The Role of VR Shopping in Digitalization of SCM for Sustainable Management: Application of SOR Model and Experience Economy

Abstract

Shopping malls in virtual reality (VR) environments have created a new paradigm of distribution environments as a strategy of digital consumption experience for sustainable management in the fast-changing digitalization of SCM. This study implemented a VR shopping environment to examine how telepresence and interactivity affect the consumers’ usage behavior after experiencing a VR shopping environment by applying the SOM model and experience economy, and suggests the role of VR shopping in the digitalization of SCM for sustainable management. First, this study examined the impact of telepresence and interactivity on time distortion and enjoyment based on the experience economy and flow theory. Second, the relationship between time distortion and perceived enjoyment during the VR shopping experience was tested. The study also examined whether the perceived enjoyment affected behavioral intention. As a research method for this study, we directly implemented a VR supermarket, and had 120 people participate in the survey after experiencing the VR supermarket. Additionally, a structural equation model was used to verify the proposed hypothesis model. The study findings show that both telepresence and interactivity have a significant relationship with time distortion and enjoyment. Time distortion was verified to have partial mediating effects on the relationship between telepresence and enjoyment. Time distortion had a positive impact on enjoyment, which in turn was verified to have a significant effect on the consumers’ behavioral intention. In other words, in order to digitize SCM for sustainable management in a VR shopping environment, it is necessary to implement an environment in which consumers are immersed and to track consumer behavior during the experience. Through this, it is possible to create a core management strategy that creates a competitive advantage.