Abstract
This chapter outlines the understanding of consumer behavior in the virtual ecosystem and the adoption of immersive technologies in the metaverse among consumers. The metaverse is based on the convergence of technologies that enable multisensory interactions with virtual environments, digital objects, and people such as virtual reality (VR) and augmented reality (AR). This chapter covers the impact of consumer behavior in metaverse followed by the strategies adopted by entrepreneurs to work in metaverse to reach consumers. This chapter outlines the metaverse market size, trends, growth, and forecast. This chapter offers a comprehensive framework that examines the metaverse development under the dimensions of metaverse ecosystem. This chapter further aims at identifying the challenges and issues faced in adoption of immersive technologies in metaverse. The metaverse also poses numerous problems to our customary modes of communication and teamwork. The metaverse is significant for retailers for a number of reasons in addition to remaining on the bleeding edge of technology.
TopIntroduction
Since the Internet became widely used in the 1990s, cyberspace has continued to develop. In addition to social networks, video conferencing, virtual 3D worlds (like VR Chat), augmented reality software (like Pokemon Go), and non-fungible token games, we have also developed other computer-mediated virtual environments (e.g., Upland). These virtual spaces, albeit transient and unconnected, have enabled different levels of digital transformation for us. To accelerate the digital transformation of every part of our physical life, the term “metaverse” has been developed. The idea of an immersive Internet as a vast, contiguous, lasting, and shared domain is at the heart of the metaverse. The digital “big bang” of our cyberspace is not far off, despite the metaverse’s seemingly futuristic appearance, which is being fueled by cutting-edge technology like Extended Reality, 5G, and Artificial Intelligence (Keikhosrokiani & Pourya Asl, 2023; MacCallum, 2019). Researchers and computer scientists want to quickly expand some fields in virtual environments. The proliferation of social media platforms and the Internet provide for easy and affordable access to technology and software, enabling the development of superior digital material represented by three-dimensional (3D) virtual environments (Parsons, 2019). According to V’azquez-Cano and Sevillano-Garca (2017), the metaverse is an immersive, 3D virtual environment where people interact socially and economically through computation that is independent of where they are located. Virtual reality has recently made it feasible to experience things like making a loop on a roller coaster or being at a beach resort while lying on a sofa at home (VR) (V'azquez-Cano & Sevillano-Garca, 2017). Users can experience three-dimensional settings that resemble artificially manufactured spaces thanks to the relatively new technology known as virtual reality (VR) (Nelson, 2020).
These computer-generated virtual environments may feature interactive elements that are felt from a first-person perspective, giving users the chance to feel as though they are physically present at a different area. Technology-wise, virtual reality is advancing quickly and increasingly successful in giving consumers seemingly realistic virtual surroundings at a relatively low price (Siegrist et al., 2019).
Figure 1. Framework for Metaverse Development under the dimensions of metaverse ecosystem (Lee et al., 2021)
Key Terms in this Chapter
Mixed Reality (MR): MR, also known as hybrid reality, is the blending of the virtual and real worlds to create a new setting where real-time interactions between virtual and real-world items are possible.
Non-Fungible Tokens (NFTs): The necessary tokens or goods needed for trading within the metaverse are non-fungible tokens. Within the metaverse, NFTs act as proxies for asset ownership.
Augmented Reality (AR): By enabling users to see the actual environment through the screens of their phones or tablets or by using smart glasses and making virtual modifications to it on the screen, augmented reality (AR) appears on top of our physical world.
Virtual World (VW): Virtual reality (VR) and augmented reality (AR) headsets are used to create this virtual environment.
Extended Reality (XR): Includes the ideas of mixed, virtual, and augmented reality in addition to other immersive experiences.
Virtual Reality (VR): Virtual reality (VR) describes a 3D, computer-generated environment that can either match the real world or an imaginative one.
Customer Journey Analytics (CJA): Is a cutting-edge strategy for attracting target audiences by learning about their wants and needs.