Virtual reality, real reactions?: Comparing consumers' perceptions and shopping orientation across physical and virtual-reality retail stores

Virtual Reality (VR) is largely associated with a positive potential in terms of both higher efficiency and higher escapism for the consumer. Whereas previous research demonstrated the importance of consumers' hedonic and utilitarian shopping orientations in traditional channels, this study examines the potential of a VR store to elicit hedonism and utilitarianism. Combining literature on VR, shopping orientation, and retailing, we develop a multiple moderated mediation model. Then, in a quasi-experimental between-subjects design, we measure levels of hedonism, utilitarianism, store satisfaction, and perceived assortment size. Participants were exposed to the same shelf in a VRbased and a physical store. We found that VR has a negative impact on satisfaction that is moderated by perceived assortment size, and that VR elicits both utilitarianism and hedonism, which mediate the impact of the channel on store satisfaction differently but equally. Overall, consumers reported high levels of all measured outcome variables after being exposed to the VR experience. In addition, behaviors in the VR-based and physical stores compare quite well. •VR is a reliable tool for estimating consumers' in-store perceptions and behaviors.•VR-stores elicit both utilitarianism via efficiency and hedonism via escapism.•Hedonism and utilitarianism impact satisfaction toward VR-stores differently but equally.•VR has a negative impact on satisfaction moderated by perceived assortment size.