���������

INTEREST CATEGORY: RETAIL AND PRICING, INNOVATION AND TECH
POSTING TYPE: Calls: Journals

Author: Katrijn Gielens

---

Call for Papers

Journal of Retailing

Retailing in the Metaverse — Special Issue

Michael Haenlein, ESCP Paris
Kelly Hewett, University of Tennessee
Minakshi Trivedi, Texas Christian University
Katrijn Gielens, University of North Carolina

Submission Deadline: June 30, 2023

As the world of retailing is changing dramatically with the advent of new technologies such as artificial intelligence (AI) and augmented reality/virtual reality (AR/VR), retailers have begun to realize the importance of preparing for a ‘virtual’ future in the metaverse. The metaverse allows individuals, often in the form of avatars, to have engaging, immersive experiences in which they can interact with others, and the increasing consumer receptiveness to these experiences may have great significance for retailers. For example, consumers spend seven times as long immersed in 3D virtual shopping experiences in contrast to traditional 2D ecommerce sites (14 minutes versus seven), resulting in a 70% increase in conversion rates.[1]  With the metaverse market estimated to reach $800 billion by 2024,[2] retailers face the need to move quickly to capitalize on this opportunity. On the other hand, Forbes reports, among other issues, that the capture of consumer response data in the metaverse world (including eye-tacking, physical reactions, and haptics) may raise even graver issues of data privacy and protection than the digital world[3].

Video game developers, as early entrants into the world of retail in the metaverse, have begun forming partnerships with retailers to enhance the experience offered to consumers. For example, Epic Games formed a partnership with fashion retailer Balenciaga to offer players of their Fortnite game luxury fashion for use by their avatars. Beyond that, Balenciaga has begun working on virtual apparel, plans to open an in-game Balenciaga retail store and also offer physical Fortnite clothing in the brand’s physical stores.[4] As the lines between the physical and online retailing world and the metaverse blur, marketing academia has an important role to play;

namely, informing retail strategies in an evolving environment in which retailers are motivated to explore all options to offer more visibility and shopping convenience. Furthermore, it has to be accomplished in a world where issues of addiction in the digital gaming world (aside from the host of social and economic factors) have resulted in the World Health Organization announcing “gaming disorder” as a new mental health condition included in the 11^th edition of its International Classification of Diseases in 2018[5].

In this special issue, we seek to publish cutting-edge scholarly research that examines the changing landscape of retailing in the metaverse. Questions can be studied from the perspective of consumers, retailers, competitors, platforms, markets, or policy makers. Consistent with JR’s editorial mission, submitted papers can address all aspects of retailing, its management, evolution, and current theory. Furthermore, submissions may take an economic or behavior approach, but should reflect rigorous analysis and a depth of knowledge of relevant theory and existing literature.

We discuss below several issues that warrant investigation. These suggestions do not define the limits of the issues that will be considered, however. Rather, they should be considered as a starting point.

1. Types of Offerings: Many goods that were previously offered only in physical form, such as music, books, videos, and newspapers, have already transitioned to digital formats. In the metaverse, blockchain technology enables any digital asset, including everything from art, clothing, celebrity photos, to experiences to be authenticated as genuine, verifiably limited and available to be owned by individuals. As such, NFTs, or unique and limited digital assets, have value.[6] In this evolving world, retailers face new challenges regarding their offerings, including the mix of digital and physical goods as well as the possibility for offerings in the virtual world that are fulfilled in the physical world. Potential topics for investigation include, but are not limited to the following:
   • Digital versus physical, and integration of the two types of goods
   • NFT licensing
   • Determining the value of virtual goods
   • Alternative performance metrics
   • Price sensitivity for different types of goods
   • Competition in the virtual space
   • Branding strategies for goods sold in the virtual and physical world

2. Immersive Experiences: Immersive retail experiences are aimed at building deeper connections with customers. A key advantage of virtual retail experiences over those offered by many traditional retail stores is the degree of immersion consumers experience. Indeed, virtual worlds are fulfilling the entertainment function that physical malls played in the past.[7] In addition, such interactive spaces have been found to encourage shoppers to remain engaged longer than on traditional websites or even mobile applications.[8] For retailers offering an omnichannel experience, consistency or integration of the experience across channels can further enhance customer satisfaction and loyalty. As such, understanding the factors that contribute to and/or enhance consumer immersion is increasingly valuable to retailers. Potential topics related to this issue include:
   • The role of VR technology
   • The role of user-generated digital personas
   • Ability to allow consumers to transfer digital avatars and assets across multiple worlds
   • Linking experiences across channels and/or platforms
   • Potential barriers for building an immersive retail experience

3. Retail Price and Promotion in the Metaverse: In a metaverse, retailers face the need to balance native advertising, immersive experiences such as games, and activities such as events and sponsorships, as well as linkages to the real-world. Consumers’ responsiveness to these different types of promotions in virtual versus physical or even traditional e-Commerce environments may vary based on a host of contingency factors. For example, evidence that buyers are less sensitive to promotional price discounts online after they have experienced a retailer’s physical store environment suggests the potential importance of retailers’ channel strategies for the success of their promotional efforts. Interesting opportunities for retailers and therefore areas ripe for investigation include the potential benefits of and (general and competitive) conditions under which the following can be fruitful avenues for retail promotion in the metaverse:
   • Product placement and demonstration
   • Direct-to-avatar sales of virtual goods
   • Loyalty programs – NFT-based
   • Immersive marketing
   • Influencer marketing
   • Price setting and discounting

4. Digital Real Estate and Store Design: As compared to physical retail spaces, virtual retail shopping experiences do not face limitations such as geographic location, construction costs, or the need to manage opening hours and staffing effectively. As a result, retailers are free to design their shopping experiences based on a broader range of criteria, such as buyers’ passions or interests. For example, a car enthusiast might take a test drive on a race track when buying a new sports car, as opposed to visiting a showroom, or a customer might try on clothing virtually before making a purchase. Thus, issues related to digital real estate and store design are wide-ranging and may be addressed by researching topics such as:
   • Augmented store experiences
   • Store layout visualization
   • Alignment with physical stores and websites
   • Strategic partnerships and the potential to bridge rooms with others to funnel traffic from one location to another
   • Shifts in assortment strategy

5. Marketing Insights – Understanding Retail Consumers in the Metaverse: Understanding customer needs, tastes, and preferences in the metaverse will require significant investment in gathering and analyzing data. While video game players are considered first adopters, retailers will also need to lead the next-generation adopters so that decisions made today will lead to greater adoption and success in the future. Potential issues related to marketing insights that warrant investigation include:
   • Tools for data analytics based on user interactions in the metaverse
   • Primary data collection approaches – the role of tools such as simulations and ethnography
   • The role of next-generation consumers in shaping a retail landscape in the metaverse
   • Storing, managing and protecting first-party consumer data
   • The application of current and future data privacy laws
   • Ensuring user safety for vulnerable populations, especially minors

6. Transactions and payments: Consumers are already growing accustomed to omnichannel commerce, with their payment credentials often embedded in their devices. In the metaverse, blockchain technology and digital currencies allow for both secure transactions as well as ownership of unique digital goods and services purchased in the metaverse. Whereas different metaverses each have their own set of accepted digital currencies, the evolution of blockchain technology will likely lead to a proliferation of methods available for transacting with merchants within the metaverse. Indeed, some merchants have begun accepting cryptocurrencies and NFTs[9]. In addition, some financial institutions have begun building branches in the metaverse platform. For example, South Korea’s KB Kookmin Bank built a branch to offer advisory services to customers, and aims to combine online and offline services, leveraging the metaverse to communicate with and serve customers.[10] In light of this changing payments landscape, research is needed to enhance understanding of issues such as:
   • Blockchain technology and the role of verification
   • Metaverse-to-offline transactions
   • The role and potential evolution of digital currencies
   • Regulatory issues related to financial services firms and activities in the metaverse
   • Financing and credit in the metaverse

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]