Consumer Experiences, the Key to Surviving in an Omni-Channel Environment: Use of Virtual Technology

Volume 10, Issue 3, 2018

Consumer Experiences, the Key to Surviving in an Omni-channel Environment: Use of Virtual Technology

Hanna Lee and Karen K. Leonas, Ph.D. NC State University, College of Textiles, Raleigh, NC

ABSTRACT

With increasing demand of consumers for better shopping experiences and an increased number of online retailers, it is important for Omni-channel retailers to adopt and utilize several virtual technologies, which can support and complement their retailing practices. To strategically manage these technologies, it is imperative to analyze several specific cases, which utilize virtual technologies to align and implement multiple technologies in effective and efficient ways, and to make synergy among those technologies. The purpose of this paper is two-fold. First, to examine how Omni-channel retailers utilize and manage several virtual technologies, which are virtual/augmented reality, virtual fitting rooms and fashion shows, and virtual salespeople, to provide satisfactory online shopping experience by overcoming problems online environments fundamentally have. Second, to provide practical implications to brick-and-mortar retailers, who have recently ventured into online retailing, in their management of various types of channels simultaneously using technologies like the Internet of Things and Kiosks. Through the review and analysis of several cases, this paper provides managerial implications for practitioners to utilize virtual technologies in ways that can actually add value to consumer experiences and urge them to take a mixed approach toward virtual technology.

Keywords: Omni channel, Virtual technology, consumer experience, consumer engagement

1. Introduction the realms of both sales and marketing in an Online retail channels continue to effort to increase engagement with customers increase and gain power within the retail (Hansen & Sia, 2015). industry (McCoy & Deena, 2011). Retailers In the online retail environment, that operate solely online have tried to exploit consumers can enjoy broader and deeper profits by being the first to move into this product assortments, lower prices, new environment, and brick-and-mortar convenient shopping experiences, and retailers have also started to utilize online available detailed product information channels. Today, retailers are utilizing both compared with the traditional brick-and- online and offline channels adopting an mortar retail environment. Simultaneously, integrated multi-channel approach, referred the emergence of online commerce, also to as an Omni-channel. This is taking place in known as E-commerce, with digital

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innovation can provide several benefits to satisfy continuously changing consumers' firms. Because firms gained the ability to expectations was specifically emphasized. In have better and broader accessibility to this dynamic environment, firms must consumers through E-commerce, they could continually update and incorporate new enjoy market expansion with increased sales. technology, to gain the competitive In addition, firms can develop a deeper advantage and attract consumers, proposing comprehension about consumer demand more competitive advantages to consumers. through E-communication, which can, in Omni-channel consumers have started turn, enhance consumer experience (Choi & to show differential shopping behaviors when Shen, 2017; Lu, 2017; Noble et al., 2005). compared to the traditional shopping style. Hence, the importance of utilizing an According to Lu (2017), Omni-channel Omni-channel marketing strategy is widely consumers typically utilize multiple channels acknowledged and accepted as it has (both online and offline), for a single tremendous potential for developing purchase, and purchase products after competitive advantages. For these reasons, carefully evaluating several retailers. These brick-and-mortar retailers are working to consumers are eager to spend time expand their influence into online retailing evaluating, experiencing, and purchasing markets to compete with an increased products by looking for information in number of purely online retailers and aid in several channels simultaneously; they switch their survival (Lu, 2017). The competition channels and touch points interchangeably has become fierce and the importance of (Lu, 2017; Verhoef et al., 2017). As a result, adoption and managing several virtual today’s consumers have variation in their technologies to meet the needs of a more shopping behavior and in Omni-channel diversified consumer base in the dynamic environments, they use various resources to retail industry. Virtual technologies are those increase their shopping value and satisfy technologies that enable the function of an evolving needs (Dahlhoff, 2017). object or resources simulated or emulated in In this context, retailers should find software identical to that of the ways to provide a superior consumer corresponding physically realized object. experience as it has the ability to create a These technologies have tremendous point of differentiation in the competitive potential to increase competitive advantages retailing industry (Dhruv et al., 2009). The for these retailers because of their capability consumer experience is a central issue in the to improve overall retail performance retail industry as the importance of pleasure (Mathias, 2017). and emotion is realized (Holbrook & Digital technological development has Hirschman, 1982). Schmitt (1999, 2003) brought about significant changes in the retail defined consumer experience as “a process, environment resulting in changing strategies which starts from interaction between and management practices of fashion firms consumer and firms triggering other that were traditionally only part of the brick interactions and personal reactions.” Because and mortar marketing channel. Traditional the consumer experience involves rational, retail strategies have been to incorporate the emotional, sensorial, physical, and spiritual new online channels after the e-commerce responses (Schmitt, 2003; Schmitt, 1999; explosion in response to fierce competition Verhoef et al., 2009), the interaction between between online and offline retailers and even consumers and firms should be effectively between online and offline units in the same managed. According to Hoffman and Novak company (Delhi, 2017). Rust and Lemon (1996), consumers pursue hedonic value (2001) described these changes as increased compared to utilitarian value in the online interactivity between consumers and firms, retail environment. Contextual factors are the opportunities for personalization and most important factors that enhance customized service, and the importance of consumer experience (Dahlhoff, 2017). implementing appropriate retail strategies to Therefore, retailers should focus on

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improving controllable factors such as the retailers' needs and expectations (Pantano & service interface, atmosphere, price, Viassones, 2014; Renko & Druzijannic, assortment, and multiple channels to provide 2014). a more hedonic and pleasant experience to With consumers demanding better consumers (Verhoef et al., 2009). Because shopping experiences and an increasing virtual technologies simulate physical goods number of online retailers, it is important for and services in a three-dimensional, Omni-channel retailers to adopt and utilize interactive, and realistic way, by several virtual technologies to support and incorporating them into the shopping complement their retailing practices. To experience, there is tremendous potential to strategically manage these technologies, it is increase benefits for both consumers and imperative to review and analyze several retailers (Jin, 2009; Moon et al., 2013). Some specific cases, which utilize virtual studies found a positive effect of virtual technologies to align and implement multiple technologies on consumer experience and technologies in effective and efficient ways engagement. Roggeveen et al. (2016 & 2015) and to achieve synergy. The purpose of this found visual cues utilizing digital and virtual paper is to identify methods to successfully technologies or dynamic messages are crucial manage several virtual technologies in the to increase the level of customer engagement Omni-channel environment that will enhance in both online and offline retail competitiveness in the market and provide environments. Therefore, firms that utilize at practical implication to practitioners by least one online channel have to realize the presenting which management approach will significance of improving consumers' result in the desired outcome. To implement shopping experience by aligning and this, the paper first reviews the way Omni- balancing virtual technologies between each channel retailers utilize and manage several channel to prevent internal cannibalization virtual technologies including and by adding complementary technological virtual/augmented reality, virtual fitting features to the retail outlet (Bassett, 2017). rooms and fashion shows, and virtual Also, it is important to provide targeted salespeople to provide satisfactory online information that is of unique value to shopping experiences. Second, this paper consumers to increase customer engagement identifies ways to manage different types of by connecting with the consumers. To channels simultaneously using technologies achieve this management objective, like IoT (Internet of Things) and Kiosks, technology could be utilized for which are frequently utilized by brick-and- implementation because innovation from mortar retailers. new technology can positively influence the consumer shopping experience (Dhruv et al., 2. Literature review 2017; Verhoef et al., 2009). As consumers Retailers are making significant purchase more when they enjoy their investments in technology and emphasizing shopping experience, new technology can e-commerce to meet the expectations of benefit both retailers and consumers, digital consumers. They are also hoping this increasing overall profitability of the will give them a strong competitive business (Inman & Nikolova, 2017; Kim & advantage in today's volatile retail Kim, 2008). environment. According to O'Shea (2017), However, new technology should be "Walmart, one of the retail giants, spent more carefully evaluated and examined because than $10.5 billion on digital information there are both positive (Pantano & Naccarato, technology in 2015, being one of the world's 2010) and negative aspects (Verhoef et al., biggest technology spenders." Considering 2009) that new technologies can bring to the increasing importance of adopting and retailers and consumers. A key consideration utilizing technology for retailers to be to evaluate is the technological capability to successful in the market, new technologies respond to both consumers' preferences and should be fully understood. Deloitte (2016)

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noted virtual/augmented reality, artificial Generation Z, currently aged between 13 and intelligence, internet of things, and 17 years old, have access to $44 billion in robot/drones/driverless vehicles as newly buying power and have indicated that they emerging technologies in the retail industry. are ready to adopt VR because they are In this paper, cases and issues that come from experience-driven consumers (Yong, 2017; the alignment of those technologies between Tirico, 2017). Specifically, 80% of each channel will be explained in an attempt generation Z consumers answered that they to provide a satisfactory shopping experience are more likely to visit stores that offer to consumers and to create a synergy between entertainment, and among that 80%, 80% multiple channels. said they are eager to visit stores offering VR In addition, because consumers show technology (J. Walter Thompson differential consumption behavior in Omni- Intelligence, 2016). Many retail firms started channel environments, the AISAS to incorporate this technology into their retail (Attention, Interest, Search, Action, Share) practices to meet the increasing consumer model developed by Dentsu will be used to demand, increased favorable attitude toward explain how these new technologies can align VR implementation, and it's potential to and play complementary roles with new enhance the consumer experience. Some VR consumption behavior of Omni-channel tools and devices currently used in the market consumers. In the AISAS model, consumers include Oculus™, Rift™, HTC Vive™, do not necessarily move through each of five Playstation VR, Samsung Gear VR, and traditional stages, which are attention, Google Daydream View™. In addition, a interest, search, action, and share, and simpler version of VR, practical for small-to- consumers may skip or repeat a stage. medium sized firms, can be achieved by (Sugiyama & Andree, 2011). Thus, it can using a low-cost software solution like explain diversified behavior patterns between Google Cardboard™ and View Master ™ Omni-channel consumers and traditional VR (Bardi, 2016). consumers, who only use one specific type of The major differential benefit VR retail format either online or offline. In this provides compared to a traditional interface model, the importance of providing a is its ability to place consumers inside an seamless customer experience and providing experience through immersion into three- a consistent brand experience to consumers is dimensional virtual environments. This emphasized (Sugiyama & Andree, 2011). enables interaction and the stimulation of Therefore, the new technologies will be more sensory functions (Jackson, 2015). By explained focusing on how they can enhance placing consumers into the virtual world, the overall customer experience in an Omni- consumers can enjoy a variety of experiences channel environment (Raindance Consulting, including a product trial and entertainment. 2016). Thus, VR can enhance shopping experiences, which will contribute to better customer 2.1. Virtual reality (VR) and augmented engagement. In the case of online retailers, reality (AR) VR provides an opportunity to overcome inherent problems including its inability to 2.1.1. Virtual reality (VR) provide actual touch points and product trials Virtual reality (VR) is formed using to consumers. Brick-and-mortar retailers can computer technology by creating a simulated also enhance the customer experience by environment (Bardi, 2016). According to making shopping fun and providing better Statista (2017), the number of VR users is tools to experience brands. Even more, VR expected to reach 171 million by 2018. can provide unlimited digital inventories Because of its ability to include consumers compared to expensive and limited inside a fully immersive computer virtual traditional retail spaces, which help offline environment (Jackson, 2015), there are retailers, overcome problems of inventory increasing needs for implementing VR. management (Sandlund, 2016). Arthur

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(2016) noted that an appealing physical store companies have introduced VR to their creates more experiential spaces, like a consumers. Representatively, Alibaba, one of theater, by which they can provide the retail giants in Asia, launched a VR store entertainment, intriguing emotion, and bring called ‘Buy+ ™.' This VR store allows catalog and spaces to life. VR can facilitate shoppers to wander throughout the VR store retailer-consumer interaction and increase with unlimited inventories; enabling customer engagement by creating a more purchases through mobile devices (Bardi, attractive retail space. As a result, sales can 2017). E-bay teamed with an Australian increase as the consumer confidence to retailer, Myer, to provide a VR department purchase is increased because they have been store to consumers in the Australian market. placed in an immersive digital environment Amazon.com is putting more resources into (Arthur, 2016). VR to provide extra benefits to Prime However, there are some issues shoppers. In addition, some companies have associated with utilizing VR. First, started to use VR looking to engage more consumers can recognize the gap between consumers inside their brick-and-mortar what they expect, based on their VR retail spaces. In the case of The North Face, experience, and what they actually get as it is they created VR experiences inside their in a precarious initial stage of the adoption offline retail space to create a fully- cycle. The expectation of VR performance immersive outdoor experience (Sandlund, might be significantly exaggerated. 2016). This VR experience allows consumers Specifically, the inflated expectation as a to test products and can stimulate their result of the VR experience is prevalent in the motivation to use products by putting them market, and there are risks of failure and inside adventurous outdoor situations. collapse if not successfully commercialized However, the primary purpose of offering and utilized (Garner, 2017). Next, VR could VR was to increase marketing effects rather be effective in telling a story and providing than selling effects in this case. A more an exciting experience for a brand, but it does practical example is a VR showroom Ashley not necessarily result in a better buying Furniture offered in 2017. This VR experience for consumers (Sandlund, 2016). experience enabled consumers to test By understanding consumers’ attitude and products in virtual spaces, which was perception toward VR and appropriately impossible in traditional retail spaces because placing this technology into retail platforms, of its heavy and large product characteristic retailers may fill the gaps between what (Bardi, 2017). A similar VR application was consumers expect and what they actually made at Canadian Tire. Canadian Tire receive. Furthermore, retailers should find recently built a digitally enabled store ways to connect an entertaining experience featuring more than 100 interactive screens, with an attractive buying experience by where consumers can do everything from integrating shopping attributes into the VR testing out new tires using a VR driving and not to merely provide a meaningless fun simulator, to redesigning their back patio on experience to consumers. The key is to a large touchscreen and then viewing the new provide an entertaining experience associated look in VR using an Oculus Rift headset. By with a product or brand. facilitating the VR experience, this company Several Omni-channel retailers have increased interaction with consumers initiated using VR to provide a seamless potentially achieving better insight into customer experience. VR was widely and consumer demand by collecting valuable data partially adopted by car dealerships and the about how consumers shop. In other words, real estate industry in the early stage because this feedback information can provide a visual cues are critical to the consumers in better understanding of consumer demand to these industries (Bardi, 2017). However, as the retail level (Sandlund, 2016). VR is in an initial testing stage in the general Likewise, through VR experiences retail industry and therefore, only a few consumers face more touch points in their

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overall shopping journey and develop a environmental mapping systems (Garner, deeper connection with products and brands. 2017). With the increasing use of Because consumers can utilize VR smartphones and tablets, which are throughout the buying and decision-making intermediary devices that can be used to process, and consumption behavior can occur access AR, this technology has the potential in any stage stimulated by visuals and to be widely adopted by consumers. Newly entertaining experiences, VR should be developed solutions including Microsoft’s placed in the most appropriate stage of the Hololens™, Google’s Tango™ platform, and decision-making process based on the Google Glass™ are alternatives to current demand of the target consumers and what AR Apps or programs, which can be used by retailers want to achieve by using VR. mobile intermediary devices (Bardi, 2016). Moreover, retailers should put efforts in These technologies enable consumers to use integrating VR into overall shopping AR to instantly send messages, check experiences by providing consistent brand Facebook postings, and help to find the best experiences among actual and virtual route to a designated place (Garner, 2017). environments. Some opportunities exist in Thus, consumers can enjoy better shopping the mobile phone-based VR platforms experience by taking advantages of a new (Garner, 2017). Because most consumers use type of information display and convenience mobile devices, it can help stabilize VR presented by AR. technology in the retail industry by providing In many cases, AR has been used in the benefits such as ease of use, lower cost, and a home improvement industry. Lowe's and wider range of applications. IKEA put AR into practice to provide a better shopping experience to consumers, expecting 2.1.2. Augmented reality (AR) an increase of consumer engagement in this Augmented reality (AR) uses new reality (Arthur, 2016: Westfield). In case computer technology to impose computer- of Lowe’s Holoroom™, it successfully generated virtual images into a view of the offered complete design and visualization of real world using an intermediary device home improvement products placing those (Bardi, 2016; Jackson, 2015). It brings virtual products in a real environment with virtual and artificial objects into a real environment. images (Sandlund, 2016). However, the Hence, the major difference between VR and scope of AR application should be broadened AR is its ability to immerse users into a to provide actual design and visualization virtual world not just showing overlaid solutions to consumers. IKEA was virtual images. AR has been widely utilized comparatively successful in utilizing AR in the gaming industry. Pokémon Go is a because IKEA effectively managed all touch popular game that effectively utilized AR by points they owned including the application collaborating with Google maps. However, (App), catalog, product assortment to provide AR’s functionality goes far beyond simple a complementary experience to consumers games, and it is applied in the retail industry. (Dahlhoff, 2017). Specifically, IKEA Some companies have used AR to apply provided an AR App for furniture selection visual overlays, which allow consumers to by working with Apple's AR Kit redecorate their actual home without Technology™ and Ios11. It helped physically applying products, enabling consumers visualize and arrange products of consumers to enjoy fun experiences that can interest in their home by taking a picture of also be convenient (Garner, 2017). Many the targeted space (Lunden, 2017). Then, retailers have begun making considerable consumers could place the pre-selected investments in the underlying technologies products into their actual space. These AR relevant to AR and embracing the potential systems provide convenience to consumers posed by increasing AR applicability to because they simulate an overall outlook of retail. These technologies include depth- the room without actually purchasing or sensing camera lenses and physical moving furniture into the space. This is also

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a type of entertainment as some consumers should understand the nature of mixed enjoy the experiences of virtually re- commerce presented by the Omni-channel arranging furniture in a specific space. This environment. VR/AR related experiences can positive and fun experience was able to be empower retailers by providing in-depth shared with other consumers throughout all information about consumer behavior with consumption behavior stages. In conclusion, continuous feedback. Also, it can benefit AR can empower consumers by enhancing consumers by giving more confidence in the pre-purchase and purchase stages with the purchases with more realistic virtual ability to shop for, locate and buy the right information compared to traditional online product for their home. Sharing their retailing. The key to successfully implement experience could enhance and stimulate other this new immersive technology in mixed consumers’ buying behavior (Dahlhoff, commerce lies in the management of gaps 2017). IKEA, by aligning and managing between inspiration and purchase that distinct experiences from different touch consumers perceive. These gaps should be points, significantly improved overall minimized in an Omni-channel environment consumer shopping experiences. by arranging and presenting this technology Likewise, consumers can have more in an appropriate time and space to provide a confidence in their buying decision because seamless experience. By providing a AR can create a convincing and interactive seamless and consistent user experience world (Jackson, 2015). Unlike VR, throughout channels, it can largely benefit consumers can bring and enjoy a consumers with increasing engagement. personalized and unique experience of physical stores to the AR by capturing an 2.2. Virtual fitting rooms (VFR) and actual visual image of the place they want to virtual fashion shows (VFS) test, so both online and offline retailers can Virtual fitting rooms and virtual benefit from utilizing AR (Arthur, 2016; fashion shows are ways to simulate the Sandlund, 2016). For example, online trying-on of a product. Virtual fitting rooms retailers can overcome a problem of online provide a virtual experience similar to video retailing, which is the inability to test game version of a fitting room. According to products in the pre-purchase stage. This can Gültepe and Güdükbay (2014), the virtual help decrease product returns. Also, offline fitting room is a technology that provides a retailers can provide better options for virtual product trial experience. Virtual consumers to choose from by increasing fitting rooms generally utilize augmented convenience and offering hassle-free technology, and more advanced virtual fitting experiences. Hence, AR can add value to room programs, present the fashion items consumers in their shopping journey. either on a video of the consumer or on a However, retailers should keep abreast of virtual avatar reflecting the consumers' body changes that arise from AR in all characteristics. Virtual fashion shows are technological, industry, and consumer produced with a technology that can perspectives, because the speed of innovation transform the runway experience with virtual is drastically fast, posing difficulties in reality technology giving a full picture of the adapting and managing AR technology event, from backstage to the front row (Arthur, 2016). (Codina, 2015; Reddy, 2016). It enables the Considering its ability to improve and creation of a fashion show without seating enhance shopping experiences, retailers charts, traffic jam, late-arriving models, and should realize opportunities posed by VR and any bothersome situations (Codina, 2015). AR. VR/AR-enabled experiences can What makes these virtual fitting rooms and enhance the consumer experience by virtual fashion shows unique is their ability to suggesting new ways to compare and connect virtual product trials to an actual visualize products and to interact with purchase at the end (Kramer, 2011). retailers (Sandlund, 2016). Also, retailers

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To implement virtual fitting rooms and body shapes to salespeople (Kramer, 2011). virtual fashion shows, computer graphic These perceived risks are of concern, as the (CG) technology is required to match a real most important factor for successful body and a simulated body. However, it is technology implementation is a consumer more difficult to implement this technology reaction toward new technologies. Therefore, for virtual fashion shows because the motion retailers should effectively communicate the of the virtual model must be synchronized usefulness of VFR technology to increase with an actual model rather than merely their comfort level when using this. scanning the visual body shape or mimicking Despite these challenges, several the simple motion of an actual model into a retailers have implemented the VFR virtual model (Okada et al., 2006). Thus, it is technology in an effort to meet consumer important for virtual fitting rooms and demand and provide a better experience fashion shows to improve their throughout the various channels. De Beers synchronization capability. The more provided a tool which enables consumers to realistic virtual fitting rooms and fashion try-on their products virtually (Lee, 2017). In shows become, the more consumers can addition, an effective virtual fitting system, enjoy a better shopping experience. Fits-me™, was developed by Heikki Haldre 2.2.1 Virtual fitting rooms (VFR) and adopted by several apparel retail chains The demand for virtual fitting room including Otto and Hawes & Curtis (Kramer, (VFR) technology rose from an inherent 2011). The advantage of this tool was its problem common to online retailers, the ability to build a database of individual consumers' inability to try products on before human body metrics which connected to an making purchases. Consumers wanted to see online system. Then, these data are used to how a product would look on them - even in form a robotic mannequin, which is a an online environment. Demand was also simulated virtual version of the physical body driven in the brick-and-mortar environment form. Consumers can select from multiple as consumers found it inconvenient to ask channels without barriers imposed by a salespeople every time they wanted a specific channel type. Fits-me™ is also different size or style. convenient as it can be used in both brick- VFR technology can benefit retailers and-mortar and online stores as it simulates as it can inspire consumers to purchase more the fitting room experience. In brick-and- because it started to mimic even an emotional mortar stores, it can assist consumers in experience that brick-and-mortar shopping selecting a product off the rack without can provide through actual fittings and having to physically try it on. In online stores, interaction (Kramer, 2011). This new it virtually allows consumers to see what the technology presents the potential to offer product would look like on their body shape many of the same benefits which only and size without having the product in hand. traditional retailers and shopping activities Specifically, consumers can see robotic provided in the past. mannequins developed to resemble their However, there are challenges for body shapes on a screen and can see how a utilizing VFR technology. First, as VFR is in product fits their body, including how it the preliminary stage of utilization, retailers drapes. Thus, they can feel more confident would need to invest in the development of when they make an online purchase and can better technology to reflect accurate sizes and enjoy a simulated try-on experience offline in body shapes of consumers. Second, and a stores without having to call salespeople into more uncertain problem, lies in consumer more private spaces. Moreover, retailers can responses. Because it is in the early stages of enjoy lower labor cost because fewer adoption, consumers may perceive risks in salespeople are required to assist customers utilizing virtual fitting rooms partly because in the fitting room areas of brick-and-mortar they are unfamiliar with virtual simulation stores. In the case of online channels, fewer and they are reluctant to talk about personal salespeople may also be required as they can

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expect fewer customer query departments for One of the advantages VFS offers is its online retailers. Another example of VFR ability to provide additional information which uses a more complicated technology is about models and products which is not EZ face™. It is a virtual mirror, but it utilizes possible in the actual fashion show setting several technologies simultaneously. EZ (Anderton, 2017). Traditional fashion shows face™ is a cosmetic kiosk that enables people also lack the ability for attendees to see a full to virtually try on makeup (Kramer, 2011). view of products from all perspectives as they By using this system, consumers can were limited to a view from one location. By experiment with various cosmetic products providing multiple perspectives of models without having to clean their faces each time. and products (i.e., views from backstage, Because this system effectively captures front, side), consumers can now fully physical characteristics of the individual face evaluate and experience products without through a video camera, consumers can changing seats and stances. psychologically sense the physical To successfully improve the consumer relationship between products and their faces experience using VFS technology, several even if the face is virtually simulated onto the issues should be understood and addressed by screen. Regardless of the type of channel, retailers. Because VFS is highly dependent VFR technology commonly added value to on the tools to simulate and reflect the both consumers and retailers. Consumer motions and physical characteristics, it shopping experiences were pleasant and requires advanced technology to make real- enhanced, resulting in the potential for time processing synchronizing the motions increased sales and return visits. Adopting between a real model and CG model (Okada this technology, retailers can reduce the et al., 2006). Motions of a CG model in real- number of salespeople required in the fitting time should match with the motions of a real room area or necessary to answer quires. person, while a CG model wears products 2.2.2. Virtual fashion shows (VFS) differently from the actual clothes of a real The demand for virtual fashion shows model. Current techniques have limitations (VFS) arose because of the unsustainable because they require markers or sensors nature of current fashion shows. With the attached to a person. Better commercial number of shows and events in a limited human motion capture systems, which have about of time, buyers, journalists, celebrities, real-time estimation capability, are on socialites, and even influential bloggers did demand to fully transfer motions and not have the resources to attend every fashion physical characteristics (Okada et al., 2006). show in which they had interest. To address The investment can be very high for retailers, this situation, they selectively choose to and currently there is no data to support that attend only a few fashion shows. Lack of the return will be large enough to compensate attendance, or the failure of influential people for the investment. (Kramer, 2011). in the industry to attend the shows, can pose Several fashion brands and retailers problems for the show's sponsors, as the goal have used VFS technology including Coach, is to attract many buyers, press, celebrity, and Superbright, Nolcha, Alibaba, and JC Penny. socialites to their fashion shows. The more Coach presented its virtual fashion show in these people participate fashion shows, the several offline and online outlets including more fashion firms can increase visibility, Simon Malls, Facebook, YouTube, and VR raise product awareness, drive consumer networking formats like Within Jaunt VR, demand, and increase orders resulting in a Samsung VR, and Oculus on February 17, positive impression on consumers (Sykes, 2017 (Lockwood, 2017). This VFS offered 2015). Thus, VFS can be a breakthrough multiple views ranging from backstage to the technology providing ways to maximize front stage view with a preview of a new exposure to as many associates relevant to collection to engage consumers by providing fashion shows. a pleasant and unique experience. Superbright provided VFS featuring similar

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views, which regular fashion shows generally world (Moon et al., 2013). According to present to consumers including attractive Snider (2012), almost $2.3billion was spent models and well-designed outfits (Anderton, on purchasing furniture, homes, and clothing 2017). However, this show was presented by virtual buyers in SVWs for their avatars. using AR with a marker-based system to Because consumers increasingly use a SVW synchronize the models and products to and because it has tremendous market three-dimensional virtual spaces. To access potential, several retailers have started to use this VFS, consumers used mobile devices and SVWs to present their products to target iPads with a downloaded App to receive full consumers. JC Penny collaborated with views and additional information about the Stardoll, which is a SVW for fashion-minded models and products. Nolcha partnered with teen girls. This program enables the target the YouCam Makeup App and used AR and market, teen girls, to decorate their virtual internet live streaming to create a VFS that homes and personalized avatars by making provided multiple views and ways to virtual purchases. Results showed that the virtually experiment with products program gave hedonic experiences to (BusinessWire, 2017; Hills, 2017). All these consumers by providing ways to mix-and- trials were made by collaborating with match their virtual products, which can be a technology-based firms like IMG. These fun experience; and by providing satisfactory partnerships were critical because the fashion quality because the virtual fashion has the brands lack the ability to implement virtual same design features that can be found in the technologies. However, Alibaba, a major actual stores (JC Penny Company Inc, 2011). Chinese e-commerce conglomerate, acquired Furthermore, consumers can bring these a technology firm that can effectively provide hedonic experiences into reality if they are virtual shopping experiences to consumers. satisfied with the virtual fashion presented in In 2016, Alibaba launched Buy+™, which is SVWs increasing brand awareness and a program that enables consumers to browse purchase intention (JC Penny Company Inc, products through a VR headset showing 2011). A clothing company, Diesel, virtual models showcasing products during a partnered with Sims 3 to create a similar VFS (Wang, 2016). Considering the complex experience for their target market by nature of a VFS, integrating several providing virtual fashion that has the same technologies like a kiosk and AR into a outlook as their real collection (Wester, program, there are a vast number of 2016). These companies excelled at realizing possibilities to improve the consumer the effectiveness of using new types of social experience by connecting and aligning media by introducing innovative approaches several types of virtual technologies and to the way consumers shop. Utilization of creating synergies among them. SVWs was quite successful because SVW is A Social Virtual World (SVW) one of the places that can effectively provides an opportunity to provide better and introduce a line of products for target complementary shopping experiences to consumers and has a track record of brand- consumers because there is the potential to building success (JC Penny Company Inc, provide a virtual fashion show using an 2011). Hence, SVWs could be leveraged as a avatar. A SVW, which is a type of social platform where VFS can be implemented. media platform, is "a three dimensional, Because SVWs have potential to effectively immersive, multi-user virtual environment provide a unique brand experience to wherein participants interact through avatars, consumers by offering hedonic and which are virtual representatives of entertaining experiences, overall the themselves, for various purposes" (Zhou et consumer experiences can be improved al., 2011). SVWs have shown tremendous resulting in the formation of a favorable potential to fashion firms as it can be a place attitude toward actual brands. Moreover, to showcase their products to a variety of SVW can be beneficial to retailers by consumers with the ability to emulate the real providing information about the sales pattern

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because specific virtual fashion can be sufficient to satisfy current consumer needs purchased more frequently than others. The because it lacks in the depth of interaction of marketing effect can be significant human characteristics and a social presence considering SVWs are one of the social (O’Shea, 2017). Social presence, referred to media platforms, where the word-of-mouth as the sense of being with others, is important effect is tremendous. Social interaction and for overall perception in a mediated shopping sharing activities about virtual fashion brands environment like SVWs because it can can frequently occur among SVW users if positively influence consumer experiences they are satisfied with the purchases (Bitter & by presenting a feeling of co-presence (Moon Sonja, 2016). et al., 2013). Similarly, Holzwarth et al. (2006) found the positive influence of social 2.3. Virtual salespeople presence from a virtual avatar on brand According to Eastin et al. (2011), "a attitude, satisfaction with the retailer, and virtual salesperson is an employee avatar of purchase intention. As consumers favorably the virtual store that supports virtual appraise in-depth interaction with a human- consumers by providing product information like avatar, many retailers have begun to use and recommending products." The range of sophisticated artificial intelligence (AI) as a automation varies, but currently many parts part of their virtual salespeople of virtual salespeople are controlled by real programming. Sophisticated AI has the human beings (Eastin et al., 2011). However, ability to facilitate an effective interaction development of humanized digital between virtual salespeople and consumers in technology provides a technological an efficient manner. Because AI is used to foundation to develop personalized AI-based include human characters into a virtual salespeople, which have human world, consumers will form positive attitudes characteristics (Garner, 2017). Salespeople toward brands if virtual salespeople can can significantly influence consumer’s brand successfully implement a social presence into preference more than any other touch points the virtual space (Moon et al., 2013). through communication (Macdonald et al., According to Arthur (2016), 70 percent of 2012). It is important to understand the U.S. millennials said they would appreciate a impact of managing touch points in virtual brand or retailer using AI technology spaces, and retailers should consider utilizing showing more interesting products, and virtual salespeople for effective management. showed an optimistic attitude toward brands Considering most retailers are not using AI. It is because of its ability to technology-centered companies, retailers accurately predict what they want through should also look for partners who can help sophisticated communication. Another way them with appropriate technological tools to facilitate effective interaction between and capabilities (O'Shea, 2017). consumers and virtual salespeople is through Some traditional methods used to Social Virtual Worlds (SVWs), which is a facilitate interaction between online type of social media. According to KZero salespeople and consumers include instant (2012), "approximately 1.9 billion people messaging (IM), a type of online chat registered on more than 300 SVWs globally." providing real-time text-based Because of its tremendous growth potential, communication, and voice over internet several retailers have focused on this new protocol (VoIP), a type of technology that type of social media. Moon et al. (2013) enables voice communication. However, the found that SVWs are virtual spaces that processes of these methods are largely emulate the real world, and it is a place where controlled by actual human beings in most consumers can socialize, learn, travel, and cases, resulting in high labor costs (O’Shea, shop. SVWs can be utilized as a new form of 2017; Eastin et al., 2011). In some cases, retailing space using an avatar as a new type automatic communication occurs without of virtual salesperson (Moon et al., 2013). human efforts; however, this is generally not Because avatars can provide a social

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presence to consumers inside the virtual ways to develop personal and emotional world, it can be an effective tool to communication by evaluating new communicate with consumers resulting in a technology to exploit opportunities possible positive experience. through the use of virtual salespeople. One of the major benefits that can be Moreover, because virtual salespeople can be accomplished by implementing virtual placed in any point of shopping stages for salespeople is the ability to provide personal communication, retailers should understand and convenient experiences to consumers consumer needs in each of the distinct stages with communication of comparative quality and work to integrate those experiences into to that occurring in brick-and-mortar stores one pleasant experience by adding (Wiggers, 2017). Because consumers humanized features. One of the important struggle with information overload, it is tasks of the virtual salesperson is to provide important to provide a machine-processing consistent and seamless shopping system which can alleviate information experiences to consumers through overload by filtering information and humanized interaction (Wiggers, 2017). automating tasks (Miller, 2016). One of the There are some cases which currently ways to give filtered and personalized utilize AI assistants to answer consumer information in retail spaces is by providing queries and to communicate with consumers. virtual salespeople that utilizing AI; this Representatively, Siri in iPhone, Cortana in results in the ability to help consumers Microsoft, and Alexa in Amazon's Echo can understand meaningful information among communicate with consumers by answering growing amounts of data. In addition, by inquiries using AI. Specifically, these utilizing virtual salespeople, consumers can systems can make suggestions, search experience more fine-tuned interaction and product locations or information, and track eventually can be much comfortable with availability (Moon et al., 2013). Compared to processing additional pieces of data (Miller, other AI assistants, Amazon's Alexa shows 2016). Because consumers can get more extra features. This AI can do more than personal information targeted to their own simply answer questions. Specifically, Alexa needs with AI-based virtual salespeople, they can reorder products by conversation because can improve shopping experiences and it allows voice-generated purchases. LG is consequentially overall their engagement working to incorporate Amazon’s AI with the retailer or brand increases (Moon et technology effectively into their appliances al., 2013). Increased communication between including a refrigerator or television salespeople and consumers can drive sales improving the consumer experience (O’Shea, growth by increasing the level of engagement 2017). (Wiggers, 2017). Today, many fashion companies have However, there is a need to fully begun to utilize AI as a part of their virtual develop underlying technologies like AI salespeople program. Macy's On Call is one f because virtual salespeople cannot cover the example that works as an AI assistant in the wide variety of questions consumers ask apparel retail industry. It is a new mobile web (Miller, 2016). More sophisticated human tool powered by IBM, which enables characteristics are required to emotionally consumers to ask questions in natural communicated with consumers to improve languages and receive customized responses consumer experiences. Therefore, it is to their questions. This service is in the important to give a human appearance and piloting stage for implementation (IBM personality to the virtual salesperson with the News, 2016). In the case of The North Face, ability to understand all aspects of they have developed a tool called ‘Fluid communication to respond appropriately expert personal shopper℠' using IBM's (Moon et al., 2013). As virtual salespeople Watson cognitive computing technology to utilization is currently in the preliminary enhance consumer experiences by enabling stage, it is recommended that retailers find an intuitive searching (Arthur, 2016). Levi

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Strauss & Co. provided a tool to with improved experiences in retail spaces communicate with virtual stylist in-depth because of its ability to process consumer using AI-powered Chatbot. This program demand in a fast and interactive manner. IoT helps consumers compare styles, find sizes, technology has been implemented in a range and pick the jeans. Then, a virtual stylist of products from relatively inexpensive home recommends products that suit consumers' automation tools, like Smart home and Smart preferences by analyzing and tracking the appliances, to more expensive items like purchase history (Wiggers, 2017; O'Shea, Smart mirror in retail spaces. For retailers, 2017). The degree to which humanized Smart mirror, which is one of IoT solutions, characters are utilized inside AI varies has the potential to provide better shopping greatly with respect to the firm’s intention to experiences to consumers because when use, and ability to implement, technology. using Smart mirror consumers can save time For instance, tech-savvy companies like and have a more comfortable and privacy- Amazon.com also make trials utilizing AI protective environment (Sugar, 2017). It throughout an overall supply chain and not allows consumers to request items in limited to virtual salespeople. Amazon.com different sizes, browse different styles and is also trying to use AI in drone delivery provides a variety of purchase options with a systems and to place AI robots in distribution touchscreen. This results in consumers centers to augment existing options (Van having a convenient shopping experience Doom et al., 2017). while eliminating cumbersome procedures (Sugar, 2017). Hence, Omni-channel retailers 2.4.1. Internet of things (IoT) utilizing both online and offline formats, Internet of things (IoT) is one of the should consider implementing IoT social networking technologies that can technology to provide better shopping connect a variety of ordinary devices ranging experiences through connecting devices and from cameras to refrigerators through the systems used in each stage of the shopping internet (Garner, 2017). According to process. Also, brick-and-mortar retailers can Bandyopadhyay and Sen (2011), "IoT is a utilize IoT related services including Smart concept, which can bring new forms of shopping cart, interactive displays and communication between people and things mirrors, and Smart kiosks inside their retail and between things themselves by spaces to compete with rapidly growing embedding short-range mobile transceivers online retailers by giving comparative into a wide array of additional gadgets and shopping experiences to consumers (Hearle, general items." In other words, machine-to- 2016). Some opportunities also exist for machine commerce has begun as a result of purely online retailers as newly developed e- technological innovation (Dhruv et al., commerce and social media purchasing 2017). Now, machines can control other channels require non-enterprise technology machines, and those machines can like IoT (Binns, 2010). communicate independently without human Major benefits presented by IoT stem efforts. Thanks to the rapid development of from its ability to connect millions of mobile technology including Apps and products and communicate wirelessly (Bardi, devices like the smartphone, IoT technology 2017). This fundamental interactive is beginning to be utilized in almost every characteristic can satisfy consumers' needs aspect of our lives with the maximized for connection with linking everyday potential. Because mobile Apps with physical objects (Bardi, 2017). Because smartphones can enhance the ability to increases in touch points with better connect with consumers, it allows retailers to interactivity generally can contribute to better meet the ever-changing consumer needs with consumer experiences, implementation is less effort (Dhruv et al., 2017; Inman & imperative for Omni-channel retailers, which Nikolova, 2017). Consumers can enjoy the have to manage several channels in convenience provided by IoT technology optimized ways. Specifically, IoT can be

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very helpful in forming brand awareness and ‘Omni-cart.’ Using Omni-cart, consumers loyalty, as IoT can facilitate effective and can save products they have tried on in brick- efficient communication between retailers and-mortar stores and have an interest in into and consumers (Jih, 2007; McCoy & Deena, the cart, and this information is automatically 2011; Thought-Leadership, 2011). Referring connected to their online personal account to Bandyopadhyay & Sen (2011), IoT is an (Women’s Clothing-US, 2017). It presents an effective tool to manage brand-consumer opportunity for Omni-channel retailers to relationships and even relationships between connect distinct channels and transfer products themselves. Also, it can satisfy information about affiliated products. In consumers’ needs for simple and digitized other cases, several fashion companies shopping processes (McCoy & Deena, 2011). introduced new types of fitting rooms using However, consumers can be reluctant the Smart mirror with virtual technology. to utilize IoT because of the privacy risk Macy’s renovated traditional fitting room in concerns. Because IoT is fully managed and the women’s area utilizing high-tech devices controlled through the internet, security including smartphones and tablets at their problems and risky situations could exist if flagship store in New York for testing (Devitt someone tries to invade and steal private & Hill, 2015; Gross, 2010). These tablets information that is entered into provide ways to try on and replace items interconnected gadgets (Ahmed, 2017). without having to leave the fitting room Thus, retailers should prepare a thorough making it a more pleasant and hassle-free security framework to protect the consumers’ experience. As a result of its implementation, privacy, and ensure consumer safety when consumers spent more time browsing using IoT. It is important to monitor the IoT products throughout the store and less time tools and system continuously to find errors trying products on. This technology also and prevent cyber-attacks from a third party. increased the ease of locating items to Specific cases within the fashion, purchase, and ultimately increased purchase textile, apparel, and retail sector, which intention (Devitt & Hill, 2015). Rebecca utilize IoT, range from simple interactive Minkoff also used the Smart mirror products to complex systems; there is the technology in fitting rooms and realized an utilization of multiple technologies to fully increase in sales as the consumer experiences satisfy consumer needs. Several fashion were improved (Arthur, 2016). Lastly, Marie firms launched products utilizing IoT Claire used Oak Labs Smart Mirror in their including Ralph Lauren’s Smart shirt, Nike’s pop-up concept store and partnered with Smart sportswear with fuel bands. Another Mastercard. This mirror showed a virtual example is Kate Spade’s Everpurse, which is outfit of the products consumers chose and a smartphone-charging handbag using Smart recommended complementary products pocket™, a docking technology (Arthur, including accessories to complete outfits 2016). These examples are some of the (Doupnik, 2017). Likewise, the actual simplest forms of IoT applications, which application of IoT technology was connect a mobile gadget with consumer accomplished by coupling multiple goods. More complicated forms can be found technologies like AI and virtual technology. in Cloud Robotics, which utilizes both AI and It is important for retailers to consider IoT. By allowing each robot to share data and utilizing other technologies that can add extra then analyze it using AI systems of other value for consumers. In summary, robots interconnected through Cloud, interchangeability and synergy can be additional tasks with optimized abilities achieved by utilizing and coupling IoT with could more effectively implement (Bardi, other virtual technologies resulting in a 2017). Also, Fabletics implemented a streamlining of business processes, collaborative application tool to provide enhancing sales opportunities, and improving better shopping experiences. This tool services (Korzeniowski, 2017). connects offline and online channels using

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2.5. Kiosks touch points are the most crucial part of their A kiosk is "a small, stand-alone booth retailing practices with regard to their target typically placed in high-traffic areas for customer characteristics. Retailers should business purposes," and has the ability to then select and combine technologies that can provide additional information and can be effectively provide benefits to the targeted applied in a variety of topics including consumers. education, commerce, and entertainment Many reasons for utilizing kiosks exist, (Orencia, 2017). According to Gupta (2017), but fundamental advantages include their "The interactive kiosk market is expected to ability to provide unique and interactive retail be valued at $30.53 billion by 2023, at a experiences in various types of spaces like compound annual growth rate of 5.69% shopping malls, transportation hubs (i.e., the between 2017 and 2023." Increasing the level metro, airports), campuses and other high of technological immersion and development traffic areas (Sandlund, 2016). For of techniques to integrate digital technology consumers, its portability, intuitive touch and physical spaces have altered the way interface, and simplicity can maximize consumers communicate. These consumers positive shopping experiences (Armoilo, who seek personalized experiences were 2014). For retailers, kiosks can be a low-cost empowered by new technology, and kiosks solution to engage consumers without asking became the central issue in the retail industry consumers to visit an actual retail store to reflect these technological changes into the (Sandlund, 2016). Thus, kiosks can benefit business environment (Frank Meyer Inc., consumers by improving shopping 2017). Considering their growth and experiences. Kiosks can also benefit retailers capability, it is essential for retailers to utilize by broadening their consumer base by kiosks in their retail spaces. For brick-and- engaging consumers who were unable to be mortar retailers, kiosks can be a breakthrough accessed before because they can attract to compete with the purely online retailers consumers who heavily seek hedonic and it establishes advantages in a competitive experiences (Olea, 2013). In addition, it can retail market. In the retail industry, placing a increase efficiency by reducing labor costs well-designed tablet kiosk inside retail spaces because kiosks can do a partial role of store is one of the most popular ways to utilize a associates (Olea, 2013). self-serve kiosk because it brings consumers Despite a number of advantages kiosks into the whole new interactive environment can provide, there are some challenges in with increasing involvement (Armoilo, implementing them into retail spaces. 2014). Some other types of kiosks involve According to Skeldon (2017), “66 percent of touch-screen kiosks, internet kiosks, and consumers answered that they have not photo kiosks (Orencia, 2017). In addition, experienced kiosks in retail environments." several specific tools with appropriate In other words, the majority of consumers functions have been developed to effectively reported that they had not experienced kiosks serve consumers. For example, Thirdshelf™ and this problem hinders them from fully was developed to showcase products and to perceiving the benefits of kiosks. To improve boost cross-selling by effectively presenting this lack of experience, retailers should make products. Beehive™ was developed to enable efforts to promote the effectiveness of using the management of interaction with kiosks to consumers; potentially increasing consumers from distant locations. usage rates, so they truly recognize the ShoppinPal™ helped to simplify checkout positive attributes of this shopping option. processes and consumer rewarding processes However, some challenges exist for retailers. by providing an effective point-of-sales Because of the high initial costs and regular system, which can connect payment kiosks maintenance costs, careful consideration of with an e-commerce system (Armoilo, 2014). the total cost is critical when determining if Because of the variety of tools retailers can profits will be realized when kiosks are adopt, they should carefully examine which installed. In addition, retailers will need to

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provide strong security systems to prevent serve many functions required to aid the cyber-crime incidents as consumer consumers' decision-making process from information inserted into kiosks can be the information seeking process to purchases invaded by such an incident (Gupta, 2017). by placing consumers within the kiosk One of the companies successfully experiences. In addition, consumers’ touch utilizing kiosks is TUI, a tour-booking history is traceable and the specific consumer company. TUI has installed kiosks in almost data can be used by retailers to analyze the all sections of their retail spaces. For pattern of shopping and purchasing example, large screens were attached on their behaviors. Additional features of this kiosk storefronts to display interesting contents include a Kinect camera, which can be used stimulating interests and exciting consumers. to determine the degree of consumer This display does not show specific product engagement and the level of interaction. This information such as prices, but the intent was camera system tracks the number of to entertain consumers by conveying how consumers who simply walk by the displays exciting new tour experiences could be. versus those who actually came up to the Inside the store, touch-screen kiosks displays. The information provides more functioning as an interactive map, were detailed insights to retailers about consumer provided for consumers to help them locate attitudes toward kiosks and the level of kiosk specific tours they are interested in. This utilization (Sandlund, 2016). Kiosks have search can then be shared with their friends shown the potential to engage more using the kiosks features. Consumers can find consumers by placing them in the kiosk detailed information about goods and experience and by placing kiosks in services using a variety of media including appropriate spaces to serve consumers’ videos and personal reviews. Because of the unique demands. interactive nature of kiosks, they can also make recommendations based on the 3. Conclusion consumers’ interests by analyzing the search This review and discussion of pattern of consumers (Allen, 2016). technologies, existing and newly emerging, Likewise, kiosks successfully serve in the retail industry, was presented to bring multifaceted consumer demands from awareness to their importance and their information-seeking needs to entertainment potential as they are being used in the Omni- needs. TUI’s kiosks were also very effective channel retail environments. In channel-rich in providing fun and seamless experiences to environments, unique Omni-channel consumers. They integrated and arranged capabilities derive from effective several types of kiosks according to the management of breakthrough technologies distinct needs presented in each stage of can be significant driving forces for consumer journey in retail spaces based on consumer engagement. The virtual the inherent characteristics of the tour technologies identified here, virtual reality, business. Kiosks in TUI’s retail spaces truly augmented reality, virtual fashion shows, integrated digital and physical channels by virtual fitting rooms, and virtual salespeople, making the correct resources in the right have been shown to improve consumers' places delivering enhanced consumer shopping experiences because they offered experiences. Fashion companies like entertainment and convenience when Rebecca Minkoff and TOMS, have effectively managed and appropriately successfully utilized kiosks integrating them placed in multiple virtual technologies in with eBay’s Connected Glass™. This mixed retail environments. Also, internet of things commerce kiosk solution can perform similar and kiosks, which are associated functions like that used by TUI. Consumers technologies with virtual technologies, have can search products using a touchscreen shown potential to improve consumer kiosk at virtual storefronts and these also experiences through utilizing and integrating allow for a direct purchase to be made. It can

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multiple virtual technologies into an experiences, improved by increased innovative system or devices. engagement, are critical to be successful and The evaluation of benefits and survive in the competitive retail industry. challenges each virtual technology poses to However, most of the cases indicate that the retailers and consumers, and in-depth level of utilization is still in the preliminary analysis of actual cases, discussed here, stage. Retailers realized the necessity to find emphasizes how virtual technologies can ways to effectively implement these play the key role in improving consumer technologies because of its potential to experiences. All virtual technologies significantly improve consumer experiences. presented here enhanced and stimulated non- To exploit advantages of virtual technology, sequential and diversified consumption retailers should effectively choose and behaviors because consumers could manage an appropriate virtual technology in experience additional information or a way that can actually add value to entertainment at any point using extra touch consumers by placing those at the right point points in their overall shopping journey. in the shopping journey. Some ways to Also, those virtual technologies can provide further utilize virtual technologies is to seamless experiences to consumers by integrate multiple associated technologies. In putting those technologies into effect in the Mixed and hybrid forms of virtual right places for the right purpose and by technology were frequently found and in connecting and utilizing multiple most of the cases, they showed successful complementary virtual technologies. outcomes (e.g., IoT, Kiosk). Without digital Virtual technologies have the potential integration from all innovative virtual to improve both consumer experiences and technologies, it is difficult to move a retail business profitability through their ability to business forward because some of the evoke consumers' emotional responses and technologies are interconnected in the favorable attitudes. For traditional brick-and- developmental process and share moderately mortar retailers, which have initiated the use similar features. Hence, it is important to of online retail-channels, virtual technology fully understand available options in studies showed tremendous potential to technological mixes to deliver unique and increase consumer engagement. By satisfying experiences to consumers. This synchronizing the physical and the digital mixed approach can begin through the use of channels, these retailers can effectively artificial intelligence where consumer data is provide seamless Omni-channel experiences collected and interpreted in a way that will that purely online retailers cannot provide. It provide additional convenience to consumers is important to manage consistency between during their shopping experience. two distinct online and offline channels Furthermore, the internet of things can then utilizing virtual technologies because it can assist consumers allowing them to utilize also draw consumers to physical stores if this everything around, from a simple product to newly added online channel can provide interactive machines. Finally, augmented complementary experiences. In addition, for reality can give consumers a tool to project any type of retailer utilizing both online and themselves in a virtual world using mobiles offline channels, creating a unique and devices. interactive retail structure between channels By utilizing appropriate technologies in a synergistic way using virtual in each channel with the mixed approach, technologies will be beneficial. consumers may enjoy better shopping Throughout this analysis, a number of experiences despite limitations specific types successful cases were identified in the retail of channels pose when utilizing virtual industry. Each technology enhanced technologies. The key is to provide consistent consumer experiences by improving touch shopping experiences across channels even if points that consumers face in their shopping different mixes of technologies are used in journey. Retailers understood that consumer each channel.

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technology-trends-2017/

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Dahlhoff, D. (2017). Consumer Response to Fang, S. T., Chester, K. M., Zhang, Z., & the Evolving Retailing Landscape, Chang, J. M. T. (2014). Adoption of Marketing Science Institute Conference Information and Communication report Technologies in Textile Virtual Delhi, C.P.C. (2017). Can Malls Fight Collaboration, Research Journal of Competition from Online Retailers? Textile & Apparel, 18(3), 1-14 (2017, September 10), Business Today In, Frank Mayer Inc. (2017). When Technology Retrieved from & Customer Experience Collide: Paving http://www.businesstoday.in/magazine/t the way for self-serve and ordering kiosks op-story/malling- (June 30, 2017), Retail Customer shift/story/258723.html. Experience, Retrieved from Deloitte (2016). Retail Trends in 2016 https://www.retailcustomerexperience.co (September 18, 2017), Deloitte, m/whitepapers/when-technology- Retrieved from customer-experience-collide-paving-the- http://www2.deloitte.com/uk/en/pages/c way-for-self-serve-and-ordering-kiosks/ onsumer-business/articles/retail-trends- Garner, T. (2017). Digital Trends: Why 2017 2016.html Will Be Shaped by VR, AR, AI, and Devitt, M. and Hill, D. D. (2015 October), Personalized Digital Assistants (January Using Omnichannel Growth Strategies to 3., 2017), Newsweek, Retrieved from Improve Customer Experience, http://www.newsweek.com/virtual- McMillanDoolittle LLP, Retrieved from reality-virtual-reality-sets-phones- https://www.slideshare.net/DwightHill/ technology-537969 macys-omnichannel-innovations-case- Gross, D. (2010). Macy’s ‘Magic Mirror’ study Lets Shoppers Don Virtual Clothes Dhruv, G., Roggeveen, A. L., & Nordfalt, J. (2010, October 14), CNN, Retrieved from (2017). The Future of Retailing, Journal http://www.cnn.com/2010/TECH/innova of Retailing, 93, 1-16 tion/10/14/macys.virtual.mirror/index.ht Dhruv, G., Roggeveen, A. L., Sisodia, R., & ml Nordfalt, J. (2017). Enhancing Customer Gültepe, U. and Güdükbay, U. (2014). Real- Engagement Through Consciousness, Time Virtual Fitting with Body Journal of Retailing, 93, 55-64 Measurement and Motion Smoothing, Dhruv, G., Levy, M., & Kumar, V. (2009). Computer & Graphics, 43, 31-43 Customer Experience Management: An Gupta, R. (2017). Interactive Kiosk Market at Organizing Framework, Journal of 5.69% CAGR Grows to 30 Billion till Retailing, 85(1), 1-14 2023 Says the New Research Report Doupnik, E. (2017). Marie Claire and (September 20, 2017), SATPRNEWS, Mastercard Partner for Concept Shop Retrieved from (September 15, 2017), WWD, Retrieved http://www.satprnews.com/2017/09/20/i from http://wwd.com/business- nteractive-kiosk-market-report/ news/retail/marie-claire-mastercard- Hansen, R. and Sia, S. K. (2015). Hummel’s concept-shop-10988554/ Digital Transformation Toward Eastin, M. S., Daugherty, T., & Burns, N. M. Omnichannel Retailing: Key Lessons (2011). Handbook of Research on Digital Learned, MIS Quarterly Executive, 14(2), Media and Advertising: User-Generated 51-66. Content Consumption, SCOPUS, Hearle, J. W. S. (2016). From Calculators to Retrieved from https://www.igi- 21st Century Computing: Successes and global.com/dictionary/virtual- Opportunities in Digital Technology for salesperson/34719 Textiles, Journal of Textile & Clothing Technology, 65(7/8), 276-285

Article Designation: Refereed 19 JTATM Volume 10, Issue 3, 2018

Hills, H. D. (2017). YouCam Brings AR To Jin, S. A. (2009). The Roles of Modality New York Fashion Week (September 8, Richness and Involvement in Shopping 2017), VR Focus, Retrieved from Behavior in 3D Virtual Stores, Journal of https://www.vrfocus.com/2017/09/youca Interactive Marketing, 23(3), 234-246 m-brings-ar-to-new-york-fashion-week/ J. Walter Thompson Intelligence (2016). Hoffman, D. L., & Novak, T. P. (1996). Frontier Retail (June 14, 2016), Marketing in Hypermedia Computer- Innovation Group, Retrieved from Mediated Environments: Conceptual https://www.slideshare.net/jwtintelligenc Foundations, Journal of Marketing, 60, e/frontierless-retail-executive-summary 50-68. Kim, H. Y. and Kim, Y. K. (2008). Shopping Holbrook, M.B. & Hirschman, E.C. (1982). Enjoyment and Store Shopping Modes: The Experiential Aspects of The Moderating Influence of Chronic Consumption: Consumer Fantasy, Time Pressure, Journal of Retailing and Feelings and Fun, Journal of Consumer Consumer Services, 15, 410-419 Research, 9(2), 132-140. Korzeniowski, P. (2017 August). Impact of Holzwarth, M., Janiszewski, C., & Neumann, virtual and augmented reality technologies M. M. (2006). The Influence of Avatars comes into focus, IoT Agenda, Retrieved on Online Consumer Shopping Behavior, from Journal of Marketing, 70 (4), 19–36. http://internetofthingsagenda.techtarget.co IBM News (2016). Introducing Macy’s-On- m/feature/Impact-of-virtual-and- Call, a New Mobile-Shopping augmented-reality-technologies-comes- Companion Powered by IBM Watson and into-focus Satisfi (2016, July 20), IBM News, Kzero (2012). Virtual Worlds: Industry and Retrieved from https://www- User Data: Universe Chart Q1 2012, 03.ibm.com/press/us/en/photo/50213.ws Kzero, Retrieved from s http://www.kzero.co.uk/blog/slideshare- Inman, J. J., and Nikolova, H. (2017). q1-2012-universe-chart/ Shopper-Facing Retail Technology: A Lee, I. (2017). The Internet of Things in the Retailer Adoption Decision Framework Modern Business Environment, IGI Incorporating Shopper Attitudes and Global: The Advances in E-Business Privacy Concerns, Journal of Retailing, Research(AEBR) Book Series 93, 7-28 Lockwood, L. (2017). Coach, IMG and Jackson, B. (2015). What Is Virtual Reality? Simon Malls Partner on Virtual Reality (June 3, 2015), Marxent Lab LLC, Experience (February 14, 2017), WWD, Retrieved from Retrieved from http://wwd.com/fashion- https://www.marxentlabs.com/what-is- news/fashion-scoops/coach-img-and- virtual-reality-definition-and-examples/ simon-malls-partner-on-virtual-reality- JC Penny Company Inc. (2011). JCPenney experience-10802073/ Joins Forces with Stardoll.com to Make Lu, J. (2017). Engaging Omni-Channel Virtual Fashion a Reality for Tween Girls Consumers During Purchase Decisions (February 10, 2011), CISION PR (Doctoral Dissertation), North Carolina Newswire, Retrieved from State University, Raleigh, NC http://www.prnewswire.com/news- Lunden, I. (2017). IKEA Place, the retailer’s releases/jcpenney-joins-forces-with- first ARKit app, creates lifelike pictures stardollcom-to-make-virtual-fashion-a- of furniture in your home (September 12, reality-for-tween-girls-115713174.html 2017), TechCrunch, Retrieved from Jih, W. J. K. (2007), Effects of Consumer- https://techcrunch.com/2017/09/12/ikea- Perceived Convenience on Shopping place-the-retailers-first-arkit-app- Intention in Mobile Commerce: An creates-lifelike-pictures-of-furniture-in- Empirical Study, International Journal of your-home/ E-Business Research, 3(4), 33-48

Article Designation: Refereed 20 JTATM Volume 10, Issue 3, 2018

Mathias, C. (2017). What is Virtualization? Olea, F. (2013). 5 benefits of using retail (2017, October 26), NetworkWorld from kiosk applications (July 10, 2013), Kiosk IDG, Retrieved from Marketplace, Retrieved from https://www.networkworld.com/article/3 https://www.kioskmarketplace.com/artic 234795/virtualization/what-is- les/5-benefits-of-using-retail-kiosk- virtualization-definition-virtual- applications-commentary/ machine-hypervisor.html Orencia, A. (2017). What is a Kiosk? – McCormick, H.; Cartwright, J.; Perry, P.; Definition, Examples, and More (August Barnes, L.; Lynch, S.; & Ball, G. (2014). 24, 2017), FitSmallBusiness, Retrieved Fashion Retailing-Past, Present, and from http://fitsmallbusiness.com/what-is- Future, Textile Progress, 46(3), 227-321 a-kiosk-examples/ McCoy, A. and Deena, M. (2011, February). O’Shea, D. (2017). Levi Strauss' Chatbot The New Era: Digital Shoppers, Apparel Helps Jeans Buyers Find the Right Fit Magazine, 52(6), 10-12 (September 1, 2017), Retail Dive, Miller, R. (2016). Artificial intelligence finds Retrieved from its way into business through sales http://www.retaildive.com/news/levi- (December 17, 2016), Tech Crunch, strauss-chatbot-helps-jeans-buyers-find- Retrieved from the-right-fit/504044/ https://techcrunch.com/2016/12/17/artifi O’Shea, D. (2017). 5 Technologies cial-intelligence-finds-its-way-into- Reshaping Retail in 2017 (January 19, business-through-sales/ 2017), Retail Dive, Retrieved from Moon, J. H., Kim. E., Choi, S. M., & Sung, http://www.retaildive.com/news/5- Y. J. (2013). Keep the Social in Social technologies-reshaping-retail-in- Media: The Role of Social Interaction in 2017/433954 Avatar-Based Virtual Shopping, Journal Pantano, E. and Naccarato, G. (2010). of Interactive Advertising, 13(1), 14-26 Entertainment in Retailing: The Nanji, A. (2017). Winter Is Coming: What Influences of Advanced Technologies, Retailers Can Do to Prepare for the Journal of Retailing and Consumer Holidays (2017, August 1), Services, 17, 200-204 MarketingProfs, Retrieved from Pantano, E. and Viassones, M. (2014). https://www.marketingprofs.com/charts/ Demand Pull and Technology Push 2017/32510/winter-is-coming-what- Perspective in Technology-based retailers-should-do-to-prepare-for-the- Innovations for the Points of Sale: The holidays Retailers Evaluation, Journal of Retailing Noble, S. M., Griffith, D. A., & Weinberger, and Consumer Services, 21(1), 43-47 M. G. (2005). Consumer derived Poncin, I.and Mimoun, M. S. B. (2014). The Utilitarian Value and Channel Utilization Impact of E-atmospherics on Physical in a Multi-Channel Retail Context, stores, Journal of Retailing and Journal of Business Research, 58(12), Consumer Services, 21(5), 851-859 1643-1651 Raindance Consulting (2016). Go Beyond Okada, R., Strenger, B., Ike, T., & Kondoh, CRM to CEM-The Importance of N. (2006). Virtual Fashion Show Using Customer Experience Management, A Real-Time Markerless Motion Capture, Marketing Thought Leader White Asian Conference on Computer Vision, Paper, Retrieved from 801-810, Retrieved from http://raindanceconsulting.com/upload https://mi.eng.cam.ac.uk/~bdrs2/papers/ s/file/From%20CRM%20to%20CEM okada_accv06.pdf %20whitepaper.pdf

Article Designation: Refereed 21 JTATM Volume 10, Issue 3, 2018

Reddy, K. (2016). Beyond Time and Space Sugar, S. (2017). Leverage These Retail IoT (2016, August 23), The Hindu, Retrieved Options to Drive Growth (August 28, from 2017), Retail Customer Experience, http://www.thehindu.com/features/metro Retrieved from plus/fashion/Beyond-time-and- https://www.retailcustomerexperience.co space/article14585141.ece m/blogs/leverage-these-retail-iot- Renko, S. and Druzijanic, M. (2014). solutions-for-incredible-growth/ Perceived Usefulness of Innovative Sykes, P. (2015). Beyond the runway: The rise Technology in Retailing: Consumers’ of the virtual fashion show (September 15, and Retailers’ Point of View, Journal of 2015), CNN Style, Retrieved from Retailing and Consumer Services, 21, http://www.cnn.com/style/article/digital- 836-843 future-of-fashion/index.html Roggeveen, A. L. and Dhruv, G. (2016). Snider, M. (2012). Virtual Goods Spending Engaging Customers: The Wheel of Topped $2 Billion in U.S. in 2011, USA Social Media Engagement, Journal of Today (February 29, 2012), USA Today, Consumer Marketing, 33(2) Retrieved from Roggeveen, A. L, Dhruv, G., Townsend, C., http://content.usatoday.com/communitie & Kirshnan, R. (2015). The Impact of s/gamehunters/post/2012/02/virtual- Dynamic Presentation Format on goods-spending-topped-2-billion-in-us- Consumer Preferences for Hedonic in-2011/1#.T-fVrxfHV8E Products and Services, Journal of Sopadjieva, E., Dholakia, U. M., & Marketing, 79, 34-49 Benjamin, B. (2017). A Study of 46,000 Rust, T. R. and Lemon N.K. (2001). E- Shoppers Shows That Omnichannel Service and the Consumer, International Retailing Works (January 3, 2017), Journal of Electronic Commerce, 5(3), Harvard Business Review, Retrieved 85-101 from https://hbr.org/2017/01/a-study-of- Sandlund, T. (2016). Mixed Commerce: 3 46000-shoppers-shows-that- Ways Retailers Are Transforming the omnichannel-retailing-works Shopping Experience (September 8, Statista (2017). Number of Active Virtual 2016), Marxent Lab LLC, Retrieved from Reality Users Worldwide from 2014 to https://www.marxentlabs.com/mixed- 2018 (In Millions), Statista, Retrieved commerce-3-ways-businesses- from transforming-retail-marxent/ https://www.statista.com/statistics/42646 Schmitt, B.H. (2003). Customer Experience 9/active-virtual-reality-users-worldwide/ Management: A Evolutionary Approach Sugiyama, K. and Andree, T. (2011). The to Connecting with Your Customer, Dentsu Way: Secrets of Cross Switch Wiley and Sons, New Jersey. Marketing from World Most Innovative Schmitt, B.H. (1999). Experiential Advertising Agency, McGraw-Hill, Marketing, The Free Press, New York. Retrieved from http://proz- Skeldon, P. (2017). Retailers fail to address x.com/stephanlangdon/N_Daitsu.pdf in-store issues that technology can Thought-leadership (2011, March). Thought- improve, according to consumers Leadership Report Retail IT Trends, (August 23, 2017), Internet Retailing, Apparel Magazine, 52(7), 4-8 Retrieved from Tirico, K. (2017). Study: Gen Z Wields $44 http://internetretailing.net/2017/08/retail Billion in Buying Power (2017, January ers-fail-address-store-issues-technology- 23), RetailTouchpoints, Retrieved from can-improve-according-consumers/ https://www.retailtouchpoints.com/featur es/industry-insights/study-gen-z-wields- 44-billion-in-buying-power

Article Designation: Refereed 22 JTATM Volume 10, Issue 3, 2018

Van Doorn, J., Mende, M., Noble, S. M., Wiggers, K. (2017). Levi’s Virtual Stylist Hulland, J., Ostrom, A. L., Dhruv, G., & helps you slip into the jeans of your Petersen J. A. (2017). Domo Arigato Mr. dreams (August 31, 2017), Digital Roboto: The Emergence of Automated Trends, Retrieved from Social Presence in Customers’ Service https://www.digitaltrends.com/mobile/le Experience, Journal of Services Research vi-virtual-stylist/ Verhoef, P., Kannan, P., & Inman, J. (2015). Women’s Clothing-US (2017, July). From Multi-Channel Retailing to Omni- Technology Changing How Women Channel Retailing, Journal of Retailing, Shop, Mintel Ltd. 91(2), 174-181. Yong, R. D. (2017). Why Digital-Native Gen Verhoef, P., Lemon, K. P., Roggeveen, A., Z’ers Will Crave VR Done Right (June Tsiros, M., & Schlesinger, L. (2009). 27, 2017), PM Agency, Retrieved from Customer Experience Creation: https://www.pmxagency.com/blog/2017/ Determinants, Dynamics and 06/digital-native-gen-zers-will-crave-vr- Management Strategies, Journal of done-right/ Retailing, 85(1), 31-41 Zhou, Z., Jin, X. L., Vogel, D. R., Fang, Y., Wang, H. H. (2016). From Virtual Reality to & Chen, X. (2011). Individual Personalized Experiences: Alibaba Is Motivations and Demographic Bringing Us the Future of Retail This Differences in Social Virtual World Uses: Singles Day (November 6, 2016), An Exploratory Investigation in Second Forbes, Retrieved from Life, International Journal of https://www.forbes.com/sites/helenwang Information Management, 31 (3), 261– /2016/11/06/how-alibaba-will-use-the- 271. worlds-biggest-shopping-day-to- transform-retail/#4b62fa96d4e9 Webster, A. (2016). A huge Sims 4 update removes gender restrictions from character customization (June 2, 2016), The Verge, Retrieved from https://www.theverge.com/2016/6/2/118 38356/sims-4-update-gender-hairstyles- voice-clothing-options

Article Designation: Refereed 23 JTATM Volume 10, Issue 3, 2018