User Consumer Behaviour In Virtual Environments

Published Date: 02 Nov 2017

This section presents the habits and activities that users-consumers are engaged in 3D online environments.

Social Networking has been the predecessor of Virtual Worlds (Messinger et al., 2009). The first social networking application has been SixDegrees.com that was launched in 1997 (Boyd and Ellison 2007). Thereinafter, numerous other social web sites and applications followed, such as Twitter, MSN, YouTube and Facebook, adopting several Web 2.0 or 2.5 applications.

No matter what their orientation is (i.e., music, advertising), the social aspect has been the common denominator (Hsiu-Fen Lin, 2008; Ridings, and Gefen, 2004). The involvement of users in VWs refers to some form of social interaction (Eisenbeiss, 2012). According to Lin (2008), the motivation to be part of a community satisfies peoples’ sense of belonging. The social relations developed among people lead to the formation of communities (groups) with particular interests and may affect their shopping behavior (Childers and Rao, 1992). Thus, trends or opinions formed by one or more individuals may be followed by the rest of the community. Several recent studies show this to be the case in online environments. Indicatively, Kuan and Bock (2007) compared trust in brick-and-mortar vs. online stores and showed that "word-of-mouth" affected consumers’ experience more than the trust they held towards the physical store. Chiou et al. (2010) showed that interactive communications had been used as one of the criteria or factors affecting web site evaluation in 37 research studies, and member community was similarly used in 19 studies in the years 1995-2006. In the same vein, Fetscherin and Lattemann (2008) argued that companies should invest on community interaction and collaboration in order to succeed in a 3D environment.

Huang (2003) states that two parameters affect users’ online behaviour in the context of virtual environments; exploration and e-shopping. Both activities require users’ effort and willingness (Wan 2000). The willingness of users to engage in the shopping process affects the success or failure of the business (Liao and Cheung 2001). According to Bellman, Lohse and Johnson (1999, p.37), "the most important information for predicting online shopping habits are measures of past behaviour". Along these lines, O’Keefe, Cole, Chau, Massey, Montoya-Weiss and Perry (2000) demonstrated that there are considerable differences in the purpose of using the Internet between different groups of subjects. In order to measure the "Purpose of Internet Use", they used four constructs; social communication, e-Commerce, information search and hobby.

In the context of Virtual Commerce (V-Commerce), Haubl and Figueroa (2002) state that shoppers spend much more time watching 3D objects rather than products that are depicted in two dimensions (i.e., images). Along these lines, Chittaro and Ranon (2002), consider that there are four elements where Virtual Commerce compared favorably to "traditional" Web shopping environment. The "virtual" experience is similar to real life experience concerning the shopping process. Virtual Commerce platforms support natural activities such as walking around the store, and the immersive and vivid environment satisfy better emotional needs of the engaged players. Furthermore, the ability to meet and interact with other people through a representative satisfies social needs.

The common interests of the members of a virtual community form and shape that community (Porter, 2004). Similarly, in the virtual context, there are Virtual Worlds such as Second Life that induce users to be part of activities and behaviour that are unusual or do not exist in real life, and others that support members in retaining and increasing real life behaviour and social activities (Messinger et al. 2009).

There is a debate in recent years about the difficulties that users have to face when interacting with 3D online environments. Bateman et al. (2012) asked 59 business professionals to share their thoughts about the present and future perspectives of VWs. Among others, a few researchers argued that some of the difficulties that users have to face are related to control issues, the game-oriented nature of some VWs, and the technical difficulties they have to face (e.g., creating an avatar (Tisseron 2009), walking around with the avatar, search engine optimization).

Poncin and Garnier (2012), examining the processes of avatar creation and identification in a 3D online store, showed that the identification with the avatar influences satisfaction and immersion. The creation of an avatar is a crucial process which strongly influences customer experience (Lim and Reeves 2010). For example, in a commercial context, avatars tend to be as realistic as the appearance of their owners (Suh, Kim & Suh, 2011) which is considered important when taking part in economic and financial transactions. The apparel sector has proved to be an example of this speculation (Merle et al., 2011). An avatar which looks like a human being is likely to be a predictor of sales, and increases trust with the company (Nassiri 2008).

The immersion is defined as a "state of being deeply engaged or involved; absorption" (Dictionary.com 2012). Immersion is considered related to 3D online shopping experiences (Tisseron 2008) along with other characteristics such as interactivity, enjoyment and aesthetics (Fiore and Kim 2007; Rose et al. 2012). The positive influence of immersion has also been acknowledged at the company perceptions (Charfi and Volle, 2011) and shopping of virtual goods (Cha 2011). The 3D shopping malls that are located within VWs is likely to provide an immersive and enhanced experience (Jin and Bolebruch 2010). In order to add value to this experience, there is evidence that real time social interaction with a representative of a company positively influences brand management in 3D online environments (Jin 2009).

Apart from the general appearance of the avatar (e.g., whether it looks like a human being, an animal, a science fiction appearance etc), the dress code that is adopted may define the orientation of the avatar within a virtual world. Peña et al. (2012) found that avatars with a professional look were suitable for education and numbers, while avatars with a more fascinating or attractive look were keen on entertainment, fashion, and beauty. Along with the kind of clothing, the color of clothes seem to affect the users’ behaviour. An experiment of Peña et al. (2009) showed that avatars wearing a dark robe showed a more aggressive behaviour and intentions than the avatars with a white robe.

Academic research suggests that facial expressions are an integral part of communication in 3D online environments (Perlin 2000). However, the tools available in VWs, designed to facilitate the aforementioned goals, are not considered helpful at providing effective communication among users (Bouda 2012). Kamperi (2012) investigated that topic and found that there are three approaches that users would prefer when their avatar interacts with other avatars in VWs. First, their text should be transformed in real time to emoticons/emotions, their facial expressions should be applied in their avatar through the use of Microsoft Kinect technology, and finally the facial expressions should be identified through the use of a web camera (Kamperi 2012).

In conclusion, there is a stream of research suggesting that 3D online environments are gaining momentum, and according to some distinguished practitioners and academics the internet will be quite different in the following five to ten years, with many 3D features (Gaudin 2010), or even as important as the 2D internet (Drive 2008). However, 3D interfaces still fail to meet customers’ preferences and are considered responsible for low shopping revenues (Hoffman et al. 1999). This failure is partially attributed to lack or low collaboration among e-commerce systems and also, to lack of recognizing and interpreting behavioral and social issues and patterns (Fang et al. 2011).

The following section emphasizes the importance of retail store atmosphere on consumers’ preferences. Indicative studies in traditional, 2D online and 3D online environments are presented to indicate how store atmosphere is determined in alternative retail channels, and how it affects consumer behaviour.

2.3. THE ROLE OF STORE ATMOSPHERE IN ALTERNATIVE RETAIL CHANNELS

2.3.1. Store Atmosphere in Traditional Retailing Environments

The influence of store atmosphere on consumer’s behaviour has been the subject of many research studies. Kotler (1973-4) has been the first researcher who stated that retailers should design their stores in such ways that produce explicit emotions and arouse specific feelings to consumers in the context of conventional retailing. He defined store atmosphere as "the conscious design of the store" space in a way to generate specific emotional responses on its customers and enhance purchase intentions (Kotler 1973-4, p. 50). Several empirical studies have since demonstrated the influencing role of store atmosphere on consumer behaviour. Indicative studies conducted in traditional retail environments investigating the role of store atmosphere are presented in the following table.

Indicatively, Donovan and Rossiter (1982) stated that store atmosphere generates emotional responses which affect consumer’s behaviour toward the store, and Bruner II and Gordon (1990) proved that music is a determinant of the shopping environment that affects consumers. According to Lewison (1994), store atmosphere is the overall emotional and aesthetic effect which is created by a store’s physical features as far as conventional stores are concerned.

2.3.2. Store Atmosphere (Web Atmospherics) in Online (2D) Environments

The mass introduction of the internet at the beginning of the previous decade has redefined store atmosphere so as to meet new challenges and requirements in this new retailing channel (Williams and Dargel 2004). Store atmosphere determinants are considered to be quite different in online environments compared to traditional (Wang et al., 2002). While the methodological approach of examining store atmosphere in 2D online environments was based in traditional retailing, the term web atmospherics seem to gain momentum in the online context. Table 2.2 summarizes studies conducted in online environments in terms of web atmospherics/store atmosphere.

In online retail environments, retailers could create an atmosphere via their website which can affect shoppers’ image and experience in relation to the online store (Eroglu et al., 2000). In support of this finding Vrechopoulos et al. (2000) introduced the term "Virtual Store Atmosphere" in Web retailing and then Siomkos and Vrechopoulos (2002) first developed the "Virtual Retail Mix" including "Virtual Store Atmosphere" as an element of this mix. Constantinides (2004), Vrechopoulos et al. (2004), Griffith (2005) and Dailey (2004) stated that Web site atmospherics, such as layout and product presentation, have the potential to engage consumers in unique and enjoyable experiences. This is a key finding for the purposes of this thesis. As far as enjoyable experiences are concerned, consumers increasingly expect engaging experiences and not just a process to purchase goods and services (Pine & Gilmore 1999; Postrel 2003).

2.3.3. Store Atmosphere in Online (3D) Environments

An important characteristic of 3D online environments that seems to affect store atmosphere is telepresence. 3D online store environments are by definition rich in multimedia capabilities and representations, resulting in a highly interactive environments. Steuer (1992) considered these two elements as key characteristics that support telepresence. 3D environments, with the help of technology, can provide a setting where participants experience all five human senses (vision, hearing, olfaction, touch and taste-through electronic tongue-). This is considered as an important cue of these environments, enabling telepresence and interactivity (Steuer, 2002) which results in highly vivid and enjoyable interfaces where the user has the control in modifying elements of the environment in real time. Similarly, it provides to the end users both functional and hedonic motives, which are considered important in traditional and online shopping channels (Childers et al. 2001; Babin et al, 1994). Especially, entertainment (hedonic motives) has proved to be an important factor in traditional (Bloch et al., 1986; Babin et al., 1994) and online (Hoffman and Novak 1996; Childers et al., 2001) shopping environments.

Therefore, this section shows that the characteristics of 3D online environments differentiate store atmosphere determinants in this context. Certainly, there are cues of store atmosphere in virtual environments encountered both in traditional and 2D online environments. However, there are characteristics such as telepresence and flying that may constitute store atmosphere in an alternative way. Also, some of store atmosphere cues of traditional or online environments need to be transformed in this new context. The following section investigates through a desk research, the applicability and customization capabilities of store atmosphere in 3D environments, taking into consideration related work from traditional, and 2D online retailing.

2.4. STORE ATMOSPHERE: APPLICABILITY AND CUSTOMIZATION CAPABILITIES IN 3D ONLINE ENVIRONMENTS

In order to investigate store atmosphere in the context of Virtual Worlds, this section (Krasonikolakis et al. 2010) employs earlier work on store atmosphere (Lewison, 1994), web atmospherics (Dailey, 1999), as well as the concept of "Virtual Store Atmosphere" (Vrechopoulos, O’ Keefe, & Doukidis, 2000), to investigate the applicability and customization capabilities of store atmosphere components in the 3D online context. Specifically, this section compares the applicability and customization capabilities of store atmosphere determinants in three alternative retailing channels: the traditional (physical) environment, the web (2D) environment and the virtual (3D) retailing environment.

Store atmosphere was defined by Lewison (1994) as the overall emotional and aesthetic effect which is created by a store’s physical features. According to Lewison’s framework, in conventional retailing, the store atmosphere is determined by three major factors: store image, store atmospherics and store theatrics. Store image includes external (storefront) and internal impressions (e.g., layout, product display techniques). Store atmospherics refer to the five human senses (scent, touch, smell, taste and sight), while store theatrics includes décor themes and store events. These factors have been found relevant in the web retailing environment as well in the work of Vrechopoulos et al. (2000). In their work, Lewison’s (1994) framework was applied to the context of Web retailing indicating that all its components could be applied online, except for the touch and taste dimensions of store atmospherics (these are applicable today as discussed below).

In order to investigate whether Lewison’s (1994) framework could be enriched in the context of 3D Commerce, apart from the desk research, eight in-depth interviews with experts were conducted (Krasonikolakis et al. 2010). These experts are active researchers in the field of e-commerce. They were selected through a convenience sampling approach (i.e., those that are accessible) in the context of a Business School. The decision for selecting researchers as experts was based both on budget and accessibility constraints but mainly on the innovative character of the investigated topic and in order to provide a study (i.e., desk research and in-depth interviews) with rigorous results. Therefore it was quite difficult to find experienced users as well as a large pool of experts to select from. Experts were asked to propose store atmosphere dimensions that could be potentially manipulated in a 3D environment. Then, it was attempted to match their answers to Lewison’s framework (as adapted by Vrechopoulos et al., 2000). Some of their answers were directly related to the existing attributes, while new dimensions led to the development of new attributes. Specifically, the experts confirmed the relevance of store image, store atmospherics and store theatrics but also identified crowding and innovative store atmosphere services (e.g., flying within the store) as important consumer behavior influencing factors in the case of V-Commerce.

The final set of attributes (i.e., those derived through theory and confirmed through the personal interviews as well as the new attributes identified through the personal interviews) are displayed in the left column of Table 2.3.

In order to compare these determinants across three alternative retailing channels, namely the traditional (physical) environment, the web 2D environment and the virtual reality 3D environment, their applicability and customization potential in these environments is explored and compared. Customization, according to Strauss and Frost (2009), refers to the process of tailoring marketing/retailing mixes to meet consumer needs even at the individual level. Similarly, applicability denotes whether the attributes can be offered/applied in the respective shopping channel. Indicatively, sound applicability online is low due to the option that users have to turn off the music while music applicability in conventional retailing is high. A scale is employed (i.e., low, medium, high) to indicate the degree of applicability and customization offered to retailers for each determinant/attribute in the sense that these attributes are manipulated by them (Krasonikolakis et al., 2010). The results of this comparison process are presented in the following paragraphs and summarized in Table 2.4.

2.4.1. Store Image

Store image is the store’s "personality" as perceived by consumers, and it consists of external and internal impressions (Lewison 1994). In conventional stores, changing elements of a building or even the layout of departments is difficult, time consuming and costly. Similarly, it is not possible to customize internal (e.g., layout) and external (e.g., building) variables except in some cases where the conventional retailer employs technology to customize the appearance of the store (e.g., personalized product displays through video walls).

On the Web and 3D environments, in contrast, changes in store layout are easier in terms of cost, time and effort. Similarly, an advantage of 3D environments is that they offer high capabilities in terms of product display techniques (e.g., 3D). Flavian, et al. (2009) report that the visual aspects of a web site constitute key factors for achieving a successfully e-service website. However, in virtual worlds the store image customization capabilities are typically low due to the social presence dimension (e.g., customization of store layout when more than one avatars are present within the store at the same time). Such an evolution constitutes a paradigm shift as far as the customization and personalization capabilities of electronic commerce are concerned. In other words, while in Web 1.0 commerce customization and personalization are technology-enabled and applicable, it is clear that in 3D environments this situation is different at least for some store atmosphere variables (e.g., layout, product display techniques) due to the social presence dimension. Therefore, regarding the applicability and customization capabilities of store image, the 3D environment looks more like a conventional store rather than a Web one that could be described as a "back to the basics" trend.

At the same time, it should be acknowledged that technology enables customization across these environments in new ways. For example, this technological impact may be witnessed in some conventional retail stores (e.g., electronic shopping carts enable personalized product recommendation through a computer screen placed on the cart; mobile phones enable customized interaction of the consumer with the shelf; RFID technologies enable personalized advertising; etc.). However, as far as the layout is concerned, customization seems not to be applicable in Virtual Worlds in cases where more than one avatar are in the same store at the same time (e.g., communicate while navigating through the stores’ aisles). Similarly, customization is not applicable to product display techniques when two avatars are standing in front of the same virtual shelf discussing about a specific product placed on this shelf (as would be the case in a conventional store). Certainly, several other store atmosphere variables, such as music or colors, can be customized. However, even for these variables the retailer needs to take in to account the social dimension aspect. For example, two avatars may want to listen to the same music when shopping, in order to share the same experience (as would be the case in conventional stores). Similarly, as far as store decoration is concerned, avatars may want to see the same colors, signs, etc. in order to be able to discuss them and, therefore, enjoy a similar shopping experience. In sum, while the majority of store atmosphere features can be customized within the context of a Virtual World retail store, the social aspect dimension may moderate this option in the sense that a considerable number of customers may wish to enjoy and share a common shopping experience in a one-to-many store environment similarly to the traditional way of shopping.

2.4.2. Store Atmospherics

The social presence aspect dominating in Virtual Worlds affects store atmospherics as well. As far as sight appeal is concerned, a virtual reality retailer can smartly guide the customers’ eyes via the store through the appropriate lighting manipulations. Similarly, special products can be highlighted in a prominent place in the store and with 3Ds’ capabilities one can present a virtual environment as very similar to brick-and-mortar. However, while in the traditional Web’s Graphical User Interface (GUI) sight customization is applicable, in a Virtual World such a capability is limited, due to the presence of more than one customer at the same time in the store. The same stands for music. Specifically, while web site visitors can easily turn off music (i.e., low applicability) customization is potentially high (i.e., when customers turn on the sound mechanism). However, in a virtual store, sound applicability is high, despite the fact that avatars can turn off the sound as well. This is explained by the social aspect dimension, in the sense that avatars visiting a retail store usually wish to enjoy the same services (including music) that other avatars enjoy within the same store at the same time and, thus, do not turn off the sound. As a result, virtual reality retailers have low customization capabilities concerning music since they design and offer one shopping environment for more than one customer that visit the same store simultaneously. Finally, as far as scent, touch and taste are concerned, technology enables web sites and 3D environments to offer such capabilities to their customers (e.g., intelligent gloves, electronic tongue). However, similarly to the earlier discussion, customization capabilities in Virtual Worlds are limited due to social presence.

2.4.3. Store Theatrics

Virtual Worlds provide a high interactive channel and can virtually support all the décor themes and the events that can take place in a conventional store and make shopping a more entertaining experience. The same stands for the web but with comparatively fewer animation capabilities mainly due to the absence of 3D features. However, store theatrics’ customization on the web is higher than the corresponding one in Virtual Worlds, again due to the social aspect dimension.

The owner of a virtual store can organize for his customers, virtual live events and happenings such as concerts, or movies so as to enhance the value of products or brand name and strengthen the relationship with consumers. Along these lines, consumers could be engaged in the production phase of products (experience marketing) through contests (prize money or products to winners) organized by the owners of virtual stores. These activities generate favorable emotional and aesthetical responses to consumers since they consider themselves part of the store’s ‘family’. These activities can also take place in a traditional environment, but customization capabilities are restricted due to the presence of more than one consumers in the same place (the same stands for 3D environments).

2.4.4. Crowding

In a social 3D environment the impact of crowding on consumers can be twofold. First, avatars may have to face system lag when there are more avatars in a specific place than the system can support. Also, there may be avatars that do not like shopping in a crowded place. Yet, in a virtual setting the owner has the possibility to retain several similar or not virtual stores in order to administer crowding. Traffic can be manipulated through the teleporting capability which is available in virtual environments such as Second Life. On the web, the technology capabilities we have witnessed in recent years diminish system failures while in traditional environments retailers can’t directly control crowding as far as space constraints are concerned. In other words, crowding in traditional retailing is controlled to a great extent by customers themselves.

2.4.5. Innovative Store Atmosphere Services

Store image, store atmospherics and store theatrics constitute challenging areas where innovative store atmosphere services can be applied. A 3D online environment can adopt services both from traditional and web environment and also provide new services, not applicable in other retailing channels. Griffith and Chen (2004) indicated that 3D advertisements have a greater influence on consumers compared to 2D online advertisements. Kim et al. (2007) stated that presentations of 3D virtual objects offer higher interactivity instead of 2D and could be used as a promising promotional tool (Nikolaou et al., 2010). Also, interactivity creates positive reactions to consumers, thus offering many benefits (Fiore et al., 2005). Interactive kiosks that are placed in or outside a store and the existence of virtual employees are some examples of the new services offered in virtual environments, which were not available in web stores. Virtual employees welcome the visitors entering the store and are willing to help and advise consumers about their choices, as in a traditional store.

2.5. BRICK-AND-MORTAR, ONLINE (2D), AND 3D ONLINE STORE SELECTION CRITERIA

Bringing together theoretical insights from Information Systems, Human Computer Interaction, and Marketing domains, this section provides the academic background supporting the research on store selection criteria in alternative retail channels. Particular focus is placed on two main relevant streams of research: store selection criteria in the off-line (‘brick-and-mortar’) and the online retail environments on the one hand, as well as on the unique fetures of Virtual Worlds on the other. A critical review of literature in this area reveals that store atmosphere is an outstanding criterion guiding the store selection process.

2.5.1. Brick-and-mortar and online store selection criteria

Studies investigating the criteria that are important for consumers or users when selecting a brick-and-mortar or a Web store to visit or buy from, indicate that both utilitarian and hedonic cues influence user decision (Diep and Sweeney 2008; Seock 2009; Vrechopoulos et al., 2004). The criteria identified in these studies are likely to play a role in consumer behavior in Virtual Worlds as well, and are therefore worth investigating.

Store image has been identified as a potential predictor of online purchasing behavior (van der Heijden and Verhagen 2004). There are multiple definitions in the literature about store image and store cues in general; all of them concur that store image is "a total feeling" of physical and psychological factors (Verhagen and Dolen 2009). Several studies show that online services, online atmosphere and online web appearance positively affect consumers’ perception of the store and their consuming behaviour (Childers et al., 2001; Mandel and Johnson 2002; Verhagen and Dolen 2009). Atmospheric factors such as music and color influence emotional responses and purchase intentions, accordingly, in online stores (Wu et al., 2008). Prices, products and promotion activities also constitute part of the store image (Dickson and Albaum 1977). Consequently, store image appears as an important factor in the shopping process.

Furthermore, there is great interest among researchers in investigating the influence of an offline store image to the corresponding online and vice versa (Vrechopoulos et al., 2004). Consumers may be aware of both offline and online stores and be influenced by various characteristics of each store in the overall shopping process. For example, Verhagen and Dolen (2009) confirmed that offline store impressions influence purchase intention for the corresponding online store. However, van der Heijden and Verhagen (2004) consider that some constructs used to measure store image in an online environment should be different from those used to measure store image in an offline environment, as some constructs describing offline stores do not exist online and vice versa.

Insights from Psychology suggest that emotions play a mediating role in the decision making process (Sherman et al., 1997). An emotion is "a mental state of readiness that arises from cognitive appraisals of events or thoughts and among others, is often expressed physically" (Bagozzi et al., 1999, p. 184). Schwarz (2000) states that the emotions of everyday life affect the decision making process and vice versa. Emotions may arise in individuals through the image of any brick-and-mortar, online or virtual store. For example, Ethier et al. (2006) investigated the role of emotions in the shopping behaviour and found that the quality of a web site can influence six emotions: liking, joy, pride, dislike, and frustration (p. 627). In a business context, interactivity and social interaction are, among others, key characteristics causing special emotions (Jones et al., 2008). Virtual Worlds in particular, may support highly interactive capabilities that online sites do not (Jin, 2009). For example, entertaining experiences (Verhagen et al., 2011) such as festivals can be hosted in Virtual Worlds’ stores, causing specific emotions to participants.

Two other important factors that consumers are concerned about when selecting an online store are security and privacy (Shih, 2004). Consumers are worried about providing personal data to an online retailer. There are several studies addressing the circumstances under which consumers are willing to provide personal or payment information online. Indicatively, Belanger et al. (2002) confirmed that users are eager to provide information if they consider the retailer trustworthy, regardless of whether the retailer maintains a traditional store apart from the online one. Similarly, Chang and Chen (2009) showed that perceived security positively influence customer satisfaction with an online store. The importance of security and privacy in online shopping behaviour suggests that their role in Virtual Worlds should be studied as well.

Finally, web site design and navigational characteristics of an online web site have been shown to influence visitors (e.g., perceived ease of use, perceived usefulness, stimulation of emotions, attractiveness) (Nielsen, 1999). Multidisciplinary studies from the fields of Information Systems (mainly the study of Human-Computer Interaction) and Marketing, draw attention to the importance of navigational characteristics and provide guidelines on how practitioners should design their online stores in order to generate pleasant feelings to visitors, help them to easily find the products they are looking for and, in general, affect consumer behaviour (e.g., through navigation bars, hypertexts, optimized search engines) (Burke, 2002; Jutla et al., 1999; Nielsen and Wagner, 1996). For example, earlier research has shown that store layout is related to consumer behavior, both in offline and in online environments. In offline retail environments, three main store layout types have been described in the literature; grid, freeform and racetrack (Levy, and Weitz, 2001; Lewison, 1994). Each of them creates special emotions and experiences, affecting and supporting consumer behavior. With reference to the corresponding layout types for Internet retailing (Vrechopoulos et al., 2004), Vrechopoulos et al. (2009) investigated the role of layout as a major consumer behavior influencing factor in Virtual Worlds and found significant effects of store layout on consumer behavior in the context of grocery retailing. Later on in this chapter, these studies are thoroughly discussed.

Overall, the work discussed in this section indicates that the criteria influencing consumers’ store selection process in the offline and 2D online environments are likely to be relevant also in Virtual Worlds. Therefore, they have been used to guide an initial exploratory attempt, described in detail in the third chapter further on. The next section discusses some of the emerging characteristics of Virtual Worlds that delineate them as a different environment for exploring store selection criteria.

2.5.2. 3D Online Store Emerging Characteristics and Trends in Light of Store Standards and Principles

All the services offered in a 2D online store can be adopted by (or adapted to) a 3D online retail store, as all web technology capabilities are available in Virtual Worlds too. Moreover, by exploiting the 3D available capabilities (e.g., moving in a 3D ‘space’), a store developed in a Virtual world can also adopt and adapt to several of the attributes of a brick-and-mortar store, that are not necessarily amenable to representation in a 2D online store. For example, the external and internal decoration, storefront, layout, and product display techniques of brick-and-mortar stores can be adopted and adapted in stores within Virtual Worlds. Also, consumers benefit more from the interactive capabilities that Virtual Worlds offer, compared to 2D online stores (Nah et al., 2011). Interestingly, it has also been argued that the attempt to simulate real world activities and conditions in a virtual environment may in fact hinder the tremendous growth potential of the latter (Brown, 2011).

In addition to accommodating the capabilities of brick-and-mortar and web stores in Virtual Worlds and mirroring of an existing retail store in a 3D setting, the navigational and layout cues can be enriched or formed along new dimensions in this environment. This can be achieved by exploiting two unique main features of these environments, namely flying and teleporting (Prasolova-Forland 2008). These two characteristics are probably of great importance regarding the store layout dimension.

Teleporting provides a user with the ability to be transferred instantly to a specific virtual place. Some 3D online stores’ owners have developed teleporting stations in their store in order to help consumers find easily the products they are looking for. For example, a teleporting sign would offer a user the ability to instantly teleport to the first floor where there is men’s fashion, or to the second floor where there is women’s fashion e.t.c.

Teleporting provides a retailer with the ability to develop multiple stores and offer customized services. This is a sophisticated tool allowing retailers to manipulate customization or lag in a store (e.g., in cases where when there are more avatars in a region than the system can afford). It means that a retailer could choose to develop more than one 3D online store, identical or different, so as to control crowding or even customization, by guiding an avatar to a virtual store that meets its preferences. Customization has been widely studied in traditional and online environments (Kamis et al. 2008; Basu and Muylle 1999; Kaarst-Brown and Evaristo 2001). This, combined with the social aspect dominating in Virtual Worlds becomes an important issue in terms of one-to-one customization applicability. For instance, when two or more friends go shopping together, will they or can they experience the store’s attributes (e.g., lighting, music, layout and display of products) differently?

Flying instead of walking in the store, is another characteristic that may affect store layout design. Specifically, the ability to fly gives an avatar the opportunity to have a greater view of the interior and exterior of a store, or move faster to a specific place within the store instead of walking. Flying avatars could have an overview of the ground plan and focus on a specific place of the store. Also, avatars could fly through an open ceiling and visit the next store, or could use the stairs, or even the lift. It is important to mention that the owner of a store has the ability to disallow the flying capability in the store.

Specific manipulation of lighting and signs could also help consumers navigate through the store. Conjunction of 3D visualization of products and touch through electronic gloves, could provide an interesting shopping experience (Krasonikolakis et al. 2011). Also, appropriate manipulation of music may help retailers control crowding in rush hours.

Taking into account these characteristics of Virtual Worlds, as well as the relevant theoretical work outlined in the previous section regarding store selection criteria, this section aims to illustrates the need to explore whether and how these criteria can be grouped into underlying factors according to users’/consumers’ preferences. Particular emphasis is given on the role of store atmosphere in store selection. In the following section, it is attempted to illustrate retail store classification attempts in alternative channels.

2.6. RELEVANT RETAIL STORE CLASSIFICATIONS IN TRADITIONAL, 2D ONLINE, AND 3D ONLINE ENVIRONMENTS

2.6.1. Classification attempts in traditional environments

In traditional retailing there have been various attempts to classify retail stores in terms of merchandize, business sectors, geographic region, store atmosphere, and other dimensions. Indicatively Table 3 summarizes some of them. Some of these studies have as their main purpose to provide classification schemes, while others use classification schemes as a means to execute experimental studies designs.

The earliest of these studies, by Mayer, Mason, and Gee (1971), reviewed past classification studies and found that they are mostly descriptive. The authors proposed an extended retail classification framework which was mostly based on Bucklin’s (1963) and Gist’s (1968) earlier work. They used a multidimensional approach and took into consideration cognitive dimensions to develop a framework of five broad categories: convenience store-convenience goods, convenience store-shopping goods, convenience store-specialty goods, shopping store-shopping goods, and specialty store-specialty goods.

Three years later, Kotler (1973-74) stated that the "total product" matters and not just the nature of the product (e.g., clothes, furniture, books). Some of the dimensions of the "total product" are packaging services, price and warranties. After defining the store atmosphere concept, he examined how store atmosphere influences consumer behavior in various business sectors. Kotler concluded that managers should develop their management strategies based on the total image of the product. Store atmosphere, among others, should be linked directly to the nature of the product, the retail sector and the target audience.