Home sweet virtual home

Abstract

PurposeDigital technologies have made it possible for organizations to enhance service delivery and provide consumers a way to experience a product or service before even seeing it in person. Prior work has validated consumer purchase decision-making models like the Engel, Kollat and Blackwell (EKB) model in digital and multi-channel purchase environments. This research aims to explore the various impacts of digital technologies, specifically virtual reality (VR) and augmented reality (AR) features, on the different stages of the EKB model in a high involvement purchase decision context. In addition, the use of such technologies is examined as a competitive advantage for sales agents.Design/methodology/approachAn in-depth market analysis of VR and AR technologies related to residential real estate is conducted. Then the research questions are analyzed through detailed feedback gathered from 33 prospective home-buyers and realtors in the USA.FindingsInsights from buyers and sales agents (realtors in the context of this research) suggest that VR and AR technologies can enhance consumer information search and expedite the time consumers spend evaluating purchase alternatives. As these technologies advance in their customization features, they may also increase the conversion between alternative evaluation and purchase, but only if they are realistic and provide high quality experiences. Finally, digital technologies are viewed as becoming a necessity in high involvement sales contexts, suggesting that additional features or innovative ways to use these technologies may serve as sources of competitive advantage for sales agents.Originality/valueThis is one of the first research studies to explore the perceived impacts of VR and AR technologies on the stages of the EKB model consumer decision model. It builds on prior work and offers direction for future research.