Consumer brand choice in the metaverse: Exploring personal and social factors

Brands increasingly consider the metaverse a promising touchpoint for customer-brand interactions. This study investigates consumers' willingness to pay for brands in the metaverse when a default-free option exists. It examines how social contexts influence these decisions. Additionally, we assess the similarities between virtual and real-life purchase decisions. We apply the theoretical lenses of psychological motives, including self-identity, group identity, and status, alongside the theory of consumption values to identify drivers of branded purchase decisions. In a cross-cultural survey experiment, participants were asked to choose a phone for their avatars, encountering branded and free-of-charge options. We manipulated the social context (friends or strangers) and recorded preferences for real-life consumption. Results show that most consumers allocate their virtual budget to acquire a branded phone rather than take the free option, regardless of social company. The selected brand often mirrors the brand owned in real life and mostly reflects the brand that best represents the consumer. Status-seeking behavior increases branded-product choices, while group identity motivates choosing a brand that represents the consumer. This study advances the understanding of consumer purchase behavior in the metaverse as an omnipresent virtual extension of real life by highlighting psychological and value-driven mechanisms underlying virtual brand decisions.