The impact of virtual, augmented and mixed reality technologies on the customer experience

Abstract The arrival of Virtual-Reality, Augmented-Reality, and Mixed-Reality technologies is shaping a new environment where physical and virtual objects are integrated at different levels. Due to the development of portable and embodied devices, together with highly interactive, physical-virtual connections, the customer experience landscape is evolving into new types of hybrid experiences. However, the boundaries between these new realities, technologies and experiences have not yet been clearly established by researchers and practitioners. This paper aims to offer a better understanding of these concepts and integrate technological (embodiment), psychological (presence), and behavioral (interactivity) perspectives to propose a new taxonomy of technologies, namely the “EPI Cube”. The cube allows academics and managers to classify all technologies, current and potential, which might support or empower customer experiences, but can also produce new experiences along the customer journey. The paper concludes with theoretical and managerial implications, as well as a future research agenda.

[1]  J. H. Gilmore,et al.  Welcome to the experience economy. , 1998, Harvard business review.

[2]  Katherine N. Lemon,et al.  Customer Experience Creation: Determinants, Dynamics and Management Strategies , 2009 .

[3]  David Sprott,et al.  The influence of tactile input on the evaluation of retail product offerings , 2007 .

[4]  Kim Willems,et al.  When brands come to life: experimental research on the vividness effect of Virtual Reality in transformational marketing communications , 2017, Virtual Reality.

[5]  Tom Griffin,et al.  Virtual Reality and Implications for Destination Marketing , 2017 .

[6]  D. Fortin,et al.  Interactivity and vividness effects on social presence and involvement with a web-based advertisement , 2005 .

[7]  Pennie Frow,et al.  The role of multichannel integration in customer relationship management , 2004 .

[8]  William R. Sherman,et al.  Understanding Virtual RealityInterface, Application, and Design , 2002, Presence: Teleoperators & Virtual Environments.

[9]  Jiejie Zhu,et al.  Virtual Reality and Mixed Reality for Virtual Learning Environments , 2006, Edutainment.

[10]  Jari Takatalo,et al.  Presence, Involvement, and Flow in Digital Games , 2010, Evaluating User Experience in Games.

[11]  C. Meyer,et al.  Understanding customer experience. , 2007, Harvard business review.

[12]  Lia Patrício,et al.  Designing Multi-Interface Service Experiences , 2008 .

[13]  Jih-Hsuan Tammy Lin,et al.  So scary, yet so fun: The role of self-efficacy in enjoyment of a virtual reality horror game , 2018, New Media Soc..

[14]  Daniel A. Guttentag Virtual reality: Applications and implications for tourism , 2010 .

[15]  Gary Warnaby,et al.  Augmented Reality and Virtual Reality in Physical and Online Retailing: A Review, Synthesis and Research Agenda , 2018 .

[16]  Carrie Heeter,et al.  Being There: The Subjective Experience of Presence , 1992, Presence: Teleoperators & Virtual Environments.

[17]  Ashutosh Dixit,et al.  Research framework, strategies, and applications of intelligent agent technologies (IATs) in marketing , 2015, Journal of the Academy of Marketing Science.

[18]  Zahira Merchant,et al.  Effectiveness of virtual reality-based instruction on students' learning outcomes in K-12 and higher education: A meta-analysis , 2014, Comput. Educ..

[19]  Carolyn A. Lin An Interactive Communication Technology Adoption Model , 2003 .

[20]  Chin-Chung Tsai,et al.  Affordances of Augmented Reality in Science Learning: Suggestions for Future Research , 2012, Journal of Science Education and Technology.

[21]  Amy L. Ostrom,et al.  Service Research Priorities in a Rapidly Changing Context , 2015 .

[22]  Jonathan Steuer,et al.  Defining virtual reality: dimensions determining telepresence , 1992 .

[23]  Holger Regenbrecht,et al.  Visual Coherence in Mixed Reality: A Systematic Enquiry , 2017, PRESENCE: Teleoperators and Virtual Environments.

[24]  Jan L. Plass,et al.  Interactivity in multimedia learning: An integrated model , 2010, Comput. Hum. Behav..

[25]  Erik Stolterman,et al.  The Meaning of Interactivity—Some Proposals for Definitions and Measures , 2017, Hum. Comput. Interact..

[26]  Carlos Flavián,et al.  Antecedents of consumer intention to follow and recommend an Instagram account , 2017, Online Inf. Rev..

[27]  R. Bagozzi,et al.  An attitudinal model of technology-based self-service: Moderating effects of consumer traits and situational factors , 2002 .

[28]  Dongyoung Sohn,et al.  Anatomy of interaction experience: Distinguishing sensory, semantic, and behavioral dimensions of interactivity , 2011, New Media Soc..

[29]  Adam M. Grant,et al.  In the company of givers and takers. , 2013, Harvard business review.

[30]  F. Okumus,et al.  Exploring the role of next-generation virtual technologies in destination marketing , 2018, Journal of Destination Marketing & Management.

[31]  Hideyuki Tamura,et al.  Mixed Reality: Future Dreams Seen at the Border between Real and Virtual Worlds , 2001, IEEE Computer Graphics and Applications.

[32]  Ana Javornik,et al.  Augmented reality: Research agenda for studying the impact of its media characteristics on consumer behaviour , 2016 .

[33]  C. Khoo-Lattimore,et al.  New realities: a systematic literature review on virtual reality and augmented reality in tourism research , 2019 .

[34]  Peter Nagy,et al.  “My Avatar and Her Beloved Possession”: Characteristics of Attachment to Virtual Objects , 2014 .

[35]  A. P. Williams,et al.  Virtual reality: A new horizon for the tourism industry , 1995 .

[36]  Iis P. Tussyadiah,et al.  Embodiment of Wearable Augmented Reality Technology in Tourism Experiences , 2018 .

[37]  Marjolein P. M. Kammers,et al.  What is embodiment? A psychometric approach , 2008, Cognition.

[38]  Wojciech Cellary,et al.  Evaluation of learners' attitude toward learning in ARIES augmented reality environments , 2013, Comput. Educ..

[39]  Jang-Sun Hwang,et al.  Measures of Perceived Interactivity: An Exploration of the Role of Direction of Communication, User Control, and Time in Shaping Perceptions of Interactivity , 2002 .

[40]  Dennis L. Hoffman,et al.  Marketing in Hypermedia Computer-Mediated Environments : Conceptual Foundations 1 ) , 1998 .

[41]  Massimo Bergamasco,et al.  Beyond virtual museums: experiencing immersive virtual reality in real museums , 2010 .

[42]  D. W. F. van Krevelen,et al.  A Survey of Augmented Reality Technologies, Applications and Limitations , 2010, Int. J. Virtual Real..

[43]  Christoph F. Breidbach,et al.  Beyond virtuality: from engagement platforms to engagement ecosystems , 2014 .

[44]  Dimitrios Buhalis,et al.  A Typology of Technology‐Enhanced Tourism Experiences , 2014 .

[45]  Rosa María Baños,et al.  Immersion and Emotion: Their Impact on the Sense of Presence , 2004, Cyberpsychology Behav. Soc. Netw..

[46]  Roger Cheong,et al.  The virtual threat to travel and tourism , 1995 .

[47]  Brian F. Goldiez,et al.  Predicting presence: Constructing the Tendency toward Presence Inventory , 2009, Int. J. Hum. Comput. Stud..

[48]  R. Fisk,et al.  Multilevel Service Design: From Customer Value Constellation to Service Experience Blueprinting , 2011 .

[49]  P. Milgram,et al.  A Taxonomy of Mixed Reality Visual Displays , 1994 .

[50]  Doug A. Bowman,et al.  Formalizing the Design, Evaluation, and Application of Interaction Techniques for Immersive Virtual Environments , 1999, J. Vis. Lang. Comput..

[51]  Seokhee Jeon,et al.  Haptic Augmented Reality: Taxonomy and an Example of Stiffness Modulation , 2009, PRESENCE: Teleoperators and Virtual Environments.

[52]  Bernadett Koles,et al.  Who is Portrayed in Second Life: Dr. Jekyll or Mr. Hyde? The Extent of Congruence Between Real Life and Virtual Identity , 2012 .

[53]  Frank Biocca,et al.  The Cyborg's Dilemma: Progressive Embodiment in Virtual Environments , 2006, J. Comput. Mediat. Commun..

[54]  Timothy Jung,et al.  Mapping requirements for the wearable smart glasses augmented reality museum application , 2016 .

[55]  Bernd H. Schmitt,et al.  Brand Experience: What is It? How is it Measured? Does it Affect Loyalty? , 2009 .

[56]  Holger Regenbrecht,et al.  Using Augmented Virtuality for Remote Collaboration , 2004, Presence: Teleoperators & Virtual Environments.

[57]  Carlos Flavián,et al.  Choice confidence in the webrooming purchase process: The impact of online positive reviews and the motivation to touch , 2016 .

[58]  Stuart Barnes,et al.  Understanding Virtual Reality in Marketing: Nature, Implications and Potential , 2016 .

[59]  Carlos M. Coelho,et al.  Media Presence and Inner Presence: The Sense of Presence in Virtual Reality Technologies , 2006 .

[60]  E. Rogers Diffusion of Innovations , 1962 .

[61]  Kim Willems,et al.  Escaping the crowd: An experimental study on the impact of a Virtual Reality experience in a shopping mall , 2017, Comput. Hum. Behav..

[62]  Muhanna Muhanna,et al.  Virtual reality and the CAVE: Taxonomy, interaction challenges and research directions , 2015, J. King Saud Univ. Comput. Inf. Sci..

[63]  D. Ihde Technology and the lifeworld : from garden to earth , 1991 .

[64]  Alan Dix,et al.  Human-computer interaction, foundations and new paradigms , 2017, J. Vis. Lang. Comput..

[65]  C. Flavián,et al.  Determinants of the intention to participate in firm-hosted online travel communities and effects on consumer behavioral intentions , 2010 .

[66]  M. Slater,et al.  Virtual reality in the assessment, understanding, and treatment of mental health disorders , 2017, Psychological Medicine.

[67]  Namho Chung,et al.  Tourists' intention to visit a destination: The role of augmented reality (AR) application for a heritage site , 2015, Comput. Hum. Behav..

[68]  Iis P. Tussyadiah,et al.  Virtual reality, presence, and attitude change: Empirical evidence from tourism , 2018, Tourism Management.

[69]  Paul L. Sauer,et al.  Is Augmented Reality Technology an Effective Tool for E-commerce? An Interactivity and Vividness Perspective , 2017 .

[70]  Iis P. Tussyadiah,et al.  Expectation of Travel Experiences with Wearable Computing Devices , 2014, ENTER.

[71]  Philipp A. Rauschnabel,et al.  An adoption framework for mobile augmented reality games: The case of Pokémon Go , 2017, Comput. Hum. Behav..

[72]  David Johnson,et al.  Augmented Reality Marketing: Consumer Preferences and Attitudes Toward Hypermedia Print Ads , 2016 .

[73]  Mel Slater,et al.  Place illusion and plausibility can lead to realistic behaviour in immersive virtual environments , 2009, Philosophical Transactions of the Royal Society B: Biological Sciences.

[74]  P. Penfold,et al.  Learning Through the World of Second Life—A Hospitality and Tourism Experience , 2009 .

[75]  P. K. Kannan,et al.  From Multi-Channel Retailing to Omni-Channel Retailing: Introduction to the Special Issue on Multi-Channel Retailing , 2015 .

[76]  Enrique Bigné,et al.  Elapsed time on first buying triggers brand choices within a category: A virtual reality-based study , 2016 .

[77]  Guy Paré,et al.  Synthesizing information systems knowledge: A typology of literature reviews , 2015, Inf. Manag..

[78]  Alan J. Dix Human-Computer Interaction , 2018, Encyclopedia of Database Systems.

[79]  Dong-Hee Shin,et al.  The role of affordance in the experience of virtual reality learning: Technological and affective affordances in virtual reality , 2017, Telematics Informatics.

[80]  T. Jung,et al.  The determinants of recommendations to use augmented reality technologies: the case of a Korean theme park. , 2015 .

[81]  Katherine N. Lemon,et al.  Understanding Customer Experience Throughout the Customer Journey , 2016 .

[82]  Nuno Jardim Nunes,et al.  Customer experience modeling: from customer experience to service design , 2012 .

[83]  Bernadett Koles,et al.  The digital transformation of human identity , 2014 .

[84]  Paul Williams,et al.  Virtual reality and tourism: fact or fantasy? , 1995 .

[85]  Judy M. Vance,et al.  Industry use of virtual reality in product design and manufacturing: a survey , 2017, Virtual Reality.

[86]  H. Wilson,et al.  Engagement, telepresence and interactivity in online consumer experience: Reconciling scholastic and managerial perspectives , 2010 .

[87]  Matthew Lombard,et al.  At the Heart of It All: The Concept of Presence , 2006 .

[88]  Martin Meißner,et al.  Combining virtual reality and mobile eye tracking to provide a naturalistic experimental environment for shopper research , 2017, Journal of Business Research.

[89]  Maria V. Sanchez-Vives,et al.  From presence to consciousness through virtual reality , 2005, Nature Reviews Neuroscience.

[90]  Robert M. O'Keefe,et al.  Virtual destination image: Testing a telepresence model , 2012 .

[91]  Ronald Azuma,et al.  A Survey of Augmented Reality , 1997, Presence: Teleoperators & Virtual Environments.

[92]  Jennifer Aaker,et al.  Awe Expands People’s Perception of Time, Alters Decision Making, and Enhances Well-Being , 2012, Psychological science.

[93]  J. Bailenson,et al.  The Effect of Interactivity on Learning Physical Actions in Virtual Reality , 2008 .

[94]  Ralph Schroeder,et al.  Defining Virtual Worlds and Virtual Environments , 2008 .

[95]  Hartmut H. Holzmüller,et al.  Understanding communal and individual customer experiences in group-oriented event tourism: an activity theory perspective , 2016 .

[96]  Timothy Jung,et al.  Effects of Virtual Reality and Augmented Reality on Visitor Experiences in Museum , 2016, ENTER.

[97]  Aleda V. Roth,et al.  New measurement scales for evaluating perceptions of the technology‐mediated customer service experience , 2004 .

[98]  Marc Aurel Schnabel,et al.  From Virtuality to Reality and Back , 2007 .