Virtual Commerce

Background

The Internet as we know it today is vastly different from the Internet of ten years ago. The improvements in technology related to the applications and software, the computational power of the hardware, and the speeds at which users access the Internet have all changed in very noticeable ways. These factors have led to the development of online environments that greatly widen the scope of potential Internet uses. One promising direction for the Internet is the evolution from simple two-dimensional (2D) web pages to three-dimensional (3D) virtual spaces.

Virtual reality, as the term is used here, is a computer-mediated environment and represents a space that does not necessarily exist in the physical world. Schroeder (2008) states a similar definition for virtual reality, saying that this environment should allow or compel the user to interact with it. In virtual reality websites or games, it is possible for users to interact using avatars. Avatars are the representations of users in virtual worlds, often graphically displayed as 3D characters and are central to the way that users interact with people and objects in virtual spaces. A subset of virtual reality is virtual worlds. Virtual worlds are persistent virtual reality spaces (Schroeder, 2008). In other words, these virtual reality spaces exist and can change. One user can make an alteration (such as buying land and building a store) and that alteration will persist unless it is acted upon by that, or another, user. Much like physical reality, the world doesn't “go away” just because a person isn't there to experience it. Reflecting both the technical and social elements of virtual worlds, Bell (2008) defines a virtual world as “a synchronous, persistent network of people, represented as avatars, facilitated by networked computers” (p. 2).

The virtual world Second Life is one of the largest user-created, 3D virtual world communities. In Second Life, users are called “residents.” Many residents of Second Life use the virtual world to interact socially with other residents, run businesses, or learn how to do things in the real world. Beyond Second Life, other virtual worlds have also developed user bases large enough to inspire marketing efforts. For instance, Coca-Cola has developed a section of the virtual world There.com called MyCoke. This site features large promotional displays, Coke-branded virtual clothing, and activities for visitors. Based on marketing efforts from Coke and other companies, it seems clear that corporations are very interested and relatively optimistic about the idea of using virtual reality for business communications.