otake,
2011). Although olfactory stimuli are not widely used, retailers can
4.1. The high product involvement route control smell within a CAVE or in combination with an HMD in-store,
and some games and movies include options for smells (Brkick &
We argue that high-involvement VR directly affects consumer re- Chalmers, 2010; Murray, Ademoye, Ghinea, & Muntean, 2017).
sponses through imagination, co-creation, and telepresence, because of Like olfactory stimuli, gustatory stimuli are in the early stages of
active processing (Li et al., 2001). Active processing relates to a direct development in VR (Iwata, Yano, Uemura, & Moriya, 2004) and cur-
influence strategy in which the retailer has a strong VR presence in- rently rely on haptic interfaces to mimic the tastes, sounds, and feelings
corporating both enjoyment and tangibility, which feed the imagination of eating (Hashimoto, Inami, & Kajimoto, 2008). Given that this sense is
and telepresence. Additionally, this route makes co-creation possible, the most complicated to stimulate, due to technological constraints, it
due to the high levels of engagement, interaction, and fun, and the will likely be the last sense to be integrated in VR. However, retailers
potential presence of brand-related others. Because telepresence re- who use VR in stores can overcome this challenge by complementing
quires deep engagement and processing, it is less likely to exist at high experiences with real gustatory products (i.e., food and beverages).
levels in low-involvement strategies. Finally, touch enhances purchase intentions, but requires greater
physical proximity in that touch is harder to simulate (Peck, Barger, &
4.1.1. Building imagination: product knowledge & sensory information Webb, 2013). Effective haptic cues can increase tangibility and product
The core process of the high-involvement route begins with the desirability through the imagination, even for those who have a high
imagination, defined as the mind's visions resulting from the combi- need for touch (Cowan et al., 2017; Jin, 2009). Currently, VR uses in-
nation of pre-existing information and new information in the sensory structions or images of textures to focus people on haptic features or
environment (Cowan & Dai, 2014). Thus, consumers engage their integrated sensations reminiscent of actual product characteristics, such
imagination when experiencing sensory marketing, as if they are in- as vibrations (Peck et al., 2013). For instance, vibratory (versus audi-
teracting with a product (Cian, Krishna, & Elder, 2014; Eelen, Dewitte, tory) signals can be perceived as more personal and thus receive
& Warlop, 2013; Elder & Krishna, 2010). For the imagination to engage stronger responses (Hadi & Valenzuela, 2016).
effectively, the user must have both product knowledge and incoming Research suggests that congruent sensory input leads to improved
sensory information (Spears & Yazdanparast, 2014). consumer evaluations (Krishna, 2012; Yalch & Spangenberg, 2000), and
Because the imagination requires pre-existing information, higher that consumers will allocate more attention and involvement to such
product knowledge makes imagining easier. In fact, encountering non- stimuli (Huang, 2006). Because those with little or no knowledge about
visual sensory cues makes people expect consistent visual perceptions a product find it difficult to use their imagination without additional
(Madzharov, Block, & Morrin, 2015). Consumers may already have high input (Cowan et al., 2017; Eelen et al., 2013; Spears & Yazdanparast,
product knowledge, or they can gain product knowledge through VR, 2014), marketing efforts using tailored sensory stimuli can provide
which enhances such knowledge through greater sensory input and enough information to assist in imagining, making consumers feel part
cognitive processing (Ariely, 2000; Pantano & Servidio, 2012). Without of the virtual experience and more present. However, excessive in-
specific knowledge of a product, it is difficult to imagine its nature or formation can lead to information overload – high product knowledge
interactions with it (Spears & Yazdanparast, 2014); thus, in VR, re- combined with high sensory information can decrease consumer re-
tailers can increase consumers' knowledge using sensory cues that fa- sponses (Cowan et al., 2017). Thus, sensory information should be
cilitate the imagination, especially when such cues are non-visual balanced with pre-existing information to avoid under- or over-
(Eelen et al., 2013; Madzharov et al., 2015), because rich sensory en- stimulation, which would impede the imagination. By assessing prior
vironments can promote information processing and reduce the need to knowledge and adjusting sensory input accordingly, marketers can keep
rely on memory (i.e., Maity, Dass, & Kumar, 2018). users' imagination within an optimal range.
VR's ability to provide high quality, sensory information has im-
P1. Product knowledge and sensory input increase the effectiveness of the
proved since the emergence of VR technologies (Burdea & Coiffet, 2003;
imagination along an inverted parabola, such that too little or too much
Gutierrez et al., 2008), and modern VR systems strive to create VEs with
knowledge/input renders the imagination ineffective.
which users can interact, stimulating the five senses and evoking vi-
vidness (Coyle & Thorson, 2001; Price et al., 2013; Van Kerrebroeck,
Brengman, & Willems, 2017). In VR, sensory engagement requires the 4.1.2. Stimulating imagination: tangibility & immersivity
stimulation of all the senses (i.e., vision, taste, touch, smell, and Tangibility and immersivity are critical components to stimulate
hearing) and can make virtual experiences more immersive and tan- imaginations of direct experiences (Huang, 2006). Consisting of mental,
gible (Krishna, 2012; Nilsson, Nordahl, & Serafin, 2016; Shih, 1998). physical, and specific components, tangibility is the ease with which
Through their senses, consumers are more easily persuaded of brand one can comprehend, physically experience, or precisely describe at-
attributes (Sengupta & Gorn, 2002). tributes of a product or experience (Laroche, Yang, McDougall, &
A review of the literature shows that sensory marketers have fo- Bergeron, 2005). In VR, tangibility stems from gustatory and haptic
cused primarily on vision because it leads to higher brand appeal factors, because these senses are more tactile and require greater
(Krishna, 2012; Yoo & Kim, 2014). Thus, enhancing the visual senses proximity. As the imagination requires incoming information as well as
increases the imagination and telepresence (Cowan, Spielmann, Horn, previously stored knowledge, tangibility engages and accelerates the
& Griffart, 2017). Additionally, auditory stimuli are easy to generate, as imagination by making it easier to process incoming sensory informa-
music can lead to enhanced consumer evaluations, especially when it is tion. As a result, imagining fosters greater telepresence, which leads to
consistent with consumer expectations (Hui, Dubé, & Chebat, 1997). In more favorable product evaluations (e.g. Wang & Datta, 2010).
VR, music influences consumers' physiological responses through vi- Immersivity refers to a technology's ability to develop a convincing
vidness and volume, and enhances cognitive and emotional involve- and realistic environment in which the user interacts (Li et al., 2002;
ment via tone, brand congruity, and attention (Cuny, Fornerino, & Schultz, 2010; Slater & Wilbur, 1997). Slater and Wilbur (1997) iden-
Helme-Guizon, 2015; Richard, 2005; Zentner, Grandjean, & Scherer, tify five characteristics of immersivity: inclusiveness (diversion of focus

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from the real world), extensiveness (extent of sensory input), sur- situations to increase consumer responses toward the brand. As a type
roundingness (extent of panoramic display), vividness (richness of of socializing activity (Schlosser, 2003), co-creation can be used to
features; Shih, 1998), and proprioceptive matching (alignment of per- build consumer-brand relationships, especially for brand promoters,
ceptual means with the virtual interface; Nash, Edwards, Thompson, & who spread good messages about the brand (Vallaster & von Wallpach,
Barfield, 2000). Immersivity creates an experiential context that com- 2013).
pletely invades users' perceptual, emotional, and psychological pro- The ultimate result of telepresence is enhanced consumer evalua-
cesses, such that immersed users become involved (Foulsham, Walker, tions (Badrinarayanan, Sierra, & Martin, 2015; Spielmann &
& Kingstone, 2011). Therefore, we propose that immersivity increases Mantonakis, 2018; Suh & Chang, 2006) and even increased product
absorption in the VR, engaging the imagination and enhancing tele- value (Cheon, 2013). For example, Fiore, Lee, and Kunz (2004) found
presence. that customizing products led to positive, unique, and stimulating ex-
periences, and Hyun and O'Keefe (2012) found that telepresence
P2. Tangibility and immersivity increase the effectiveness of the imagination
boosted consumer intentions to act on travel information gained during
in VR.
a computer-mediated experience. Moreover, when imaginings evoke
more vividness, they stimulate heightened telepresence and result in
4.1.3. Building co-creation opportunities more enduring brand attitude change (Coyle & Thorson, 2001). Because
Co-creation opportunities provide brands with unique and varied VEs offer a suitable environment for simulated product customization,
opportunities. Because consumers may participate in VEs for inter- brands can leverage them as mass customization tools to boost or re-
activity, fun, and socialization (Eisenbeiss et al., 2012; Vrechopoulos inforce brand involvement and to lead to stronger purchase and loyalty
et al., 2009), specific consumer-brand interactions in VEs should in- behavior.
volve participation and co-creation, which can shape the brand's
P4. Telepresence mediates the relationship between imagination and
meaning (Vallaster & von Wallpach, 2013). For instance, virtual mirrors
consumer responses, such that consumers who feel greater telepresence
improve brand purchases and evaluations not because of the product
exhibit more positive consumer responses to brands (i.e., purchasing,
itself, but via co-creation in the process and the photo uploaded by the
satisfaction, loyalty). However, too much input stimulating the
user (Cho & Schwarz, 2012). In this case, entertainment and sociali-
imagination can disrupt this mediation.
zation can increase purchase intentions (Schlosser, 2003), more than
co-creation opportunities increase purchases (e.g. Cheung et al., 2015; P5. Telepresence mediates the relationship between co-creation activities and
Hanus & Fox, 2015). Thus, engagement level stems from control over consumer responses, such that consumers who feel greater telepresence
the VE and co-creation activities, which induce flow states and tele- exhibit more positive consumer responses to brands (i.e., purchasing,
presence (Huang et al., 2011; Papagiannidis et al., 2013). satisfaction, loyalty). However, brand offenders can disrupt this mediation.
Given that SVWs involve other users, brands should understand how
As a key component of high-involvement VR, telepresence decreases
these other users reinforce existing brand meaning or spread alter-
risk perceptions while increasing the accessibility of the environment
native, negative brand messages (Vallaster & von Wallpach, 2013).
and product category knowledge (Badrinarayanan et al., 2015; Nilsson
Moreover, SVWs allow users to escape their own world to create new
et al., 2016; Pantano & Servidio, 2012). Thus, because VR allows con-
ones, be creative, and socialize with others (Eisenbeiss et al., 2012).
sumers to simulate first-hand experience of products, much of the
This could be beneficial to brands allowing co-creation opportunities,
perceived risk involved in purchasing products that cannot otherwise
especially for consumers with high brand involvement. Therefore, we
be tested or experienced prior to purchase is removed. For example, in
propose co-creation as an alternative mechanism, in addition to the
non-VR online environments, consumers viewing a static, two-dimen-
imagination, through which the high-involvement route can be
sional product image are unable to thoroughly gauge sensory cues re-
achieved. As such, co-creation opportunities can elicit telepresence.
lated to the product, which leaves a significant level of information
P3. VE activities that co-create brand experiences can increase or decrease asymmetry and, therefore, uncertainty in the purchase decision. How-
the effectiveness of brand messages, depending on who spreads the brand ever, the use of simulations, or even more advanced VR technologies
message (e.g., offender, promoter, or brand) and how the brand enables user such as CAVEs or HMDs, allows consumers to experience these cues
co-creation. through proxy, which decreases uncertainty. So, in high-involvement
scenarios, VR strategies should be especially effective regarding pro-
ducts with a high level of perceived risk.
4.1.4. Telepresence
Telepresence is the rewarding sense of being present in an en- P6. High-involvement VR strategies are more influential for products with a
vironment that appears natural. It flows indirectly from the combina- high degree of perceived risk.
tion of tangibility and immersivity in the imagination (Beuckels &
Hudders, 2016; Hopkins, Raymond, & Mitra, 2004; Hyun & O'Keefe,
2012). According to Sheridan (1992), five variables induce tele- 4.2. The low product involvement route
presence: sensory stimuli, control of sensors, ability to control the
physical environment, task difficulty, and greater degree of automation. In contrast to the highly sensorial high-involvement route, the low-
While in telepresence, consumers deeply attentive and involved as they involvement route operates through interactivity. Whereas tangibility
imagine direct experience (Cuny et al., 2015; Huang, 2006). Tele- and immersivity attempt to replicate true sensory experiences, inter-
presence can also reinforce the link between education and entertain- activity offers a reduced sensory appeal that engages the consumer with
ment in VEs (Rheingold, 1992), leading to the double arrow from tel- the brand at a more superficial level. Such an approach would lead to
epresence and imagination in Fig. 1. suboptimal use of the imagination in the high-involvement route, yet
Likewise, engagement with the brand via co-creation opportunities consumers in the low-involvement route may have limited available
or others' co-creation of the brand message can create states of flow and resources and would be unlikely to respond well to highly sensorial
telepresence (Huang et al., 2011). In fact, regardless of whether a input. Thus, interactivity provides an experience (directly or indirectly
person is warned that the co-creation opportunity is intended to boost with the brand) that focuses not on the product or purchase but instead
sales, co-creation improves brand attitudes and purchase intentions on engagement in a fun experience. For example, Li et al. (2001) found
(Cheung et al., 2015; Hanus & Fox, 2015; Hyun & O'Keefe, 2012). that 3D “advergames” enhanced brand evaluations when the game
Though little research has explored co-creation activities in VEs, we theme fitted the brand identity and the game was highly interactive.
predict that telepresence can be used in high product involvement Additionally, the user's ability to customize the avatar communicating

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advertising messages in Second Life (i.e., high user interactivity) im- P8a. VR experiences in which product features require sensory
proves brand responses (Jin, 2009), such that interactivity and enjoy- manipulation, such as mechanical and complex tactile products, should
ment indirectly affect brand attitudes (Nah et al., 2010). Thus, a rela- emphasize the high product/brand involvement VR route.
tively engaging experience can lead to positive feelings toward a brand
P8b. VR experiences lacking the need for sensory manipulation, such as
despite low cognitive resources devoted to evaluation.
visual and less complex tactile products, should emphasize the low product/
Interactivity requires few processing resources, so it should be more
brand involvement VR route.
effective in low product involvement situations. In some cases, low-
involvement situations may feature the retailer/brand more subtly or Finally, since hedonic products appeal to the consumer's affective
may provide an experience without product purchase as a central goal dimension, highly sensorial VR is likely to be more successful among
of the interaction. In these situations, interactivity may provide images consumers in high involvement. Likewise, as Li et al. (2003) indicate,
without fulfilling most of the criteria for effective high-involvement VR, enjoyment is a critical part of VR strategies inducing telepresence.
such as telepresence and affordance (Li et al., 2001). Affordance relates Higher cognitive involvement with hedonic products leads to more
to product features and evaluations, and since affordance is not granted positive brand evaluations (Spears, Ketron, & Ngamsiriudom, 2016).
in low involvement, any sensory elements provided would not relate to Therefore, VR strategies for hedonic products are likely to be more
product trial and evaluation. For instance, product placement in an successful in the high involvement path.
MMORPG would elicit less tangibility or immersivity with a brand than
P9. VR should be more successful with hedonic (vs. utilitarian) products
a transaction with the same product in an SVW virtual mall. However,
along the high (vs. low) involvement path.
engagement with games in VWs can influence how consumers evaluate
a brand (Cheung et al., 2015).
Additionally, in low-involvement situations consumers are less 5. General discussion
willing to process incoming information. While sensory information is
suitable for low-involvement VR, we argue that the focus in low-in- This conceptual paper provides several contributions. First, it
volvement situations should be on visual and verbal inputs, as these combines multiple divergent literature areas to describe and provide a
create a fun, pleasurable environment. Other senses are more taxing, typology of VR. This is one of the first instances to combine all VR
perhaps even too taxing, since they require greater levels of processing. applications to develop propositions both to guide future research and
By reducing the number of sensory inputs, the experience shifts from to suggest retailer and brand considerations for the formation of VR
tangibility to interactivity, which provides a pleasurable, processable strategies. At present, VR consists of simulations, AVEs, and VWs. Each
experience. The pleasure arising from the interactive, low-involvement of these categories presents unique opportunities for marketers, de-
route should become indirectly associated with the brand or product. pending on the level of product involvement desired by the brand.
Therefore, low-involvement VR experiences should boost elements of Namely, when brands seek to sell products and develop high consumer
interactivity, leading to indirect attitude and intention change. involvement, responses will be more favorable when VR consists of
product simulations, engagement advertising, v-commerce, product-
P7. Low-involvement strategies should be less tangible, which should lead to
focused AVEs, co-creation activities, or marketer-created/retail-slotted
indirect attitude and intention change through the process of interactivity.
VWs, while low product involvement strategies should include mobile
applications, pop-up shops, MMORPGs, product placements, and
4.3. Choosing a strategic level of involvement: the role of product types sponsorship/endorsement within VWs. Moreover, for high product in-
volvement, both sensory input, such as immersivity and tangibility, and
At least two product types should moderate the effectiveness of the consumer knowledge development or co-creation activities permitted in
two involvement routes in VR: products with sensory classifications and SVWs would enhance consumer responses. However, in low product
hedonic products. VR may be more effective for design-focused pro- involvement strategies, these facets might reduce brand engagement.
ducts, including apparel, interiors, and automobiles, provided that the Wisely-created strategies would embody elements of multiple cells
VR attributes align with relevant product attributes (Jung & Pawloski, in this typology to capture both high and low product involvement by
2014a). For products with visibly salient attributes (e.g., buttons or using VR applications and technology within the same broad VR cam-
colors), consumers only need to see them to select and make their paign. Of course, more advanced VR (i.e., CAVEs and HMDs) requires
purchase. McCabe and Nowlis (2001) call these types of products more financial investment from either companies or consumers (or
geometric (i.e., visual) products. However, products with tactilely both), and participation in VWs can be a significant investment in time,
salient attributes (e.g., material products; McCabe & Nowlis, 2001), money, and relational capital with software firms. Thus, rather than
such as fur coats or fuzzy blankets, require further tactile information; serving as a catch-all for aggressive modern marketing efforts, the use
some products require tasting or smelling, like wine or perfume. Lastly, of VR should be carefully planned, executed, and evaluated, as with any
other products are mechanical, requiring control and manipulation to other marketing strategy, as one element in the integrating marketing
identify how the product operates. This last type may include more communications plan.
complex tactile products. Depending on the sensorial classification of Second, by conducting a comprehensive literature review, this work
the product (visual, tactile, or mechanical), users require difference proposes a conceptual involvement-based dual process model of effec-
levels of sensory input to evaluate the product (Li, Daugherty, & Biocca, tive VR, which can guide both theory and practice. Based on this model,
2003). involvement is an important factor in the selection of optimal VR
As argued above, the imagination can make up for the absence of strategies. For high product involvement situations, boosting tangibility
touch and manipulation in the VE. Thus, providing appropriate sen- and immersivity is desirable – doing so can enhance the imagination,
sorial inputs will increase product knowledge, which improves cogni- which leads to a heightened sense of telepresence. Similarly, co-crea-
tive thoughts, brand attitudes, and decision quality. For example, a 3D tion opportunities can lead to increased consumer responses, likewise
product presentation of visual products generated improved consumer through telepresence. However, if product knowledge is already high,
product responses, whereas 2D product presentation improved re- then greater levels of immersivity and tangibility may lead to in-
sponses for tactile and mechanical products (Li et al., 2003). However, formation overload, dampening the effectiveness of the imagination
for tactile and mechanical products, more involved VR environments and subsequently reducing telepresence. On a similar note, brand of-
can provide haptic stimuli or manipulation to encourage consumer fenders could damage brand responses or disrupt other consumers'
preference for a brand or product. We make the following related positive experiences. Thus, for consumers with advanced product
propositions. knowledge prior to the experience, a tangibility-focused sensory

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