The Metaverse: An Exploration From the Consumer Consumption and Economic Viability Perspectives

What is Metaverse?

Although the idea of the Metaverse has only just begun to acquire traction in the public consciousness, Neal Stephenson's novel “Snow Crash” is credited as being the first to introduce the term. The Metaverse is a virtual reality domain that readers may access by creating an avatar, as explained in the novel. For a wide range of factors, including but not limited to marketing and economics, the Metaverse has evolved into an intriguing platform with growing commercial potential in recent years. The Metaverse is garnering an ever-increasing amount of attention and acceptance, which prompts the question, “What precisely is Metaverse?” When asked to define the Metaverse, each expert responds with a unique explanation. There is no universal agreement on what the Metaverse is or the extent of its reach (Sullivan, 2021; WEC (2021)).

Association of Metaverse With Consumer Consumption

In recent times, the idea of a Metaverse - a virtual world that allows users to interact with each other and digital objects in a lifelike setting - has been increasingly popular. Therefore, corporations are now investigating the potential of using Metaverse-based marketing strategies to attract customers and boost their brand awareness.

In addition, a growing number of people are talking about how the Metaverse relates to consumer consumption. With the development of virtual and augmented reality technologies, the Metaverse—a virtual environment where people can communicate with one another through technology—has recently grown in popularity. The Metaverse can completely alter consumer behaviour and the way people purchase for goods and services. For example, in the Metaverse, a consumer can try on a virtual outfit and see how it looks on them before making a purchase. This can reduce the need for physical stores, allowing retailers to reach a wider audience and reduce their overhead costs. They could test out a new car by taking it for a virtual test drive or see how a piece of furniture would look in their home using AR technology. The Metaverse has the potential to revolutionize the way people consume products and services. For example, consumers might be able to shop for things in virtual storefronts, use augmented reality to try on clothing, and even pay for virtual goods and services with cryptocurrencies in a fully developed Metaverse. The Metaverse, however, also prompts questions about customer privacy and data security. Customers' confidential information and data may be at danger as they engage with virtual worlds and make purchases in the Metaverse. Consumers may also be at danger because of the emergence of virtual currencies, the possibility of fraud, and frauds in the Metaverse.

The Metaverse and Consumer Consumption: Connecting Links

• 1.

  Virtual products and services: A wide range of virtual goods and services might be made available to consumers through the Metaverse. This might include digital furnishings, clothing, and other accessories that customers can use to customize their digital avatars or digital settings.

• 2.

  Virtual events and experiences: Through the Metaverse, customers may be able to access virtual events and experiences that they might not otherwise have access to. Customers could experience virtual sporting events, concerts, or festivals, for instance.

• 3.

  Social interaction and community building: The Metaverse could provide consumers with new opportunities for social interaction and community building. Consumers could join virtual communities that share common interests or engage in social activities in virtual environments.

• 4.

  Advertising and marketing: The Metaverse could provide a new platform for advertising and marketing. Companies could create virtual storefronts and showrooms to highlight their products and services or use virtual billboards and other advertising methods to reach consumers.