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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Immersive Shopping Presentation of Goods in Virtual Reality</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Matthias Wo¨lfel</string-name>
          <email>matthias.woelfel@hs-karlsruhe.de</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Anna Reinhardt</string-name>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Faculty of Computer Science and Business Information Systems Karlsruhe University of Applied Sciences</institution>
          ,
          <addr-line>76133 Karlsruhe</addr-line>
          ,
          <country country="DE">Germany</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>Faculty of Digital Media, Furtwangen University 78120 Furtwangen im Schwarzwald</institution>
          ,
          <country country="DE">Germany</country>
        </aff>
      </contrib-group>
      <fpage>119</fpage>
      <lpage>130</lpage>
      <abstract>
        <p>Mixed Reality is gaining popularity in more and more areas. One of such application, which has gained recent interest, is the enhancement of shopping experiences by presenting virtual goods in a real or virtual surrounding. While product representation (e.g. quantity, placement, size, surrounding) in brick-and-mortar retail stores is naturally constrained, e-commerce is liberated. But instead of using those possibilities the best practice to represent products in the web is to show a single whole object on a white background. Contextual information is therefore removed and from the shown image alone it is unclear if the product is available, in what quantity, its size, or how valuable it is in comparison to other products. In retail stores, however, those incentives have a well understood influence on customer behavior and are used to actively steer the buying habit. But if those incentives can also have a positive effect in immersive virtual environment has, to the best of our knowledge, not been investigated. Our results show that basic findings on the presentation of goods do not behave significantly differently in virtual in comparison to real environments. The virtual surrounding in which the product was presented had a significant impact on the product evaluation.</p>
      </abstract>
      <kwd-group>
        <kwd>Immersive Virtual Reality</kwd>
        <kwd>Virtual Shopping</kwd>
        <kwd>Customer Experience</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>Introduction</title>
      <p>
        Although the beginnings of virtual reality (VR) glasses date back to the 1960s,
it was only in the last few years that the technology could be made accessible to
a broad mass of people. As a result of constant further development, VR is being
used in more and more areas, the hardware of head-mounted displays (HMD) is
improving and enthusiasm for and interest in this rather new end-user
technology is growing. Virtual representations of goods are expected to gain relevance
in e-commerce applications. But how to present goods with immersive
technologies is not well understood. Can learnings from brick-and-mortar retail stores
simply be transferred into the digital domain? Or should we follow standards
2
and guidelines from the mobile and web sectors regardless of the differences and
characteristics to VR? Probably not! See for instance Speicher et al. [
        <xref ref-type="bibr" rid="ref13">13</xref>
        ]
      </p>
      <p>
        It has been experimentally demonstrated that there is a difference between
the perception of space in physical and virtual environments. Saleeb [
        <xref ref-type="bibr" rid="ref10">10</xref>
        ] showed
that the perception of size lies in a perceived reduction of height by 4% to 9%,
width by 9% to 31% and depth by 18% to 32%. These values apply to the static
state. Through movement, the values decrease, so that the changed perception
of space corresponds somewhat better to reality, but still shows differences.
Experiments by Rojas et al. showed that rendered 3D objects with medium quality
alter consumer perception in comparison to real objects. [
        <xref ref-type="bibr" rid="ref9">9</xref>
        ]
      </p>
      <p>So how could immersive shopping look like in the future? Besides simply
resembling well known shopping spaces, the question arises, if and how the
liberation from physical constraints can be combined to good effect. To answer the
raised question we first review how goods are presented in different environments
(see Section 2) before we present our test setup where we change the position,
quantity and size of the products on the one hand and the influence of different
environments on the other (see Section 3). Thereafter we present our findings
(see Section 4) and conclusion (see Section 5).
2</p>
    </sec>
    <sec id="sec-2">
      <title>Presentation of Goods</title>
      <p>In this section we present a brief overview on how products or goods are presented
in different media. A full discussion of this topic is beyond the scope of this
publication.
2.1</p>
      <sec id="sec-2-1">
        <title>Store</title>
        <p>
          The presentation of goods is seen as part of the shop design and includes the
distribution, arrangement and decoration of the goods in the room. It influences
the behavior of the customer and his/her emotional and cognitive processes. [
          <xref ref-type="bibr" rid="ref4">4</xref>
          ]
Therefore, a lot of attention has been put into the investigation in how to
distribute and arrange goods. In retail goods are presented in the four zones: stretch
level, eye level, touch level and stoop level following particular rules for the
vertical and horizontal arrangement; e.g. items that are promoted should be placed
in the eye level, cheap items belong down and sensitive items are placed high.
The eye level receives the most attention and everything above and below is not
perceived to the same extent. A product in the eye level sells between 50% and
80% more frequently than a product in the stoop level. [
          <xref ref-type="bibr" rid="ref5">5</xref>
          ] In the horizontal
positioning the center of a shelf achieves the most sales, followed by the right side
of the shelf. The left side of the shelf forms the area with the weakest sales. [
          <xref ref-type="bibr" rid="ref11">11</xref>
          ]
This can be explained by the fact that customers not only walk in the right
direction, but also reach to the right. [
          <xref ref-type="bibr" rid="ref15">15</xref>
          ] Research has shown that customers
think they have more choice when shelves are filled with few, but well presented,
items. The sales could be increased by 10% despite a reduction of items by about
30%. [
          <xref ref-type="bibr" rid="ref5">5</xref>
          ]
2.2
        </p>
        <p>
          Web
3
In recent years, online trading has been able to expand through platforms such
as eBay or Amazon and is gaining more and more importance. Food is a
significant part of the global retail market, but it is still not strongly represented
in e-commerce. On websites food is presented using 2D images, text description
and white background, which do not create a real shopping experience, see for
instance left image in Figure 1. [
          <xref ref-type="bibr" rid="ref4">4</xref>
          ] Usually the product is also shown as a single
product and presented by photographs and additional text descriptions. [
          <xref ref-type="bibr" rid="ref6">6</xref>
          ] The
decision to buy food in a store is mainly influenced by the haptic experience. It
is important for consumers to know the appearance of the goods and to be able
to judge the quality derived from it themselves which, of course, is not possible
with a digital sales channel. Only the sense of vision is able to check and assess
product quality independently of product characteristics. Visual representations
or text descriptions of the product on the web can partly compensate the lack
of tactile information. [
          <xref ref-type="bibr" rid="ref7">7</xref>
          ]
        </p>
        <p>
          Both text and visual product information may not be presented in a
structured and organized way on the Internet. However, the arrangement of products
and the placement of information about product characteristics are important
in order to influence the behavior of users. As discussed in Section 2.1 relative
shelf position is affecting consumer choices. Breugelmans et al. show that
product placement can also have an effect on the consumer choices in the context of
online grocery. [
          <xref ref-type="bibr" rid="ref2">2</xref>
          ]
        </p>
        <p>
          Previous research by Alba et al. has shown that users can more easily
capture and process information if it is clearly presented. [
          <xref ref-type="bibr" rid="ref1">1</xref>
          ] A plain background
will bring focus to the product and allows the user to take a better look at it.
4
        </p>
        <p>
          Matthias Wo¨lfel and Anna Reinhardt
Details of the product can get lost with a contextual background. Efficient
visual presentation helps the buyer to process the product information and gain
a realistic understanding of the product. The challenge is to present products
through images and text that all important information is given and a real
product experience can be replaced. [
          <xref ref-type="bibr" rid="ref6">6</xref>
          ]
2.3
        </p>
      </sec>
      <sec id="sec-2-2">
        <title>Augmented Reality</title>
        <p>
          The use of augmented reality (AR) in retail is twofold: It can be either used
– to augment products at the point of sale or
– to present a product in any given environment such as home.
While the former is focused on the presentation of product-related information
the latter shows the product itself in a given environment. A typical AR retail
application is depicted in the right image in Figure 1. Spreer and Kallweit have
revealed that AR has the potential to improve the assessment of information and
that, to ensure the users’ acceptance, it needs to offer a clear customer benefit
and enjoyment-related elements. [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ]
2.4
        </p>
      </sec>
      <sec id="sec-2-3">
        <title>Virtual Reality</title>
        <p>
          The use of VR department stores is not commonplace yet. This can be
contributed to the availability of VR, the VR experience itself and the lack of VR
shops. The world’s first VR department store was ‘opened’ in collaboration with
eBay and the Australian company Myer. With a smartphone and a customized
version of the Google Cardboard, the user can enter the personalized department
store and view 3D models of certain products from all possible perspectives in
VR. Chinese e-commerce Alibaba also uses buy+ to show what a virtual shop
can look like. [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ] At the Taobaoer Maker Festival, users could buy a cardboard,
insert their smartphone and walk through the virtual shop. The focus was on
buying experiences from foreign shops that do not have a location in China.
Unlike the VR department store from eBay and Myer, buy+ not only offers 3D
models and 360◦ views of the products, but also a virtual environment of real
shops. This should enable users to have a realistic and improved shopping
experience. There was a lot of interest in the beginning, but no further updates
and news were released, although nearly 8 million users tried buy+ during the
Taobaoer Maker Festival. Possible reasons could be that the users had no added
value because the virtual shopping experience was not very immersive due to the
cardboard. Another reason could be that there wasn’t much to see since only six
retailers were available. [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ]
3
        </p>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>Test Setup</title>
      <p>As we have seen in Chapter 2 there exists different approaches between real
and virtual shopping which come with different advantages and disadvantages.
While real and web-based commerce is well understood, immersive shopping is
not. The aim of our study, therefore, is to figure out if customer behavior is
influenced by the same parameters in an immersive virtual environment as in a
physical environment. The test setup concentrated on four purchasing decision
parameters (the first two are optimized in retail, the third investigates perceptual
differences and the last one can probably profit the most from the possibilities
of immersive virtual environments), namely:
– placement: Does product placement in VR has the same influence as the
four shelf zones in brick-and-mortar retail?
– quantity: Is the scarcity effect transferable to VR even though it does not
really make sense in e-commerce?
– size compared to reality: Are there any differences in the perception of
size of a product between real and virtual? And how is the displayed size of
a product influencing the buying decision?
– environment: How can the surrounding influence the perception of the
product according to the attributes ecological, healthy, regional, sustainable,
fair, valuable?
We decided to use two goods, a milk package as a representation of a daily
commodity and a wine bottle as a luxury commodity, and to place them into
five different environments as depicted in Figures 6 until 9.</p>
      <p>The software for the study was developed by us using the game engine Unity
and was particular designed to fit to the requirements of the test. The hardware
setup consisted of a PC with i7 CPU and 1080i GPU running Windows 10, HTC
Vive + Lighthouses and a Leap Motion mounted on the head mounted display.
3.1</p>
      <sec id="sec-3-1">
        <title>Procedure</title>
        <p>The entire experiment consists of a total of 16 different environments, of which
8 environments with the milk or wine variant are shown to the test person.
Whether the subject sees the milk or wine variant is decided by chance. The test
lasted 15 to 20 minutes and had the following structure:
1. participant enters the room and is welcomed and instructed by the test leader
2. participant fills in the demographic information
3. participant puts on VR glasses and adjusts them accordingly
4. the test leader starts the next randomly selected environment
5. participant has time to look around, interact in this environment and to
fulfill the given task
6. questions about this environment are asked and entered into the form by the
test leader
7. steps 4. until 6. are repeated until the last environment is tested
8. the experiment is finished and the participant can write comments or other
suggestions into the form
9. the test leader thanks the participant and the subject leaves the room
6
3.2</p>
        <p>Matthias Wo¨lfel and Anna Reinhardt</p>
      </sec>
      <sec id="sec-3-2">
        <title>Participants</title>
        <p>The study included a total of 70 subjects (24 females, 46 male) at an age between
20 and 76 years. 51 participants have already experienced VR before the test.
A total of 57% of participants shop online every month and 25.7% shop weekly.
70% of the participants have never bought food online.
4</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>Results</title>
      <p>In this section we present the results from the experiments described in the
previous section. If not stated otherwise the results are given as Likert scales
from 1 (fully disagree) to 5 (fully agree). Figure 2 presents the three free variables
placement, quantity and size while Figures 6 until 9 show the different tested
environments. All differences considered relevant (p&lt;0.05) according to ANOVA
are marked with an asterisk *, those considered highly relevant (p&lt;0.005) are
marked with two asterisks **.
Based on the results in Figure 3 where the difference between the four shelf levels
is presented, it can be stated that the participants have chosen the products
nearly exclusively from the eye level (a much higher buying interest ** as well
as grasping** for the product). In comparison to the physical environment this
effect seems to be even more pronounced in VR. Comparing, in Figure 3, the
perceived effort (p≈0.49) we see that there is not a large variation. A tendency
to higher effort is in the stretch level, the least effort is located in the touch level.
Immersive Shopping Presentation of Goods in Virtual Reality
7
100%
80%
60%
40%
20%
0%
stretch level
eye level
touch level</p>
      <p>stoop level</p>
      <sec id="sec-4-1">
        <title>Quantity</title>
        <p>
          Artificial scarcity is part of an innovative brand strategy. This strategy means
the artificial reduction of products, in order to increase the attractiveness for
the customer and to positively influence the purchase decision to influence the
shelf space. For instance, retailers only fill half of their shelves, to artificially
illustrate the strong demand for certain products. Or they limit their product
offerings in time to keep customers under pressure to buy the products already
before expiration. Due to scarcity, the value of a product and its perceived quality
can vary. [
          <xref ref-type="bibr" rid="ref3">3</xref>
          ]
        </p>
        <p>The intention to buy and the felt value are shown in Figure 4. In contrast
to online shopping where only a single product is shown in our experiments the
intention to buy* was higher if a couple or many products of the same type have
been shown. The value (p≈0.15) attributed to a product is only slightly reduced
if shown in a large quantity.
4.3</p>
      </sec>
      <sec id="sec-4-2">
        <title>Relative Size</title>
        <p>Figure 5 shows that the participants chose an object which was scaled by 10% as
the best fit to the original or real size*. This is consistent to the findings by Saleeb
which, as already discussed in the introduction, has demonstrated that there is
a perceived reduction in size which is being compensated in our experiments by
deciding for a larger version of the original size. This choice towards larger than
real size directly translated to the product with the highest intention to buy*. It
is interesting to note that the intention to buy was shifted even further to larger
product sizes. This suggests that products should be presented in exaggerated
sizes.
4.4</p>
      </sec>
      <sec id="sec-4-3">
        <title>Surrounding</title>
        <p>Figures 10 and 11 give the influence of the different surrounding, as given in
Figures 6 until 9, on the perception of the two products, milk pack and wine</p>
        <p>Matthias Wo¨lfel and Anna Reinhardt
100%
80%
60%
40%
20%</p>
        <p>0%
100%
80%
60%
40%
20%
0%
one
a couple</p>
        <p>many
4
3</p>
        <p>Immersive Shopping Presentation of Goods in Virtual Reality
empty
environment</p>
        <p>shelf in
retail store</p>
        <p>shelf in
environment</p>
        <p>matching
environment
non-matching
environment
ecological
healthy
regional
sustainable
fair
valuable
bottle, according to the attributes ecological, healthy, regional, sustainable, fair,
valuable.</p>
        <p>It can be observed that the surroundings have a similar effect on both
products and a clear chronological order exists: the least average score over all
attributes and products is the ‘non-matching environment’ (2,39), followed by
‘empty environment’ (2,73) and ‘shelf in retail store’ (2,75) which are rated
equally, and last but not least the final group ‘shelf in environment’ (3,69) and
‘matching environment’ (3,88). It can, therefore, be concluded that an
environment which fits to the presented product can promote the product. This is similar
to the effect that more French wine is sold in a retail store if French chansons
are played.</p>
        <p>By comparing the individual attributes between the two presented products
it becomes obvious that some preassumptions about the products are applied;
e.g. wine is rated less healthy than milk while it is rated more valuable. Some
attributes are influenced heavily according to the surrounding; e.g. ecological
(max. difference between the environments 2,63) while others are more stable
such as valuable (0,67).</p>
        <p>Immersive Shopping Presentation of Goods in Virtual Reality
11</p>
        <p>
          Due to the relatively small sample size for sub-groups the results presented
in this paragraph need to be verified in further research. We want to share our
insights nevertheless because we think they might be at least helpful to show
tendencies: The participants without VR experiences (n=19) felt more
uncomfortable compared to participants with previous experience. The ones with VR
experiences assessed the environments more realistically and rated the
interactions as more natural than the test persons without experience. This is in line
with results we have previously published. [
          <xref ref-type="bibr" rid="ref12">12</xref>
          ] If the test persons felt
comfortable in the environment, they usually rated the characteristics of the products
better and valued the price level higher. If the environment was evaluated
realistic and visually appealing it also had a positive influence on the evaluation of
the products regarding their characteristics. If the user did not feel as part of the
virtual environment, the product characteristics tended to be rated worse. This
confirms that the presence can have a positive as well as a negative influence on
the product rating.
5
        </p>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>Conclusion and Outlook</title>
      <p>We have investigated the presentation of goods in virtual reality. We found that
the assigned values to the different shelf zones can be taken over to
immersive shopping environments. Products should not be presented individually as
is common today on web-pages, but rather should be presented in a group that
is not too large and not too small. The shifted perception of size, independent
of the product, should be particularly taken into account in order to be able to
guarantee the customer a realistic image of the product.</p>
      <p>On the web customers receive only 2D content, while in a virtual
environment they can view the products 3D from all perspectives and thus get a better
impression of the size and shape of the respective product. The quality of the
food can be better derived from a realistic visualization of the products and their
characteristics than from images or text.</p>
      <p>Immersive virtual retail has the potential to overcome some of the drawbacks
associated with e-commerce or brick-and-mortar retail stores. It offers shopping
experiences which can go far beyond known path in particularly if one is not
relying on common shop layouts which are usually restricted in many ways:
space, expenses, number of visitors, physical laws, etc.</p>
      <p>Matthias Wo¨lfel and Anna Reinhardt</p>
    </sec>
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