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Understanding the Impact of Virtual Reality on Sales: Empirical Evidence from an Online Real Estate Platform

  • Zhenbin Yan*
  • , Zixuan Meng
  • , Yong Tan
  • *Corresponding author for this work

Research output: Conference PapersRGC 32 - Refereed conference paper (without host publication)peer-review

Abstract

Online product presentation is essential to digital commerce. Virtual reality (VR) allows consumers to learn rich product features through a simulated 3D virtual environment. Compared with pictures and videos, VR can satisfy consumers’ personalized information needs of product characteristics. However, VR’s ease-of-use is a potential concern that may hurt users’ satisfaction. To understand the impact of VR on sales, we examine the role of VR Tour (an online house tour function) in the real estate market. We find that, on average, VR Tour could accelerate the selling procedure. “VR badge” could help consumers rapidly find out promising properties during searching. Rich details provided by VR Tour could mitigate consumers’ concern of quality uncertainty during evaluation and improve their intention of offline house visits. Also, VR Tour may present a short-term decelerating effect if users have little prior using experience. Besides, we find VR Tour is a good substitute over pictures.
Original languageEnglish
Publication statusPublished - Nov 2020
EventINFORMS Conference on Information Systems and Technology (CIST 2020) - Virtual
Duration: 7 Nov 20208 Nov 2020
https://www.cistconf.org/home
https://mlin.scheller.gatech.edu/Outside/CIST2020/CIST2020Program.htm

Conference

ConferenceINFORMS Conference on Information Systems and Technology (CIST 2020)
Period7/11/208/11/20
Internet address

Bibliographical note

Information for this record is supplemented by the author(s) concerned.

Research Keywords

  • Virtual Reality
  • Product Uncertainty
  • Survival Analysis
  • Real Estate Platform
  • Consumer Decision Making Process

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