‘The persuasion effects of virtual reality (VR) and augmented reality (AR) video advertisements: A conceptual review’

Using virtual reality (VR) and augmented reality (AR) for marketing, training, and customer service has a host of benefits (Wedel, Bigné, & Zhang, 2020). Marketing campaigns incorporating virtual reality technology are called VR marketing. The use of social media can help you engage an audience and build a stronger brand (Ferm and Thaichon, 2021, Quach et al., 2021). On the other hand, AR marketing is an evolving trend in marketing and sales strategies (Quach et al., 2022). With this technology, brands can provide their customers with unique experiences using their mobile devices (Meißner et al., 2019, Vahdat et al., 2021). In recent years, both managers and scholars have paid increasing attention to Augmented Reality (AR). Studies in the marketing discipline have focused on fragmented aspects of AR, such as its impact on sales. There is, however, a lack of a holistic approach to AR. “Augmented Reality Marketing” is thus defined by the authors as a novel, disruptive, and strategic marketing subdiscipline (Rauschnabel et al., 2022, Meißner et al., 2019). Further, Augmented reality marketing is “the strategic integration of AR experiences, alone or in combination with other media or brand-related cues, to achieve overarching marketing goals by creating value for the brand, its stakeholders, and societies at large, while considering ethical implications” (Rauschnabel et al., 2022, p.1141)

Since digital information and communication technologies (ICTs) have made significant advances in many different fields, including marketing research, a concept of digital marketing has developed. This concept may be defined as “an adaptive, technology-enabled process by which firms collaborate with customers and partners to jointly create, communicate, deliver, and sustain value for all stakeholders” (Kannan, 2017, Verhoef et al., 2021). There is a significant different between the VR and AR which can be further explained based on the xreality framework (Rauschnabel et al., 2022). There are several commonly used terms for how technologies generate or modify reality: Augmented Reality (AR), Virtual Reality (VR), Mixed Reality, and Extended Reality (often referred to as XR) (Rauschnabel et al., 2022). Academics and professionals have used these terms inconsistently. As a result, concepts are unclear, and demarcations are unclear (Farshid et al., 2018). With the xreality framework, XR is viewed as an oversight term with two distinct sub streams: AR and VR. In existing classifications (e.g., Farshid et al., 2018; Flavián et al., 2019, Milgram et al., 1995, Milgram and Kishino, 1994), AR and VR are grouped together. Similarly, this framework is the first to include AR, VR, XR, mixed reality, and assisted reality in a coherent framework. Many older (e.g., Milgram & Kishino, 1994) and newer (e.g., Farshid et al., 2018) frameworks remain silent on some aspects of reality (e.g., assisted reality).

Technology that enhances or replaces our view of the world is termed Extended Reality (XR) and often, this involves overlaying or immersing computer text and graphics into real-world or virtual environments (Rauschnabel et al., 2022). The AR/ VR distinction is based on the proportion of virtual versus actual content in the context of Looser et al., 2004, Leclet-Groux et al., 2013, which is difficult to quantify (Meißner et al., 2019). It has been suggested that the AR/AV distinction is based on whether virtual content is augmented to the real world, or if the real world maps to the digital content, but users may not perceive any difference between these approaches. According to this framework, if the physical environment is part of the user experience, it is AR; otherwise, it is VR (Wedel et al., 2020, Meißner et al., 2019).

A growing number of individuals are now able to purchase VR equipment due to the increasing affordability of video format hardware for VR and AR (Kabrovski 2017). Advertisers are particularly interested in VR tools since they can allow potential consumers to experience a realistic preview of a product or a service experience, regardless of where they are located. Due to the interactivity, visualization, and immersion capabilities of virtual reality technology, tourism consumers can gain virtual experiences in simulated tourism environments (Lo and Cheng, 2020). Therefore, consumer attitude persuasion through virtual reality advertisements plays a major role, as utilizing VR technology, consumers are able to gain a virtual experience of a simulated product or service (Claffey and Brady, 2017, Javornik et al., 2021, Kannan, 2017).

Firstly, the relationship between inspiration and source credibility in virtual and augmented reality advertisements were identified as a medium of innovation and an attraction method for a larger audience (Rauschnabel et al., 2019, Zanger et al., 2022). According to most theories of persuasion, limited abilities, and motivations to think about communication should increase the influence of source credibility and argument quality of the message on persuasion (Rauschnabel et al., 2019, Böttger et al., 2017). However, this effect is assumed to occur regardless of the recipients' previous attitudes which restrain changes in cognitive brand attitudes among consumers (Huang et al., 2013, Gountas et al., 2019). Secondly, recent research indicated that source credibility or argument quality-based inspiration emerged only when participants lacked prior attitudes and were unable to form a new attitude based on the message content (Verma et al., 2021). The effects of source credibility decayed rapidly in such settings with prior attitudes among participants when concentrating on the advertisement, which is the main reason for not incorporating inspiration within this model (Verma et al., 2021, Kim et al., 2014).

For example, one of the most significant growth areas of VR marketing will be promotion. The entertainment industry is likely to drive this trend. Rumsey (2016) predicts that 360-degree video trailers will accompany all new film releases by the end of 2016. This trend has been greatly accelerated by Facebook and YouTube's 360-degree video networks. For example, Disney Steam VR app presented a promotional approach for key franchises, including most recently, Star Wars. The first VR games appeared in the early 1990 s, and Ford began using VR for designing and producing its vehicles in 1999 (Barnes, 2016). Despite this, VR was never a mainstream consumer product according to several researchers (Barnes, 2016, Flavián et al., 2019, Bogicevic et al., 2019).

When considering the 3D video advertising domain, the study of Wu, Lin, and Bowman (2022) found that 3D agents not only make the ad-viewing experience more enjoyable but also reduce ad-skipping behaviour. Particularly, 3D animated agents elicit anthropomorphism, a sense of presence, vividness, and novelty, which increase the ad-viewing experience enjoyment, leading to positive affective (i.e., brand attitude), cognitive (i.e., brand awareness), and behavioural (i.e., purchase intention) responses. Further in destination marketing studies, VR commercials with high telepresence boost tourist (re)visit intentions, and this effect is mediated by affection (i.e., entertainment, aesthetics) and cognition (i.e., education) (Ying, Tang, Ye, Tan, & Wei, 2022). Moreover, across three studies, Kristofferson, Daniels, and Morales (2022) found that VR ad appeals increase charitable donation behaviour among individuals via a vivid sensory experience (i.e., visual and auditory) in a non-profit marketing setting.

On the other hand, When considering AR mobile app advertising, it enhances consumer escapism through psychological mechanisms of mental imagery (i.e., narrative transportation and spatial immersion) to engage consumers and augment advertising effectiveness (Sung, Han, & Choi, 2022). In the advertising context, comparing the efficiency of AR to that of traditional ads, Uribe, Labra, and Manzur (2022) demonstrate that AR ads are superior in terms of perceived entertainment and informativeness. The motif underlying this is that AR ads not only attract customer’s attention and provide a more entertaining experience but also activate more cognitive resources, which lead to enhanced responses to the advertised products. Furthermore, two affordances of an AR e-commerce based platform, namely perceived augmented realism and technology fluidity, positively influence the consumer’s flow experience (i.e., control, concentration, interest, and curiosity), significantly impacting cognitive, affective, and behavioural responses toward the brand (Chen & Lin, 2022). AR features (e.g., novelty, awe, inspiration) play a positive role in e-commerce in terms of consumer hedonic motivations and purchase intent (Arghashi, 2022). Nonetheless, the results of this study also stress the negative consequences of AR features (e.g., distraction and information overload) that can reduce consumer hedonic motivations and intentions to purchase.

This paper contributes to the extent literature through introducing a conceptual model to investigate consumer attitude persuasion through virtual reality and augmented reality advertisements using elaboration likelihood model (ELM). This paper begins with a systematic literature review of several theoretical and empirical papers that investigated the use of ELM in virtual reality and augmented reality advertisements. This section outlines the research propositions that facilitate the study of consumer attitude persuasion through virtual reality and augmented reality advertisements. As a result of their literature review, the authors identified six research prepositions that facilitate the investigation of consumer attitude persuasion through these advertisements. In the third section of this paper, we outline detailed future research agendas for the two main routes of central and peripheral research.