Managerial Challenges in VR and AR in Asia

Managerial Challenges in VR and AR in Asia

Padma Panchapakesan (Taylor's University, Lakeside Campus, Malaysia)
DOI: 10.4018/978-1-7998-2874-7.ch003
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Virtual reality and augmented reality technologies have been widely adopted in tourism and hospitality, retail, communication, social media, and other fields. They have become effective tools to deliver consumer experiences and also are cost-effective. Though the adoption of these technologies has received support from customers, there are over-arching issues which have to be addressed for these technologies to diffuse into everyday lives. This chapter discusses how virtual and augmented realities are applied in various industries and the resulting immediate challenges which are needed to be addressed by the managers for a successful adoption.
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Vr Applications In Communication And Social Media

In the context of VR communications, consumers enjoy a more visual and functional control (Jiang & Benbasat, 2004), which allows better inspection of products, with positive effects on diagnosticity, ie., consumers' ability to diagnose the product attributes prior to purchase, and on the ñow experience as a result of visual and functional interactivity and vividness (Jiang & Benbasat, 2004). Concerning product diagnosticity, Li et al. (2002) attribute the positive effects of VR to the illusion of presence which creates new virtual product cues. Starting with the pre-purchase stage, VR technology can contribute to promoting brand/ðrms related to all consumers’ experience with the ðrm/brand before purchase, for instance: searching for information about alternative products/brands through advertising and all forms of marketing communication, acknowledging the reputation and credibility of the ðrm/brand and evaluating alternatives (e.g., Swoboda, Berg, & Schramm-Klein, 2013). All marketing communication that allows consumers to visualize products through VR and related technologies contributes to a more vivid representation of the advertising, enriching consumers' imagination and eliciting more positive attitudes.

Key Terms in this Chapter

Augmented Reality: An interactive process of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information.

Social media: Interactive computer-mediated technologies that facilitate the creation and sharing of information and ideas in virtual communities and networks.

Retail: The process of selling consumer products and experiences to customers through multiple channels of distribution.

Communication: The act of transfer meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.

Virtual Reality: A simulated and immersive experience that can be similar to or completely different from the real world.

Tourism, Hospitality: Aggregate attractions management, convention planning, customer service, event planning, food service, gaming, lodging, marketing, sales and travel.

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