METAVERSE RETAILING: OPPORTUNITIES AND CHALLENGES

Year 2024, , 10 - 15, 30.07.2024

E. Başak Tavman

https://doi.org/10.17261/Pressacademia.2024.1902

Abstract

Purpose- The retail industry is changing towards metaverse retailing. The metaverse concept, which emerged about 20 years ago, began to attract the attention of retailers with the investments made by technology companies in metaverse. Nowadays, the number of retailers opening stores in the metaverse is rapidly increasing. The aim of this study is to reveal the importance of metaverse retailing and examine possible opportunities and challenges for retailers. There is a limited number of studies examining the effects of the metaverse on the retail industry. The current study aims to close this gap in the literature and help retailers develop sustainable competitive strategies.
Methodology- The study employs literature review using secondary data analysis. The study is based on a careful analysis of the relevant scientific literature in the field of metaverse retailing. It provides an understanding of metaverse retailing and the opportunities and challenges for retailers.
Findings- The literature review on metaverse retailing shows that the metaverse is still in its infancy. Many brands are opening stores in the metaverse to gain a competitive advantage, but to be successful in the meta-world, retailers need to understand the opportunities and challenges that the metaverse presents.
Conclusion- Nowadays, most of the brands open stores in the metaverse. However, creating a unique customer experience in metaverse is quite different from traditional and online retailing. Having a presence in the metaverse should not just be about opening stores. For retailers to sustain their operations in the metaverse, they must first understand the opportunities and challenges of this virtual world and shape their business plan accordingly. It is important to analyze the opportunities and challenges posed by the metaverse correctly and to develop strategies that address customer wants and needs. However, while the metaverse has great opportunities for the retail industry, it should be kept in mind that this new technology is still in its very early stages.

Keywords

Metaverse, metaverse retailing, e-retailing

References

• Ali, S. A., & Khan, R. (2023). Metaverse marketing vs digital marketing. International Journal of Innovative Science and Research Technology, 8(1), 385-388.
• Barrera, K. G., & Shah, D. (2023). Marketing in the Metaverse: Conceptual understanding, framework, and research agenda. Journal of Business Research, 155, 113420.
• Belk, R. W. (2013). Extended self in a digital world. Journal of Consumer Research, 40(3), 477-500.
• Bourlakis, M., & Papagiannidis, S. (2008). Examining the intertwined spatial relationships in food retailing: The case of Second Life.
• Bourlakis, M., Papagiannidis, S., & Li, F. (2009). Retail spatial evolution: paving the way from traditional to metaverse retailing. Electronic Commerce Research, 9, 135-148.
• Chandiwala, M., Patel, P., & Mehta, A. (2023). Advertising and branding with metaverse. Dogo Rangsang Research Journal, 13(6), 95-99.
• Chen, C., Zhang, K. Z., Chu, Z., & Lee, M. (2024). Augmented reality in the metaverse market: the role of multimodal sensory interaction. Internet Research, 34(1), 9-38.
• Deloitte (2022). A whole new world? Exploing the metaverse and what it could mean for you. Retrieved June 5 2024, from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/technology/us-ai-institute-what-is-the-metaverse-new.pdf
• Dennis, C., Fenech, T., & Merrilees, B. (2005). Sale the 7 Cs: teaching/training aid for the (e‐) retail mix. International Journal of Retail & Distribution Management, 33(3), 179-193.
• Díaz, J., Saldaña, C., & Avila, C. (2020). Virtual world as a resource for hybrid education. International Journal of Emerging Technologies in Learning (iJET), 15(15), 94-109.
• Dincelli, E., & Yayla, A. (2022). Immersive virtual reality in the age of the Metaverse: A hybrid-narrative review based on the technology affordance perspective. The journal of strategic information systems, 31(2), 101717.
• Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., Ribeiro-Navarrete, S., Giannakis, M., Al-Debei, M. M., ... & Wamba, S. F. (2022). Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 66, 102542.
• Eyada, B. (2023). Advertising in the metaverse: opportunities and challenges. International Journal of Marketing Studies, 15(1), 22-30.
• Forbes (2022). How the metaverse will reshape e-commerce forever. Retrieved June 7 2024, from https://www.forbes.com/sites/theyec/2022/01/24/how-the-metaverse-will-reshape-e-commerce-forever/?sh=7e33d16c69d9
• Gadalla, E., Keeling, K., & Abosag, I. (2013). Metaverse-retail service quality: A future framework for retail service quality in the 3D internet. Journal of Marketing Management, 29(13-14), 1493-1517.
• Ghose, R. vd., Metaverse and Money: Decrypting the Future, Citi Global Perspectives and Solutions.
• Go, H., & Kang, M. (2023). Metaverse tourism for sustainable tourism development: Tourism agenda 2030. Tourism Review, 78(2), 381-394.
• Gursoy, D., Malodia, S., & Dhir, A. (2022). The metaverse in the hospitality and tourism industry: An overview of current trends and future research directions. Journal of Hospitality Marketing & Management, 31(5), 527-534.
• Harris, K., Harris, R., & Baron, S. (2001). Customer participation in retail service: lessons from Brecht. International Journal of Retail and Distribution Management, 29(8), 359–369.
• Hassouneh, D., & Brengman, M. (2015). Metaverse Retailing: Are SVW Users Ready to Buy Real Products from Virtual World Stores?. In 12th International IADIS Conference on e-Commerce and Digital Marketing (EC 2015) (104-110).
• Hennig-Thurau, T., & Ognibeni, B. (2022). Metaverse marketing. NIM Marketing Intelligence Review, 14(2), 43-47.
• Hennig-Thurau, T., Aliman, D. N., Herting, A. M., Cziehso, G. P., Linder, M., & Kübler, R. V. (2023). Social interactions in the metaverse: Framework, initial evidence, and research roadmap. Journal of the Academy of Marketing Science, 51(4), 889-913.
• Hennig-Thurau, T., Aliman, N., Herting, A., Cziehso, G., Kübler, R., & Linder, M. (2022). The value of real-time multisensory social interactions in the virtual-reality metaverse: Framework, empirical probes, and research roadmap. Empirical Probes, and Research Roadmap.
• Henz, P. (2022). The psychological impact of the Metaverse. Discover Psychology, 2(1), 47.
• Jeon, J. E. (2021). The Effects of User Experience-Based Design Innovativeness on User-Metaverse Platform Channel Relationships in South Korea. Journal of Distribution Science, 19(11), 81-90.
• Joy, A., Zhu, Y., Peña, C., & Brouard, M. (2022). Digital future of luxury brands: Metaverse, digital fashion, and non‐fungible tokens. Strategic Change, 31(3), 337-343.
• Kadry, A. (2022). The metaverse revolution and its impact on the future of advertising industry. Journal of Design Sciences and Applied Arts, 3(2), 131-139.
• Kim, E. Y., and Kim, Y-K. (2004). Predicting online purchase intentions for clothing products. European Journal of Marketing, 38(7), 883 – 897.
• Kim, J. (2021). Advertising in the metaverse: Research agenda. Journal of Interactive Advertising, 21(3), 141-144.
• Kotler, P., & Armstrong, G. (2007). Principles of marketing. Upper Saddle River: Pearson Education.
• Lee, E. J., Lee, W., & Bae, I. (2023). What is the draw of the metaverse? Personality correlates of Zepeto use motives and their associations with psychological well-being. Cyberpsychology, Behavior, and Social Networking, 26(3), 161-168.
• Liang, T. P., & Lai, H. J. (2002). Effect of store design on consumer purchases: an empirical study of on-line bookstores. Information & management, 39(6), 431-444.
• Lin, H., Wan, S., Gan, W., Chen, J., & Chao, H. C. (2022, December). Metaverse in education: Vision, opportunities, and challenges. In 2022 IEEE International Conference on Big Data (Big Data) (pp. 2857-2866). IEEE.
• Lin, Y., & Liu, S. (2024). The integration strategy of information system based on artificial intelligence big data technology in metaverse environment. Cluster Computing, 1-9.
• Makransky, G., & Mayer, R. E. (2022). Benefits of taking a virtual field trip in immersive virtual reality: Evidence for the immersion principle in multimedia learning. Educational Psychology Review, 34(3), 1771-1798.
• Merre, R. (2022). Security Will Make Or Break The Metaverse Retrieved May 30 2024, from https://www.nasdaq.com/articles/security-will-make-or-break-the-metaverse
• Monaco, S., & Sacchi, G. (2023). Travelling the metaverse: Potential benefits and main challenges for tourism sectors and research applications. Sustainability, 15(4), 3348.
• Olson, E. D., Arendt, S. W., FitzPatrick, E., Hauser, S., Rainville, A. J., Rice, B., & Lewis, K. L. (2020). Marketing mechanisms used for summer food service programs. Journal of Nonprofit & Public Sector Marketing, 32(5), 465-487.
• Papagiannidis, S., & Bourlakis, M. A. (2009). Experiencing metaverse retailing: A glimpse of the future?. In IABE-2009 Greece Summer Conference. Newcastle University.
• Papagiannidis, S., & Bourlakis, M. A. (2010). Staging the New Retail Drama: at a Metaverse near you!. Journal of Virtual Worlds Research, 2(5), 425-446.
• Research Brief. “The Future of Socialization: 90+ Companies Shaping the Metaverse.” CB Insights Research, CB Insights, Retrieved June 7 2024, from cbinsights.com/research/metaverse-market-map/
• Shen,B.,Tan,W.,Guo,J.,Zhao,L.and Qin,P. (2021),“How to promote user purchase in metaverse?A systematic literature review on consumer behavior research and virtual commerce application design”, AppliedSciences,11(23),1-29.
• Song, Z. (2022). Interpersonal Communication Research in Metaverse. In 2022 8th International Conference on Humanities and Social Science Research (ICHSSR 2022) (2377-2382). Atlantis Press.
• Stephens, D. “The Metaverse Will Radically Change Retail.” The Business of Fashion. Retrieved May 27 2024, from businessoffashion.com/opinions/retail/the-metaverse-will-radically-change-retail.
• Suh, A. (2024). How users cognitively appraise and emotionally experience the metaverse: focusing on social virtual reality. Information Technology & People, 37(4), 1613-1641.
• Turley, L. W., & Milliman, R. E. (2000). Atmospheric effects on shopping behavior: a review of the experimental evidence. Journal of business research, 49(2), 193-211.
• Tussyadiah, I. P., Wang, D., & Jia, C. (2017). Virtual reality and attitudes toward tourism destinations. In Information and Communication Technologies in Tourism 2017: Proceedings of the International Conference in Rome, Italy, January 24-26, 229-239. Springer International Publishing.
• Vargo, L. (2022). 1.11.2022 tarihinde Council post: How the metaverse is shaping consumer behavior. Retrieved June 7 2024, from https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2022/07/05/how-the-metaverse-is-shaping-consumer-behavior/?sh=572c5c493079
• Xu, M., Ng, W., Lim, W., Kang, J., Xion, Z., Niyato, D., Yang, Q., Shen, X.S., Miao, C. (2022). A full dive into realizing the edge-enabled metaverse: Visions, enabling technologies,and challenges. Networking and Internet Architecture.
• Yoo,K.,Welden,R.,Hewett,K.and Haenlein, M. (2023),“Themerchantsofmeta:aresearchagendato understand the future of retailing in the metaverse”, Journal of Retailing, 99, 173-192.