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Received: 21 September 2022 Revised: 19 June 2023 Accepted: 3 July 2023

DOI: 10.1002/cb.2226

RESEARCH ARTICLE

Understanding consumers' purchase intention in virtual reality


commerce environment

Kuo-Lun Hsiao | Kuan-Yu Lin

Department of Information Management,


National Taichung University of Science and Abstract
Technology, Taichung, Taiwan, ROC
Virtual reality (VR) has developed rapidly and drawn the attention of businesses. E-
Correspondence commerce practitioners have used VR to improve business performance and satisfy
Kuan-Yu Lin, Department of Information
consumers' needs by enhancing the shopping experience and increasing purchase
Management, National Taichung University of
Science and Technology, No. 129, Sec. 3, San- intention. To explore the effects of VR shopping platforms on purchase intention, this
Min Road, Taichung, 404, Taiwan, ROC.
study developed a theoretical framework on the basis of task–technology fit. The
Email: ntustmislab@gmail.com
framework comprises technological characteristics and user needs (intrinsic and
Funding information
extrinsic motivation) and can be used to investigate perceived needs–technology fit
Ministry of Science and Technology: project
number MOST-109-2410-H-275-005. and identify factors affecting intention to purchase on VR platforms. This study dis-
tributed an online questionnaire and received 336 responses. Analysis was per-
formed using partial least squares structural equation modeling. The results
suggested that purchase intention is stronger when perceived needs–technology fit
is closer. Hedonic needs play a vital role in perceived needs–technology fit. In terms
of technological characteristics, relative advantage, and service compatibility strongly
affect perceived needs–technology fit. In addition, feelings of spatial presence, a key
component of VR, positively affect relative advantage, service compatibility, and trial-
ability and negatively affect complexity. The implications of the findings are also
discussed.

1 | I N T RO DU CT I O N immersiveness, facilitated by VR, can help drive customer engagement


and affect purchase behaviors; thus, they have embraced VR-based
As information technology and the infrastructure for network commu- commerce and shopping (Lim et al., 2022; Lim et al., 2023; Martínez-
nications have developed, technology such as computers and mobile Navarro et al., 2019; Preface, 2023; Scalefast, 2022). VR has provided
phones have become pervasive. In addition to esthetics and function- new online shopping experiences (Ecommerceguide, 2022; Scalefast,
ality, consumers desire their technology to offer immersiveness (e. 2022), particularly during the COVID-19 pandemic, and closed the
g., virtual reality [VR]; Preface, 2023; Scalefast, 2022). Consequently, gap between conventional stores and online shopping by offering
businesses have begun to offer VR experiences (Wei et al., 2019) to immersiveness, which has increased customer engagement and
attract customers (Martínez-Navarro et al., 2019). A survey conducted benefitted corporations (Lim, 2023; Lim et al., 2022; Lim et al., 2023).
by Omdia (2021) estimated that the VR market would increase from Retail businesses such as Walmart, Macy's, eBay, Ikea, and Nike are
US$6.4 billion in 2021 to US$16 billion by 2026, a 148% increase, increasingly adopting VR (MIC, 2022b; Preface, 2023; Scalefast,
which indicates the potential of VR applications. 2022). VR has also affected industrial development; commercial ser-
Amid this evolution, retail businesses are introducing new tech- vice providers have employed VR to increase operational effective-
nologies to their operational models. For example, physical stores ness and meet consumers' needs (Preface, 2023; Scalefast, 2022;
have transitioned to online stores (offline to online) to increase pur- Synoptek, 2018). In addition, VR has led to innovative business and
chase intention and revenue (Lin et al., 2022; MIC, 2022a; Trivedi consumption models in which online and offline resources are com-
et al., 2022). Brand owners and retail businesses have realized that bined (Ecommerceguide, 2022; MIC, 2022b; Preface, 2023). VR will

J Consumer Behav. 2023;1–15. wileyonlinelibrary.com/journal/cb © 2023 John Wiley & Sons Ltd. 1
2 HSIAO and LIN

continue to change how consumers interact with platforms and create RQ3. What factors affect consumers' intention to make
opportunities for e-commercial retailers to embrace change. purchases on VR shopping platforms?
Businesses have launched services that incorporate VR to attract
consumers and remain competitive. However, consumers' intention to
shop using VR remains underexplored. For this reason, the present 2 | THEORETICAL BACKGROUND
study explores how VR affects purchase intention. Researchers have
used the technology acceptance model (Davis, 1989) and theory of 2.1 | TTF theory
planned behavior (Ajzen, 1991) to measure behavioral intention in
relation to technology. Goodhue and Thompson (1995) proposed the Goodhue and Thompson (1995) suggested that technology is only
concept of task–technology fit (TTF), a measure of similarity between used when its function satisfies task needs. Thus, users employ infor-
consumers' needs and technology's abilities, and indicated that TTF mation technology when its function satisfies and supports their
affects behavioral intention. Studies have since employed the TTF needs for task activities. TTF is related to this process of technology
to explore behavioral intention in relation to emerging technology facilitating tasks and can determine whether a technology will be
(Baabdullah et al., 2019; Cheng, 2021; Ip & Wagner, 2008; adopted (Ip & Wagner, 2008; Tam & Oliveira, 2019; Yuce et al., 2019;
Lin, 2016). Zhang et al., 2017). Research on online shopping, e-commerce, blogs,
Ip and Wagner (2008) proposed a needs–technology fit model VR, and smart technology has revealed that TTF directly, positively,
based on TTF and used it to explore the influence of the aforemen- and significantly affects usage intention. Numerous studies have been
tioned fit on use of information technology; this effect was positive based on TTF as theory, with their research constructs being modified
when the technology matched users' needs. Lin (2016) combined the to suit the specific context (Baabdullah et al., 2019; Bere, 2018;
model with uses and gratifications (U&G) theory to explore intention Cheng, 2021; Huang et al., 2017; Ip & Wagner, 2008; Rahi et al.,
to use mobile technology; motivational needs and a technology's char- 2021; Rai & Selnes, 2019; Zhang et al., 2017). Scholars have indicated
acteristics were found to directly affect perceived needs–technology that TTF is part of a goal-oriented perspective and conveys how indi-
fit, which affected intention to continue using the technology. Thus, viduals use technology to increase efficiency or achieve goals.
purchase behavior is determined by whether a technology can satisfy Researchers (IP & Wagner, 2008; Lin, 2016) further stated that
a consumer's needs (Ip & Wagner, 2008; Lin, 2016). users used a technological service or product, as they are driven to do
Some studies on emerging technologies (such as VR, augmented so by their own motivational needs and the factors of technological
reality, mobile technology, and social networks) have used the diffu- characteristics, where if there was a use needs-technology fit
sion of innovation theory. Individuals can either accept, hesitate to between the two that could effectively help satisfy the users, positive
use, or reject a new technology, and each of these reactions is associ- use experience would be generated, which in turn affected the users'
ated with certain factors (Kaur et al., 2020; Magsamen-Conrad & Dil- behaviors of using technology. That makes it clear that for users to
lon, 2020), such as the perceived benefits of the technology, its use an emerging information technology, they often are subject
complexity, and whether consumers can test the technology out. Con- to whether there is a balance between technological characteristics
sumers engage with technology more quickly and frequently when and the factors of their needs, which in turn gives rise to their behav-
the technology meets their needs (Ali et al., 2021; Kaur et al., 2020; ioral intention (IP & Wagner, 2008; Lin, 2016). VR provides users with
Rogers, 1995). In the case of VR, the primary innovative characteristic the feeling of presence in a way that high-quality images, smoothly-
is its immersiveness (Rodríguez-Ardura & Meseguer-Artola, 2016; flowing system and abundant contents rendered in 3-D space allow
Tussyadiah et al., 2018)—its ability to create the experience of being the users to be immersed in virtual world (Hsiao et al., 2023; Kim &
in a real environment complete with sound (Lim et al., 2022). Ko, 2019; Tussyadiah et al., 2018) while satisfied with both utilitarian
Most research on the use of emerging technology has been based feeling and hedonic feeling (Alzayat & Lee, 2021), whereby to increase
on TTF, which does not account for users' perspectives and needs their purchase intention (Lim et al., 2022). that tells us that by means
(Ip & Wagner, 2008; Lin, 2016), which are key factors affecting pur- of unique technological characteristics, while VR provides users with a
chase intention. For this reason, the present study used TTF (utilitar- shopping environment where they feel as if in it, VR also helps
ian value), perceived needs–technology fit (hedonic value), U&G increase their utilitarian and hedonic needs, and in turn arouses their
theory, and diffusion of innovation theory to explore how VR affects purchase intention (Kim & Ko, 2019; Manis & Choi, 2018; Wei et al.,
purchase intention. The research questions (RQs) were as follows: 2019; Xi & Hamari, 2021; Yang & Han, 2021). However, in exploring
consumers' purchase intention within VR environment, little research
RQ1. What are consumers' needs and the technological has cross-examined technological characteristics and user's motiva-
characteristics of VR shopping platforms, and what is tional needs to understand whether a balance between them would
the fit between them? form needs-technology fit and further affect purchase intention.
From all the above stated, this study explores what consumers in
RQ2. How does the degree of immersiveness in VR VR shopping environment would be subject to that affect their shop-
affect this fit? ping intention when using the VR, on the theoretical basis of the
HSIAO and LIN 3

task–technology fit theory, with references made to the perspectives observability, and trialability are key factors affecting intention to use
of technological characteristics and user needs proposed by emerging technologies.
researchers (IP & Wagner, 2008; Lin, 2016), as well as a underlying The key characteristic of VR is the feeling of spatial presence it
framework for development of the perceived need-technology fit creates (Hsiao et al., 2023; Tussyadiah et al., 2018; Vettehen et al.,
model and combining other related factors. 2019; Wei et al., 2019); a user can view merchandize in a 360 pano-
ramic environment, which generates immersiveness (Tussyadiah et al.,
2018; Vettehen et al., 2019). Spatial presence may also satisfy users'
2.2 | U&G theory needs (Alzayat & Lee, 2021; Ecommerceguide, 2022). For this reason,
in addition to the five key characteristics used within diffusion of
U&G theory was first introduced by Katz et al. (1974) in The Uses of innovation theory, this study explored the immersiveness of VR shop-
Mass Communications, in which Katz et al. indicated that research on ping platforms.
communications has focused on the effects of media on audiences.
U&G theory focuses on how media are used and the psychological
motivations to use certain media. U&G theory assumes that individ- 3 | RE S E A R C H M O D E L A N D H Y P O T H E S E S
uals actively select media for specific purposes and that individuals
know their own needs. Ko et al. (2005) reported that Figure 1 presents the study's research model, which was based on
individuals understand their needs and select media to satisfy these TTF, U&G theory, and diffusion of innovation theory. Perceived
needs. Therefore, the satisfaction of needs is a critical factor affecting needs–technology fit is a key factor affecting intention to purchase
a person's attitude toward media. U&G theory can be employed to on VR shopping platforms. Motivational needs comprise extrinsic
investigate motivations and the decision to use any form of mass motivation (utilitarian needs) and intrinsic motivation (hedonic needs).
communication media (Ko et al., 2005; Lin, 2016; Ray et al., 2019).
Thus, U&G theory can also be used to explore the relationship of VR
with purchase intention (Xi & Hamari, 2021). For this reason, this 3.1 | Perceived needs–technology fit
study used U&G theory to identify factors that affect intention to use
VR shopping platforms in relation to needs. Ip and Wagner (2008) indicated that needs–technology fit determines
whether individuals adopt a technology. When a technological service
or product helps users achieve their goals, their usage intention is
2.3 | Diffusion of innovation theory stronger. Ip and Wagner (2008) replaced task characteristic with blog-
gers' social needs in the context of social media; a balance between
Rogers (1995) proposed diffusion of innovation theory, which purports bloggers' needs and the technological characteristics of blogs was
that the intention to use an emerging service or product is affected by found to lead to greater usage intention. Lu and Yang (2014) discov-
its relative advantages, service compatibility, complexity, trialability, and ered that high needs–technology fit increases intention to use infor-
observability. These characteristics have been widely used to examine mation technology. Lin (2016) indicated that in addition to satisfying
newly developed services and products. For instance, Sabi et al. (2016) the needs associated with a task, mobile technology should satisfy
explored intention to use cloud technology by determining its relative users' needs; this satisfaction increases the users' intention to con-
advantages, service compatibility, complexity, observability, and trial- tinue using the mobile technology. Thus, closer needs–technology
ability; all characteristics were found to positively affect intention to leads to stronger usage intention (Ip & Wagner, 2008; Lin, 2016; Lu &
use cloud technology except for complexity, which had a negative Yang, 2014; Xi & Hamari, 2021). This study defines perceived needs–
effect. Alsaad et al. (2017) explored business-to-business e-commerce technology fit as the extent to which users perceive that a technology
and revealed that relative advantages, service compatibility, and com- can satisfy their needs. VR, a unique technology, is likely to satisfy
plexity affect usage intention. Johnson et al. (2018) explored how rela- users' needs and thus increase purchase intention (Martínez-Navarro
tive advantages, observability, trialability, ease of use (complexity), et al., 2019; Wei et al., 2019; Yang & Han, 2021). On this basis, the
perceived risk, perceived safety, and perceived popularity affect inten- following hypothesis was proposed:
tion to use mobile payment systems; ease of use (complexity), relative
advantages, and observability had direct affects. Magsamen-Conrad Hypothesis 1. Perceived needs–technology fit positively
and Dillon (2020) explored how relative advantages, service compatibil- affects purchase intention.
ity, complexity, observability, and trialability affect intention to use
mobile technology. Studies have employed diffusion of innovation the-
ory to explore various topics, such as mobile payment, mobile apps, e- 3.2 | Utilitarian and hedonic needs
commerce, social networking sites, and social media (Fang et al., 2017;
Johnson et al., 2018; Kaur et al., 2020; Kim et al., 2019; Sarmah et al., According to cognitive evaluation theory, motivation can be intrinsic
2018). Relative advantages, service compatibility, complexity, or extrinsic (Deci, 1975; Kim et al., 2007). Extrinsic motivation is
4 HSIAO and LIN

FIGURE 1 Research model

based on rewards outside the individual (Kim et al., 2007), whereas utilitarian and hedonic needs in consumers. On this basis, this study
intrinsic motivation comes factors from within the individual, such as proposed the following hypotheses:
psychological factors and emotions (Davis et al., 1992). Researchers
(Kim et al., 2007; Lin, 2016; Wei et al., 2015) have indicated that Hypothesis 2. Utilitarian needs positively affect perceived
hedonism can induce intrinsic motivation and that utility can cause needs–technology fit.
extrinsic motivation.
Extrinsic motivation and intrinsic motivation strongly affect a per- Hypothesis 3. Hedonic needs positively affect perceived
son's attitude toward information technology (Carlson et al., 2021; needs–technology fit.
Huang & Kuo, 2020; Lin, 2016; Wei et al., 2015; Yang & Han, 2021).
Yang and Han (2021) reported that both extrinsic (utilitarian) motiva-
tion and intrinsic (hedonic) motivation are required for individuals to 3.3 | Technological characteristics
use VR. Exploratory research on the sharing economy (e.g., Airbnb
and Uber) conducted by Huang and Kuo (2020) indicated that users' 3.3.1 | Relative advantages
motivations to share assets can be utilitarian or hedonic. Lin (2016)
noted that extrinsic motivations to use mobile communication soft- Relative advantages are the benefits that users can derive from switching
ware are utilitarian and that intrinsic motivations are hedonic. In addi- from one technology to another (Rogers, 1995), such as an increase in
tion, utilitarian and hedonic needs positively affect perceived needs– convenience (Kaur et al., 2020; Lee & Chow, 2020). VR can be used to
technology fit. simulate real-world shopping experiences; 3D experience and recommen-
VR can help users preview and obtain information regarding mer- dation systems can help consumers determine their preferences (Fraustino
chandize, which can increase purchase intention (Martínez-Navarro et al., 2018; Wei et al., 2019). Therefore, VR may have relative advantages
et al., 2019; Xi & Hamari, 2021), help satisfy users' needs, and posi- (e.g., immersiveness) and thus result in close perceived needs–technology
tively affect their attitude toward VR (Pizz et al., 2019; Schnack et al., fit. On this basis, the following hypothesis was proposed:
2019). Shopping through VR can provide a new, pleasurable experi-
ence for consumers and can thus result in positive feelings (Farah Hypothesis 4. Relative advantages positively affect
et al., 2019; Hollebeek et al., 2020). Therefore, VR can satisfy both perceived needs–technology fit.
HSIAO and LIN 5

3.3.2 | Service compatibility and online and offline resources will help enhance the shopping expe-
rience for consumers (Farah et al., 2019; MIC, 2022c). The ability to
Rogers (1995) defined compatibility as the consistency between innova- engage in a trial VR session can satisfy consumers' needs and thus
tion and potential users' values, experiences, and needs. Research improve perceived needs–technology fit. On this basis, the following
extended this concept to service compatibility theory, which emphasizes hypothesis was proposed:
the consistency between the service provided by information technology
and the user's service need (Lee & Chow, 2020; Lin, 2016). Hypothesis 7. Trialability positively affects perceived
VR technology in shopping platforms would provide users with needs–technology fit.
more functional applications through the integration of virtual and real
worlds (Martínez-Navarro et al., 2019). VR alters how customers interact
with shopping platforms or environments. Customers can receive com- 3.3.5 | Observability
mercial services they need by using VR (Pizz et al., 2019). Customers can
engage in a commercial context similar to the real world and interact Observability is the degree to which the innovativeness of a technol-
with characters and merchandize in real-time by using a VR service. ogy and the technology's effects can be seen by individuals who are
Technological characteristics enable them to virtually use services in the deciding whether to adopt the technology (Dong & Wang, 2018; John-
same manner as conventional commerce, which may increase the per- son et al., 2018; Kaur et al., 2020; Rogers, 1995). Dong and Wang (2018)
ceived need–technology fit and thus increase their purchase intention. defined observability as the degree to which individuals can acquire
On this basis, the following hypothesis was proposed: information regarding technological products or services. Their study
revealed that higher observability correlates with lower perceived risk
Hypothesis 5. Service compatibility positively affects and stronger intention to purchase items through e-commerce on social
perceived needs–technology fit. media. Johnson et al. (2018) reported that when an individual observes
others using an emerging technology that would meet their needs, the
individual's usage intention is positively affected.
3.3.3 | Complexity VR has already affected various aspects of people's lives. How-
ever, as technology as matured and its costs decreased, VR's commer-
Complexity is the amount of time or effort required to learn to use a tech- cial potential has grown (Parisi, 2015). Commercial businesses have
nology (Kaur et al., 2020; Lee & Chow, 2020) or the difficulty associated created new opportunities by using VR and altered their operational
with understanding or using a product or service. Complexity has been models (Farah et al., 2019; Hollebeek et al., 2020; Schnack et al.,
used to explore services and products based on emerging technology. 2021). For example, businesses have created realistic 3D environ-
When aspects of emerging products or services such as system interfaces ments to display merchandize with links to their websites to increase
are difficult to use or understand, user satisfaction can be low, which neg- the ease of purchasing for consumers (Martínez-Navarro et al., 2019).
atively affects the users' attitudes toward the product or service (Kaur VR can enable users to experience shopping, travel, and other activi-
et al., 2020). Therefore, complexity negatively affects willingness to use ties on mobile devices, computers, headsets, or all-in-one devices
emerging technology (Lee & Chow, 2020) and perceived needs–technol- (Hsiao et al., 2023; Kim & Hall, 2019). VR has helped consumers
ogy fit. On this basis, the following hypothesis was proposed: understand that they can experience shopping through technological
means (Alzayat & Lee, 2021; Farah et al., 2019). Therefore, the
Hypothesis 6. Complexity negatively affects perceived observability of VR can increase the degree of needs–technology fit.
needs–technology fit. On this basis, the following hypothesis was proposed:

Hypothesis 8. Observability positively affects per-


3.3.4 | Trialability ceived needs–technology fit.

Trialability is the degree to which individuals can test an emerging


technology (Kaur et al., 2020; Rogers, 1995). Studies have indicated 3.3.6 | Spatial presence
that trialability affects usage intention through trust (Alkhater et al.,
2018; Shiau & Chau, 2016). For emerging technologies under devel- Spatial presence is the feeling of being in the real world while being in
opment, the degree to which users intend to try the technologies out a virtual environment (Hsiao et al., 2023; Tussyadiah et al., 2018; Wei
is crucial (Alkhater et al., 2018; Kaur et al., 2020; Shiau & Chau, 2016). et al., 2019). Oh and Yoon (2014) reported that spatial presence
Before being able to experience VR, users must learn how to use it affects users' perceptions of VR. Several studies have reported that
(MIC, 2022c). Commercial businesses have begun to offer VR sessions spatial presence in VR positively affects users' trust, which affects
for trying out information technology to encourage purchase behav- their usage intention (Hsiao et al., 2023; Tussyadiah et al., 2018; Vet-
ior; computers, mobile phones, and headsets can be used to access tehen et al., 2019; Wei et al., 2019). Spatial presence in VR enables
these trials (Hollebeek et al., 2020). Assistance with the technology consumers to experience new means of presenting information, which
6 HSIAO and LIN

constitutes a relative advantage and results in high observability (MIC, Pascual-Miguel et al. (2015) demonstrated that purchase intention differs
2022c). Greater spatial presence can also increase intention to try out by product type for women but not for men. Therefore, gender may affect
new technology. In addition, because spatial presence in VR creates consumers' purchase intention. Huang et al. (2017) revealed that experi-
shopping experiences that are similar to the real world, spatial pres- ence with online games affected intention to spread word of mouth
ence positively affects service compatibility. Although the complexity online. Manis and Choi (2018) demonstrated that experience with VR
of VR may discourage consumers from using it, spatial presence can affected VR usage intention. On this basis, the following hypotheses were
negatively affect perceived complexity (Hsiao et al., 2023). On this developed:
basis, the following hypotheses were developed:
Hypothesis 10. Gender affects purchase intention.
Hypothesis 9a. Spatial presence positively affects rela-
tive advantage. Hypothesis 11. Experience with online shopping posi-
tively affects purchase intention.
Hypothesis 9b. Spatial presence positively affects ser-
vice compatibility. Hypothesis 12. Experience with VR shopping positively
affects purchase intention.
Hypothesis 9c. Spatial presence negatively affects
complexity.

4 | METHODOLOGY
Hypothesis 9d. Spatial presence positively affects
trialability.
4.1 | Data collection

Hypothesis 9e. Spatial presence positively affects


This study recruited Taiwanese consumers by using Walmart's 3D vir-
observability.
tual shopping website, which provides a 360 view of a virtual store
with product labels and accompanying information. Potential partici-
As stated in past VR research (Ecommerceguide, 2022; Kim & Ko, pants were asked whether they had used the website; those who had
2019; Martínez-Navarro et al., 2019; Preface, 2023; Scalefast, 2022), not were excluded. Data were collected using an online questionnaire.
spatial presence affects consumers' experience in perceived needs. In First, the participants accessed the website and viewed products for
VR shopping environment, as the research discovered, spatial pres- 8–15 minutes. The participants then completed the questionnaire,
ence positively affected consumers' feeling of utilitarian need and which required approximately 15 minutes. Invitations to complete the
hedonic need (Alzayat & Lee, 2021). That is to say, users' utilitarian questionnaire were posted on popular VR forums for 8 weeks. To
need can be satisfied, too, when the VR technology effectively helps encourage participation, individuals who completed the questionnaire
consumers solve their needs for shopping, for example, actual size of were entered into a lottery to win one of 80 gift certificates worth US
item, item information, and less time spent on searching for products $5. The unique identity of each participant was verified using their e-
(Alzayat & Lee, 2021; Ecommerceguide, 2022; Preface, 2023). Also, if mail and Internet Protocol addresses to prevent duplication.
consumers can see the setting for the items and their actual size when A total of 336 individuals completed the questionnaire, and
viewing them with the VR panorama technology, they will have 44 responses were invalid, leaving 292 valid responses. The majority
unprecedented shopping experience, which will increase the pleasure of the participants were men (63.7%). The most common age was 19–
of shopping for them and in turn reinforce the users' feeling of 25 years (35.6%). The majority had a college education (58.9%), and
hedonic need (Alzayat & Lee, 2021; Ecommerceguide, 2022). On this the most common occupation was office worker (45.8%; Table 1).
basis, this study proposed the following hypotheses: The sample size was sufficient for three reasons. First, Anderson
and Gerbing (1988) indicated that a sample larger than 150 is sufficient
Hypothesis 9f. Spatial presence positively affects utili- to perform confirmatory factor analysis. Second, Roscoe (1975) noted
tarian needs. that a sample should be at least 10 times the number of the constructs
in the model. With 15 constructs in the model of this study, the size of
Hypothesis 9g. Spatial presence positively affects the sample was sufficient (336 > 10  10). Third, the sample size was
hedonic needs. within the range of those used in other studies: 120 to 201 (Dehghani
et al., 2022; Han et al., 2020; Kim & Ko, 2019; Tussyadiah et al., 2018).

3.4 | Control variables


4.2 | Research instruments
Studies have reported that factors related to consumers (e.g., gender and
experience) affect intention to use information technology. Ameen et al. Most items used to measure each construct were adapted from
(2018) revealed that gender significantly affects the use of smartphones. other studies to ensure content validity and slightly modified to
HSIAO and LIN 7

T A B L E 1 Demographic
Measure Item Frequency Percentage (%)
characteristics of respondents
Gender Female 186 63.7
Male 106 36.3
Age (years) Under 18 15 5.1
19–25 104 35.6
26–30 64 21.9
31–35 60 20.5
36–40 14 4.8
> 41 35 12
Education High school or under 42 14.4
College/university 172 58.9
Graduate degree 78 26.7
Occupation Office workers 134 45.8
Student 90 30.8
Home makers 24 8.2
others 44 15
Monthly income (TWD) <20,000 102 34.9
20,001-30,000 57 19.5
30,001-40,000 83 28.4
40,001-50,000 24 8.2
> 50,001 26 8.9
Online purchasing Under 1 3 1
experience (years)
1–5 32 11
6–15 51 17.5
Over 16 206 70.5
VR purchasing experience (years) Under 1 116 39.7
1–5 117 40.1
6–15 55 18.8
Over 16 4 1.4
Device VR's device (ex: Cardboard) 8 2.7
Mobile phone 53 18.2
PC or laptop 231 79.1

the context of VR. The items used to measure purchase intention 5 | DATA ANALYSIS AND RESULTS
were adapted from Alalwan (2018). The items used to measure
perceived needs–technology fit, utilitarian needs, and hedonic The two-step approach proposed by Anderson and Gerbing (1988)
needs were adapted from Lin (2016). The items employed to mea- was used to analyze the data. The convergent validity and discrimi-
sure spatial presence were adapted from Rodríguez-Ardura and nant validity of the measurement model were assessed, and the
Meseguer-Artola (2016). The items used to measure relative research hypotheses and framework were then tested.
advantage, service compatibility, and complexity were adapted
from Fang et al. (2017), Kim and Ammeter (2014), and Lin and Lu
(2015). The items used to measure trialability and observability 5.1 | Measurement model
were based on the items proposed by Johnson et al. (2018). All
items were measured using a 5-point Likert scale, ranging from The measurement model was tested using SmartPLS 3.2. Henseler
1 (strongly disagree) to 5 (strongly agree). The items are presented et al. (2014) reported that the standardized root mean square
in Appendix A. residual (SRMR) can be used to determine goodness of fit (GoF).
8 HSIAO and LIN

T A B L E 2 FLs, AVE, CR, and


Construct Items Factor loading CR AVE
Cronbach's alpha values
Utilitarian needs UN1 0.86 0.89 0.73
UN2 0.86
UN3 0.83
Hedonic needs HN1 0.92 0.95 0.86
HN2 0.94
HN3 0.92
Relative advantage RA1 0.86 0.92 0.70
RA2 0.82
RA3 0.81
RA4 0.86
RA5 0.83
Service compatibility SC1 0.89 0.94 0.83
SC2 0.93
SC3 0.91
Complexity CO1 0.92 0.94 0.79
CO2 0.87
CO3 0.91
CO4 0.86
Trialability TR1 0.86 0.92 0.74
TR2 0.85
TR3 0.89
TR4 0.85
Observability OB1 0.60 0.90 0.69
OB2 0.89
OB3 0.91
OB4 0.89
Spatial presence SP1 0.69 0.89 0.62
SP2 0.73
SP3 0.86
SP4 0.84
SP5 0.81
Perceived need-technology fit PNTF1 0.92 0.95 0.83
PNTF2 0.88
PNTF3 0.92
PNTF4 0.92
Purchase intention PI1 0.89 0.95 0.84
PI2 0.93
PI3 0.92
PI4 0.93

Abbreviations: AVE, average variance extracted; CR, composite reliability; FL, factor loading.

Hu and Bentler (1998) suggested that an SRMR value of <0.01 or (2009) reported that GoF values of 0.25 to 0.36 indicate medium fit
<0.08 indicates high GoF. The SRMR in this study was 0.068, which and that values of >0.36 indicate high fit. The GoF value in this study
indicates suitable GoF. The GoF of the entire model was examined was 0.66, which indicates high fit.
using partial least squares regression (Henseler & Sarstedt, 2013); The measurement model was assessed in terms of construct reli-
indices for the measurement model and structural model were ability, convergent validity, and discriminant validity. The internal con-
assessed to determine the utility of the entire model. Wetzels et al. sistency of the model was assessed using composite reliability (CR);
HSIAO and LIN 9

TABLE 3 Discriminant validity

Construct UN HN RA SC CO TR OB SP PNTF PI
UN 0.85
HN 0.79 0.93
RA 0.78 0.75 0.84
SC 0.77 0.75 0.82 0.91
CO 0.63 0.59 0.67 0.69 0.89
TR 0.67 0.67 0.69 0.76 0.59 0.86
OB 0.31 0.31 0.28 0.36 0.41 0.45 0.83
SP 0.60 0.64 0.51 0.56 0.46 0.51 0.39 0.79
PNTF 0.81 0.83 0.83 0.83 0.64 0.75 0.32 0.59 0.91
PI 0.76 0.74 0.75 0.76 0.61 0.69 0.30 0.50 0.85 0.92

Note: Diagonal elements (bold) are the square root of average variance extracted (AVE) between the constructs and their measures. Off-diagonal elements
are correlations between constructs. For discriminant validity, diagonal elements should be larger than off-diagonal elements. All correlations are
significant at p < .01.
Abbreviations: CO, complexity; HN, hedonic needs; OB, observability; PI, purchase intention; PNTF, perceived needs–technology fit; RA, relative
advantage; SC, service compatibility; SP, spatial presence; TR, trialability; UN, utilitarian needs.

the results are displayed in Table 2. The CR of every construct was t= 0.36, p > .05) nor observability (β = 0.02, t = 0.69, p > .05)
>0.8, which is higher than the threshold of 0.7 suggested by Fornell directly affected perceived needs–technology fit; therefore, H6 and
and Larcker (1981). Therefore, the measurement items of each con- H8 were not supported. Spatial presence had significant effects on
struct had suitable reliability and stability. relative advantage (β = 0.51, t = 9.96, p < .001), service compatibility
Three standard measurement models recommended by Bagozzi (β = 0.56, t = 11.17, p < .001), complexity (β = 0.46, t = 8.85,
and Yi (1988) were used to assess convergent validity. The criteria p < .001), trialability (β = 0.51, t = 9.79, p < .001), and observability
were as follows: (1) indicator factor loadings should exceed 0.5 (Hair (β = 0.39, t = 7.08, p < .001); therefore, H9a, H9b, H9c, H9d, and
et al., 1998); (2) CR should be above 0.7; and (3) the average variance H9e were supported. Spatial presence significantly affected both utili-
extracted (AVE) of each construct should exceed 0.5. The items in the tarian needs (β = 0.60, t = 12.71, p < .001) and hedonic needs
measurement model all had factor loadings of >0.6, CR values in (β = 0.64, t = 15.72, p < .001), supporting H9f and H9g. The coeffi-
the range 0.86 to 0.94, and AVE values in the range 0.63 to 0.86 cient for the path from gender to purchase intention was 0.03
(Table 2). Therefore, all conditions for convergent validity were (t = 0.44, p > .05), that for the path from experience with online shop-
satisfied. ping to purchase intention was 0.003 (t = 0.07, p > .05), and that for
According to Fornell and Larcker (1981), discriminant validity is the path from experience with VR shopping to purchase intention was
acceptable if the AVE for a construct is greater than the coefficient of 0.04 (t = 1.48, p > .05). Thus, none of these factors had a significant
its correlation with other constructs. The AVE values for all constructs relationship with purchase intention. Therefore, H10, H11, and H12
were greater than the square of the interconstruct correlation coeffi- were not supported.
cients (Table 3). Therefore, discriminant validity was achieved. The R2 value for purchase intention was 0.72, that for perceived
needs–technology fit was 0.83; those for relative advantage, service
compatibility, complexity, and trialability were 0.27, 0.32, 0.21, and
5.2 | Structural model 0.26, respectively; and those for utilitarian needs and hedonic needs
were 0.36 and 0.41, respectively.
Figure 2 displays the standardized path coefficients, path significance,
and variance explained (R2) for each path. The path analysis revealed
that all hypotheses except H6, H8, H10, H11, and H12 were sup- 6 | DI SCU SSION
ported. Perceived needs–technology fit positively affected purchase
intention (β = 0.83, t = 27.66, p < .001); thus, H1 was supported. The results indicate that perceived needs–technology fit, intrinsic and
Users' perceived needs–technology fit for VR shopping systems was extrinsic motivation, and the characteristics of a technology all play
affected by utilitarian needs (β = 0.16, t = 2.78, p < .01), hedonic key roles in intention to make purchases through VR. Figure 2 displays
needs (β = 0.31, t = 4.69, p < .001), relative advantage (β = 0.21, the results of this study. Perceived needs–technology fit positively
t = 3.45, p < .001), service compatibility (β = 0.20, t = 3.27, p < .01), and directly affects purchase intention, which is consistent with the
and trialability (β = 0.15, t = 2.75, p < .01); therefore, H2, H3, H4, H5, results of other studies (Ip & Wagner, 2008; Lin, 2016). When cus-
and H7 were supported. However, neither complexity (β = 0.02, tomers feel that a technology satisfies their needs, their usage
10 HSIAO and LIN

FIGURE 2 Structural model results

intention is stronger. Thus, the balance between consumers' needs VR on computers, phones, or headsets can enhance consumers' expe-
and the characteristics of a technology is crucial, and VR can increase rience and needs–technology fit.
purchase intention by satisfying users' needs. Spatial presence positively affects relative advantage, service
Utilitarian needs and hedonic needs both directly and positively compatibility, and trialability. Spatial presence in VR enables cus-
affect perceived needs–technology fit. The effect of hedonic needs tomers to experience a new type of shopping, which constitutes a rel-
on perceived needs–technology fit is significantly stronger than that ative advantage. Similarly, spatial presence creates a realistic shopping
of utilitarian needs. These results are consistent with those of studies experience. When customers have stronger feelings regarding spatial
indicating that hedonism is a crucial factor affecting the use of infor- presence, their intention to try out a technology is higher. This study
mation systems (Kim & Hall, 2019; Martínez-Navarro et al., 2019; Pizz also determined that spatial presence negatively affects complexity,
et al., 2019). VR shopping platforms can fulfill users' utilitarian needs which means that it can assuage consumers' perceptions of VR being
by enabling them to acquire information regarding products that they too difficult to understand.
need, and it can also satisfy hedonic needs by creating a novel shop- Spatial presence is directly, positively, and significantly associated
ping experience (Farah et al., 2019; Martínez-Navarro et al., 2019). with utilitarian needs and hedonic needs. As in other studies, this
Relative advantage, service compatibility, and trialability have study discovered that spatial presence in VR results in a stimulating
direct and positive effects on perceived needs–technology fit. Our and immersive virtual environment (Han et al., 2020; Hsiao et al.,
findings regarding relative advantage are consistent with those of 2023), which can help satisfy consumers' utilitarian and hedonic needs
other studies (Johnson et al., 2018; Kaur et al., 2020; Lee & Chow, (Ecommerceguide, 2022; Preface, 2023).Studies have demonstrated
2020). Users who perceive an emerging technology to be preferable that individual differences and experience affect online behavior. The
to an existing technology have stronger intention to use the emerging present study explored whether control variables—gender, experience
technology. VR can simulate shopping on the basis of consumers' with online shopping, and experience with VR shopping—affect con-
preferences and thus create positive experiences, leading to close sumers' purchase intention. Our results indicate that none of these
needs–technology fit. Our results also indicate that trial sessions with factors significantly affect purchase intention.
HSIAO and LIN 11

7 | IMPLICATIONS on perceived needs–technology fit in the present study. These results


provide valuable information for e-commerce service providers—that
7.1 | Implications for research customers using e-commerce services incorporating VR prioritize rela-
tive advantages (e.g., 3D modeling technology and accurate recom-
The results of this study have crucial academic implications. First, mendations). VR experiences with high service compatibility should
most studies on the use of emerging technology have been based on also be developed to ensure close needs–technology fit. We also
TTF (Baabdullah et al., 2019; Bere, 2018; Cheng, 2021; Huang et al., determined that spatial presence is a critical technological characteristic
2017; Rai & Selnes, 2019; Rahi et al., 2021; Tam & Oliveira, 2019; of VR that positively affects relative advantage, service compatibility, and
Zhang et al., 2017), which does not account for users' needs (Ip & trialability but negatively affects perceived complexity. In addition, spatial
Wagner, 2008; Lin, 2016). To explore consumers' intention to make presence positively affects consumers' extrinsic and intrinsic motivational
purchases within VR, consumers' intrinsic (hedonic) needs must also needs, that is, their utilitarian and hedonic needs. These results are con-
be considered. For this reason, we used perceived needs–technology sistent with reports from researchers (Tussyadiah et al., 2018; Vettehen
fit as our theoretical basis (Ip & Wagner, 2008; Lin, 2016) and applied et al., 2019; Wei et al., 2019) indicating that spatial presence affects
U&G theory and diffusion of innovation theory to explore how moti- users' trust and thus their behavioral intention in the context of
vational needs and the characteristics of technology affect perceived VR. Interactive VR shopping experiences can simulate real experiences
needs–technology fit. Our results indicate that the perceived needs– and help consumers learn about products, thereby increasing purchase
technology fit of VR strongly affects consumers' usage intention. Sec- intention (Ecommerceguide, 2022; Han et al., 2020; Preface, 2023). Busi-
ond, this study explored the feeling of spatial presence created by VR, nesses should ensure that VR environments are stimulating and flow
and the findings are consistent with those of other studies indicating smoothly to arouse positive feelings regarding VR and thus ensure close
that spatial presence can cause result in realistic VR experiences (Pref- perceived needs–technology fit.
ace, 2023; Rodríguez-Ardura & Meseguer-Artola, 2016; Scalefast,
2022; Tussyadiah et al., 2018). Our results suggest that spatial pres-
ence plays a key role on VR shopping platforms. Third, studies have 8 | LI M I T A T I O N S A N D D I R E C T I O N S F O R
demonstrated that VR in e-commerce can strengthen relationships FU T U R E R E S E A R C H
between consumers and brands and encourage engagement and pur-
chase behavior (Kumar et al., 2021; Lim, 2023; Lim et al., 2022). Our This study has several limitations that must be considered. First, the
results demonstrate how VR in e-commerce plays a crucial role in con- results are based on a single sample from Taiwan. For this reason,
sumers' behavioral intentions. Finally, our results suggest that per- the results should be generalized with caution. Research should be
ceived needs–technology fit significantly affects consumers' intention conducted on other cultures and markets to determine whether the
to purchase on VR shopping platforms, with the explanatory power antecedents of purchase intention differ. Second, this study devel-
being as high as 0.83 and 0.72; this provides a new direction for oped a research model by using quantitative data. Data were collected
future research. using online questionnaires, but self-selection bias could not be
avoided. Studies should include qualitative interviews to collect data
and prevent individuals from answering untruthfully solely to receive
7.2 | Practical implications compensation for their time. Third, we considered the sample of
336 to be sufficient because it enabled us to examine our hypotheses
This study has several implications for e-commerce practitioners. First, and yield reliable results. However, a larger sample would be desirable
our results indicate that perceived needs–technology fit is a crucial in subsequent studies. Fourth, this study used TTF and users' needs
factor affecting intention to purchase on VR shopping platforms. Busi- (intrinsic and extrinsic motivation) to develop model of intention to
nesses should understand that VR adds a new dimension to e-com- purchase on VR shopping platforms, which means that the intention–
merce that can help users satisfy their needs and thus increase behavior gap remains. Because of the focus on intention in this study,
purchase intention. Second, the effects of users' hedonic needs on scholars should explore covert and overt behavioral controls to miti-
perceived needs–technology fit are stronger than those of their utili- gate the aforementioned gap in accordance with the theory of
tarian needs. Studies have reported that joy is the most common state planned behavior (Lim & Weissmann, 2023).
of users experiencing VR (Farah et al., 2019; Kim & Hall, 2019; Kim &
Ko, 2019), which indicates that e-commerce businesses should create ACKNOWLEDG MENTS
pleasurable interactive environments rather than focusing on utilitar- The authors thank the editor and anonymous reviewers for their com-
ian needs. Businesses should develop pleasurable VR environments to ments and suggestions.
create positive shopping experiences and increase purchase intention
(Hollebeek et al., 2020). Third, the technological characteristics of VR DATA AVAILABILITY STAT EMEN T
shopping platforms (i.e., relative advantage, service compatibility, and The original contributions presented in the study are included in the
trialability) can increase perceived needs–technology fit. Relative article/supplementary files, further inquiries can be directed to
advantage and service compatibility had the most significant effects the corresponding author.
12 HSIAO and LIN

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14 HSIAO and LIN

Yang, H., & Han, S. Y. (2021). Understanding virtual reality continuance:


An extended perspective of perceived value. Online Information Kuan-Yu Lin is Associate Professor in the Department of Informa-
Review, 45(2), 422–439.
tion Management at National Taichung University of Science and
Yuce, A., Abubakar, A. M., & Ilkan, M. (2019). Intelligent tutoring systems
and learning performance: Applying task-technology fit and IS success Technology, Taichung, Taiwan. She holds a PhD degree from
model. Online Information Review, 43(4), 600–616. National Taiwan University of Science and Technology of Taiwan.
 ñez de Pablos, P., Lytras, M. D., & Sun, Y. (2017).
Zhang, X., Jiang, S., Ordo Her research interests include and electronic commerce, virtual
How virtual reality affects perceived learning effectiveness: A task–
communities, and Internet marketing. Her work has been pub-
technology fit perspective. Behaviour & Information Technology, 36,
548–556. lished in Internet Research, Online Information Review, Computers in
Human Behavior, Journal of Electronic Commerce Research, Behav-
ior & Information Technology, and Cyberpsychology, Behavior and
AUTHOR BIOGRAPHI ES Social Networking. Kuan-Yu Lin is the corresponding author and
can be contacted at: ntustmislab@gmail.com

Kuo-Lun Hsiao is a Professor of Information Management at


National Taichung University of Science and Technology, Tai-
chung, Taiwan. He received MBA and PhD degrees from National How to cite this article: Hsiao, K.-L., & Lin, K.-Y. (2023).
Taiwan University of Science and Technology, Taipei, Taiwan in Understanding consumers' purchase intention in virtual reality
2003 and 2008, respectively. Dr Hsiao's articles have appeared in commerce environment. Journal of Consumer Behaviour, 1–15.
Internet Research, Online Information Reviews, Information & Man- https://doi.org/10.1002/cb.2226
agement, Journal of Information Science, Electronic Commerce
Research and Applications, Interactive Learning Environments, and
Telematics and Informatics. His research interests include elec-
tronic commerce, internet marketing and e-learning.

APP E NDIX A: QUESTIONNAIRE

RA6 The VR shopping platform enhanced my shopping


experience.
A.1 | Utilitarian needs (UN)
UN1 VR shopping platforms can satisfy my needs.
UN2 VR shopping platforms allow me to gather information that A.3 | Service compatibility (SC)
can help me solve problems while shopping. SC1 The VR shopping platform satisfies my needs.
UN3 VR shopping platforms enable me to acquire information SC2 The VR shopping platform is compatible with my experience
about products in real time. with online shopping on the computer.
Hedonic Needs (HN) SC3 The VR shopping platform matches my preferences.
HN1 My experience with VR shopping was as or more enjoyable SC4 The VR shopping platform is compatible with how I shop on
than other experiences I could have had. the computer and on my phone.
HN2 The VR shopping experience was pleasurable.
HN3 I enjoyed being immersed in the VR shopping experience.
A.4 | Complexity (CO)
CO1 The VR shopping platform is complicated.
A.2 | Relative advantage (RA) CO2 The VR shopping platform is frustrating.
RA1 I could accomplish my tasks more quickly on the VR shopping CO3 The VR shopping platform is easy to use [reverse item].
platform than I would have on other online shopping environment. CO4 The VR shopping platform is difficult to understand.
RA2 The VR shopping platform improved the quality of tasks com-
pared with that of tasks in previous online shopping environments.
RA3 Tasks were easier on the VR shopping platform than they A.5 | Trialability (TR)
would have been on other online shopping platforms. TR1 Before using the VR shopping service, I was able to test it out.
RA4 My performance was higher when using the VR shopping TR2 I know how to test out the VR shopping service.
platform than it would have been on other online shopping platforms. TR3 I can experiment with the VR shopping service.
RA5 My productivity was higher on the VR shopping platform TR4 Testing the VR shopping service before committing to using
than it would have been on other online shopping platforms. it was easy.
HSIAO and LIN 15

A.6 | Observability (OB) SP5 When I used the VR shopping platform, the environment
OB1. I have seen other VR shopping services. seemed as real than the real world.
OB2. It is easy to see other VR shopping services being used.
OB3. I have seen others using VR shopping services. A.8 | Perceived needs–technology fit (PNTF)
OB4. I have had plenty of opportunities to see others using VR PNTF1 The VR shopping platform satisfies my needs.
shopping services. PNTF2 The VR shopping platform helps me satisfy my needs.
PNTF3 The VR shopping platform's functions are useful.
PNTF4 In general, the VR shopping platform's functions satisfy my
A.7 | Spatial presence (SP) needs.
SP1 I forgot about my immediate surroundings when I used the
VR shopping platform.
SP2 The VR shopping platform made me forget where I was. A.9 | Purchase intention (PI)
SP3 I felt like I came back to the real world after using the VR PI1 I will buy products on the VR shopping platform.
shopping platform. PI2 I want to buy products on the VR shopping platform.
SP4 I felt like I was in a virtual world when I used the VR shopping PI3 I am likely to buy products on the VR shopping platform.
platform. PI4 I plan to purchase products on the VR shopping platform.

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