VR retailing: When and why immersion pays off

As immersive virtual reality (VR) becomes increasingly integrated into retail, understanding when and why it delivers value over non-immersive alternatives is crucial for making investment decisions. This research identifies the conditions under which immersive VR enhances consumer purchase intention and when non-immersive VR can serve as a cost-effective substitute. The findings demonstrate that immersive VR outperforms non-immersive VR when product interactivity is low, as the immersive environments compensate for limited consumer-product interaction. However, under high interactivity, the effectiveness of immersive VR depends on product type and sensory design. For graspable products, immersive VR consistently facilitates purchase regardless of whether haptic cues are present. In contrast, for non-graspable products, immersive VR only yields an advantage when haptic cues are available. Without such tactile feedback, non-immersive VR becomes equally effective and offers a more resource-efficient solution. These insights challenge the assumption that more immersive technology is inherently better. Instead, the benefits of immersive VR depend on how consumers engage with different products and whether the sensory inputs match embodied expectations. From a managerial perspective, the findings provide a strategic guide for aligning VR investment with product characteristics. Retailers should consider adopting immersive VR selectively, especially in low-interactivity contexts or when presenting graspable products. When product tactility is limited or haptic cues are not feasible, non-immersive VR offers a viable and scalable alternative. This research delivers actionable insights for optimizing VR retail strategies, enabling firms to tailor technology use in ways that enhance consumer understanding and drive purchase outcomes.