Virtual Reality and Augmented Reality Applied To E-Commerce: A Literature Review

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Virtual Reality and Augmented Reality Applied to E-

Commerce: a Literature Review

Jenny Morales1[0000-0001-9940-0490], Fabián Silva-Aravena1[0000-0003-2468-1480], Yolanda Val-


dés2[0000-0002-2065-5130] and Sergio Baltierra2[0000-0001-8885-9116]
1
Facultad de Ciencias Sociales y Económicas, Universidad Católica del Maule, Avda. San Mi-
guel 3605, Talca, Chile
[email protected], [email protected]
2
Facultad de Ingeniería, Universidad Autónoma de Chile, Chile
[email protected], [email protected]

Abstract. The massification of technologies, the implementation of 5G and the


Internet of Things (IoT), allow implementing systems that contain virtual or aug-
mented reality or implementation of both. In this sense, the covid 19 pandemic
in the last years, has also affected people’s behavior and leaned to shop without
leaving their homes. VR, RA, and/or MR techniques are currently widely used
for medicine, education, and entertainment, among others. In this study, we com-
bine both elements to analyze the literature on e-commerce and the use of VR,
AR, and/or RM. Searching and analyzing recent scientific articles were defined,
and virtual reality is the most used, followed by the mixture of RV and RA, the
above to improve the shopping experience, providing the customer with a more
authentic and immersive environment. In future works, we will expect to expand
this study, including how to evaluate the shopping experience and relate it to the
customer experience.

Keywords: literature review, e-commerce, virtual reality, augmented reality.

1 Introduction

We have all noticed the massification of information and communication technologies,


which has allowed more and more people to have mobile devices such as smartphones.
In addition, the implementation of 5G and the Internet of Things, favor the implemen-
tation of systems that contain virtual or augmented reality. Other factors have also in-
fluenced the change in the way consumers purchase and observe the price of products
and their features. Studies indicate that many people prefer not to leave home to make
their purchases, thus avoiding contact with other people due to the pandemic [1]. Cur-
rently, VR, AR, and/or MR techniques are widely used for medicine [2], education [3],
and entertainment, among others. We carried out a literature review study to identify
aspects of the use of VR, AR, and/or RM in e-commerce sites, for this, we established
4 steps: research questions, data sources, selection of articles, and article classification
and results. It was defined to search and analyze recent scientific articles. The results
obtained show that virtual reality is the most used, followed by the mixture of VR and
2

RA, the above to improve the shopping experience, focused on the client, providing a
more immersive environment with a greater sense of reality.
This document is structured as follows: section 2 presents the background and con-
cepts related to the study, section 3 details the work methodology, section 4 shows the
answers to the research questions, and, finally, section 5 presents the conclusions and
ideas for the future work.

2 Background

2.1 Customer eXperience


Companies seek to differentiate themselves from the rest by considering different ways
of reaching customers or consumers. Globalization has made consumers make much
more informed decisions due to the various means by which they can obtain infor-
mation about a company and learn about its products or services and the associated
prices.
The customer experience considers any contact that a customer has with a company,
whether directly through the purchase or use of a product, system, or service, or indi-
rectly through recommendations, suggestions, or advertising, among others, that the
customer does not intend [4]. In turn, the concept of customer experience considers
emotional and personal aspects inherent to the person. These emotions compose and
influence an essential part of the decisions [5] and then affect the client’s decision.

2.2 E-commerce
Due to globalization and the penetration of information and communication technolo-
gies, there are open spaces that companies have been able to use, thus promoting the
sale of products, systems, or services through the Internet. The concept of electronic
commerce is not new. Jeffrey Rayport in 1999, defined electronic commerce as: “the
practice of selling real products for real money through online channels” [6].
Nowadays, e-commerce has taken a relevant space within companies’ sales, a situa-
tion exacerbated by the covid 19 pandemic because people avoid leaving their homes
[7]. E-commerce can be implemented in various ways, considering whether the person
who buys or sells is a client or a business or company, we have, business to business
(B2B), business to consumer (B2C), consumer to consumer (C2C, consumer to con-
sumer) and consumer to business (C2B) among others [8].

2.3 Virtual and Augmented Reality

Technologies such as Virtual Reality (VR) and augmented reality have been on the rise,
although they are not new techniques, with the presentation of Mark Zuckerberg’s
metaverse in 2021 (Meta Platforms, Inc.) these technologies have emerged with greater
force, and we all look forward to these environments more immersive and new associ-
ated experiences.
3

Authors indicate that the definition of virtual reality dates back to the mid-1970s [9].
With various definitions of Virtual Reality (VR), authors have given way to studies to
unify their definition [10]. We can highlight that several authors agree on their defini-
tions in the use of three-dimensional computing technology, which provides an inter-
active and immersive environment for users, through the use of several devices.
Augmented Reality (AR)for your part, is defined as follows: “a medium in which
digital information is overlaid on the physical world that is in both spatial and temporal
registration with the physical world and that is interactive in real time” [11].
Today, VR is widely used in various areas such as video games, education, and med-
icine. In the medical area, such as kinesiology, it has been used to treat movement prob-
lems due to pain and for the proper performance of exercises [12][13]. Together, VR
and AR have also been used for medical and educational purposes [14][3]. In this sense,
Mixed Reality (MR) is used in this work as that technology that implements virtual
reality and augmented reality [15] in a combined way, not as a synonym of augmented
reality or a more immersive augmented reality as other authors have proposed.

3 Methodology

The literature review consisted of four stages: research questions, data sources, selec-
tion of articles, and article classification and resuts.
3.1 Research Questions

We defined the research questions to obtain general concepts in such a way to collect
works and get trends associated with the topics under study. The research questions that
were defined were:
(1) Are there uses of augmented, virtual, or mixed reality in e-commerce?
(2) what is the purpose of the implementation VR, AR or MR in the articles
found?
(3) What results does it have on the consumer experience?
3.2 Data Sources
To search for the articles, five databases were used, all related to the topics under study,
hoping to find an adequate number of articles to analyze, these databases are Web of
Science (WoS), ACM Digital Library, IEEE Xplore, Science Direct and Scopus.
The articles were searched using the search string detailed in Table 1, and consider-
ing the elements described in the research questions.
The search criteria in the databases were applied with the search by abstract option
because all the databases consulted have this option, so we will carry out a more effi-
cient search using the tools provided by the same data sources. The search for articles
was carried out in May 2022.

Table 1. Search string.


Concepts e-commerce, virtual reality, augmented reality, mixed reality, client, customer,
consumer, satisfaction, experience
Group of (e-commerce)
terms (“virtual reality” or “augmented reality” or “mixed reality”)
4

(client or customer or consumer)


(satisfaction or experience)
Search ((e-commerce) AND (“virtual reality” OR “augmented reality” OR “mixed
String reality”) AND ((client OR customer OR consumer) AND (satisfaction OR ex-
perience)))

3.3 Selection Articles


After searching the data sources, a total of 106 scientific articles were obtained (see
Table 2). The results were limited to the last ten years from 2013 to 2022, obtained a
total of 78 articles. The above is because we want to study new articles and discover
current trends in using VR and AR in e-commerce.
In addition to the above, repeated articles were removed from the selection, as well
as those already literature reviews, so that they do not influence or affect the current
study. With this limitation of articles, the total number of papers selected for the first
reading was 53.
In the process of abstract reading, articles were discarded for the following reasons:
(1) Articles that speak only of electronic commerce websites, without use in the use
of VR, AR, MX.
(2) Articles that address VR, AR, and MX only as a tool, emphasizing the technol-
ogy, not its use applied to electronic commerce.
(3) Articles that consider the customer experience not related to VR, AR, MX.

After the abstract reading, 28 articles were selected for full reading, of which 5 were
not included in the study because we did not have access to them. Finally, the study
was carried out with 23 scientific articles. See Fig. 1.

Table 2. Articles found.


Data source abstract selection Limited 10 years
Web of Science 12 11
ACM Digital Library 17 8
IEEE Xplore 13 10
Science Direct 6 5
Scopus 58 44
Total 106 78

Fig. 1. Selection articles process.


5

3.4 Articles Classification and Results


Most of the articles under study were published in different journals (16 articles), rep-
resenting 70%. In turn, conference articles represent 30% of the total analyzed, corre-
sponding to 7 articles (see Fig. 2).

Fig. 2. Articles published in journals and conferences.

About the year of publication of the selected articles, there is a tendency to increase
the number of items as the years progress. In Fig. 3 we can see the papers published by
year, only in 2019 is there a drop. Concerning 2022, since the search ended in May,
there will probably be more publications to add.

Fig. 3. Publication year of the articles.

In the articles reviewed, it can be noted that most of them (56%) implement virtual
reality, which corresponds to 12 articles, followed by a mixed reality, which for this
study is related to the implementation of both augmented and virtual realities (26%),
with 6 items. Finally, augmented reality has a lower percentage (22%) with only 5 ar-
ticles.
6

Fig. 4. Use of virtual augmented or mixed reality in articles.

Regarding the types of products that the e-commerce market, in the articles re-
viewed, they are aimed at supermarkets (6 papers), food products (2 articles), furniture
(1 article), sunglasses (2 articles), tourism (1 article), travel (1 article), video games (1
article), clothing (1 article), and watches (1 article). Other articles analyzed do not spe-
cifically identify the product they market since the concepts are generally used for the
product markets (7 articles). This information only represents a frequency of ideas.
Then, it has no direct relationship with the number of papers. See Fig. 5.

Fig. 5. Use of virtual augmented or mixed reality in articles.

The classification of the articles was carried out considering (i) articles that imple-
ment Virtual Reality (Table 3), (ii) articles that present the incorporation of both aug-
mented reality and virtual reality (Table 4), and (iii) articles that implement Augmented
Reality (Table 5).

Table 3. Articles of Virtual Reality.

Cite Brief description

[16] This paper uses VR to examine an offline showroom versus an online virtual real-
ity web room linked with artificial intelligence to recommend products to custom-
ers. The results indicate that adopting AI will improve your return policies, maxim-
ize resale returns and reduce the risks of stock-outs and shortages.
7

[17] It uses VR with a haptic combination so the customer can realize the weight of the
ordered item. This allows for greater customer immersion and improves customer
satisfaction.
[18] Use VR to demonstrate a positive effect on customer loyalty to the brand consider-
ing the entire purchase process.
[1] This article uses VR to simulate social interaction in a virtual supermarket using
avatars. It presents an improvement in the virtual shopping experience. Through
social interaction with VR, consumers’ enjoyment, immersion, and telepresence
experience were significantly enhanced.
[19] The study proposes a framework to incorporate a set of virtual reality solutions that
allow obtaining information about the consumer through the analysis of consumer
interaction in a virtual reality store. This gives the consumer an immersive experi-
ence and provides a personalized experience that promotes the purchase of the
product.
[20] The research focuses on defining UI and UX design criteria considering VR factors
to meet the needs and user experience in an e-commerce environment. For this, it
uses various questionnaires and methodologies that allow UI and UX design crite-
ria for VR. centered on five main themes: screen, operation and prompt, safety and
experience of use, system functions, and transaction.
[21] Analyze the effectiveness of VR devices and VR content formats. Establishing that
attractive virtual environments generate affection and a deep sense of presence im-
proves commercial performance, impacting purchase intention.
[22] It uses VR to design and implement a VR architecture for product purchase, which
consists of six modules: virtual shopping mall, item display, online payment, inter-
action, game, and advertising. Recreating a shopping center for electronic com-
merce.
[23] In this article, VR is used to create a new shopping experience considering the spa-
tial placement of products in apartment settings.
[24] Uses VR to implement e-commerce that incorporates three-dimensional elements
and intelligent sensors, thus integrating elements of industry 4.0 in retail created
with virtual reality.
[25] Presents a theoretical study showing a typology of VR and a dual theoretical model
of participation and use of VR to establish that immersive processes influence con-
sumer responses through imagination, co-creation, and telepresence
[26] Recreate a supermarket in areas of beer, water, and wine. It puts two virtual envi-
ronments, one navigable 360 and another free 3d navigation. It states that although
HMDs are more cumbersome than other devices, they provide better experiences
and more excellent consumer responses. Furthermore, discomfort does not impact
the sense of presence or brand recall. Improves purchase intention.

Table 4. Articles of Mixed Reality.


Cite Brief description
8

[27] AR and VR use them to display various photos from different locations and angles. In
addition, it features audio and video clips providing a broader range of physical store
information. In other words, it is assimilated as if the customer were in person at the
store—aspects of rescuing: Use machine learning, specifically neural networks, to dis-
cover customer purchasing patterns.
[28] Use virtual and augmented reality to assess how information availability supports cus-
tomer experience and decision-making, comparing traditional e-commerce to virtual
commerce.
[29] They use an AR/VR-based clothing fitting system to validate how it positively contrib-
utes to the online shopping experience and provides consumers with positive experi-
ences. They also carry out tests based on AR with personalized human movement to
provide a more comfortable shopping experience.
Attractive and, therefore, increase their purchase intention.
[30] Analyze customer perception in virtual spaces compared to physical spaces, comparing
what is offered on a website, 2D, versus what is provided by an AR or VR.
[31] This paper consider an e-commerce purchases within a game, a store to buy, with much
more immersive virtual reality, with augmented reality with a virtual assistant or ava-
tar.
[32] The use of a HoloLens mixed reality device is proposed to implement a holographic
application that allows personalized recommendations to be made to customers of a
store. This shopping experience is more pleasant, facilitates free mobility for the user,
and encourages the purchase decision.

Table 5. Articles of augmented reality.


Cite Brief description
[33] Evaluate the user experience when trying on lenses in an AR application. A mobile app
with an AR feature needs to incorporate indicators of perceived ease of use, perceived
usefulness, and hedonic benefits (perceived enjoyment and seamless experience) for
consumers.
[34] Identify the key factors influencing e-commerce companies' intent to adopt AR. These
are technological, organizational, and environmental, which affect the intention to adopt
an AR by e-commerce companies.
[35] The realization of two studies focused on the effect of the functional mechanisms of in-
teractivity and vividness of AR, which impact the presentation of products and custom-
ers' purchase intention.
[36] It exposes what other companies do, such as catalogs with RA and showing videos,
among other things, which allows for more engaging experiences for customers.
[37] For retail sales, four AR applications in the retail and marketing markets. A proven
model for measuring consumer/user acceptance of AR applications in marketing and re-
tail. Considers aspects such as hedonic (enjoyment, pleasure, fun) and utilitarian (infor-
mation)

4 Response to research questions

According to the articles reviewed, the following answers can be given to the research
questions defined.
9

Are there uses of augmented, virtual, or mixed reality in e-commerce? We found


various articles that implement virtual, augmented, and mixed reality. In this sense, it
is essential to note that of the selected studies, virtual reality has the highest frequency
of use (12 articles, which represents 56%), as shown in Fig. 4. Next, in the second place,
we found the use of both technologies complementary (found in 6 articles that represent
26%). Finally, augmented reality (found in 5 articles representing 22%). It is important
to note that all the papers analyzed showed implementations of e-commerce that market
several products. Interestingly, using both technologies together is more popular than
the sole implementation of augmented reality. Finally, we found that there is an upward
trend concerning the articles that analyze implementing these technologies in e-com-
merce.
What is the purpose of the implementation VR, AR or MR in the articles found? In
the analyzed papers, several purposes are distinguished for the implementation of vir-
tual, augmented, and mixed reality. One of the main elements is to improve the way of
showing the product to the customer, bringing it as close as possible to a face-to-face
purchase reality, adding information that is relevant to the product, to induce a purchase
decision by the customer. On the other hand, we found elements to facilitate the pur-
chase, and navigation, to generate greater immersion and customer enjoyment. In addi-
tion, an important element to highlight is the placement in real spaces of the product
that has not yet been purchased, again facilitating the purchase decision for the cus-
tomer.
What results does it have on the consumer experience? The shopping experience
improved or at least remained the same in all the scientific articles analyzed, even in
those articles that, given the nature of the study, required hardware or devices such as
a head-mounted display. Establishing that although they are necessary elements that
could make the customer uncomfortable, they ultimately it does not affect the shopping
experience. In this sense, it is essential to highlight that some articles show ways to
evaluate the customer experience while shopping using VR, AR, and/or MR, mainly
including elements such as post-use questionnaires and customer behavior analysis.
However, each article proposes different factors to evaluate the shopping experience.

5 Conclusion and Future Work


We found several articles that use virtual, augmented, and mixed reality in e-commerce.
In this case, virtual reality was placed as the most used technology among the articles
analyzed, followed by both virtual and augmented reality. Also, we found a trend to
increase the number of articles that analyze the implementation of these technologies
in e-commerce. The use of VR, AR and/or MR targets to induce a purchase decision by
the customer through an immersive experience in the shopping articles. In the scientific
articles analyzed, using VR, AR and/or MR improves the shopping experience. We
note that it is necessary to establish a guide to implement the evaluation of the shopping
experience due to the articles found implementing different and personalized ways to
carry out this evaluation.
Important elements can be identified to highlight in the analyzed studies. We identi-
fied the use of VR, AR and/MR, to establish more immersive realities, improving the
10

shopping experience. We also noted that there are incorporations of AI algorithms, neu-
ral networks, to suggest customer preferences [27] [16], which incorporates new ele-
ments for the use of recommender systems.
Some aspects that could limit the shopping experience in the studies analyzed were
related to the need for a good internet connection and the availability of specific hard-
ware, such as smart phones, to obtain a better experience. However, given the incorpo-
ration of 5G technologies and the widespread use of mobile devices, these possible
limitations could be reduced.
This work reviews specific articles related to VR, AR, and/or MR. In future work,
we intend to extend this work, analyzing the customer shopping experience and evalu-
ating the customer experience in e-commerce, which relates to VR, AR and/or MR.

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