Impact & Implications of AR & VR in Digital Marketing for Online Retail Industry - Essay Prowess

Impact & Implications of AR & VR in Digital Marketing for Online Retail Industry

Impact & Implications of AR & VR in Digital Marketing for Online Retail Industry


Chapter One: Introduction

Background of study

Virtual Reality is a computer technology that generally immerses its users into a virtual environment. However, augmented reality is slightly different.AR users can interact and see the real world while some digital content is added into it. These two technologies are used to enhance the experience of a world through digital components by an individual. When it comes to the VR the user has the freedom to move around and hear sounds experiencing the digital world. There is a specialized headset that is required to have experience with virtual reality.  A common example on a type of VR is the cardboard icon that is noticeable on your computer screen when watching videos on YouTube. It has an option where the user can enable the 360- mode. This means that the user can put on the Virtual Reality headset an experience in the digital world. Those 360- videos are a form of VR. On the other hand, the AR app can be easily downloaded into the modern Smartphone (Fisher et al, 2018). Using the AR headset, for instance, Google glasses, digital content is displayed in front of the user’s eyes on a tiny screen.

            Despite the experiences and desired fueled by this technology to enjoy entertainment and play, VR and AR are quite expensive. Different investors such as Facebook and Google spent billions of dollars on this market. This only allows powerful hardware to hit the market. Consumers were not prepared for this kind of technology yet most of them find themselves using it. The VR and AR headsets are also a challenging factor. According to my own experience, the headsets are quite comfortable to a certain extent of time but you can barely find someone using the headsets for a prolonged amount of time.

            Since the gadgets are large, they tend to be bulky. In the new future, I would expect the AR headsets to be more like eye contacts which can be used for a prolonged amount of time. A lot of processed power is also required to provide the whole VR/AR experience. At this particular time, the VR devices are tethered devices which mean that they must be connected to a PC for them to operate (Li et al, 2018). This limits the user’s movements. By the time we can develop unmetered and sustainable devices, we will see a change in the world of technology.

            The rate in which the world of technology is growing, there is a 100% chance that VR/AR technology will become widespread in the near future since this technology has become a way of entertaining people in their leisure time. For this to happen, a lot of improvement is expected around this technology. As an ever increasing number of organizations battle to remain above water, organizations that are exclusively E-business based or organizations that have internet business stores to supplement their physical areas are procuring the products of Digital Marketing. Digital Marketing is the utilization of innovation in an organization’s marketing endeavors. Organizations who decide to keep feeling that the web is a prevailing fashion ought to vigorously rethink their business procedure.

            As the author of the world’s greatest online business stage Jeff Bezos said “In business, What’s risky isn’t to advance.” These are not to be trifled with from your nearby mother and pop shops to huge companies. Partnerships that were once mammoths, for example, Toys-R-Us are recording section 11 liquidation since they would not join digital marketing into their marketing procedure. They could have made a Lego Competition and ran an armada of advertisements focusing on the guardians of youngsters who can’t live without their Legos. This was a certain way that Toys-R-Us could have forestalled liquidation. Presently, Digital Marketing itself won’t take care of your issues and make you a large number of dollars.

            Digital Marketing resembles each other strategy for marketing, you need to intently monitor your promotion battles and in the event that they are performing inadequately, at that point you stop and upgrade the advertisement until you are getting the most value for your money. That by itself is perhaps the best thing that digital marketing allows you to do. In the event that your promotions are performing ineffectively, at that point you stop them meaning you aren’t squandering any cash and you get an opportunity to improve your advertisements so they resound with your focused on crowd. In spite of the fact that, Billboard, TV, and Radio advertisements have helped a few organizations soar their deals. It is a misuse of cash now in light of the fact that these promotions are costly and individuals don’t care to feel like they’re being sold anything. Digital Marketing is incredible for each and every business as everyone you need to purchase from is surfing the web here and there or another. On the off chance that you truly realize what you’re doing you can soar an independent company into an all out organization. That is the reason digital marketing is critical to each business at each size. It is basic that organizations of numerous types understand that digital marketing is here to spare them not to wreck them.

            Nowadays, marketing for Virtual Reality (VR) and Augmented Reality (AR) is becoming popular in the world as the future of virtual trade may have already set foot in The world. One of the most accurate statistical information discovered that approximately 20 million individuals are linked to the Internet (68.7% Internet penetration rate) and 17.8 million individuals are expected to have their own Smartphone in the world by 2018.So, we can see that a lot of The world are acquainted with evolving trends in technology and online shopping.

In addition, it is used not only for entertainment, but also in other verticals that are training and selling assets. The advent of more VR and AR instruments will alter the way we eat content leading to the increase of the Experience Economy. It will also be an inhibitor to stimulate more creativity and experience among customers and companies. In exploring fresh products or services, VR and AR will allow customers to have more immersive experiences. Products and services are also operating and expanding to clients. In a world where everyone reads reviews, VR and AR could allow consumers to get a 360-degree view of a product before they want to purchase it. This could benefit the e-commerce space and also allow for more experiential marketing.

            Many business leaders are sensing the signs of a coming world of AR journeys. Firms that have already digitally rewired their operations around social, mobile, analytics, cloud and also Internet of Things (IoT) technologies as well. Since these techniques are fundamental to both AR and VR, there are plans to make rapid and long-lasting profits. As work changes over the next decade due to automation and new technologies such as AR and VR, HR departments will discover themselves filling an obviously distinct set of employment. Technology’s impact will imply that some of these are extremely technical, although others will require expertise. It is easier for people to work efficiently and effectively.

            In video marketing, the VR idea comes in handy by providing a 3-D dimensional experience, making the videos more realistic and motivating for clients. This also makes it simpler for marketers to illustrate their ideas as well. The VR also offers an option to advertising video streaming, just like TV.

            Next, VR and AR will also generate a fresh company chance for The world as experiential marketing has become the criterion for attracting, converting and maintaining customers Virtual and augmented reality will help the customer attain their expectations and better understand the product they wanted. Such as an interior designer shows his blueprint to a customer by using VR and AR technology to make them understand the idea better. Visualization and experience add value to the process of sales and marketing.

            Moreover, a huge number of online users have taken on augmented reality. The statistics show a significant increase over the years in the number of loads of augmented reality. A game based on the innovation of augmented reality, named as Pokémon Go, showed the number of visitors that it is clear where this technology’s reach is going. As a consequence, the greater number of customers will lead in more company development.

            With VR technology, businesses and marketers take less time to know the requirements or requests of their customers. This was acknowledged by the technology’s ability to produce a virtual product like the demands of every customer. The VR and AR technology has been transformative on how most products testing is conducted. Product testing, as a marketing technique it can be used by marketers to give customers an experience of the real product. The VR comes in handy, for instances when the productions like architectural services that cannot be given in samples or portion like a pastry.

AR helps facilitate and accelerate the building processes at the factory.Project managers can keep a close watch over the work progress in real time through AR markers on equipment. Besides, it can save a lot of time using digital maps and plants. Pointing a device into location shows how the piece of a machine will fit the final construction. So, there are benefits in manufacturing as help to save cost and time.


This study aims at providing information that would be used in the process of decision making by the following parties;

  • The businesses & marketers: Marketers can use this research to understand the AR and VR technology, the opportunity of using it in the digital marketing, implementation process and its impact on the business growth.
  • Researchers & Scholars: The research will open up ideas about the AR and VR technologies, its implementation in digital marketing and will open up new opportunities for its usage in other areas of management for the researchers as well as scholars.
  • Consumers: This research will also be helpful for the consumers as it could help them understand how AR & VR technology can ease up their decision making process on the online shopping.

Research Questions

  1. How can AR and VR help in the digital marketing in the online retail businesses?
  2. What are the opportunities and implications of using AR and VR in marketing in online retail industry?

Chapter Two: Literature review

As noted by Chaffey and Ellis-Chadwick (2012) the developments in technology such as the augmented reality and virtual reality are growing at a fast rate. The use of machine learning intelligence will always have the chance to overdo the other technologies. In the coming years, there will be the use of artificial intelligence in the running of marketing sectors where there will be a huge change in the digital marketing era. Individuals will be forced to enable their activities in a way that they can have competition with the machines. Marketing will be so rigorous where there will be updates on new products as they only arrive at the markets. It will aid in the shaping of activities where a prediction of the future can also be made and made (Ryan, 2016). It will change the way in which the marketers will be having their engagements with the customers and having driving forces to what is different than what is being used today. There will be a great challenge for the marketers in trying to create contents online and the opportunities in which they will have an offer to the customers. On the other hand, there will be an offering to the productivity levels of the marketers in which all their focus will have been put into the engagements in the daily data management and analysis to determine the nested approach to the customers (Inn, 2016).

            Pattern recognition together with machine learning will be a core platform for the recognition and personalizing messages that are emanated to customers which will have a strong influence on the decisions that they will make. Machine learning will mean that there would be large amounts of data that can be processed in a short time with the use of compilers and from multiple sources. The machine learning will have the capabilities of having an analysis of the competitors and will aid in the development of effectiveness and the best approaches in which consumers can have their decisions change in the long run. The best approaches can be made on the processed data on the ways in which customers can be satisfied in the purchases and the decisions that they will make. Apart from the monetary gains that will be achieved, there will be connections and interactions that can be made with the customers for an ease of management of products that are produced (Taken Smith, 2012). Marketers have tried in making processes and trying to predict the future for the next big trend which is to the clients or the brands that they produce. The questions on how they can turn their clients to be a big market are the issue that is made to be discovered by the marketers in the long run. Retail questions are made to be a reality in such a way that there should be an advancement of the necessary approaches so as to have better customers. The trends that will change marketing are based on the top innovators in marketing and advertising.

The center of marketing will all be based on the mobile. The evolution of the mobile phones is one of the factors that have the leading influence in the market. The focus is shifting to smaller screens that will have the chance of striking stronger relationships with customers by having the power of the mobile. Transparency will be a core factor that will determine the brand and customer relationships (Smith, 2011). Customers have the chance of seeking engagements from brands which will yield the customers becoming more demanding for transparency. The real brand will have rewarding achievements for the customers where brands that are still dragging for the dealings with transparency will not have a great future. Good content will not have the chance of slowing down. The visual content together with the written will be the dominating fact in the marketing world. There will be the application of models which will be aimed at the speeding up of the overall process of marketing the brands to the customers.

There are high chances that the user generated content will suppress the brand content. This fact implies that the power of the customers will be more than that of the marketers. The responses that the customers will be making will have the ability to make the brand popular or unpopular. There should be a positive impact that is made by the brands positively where the popular trend will be the creation of brands between the consumers and marketers (Wertime, 2011).  The internet will be based on social. The marketing discipline will be the core of marketing discipline. Most of the brands will have their marketing efforts changed to the social channels which will have full potential in delivering the best to the customers and having an influence in their decisions and brand uses.

            Augmented reality (AR) has become a hot trend in advertising and marketing. It’s wildly popular with consumers, creating connections and increasing engagement with them (Samit, 2017). Though it seems complicated and futuristic, AR simply merges “real-world imagery with digital and augmented objects” (Mangles, 2018). An example is when the line is shown between the football and the mark for the first down. AR allows customers to experience products up close. AR can reach customers to drive purchasing decisions. Companies like IKEA are using it so customers can see products in their homes before purchasing them. Clothing retailers have virtual fitting rooms (Samit, 2017).

            By 2025, AR is expected to be an $80 billion market. It’s a game change in how businesses engage and interact with customers (Lampix, 2018). When customers interact with brands more often, they (customers) feel more connected (to the brands). AR will become the platform for engaging with customers. The early adopters will have the upper hand in the long run (Lampix, 2018). 

In this modern era, it is important to know that IT and Marketing field work along together since marketing has been increasingly powered by technology. Conversely, one of the going marketing trends in the past 2-3 years is VR marketing and specifically in this article is how fashion brands use VR to enhance their customers’ experience. This trend was initiated in 2014 by Topshop, one of the UK’s most prestigious fashion retail names, corporates with Intuition, a developing tech agency. This campaign allows viewers to have a virtual seat in their fashion show by wearing the VR headset which shows the full event without going to the actual location. Moreover, GAP and Tomthe Hilfiger have been developing VR to allow customers in certain stores to try on the outfits and have a look about the hidden designs.

There is a huge part of IT in this marketing campaign since the joint experience between VR and the users created a better opportunity to change the operations that designers construct. By using the VR, the customers have to sign the release and be granted access to the fashion shows. This results in getting customer’s data and behaviors that allow brands to learn more about customer’s taste and predict the upcoming fashion trend. Furthermore, the VR also records the expression of the viewers and details about the audience member. One of the most significant features that allow retail companies to reduce the return rates is having their customers size and allow them to put in the outfit without trying on.

This affects the Marketing field in many ways, such as promotions, interactions, and engagements. According to Media Marketing, the VR allows marketers a better way to connect their brands with the customers and endorse the brand mission since VR creates an experience and the experience is the main key to customer’s engagements. Moreover, VR presents a one of a kind open door for advertisers and marketers to get in contacts with the immerse audience, also they can create ads that people don’t mind being in one and experience it voluntarily. As the outcome, it is assessed that up to 96 percent of B2B associations have attracted video marketing, of which, 73% perceived a positive ROI influence. The VR idea ends up being valuable in video marketing by offering a 3-D dimensional experience.

There is no doubt that VR will bring many benefits to different fields and develop a virtual world that eventually becomes a great leap in modern technology. One of the main benefits that increase the sale of products that marketers receive is the way VR fascinate its audience. For marketers and sale people, it is important to know what kinds of customers that they are dealing with and what is their taste in the products, so making a connection between the customers and the products is always challenging. However, an investigation by promotion tech firm YuMe and research firm Nielsen utilizing neuroscience techniques found that VR induced 27% higher enthusiastic commitment than in a 2D domain and 17% higher emotional commitment than a 360-degree video on a flat screen. Moreover, this innovation can possibly drive up online shopping volumes by expelling the indecisive experience when there is no physical collaboration with a product . One of the main reason that also attracts the customers is virtual reality is moderately new to shoppers and they think that it is exceptionally engaging on the grounds that just a couple of organizations are joining this innovation into their business.

There are three main concerns of VR that affect the Marketing field, especially the brands, are video quality and law regulation. According to Cognizant, because of the quick-paced improvement of Virtual Reality, there is an absence of laws in regard to these fields. Clients can express and do things that are illicit as a general law. Additionally, clients might be less restrained than, all things considered, because of a feeling of obscurity, and may act in a way that is socially prohibited. Not only the consumer’s act to be considered carefully but also there are many concerns for the providers. For instance, body scanners and other at-home “try on” approaches may be consumer-friendly, however, the providers can gather, store, and transmit a lot of data about the client and the client’s environment. To acquire estimations, purchasers may undress, and the innovation can capture privacy pictures of the person, as well as of the person’s home. As the fashion show aspect, the audience can filter the models on their cell phone to uncover covered messages and frameworks on the garments. These new outline components raise intriguing intellectual property issues, such as copyright proprietorship for the designs. Moreover, a terrible quality VR promotion may not just negatively affect a purchaser’s image see, it could likewise destroy their whole VR encounter.

The aggregate number of active virtual reality clients is believed to achieve 171 million by 2018. The VR market is set to develop at a phenomenal rate in the coming years, with revenues from virtual reality programming alone estimate to increment by more than three thousand percent in four years.

Hi-tech media is changing the way we way to deal with styling, by not only relying upon showrooms to shop or try to see what might suit one’s body compose. One reason for the most important reason is VR is accessible at this moment. There were some value drops, a number of design organizations can stretch for the cost of getting many units like this. Moreover, this kind of idea is new, yet it has turned out to be unbelievable because of its wonderful highlights and enormous value. VR offers the likelihood for shoppers to reframe their involvement with an item while drawing nearer to the experience that it offers, which offer clients an immersive affair enables them to interface with an item recently, making a new relationship with experience that they may have never had. Almost every brand can actualize virtual reality somehow to showcase items and administrations to customers, and VR techniques in the mix with digital marketing methods will help form the forthcoming of promoting for the brands. Furthermore, part of the way through 2016, it is assessed that there are 43-million individuals effectively using virtual reality somehow. This number is relied upon to more than fourfold in the following two years. The potential for real-time data gathering is abundant and can enable organizations to make quicker improvements to marketing conventions. This innovation will make the future of the marketing field to be more interesting in many ways and allow brands to connect with customers in more personal ways without disturbing advertisings.

Tassner (2015) defines digital marketing as marketing to or on a digital device, such as receiving a text message from a vendor with a promotional code, buying products right from your phone, or viewing picture messages that will depict a product you may be interested in purchasing. In general, anything that has to do with a digital device can be considered digital marketing. A few benefits of digital marketing would be segmentation, geolocation, and penetration. With segmentation, companies can use various selections to get the target market in which they are trying to reach. Some of these selections include age, sex, city, and interests. Geolocation gives a company the ability to launch their advertising in specific areas and close to particular locations. This is useful for generating more traffic to places or offer incentive within close proximity of a user. There are more than 7 billion, yes that’s billion, cellphone subscriptions in the world, as reported by MobiThinking (Tassner, 2015).  With this being said penetration with digital marketing will be phenomenal, just because most people in the world are always on their phones. Some disadvantages of digital marketing would be a lack of knowledge, atomization, and technology. Knowing how digital marketing works can help a company in the longevity of marketing. A lot of companies lack the knowledge of digital marketing. This could potentially be bad for a company especially since most things in the world are digital related. With atomization, there are several versions of digital web, applications as well as operating systems. In thinking about the market, companies assume that it is a highly fragmented market. Technology holds a lot of weight in digital marketing; this depends solely on the digital device. The barrier for this is profoundly changing. Every year there is new technology emerging.

            The advantages of virtual reality are extensive. Not only is it used in medicine, but it is also used in video games, as well as automotive services. Using virtual reality will allow people to experience new worlds as well as interact with people from all over the world at the same time. You can also experience what it looks and feels like to move around in a virtual reality world. As you move into the real world, the same movements occur in a virtual reality world.  Although there are many advantages to virtual reality, there are also some disadvantages to virtual reality. People can become addicted to it, just as teens become addicted to video games. As technology becomes ever so popular, virtual reality can pose a threat to use. It will take away peoples sense of reality. It can also cause a disconnect in communication within the real world. There will be no more personal relationships. The costs of what is needed for virtual reality are a disadvantage also. These items are not cheap they are very expensive.

Chapter Three: Methodology

The research methodology part consisted of the several ways in which information on shades system was obtained. The use of both primary and the secondary source was utilized such that all the applications of technology was noted. Reports and documentations were also analyzed with the determination of the impacts of technology to the current situation of the company. The primary sources included the employees of the company where interviews were conducted, and questionnaires were also used for the purpose of gaining information on the digital marketing approaches that are used by the company.  Again, visiting the company was another method of data collection that initiated the real-time research on how the company has utilized technology. The secondary sources of data included the internet journals, social media appearance and Google analytics reports that are online. Also, information from marketing websites and blog posts were found to be important in the research.

The choice of the technologies is based on the search of databases which are reliable for the provision of data and are aided in the digital marketing era. The purpose of the research is to help in the development of the correct marketing aids that will help the company in the making of profits in the long run (Chaffey, 2012). In a nutshell, the materials that are used are synthesized based on the findings and the key themes that are related to the marketing industry.  Data analysis was based on the known facts, and a general description of the digital marketing that is utilized by shades systems could be directly be noted with its impacts on the customers (Ryan, 2016).  To conduct this study, information and ideas were collected from previous articles on the implementation of such technologies in the business scenario, investigate the innovations utilised in the marketing and improvement for business processing and by collecting information from the case studies, news reports and websites about the business organisations that have used advancing technologies in their processing, operations and marketing and to analyse the implications of such ideas.

            The systematic review of literature was selected to conduct this research because of the fact that AR & VR is quite a new technology and hasn’t been implemented in the New Zealand retail industry yet to gather any data from the primary respondents. The qualitative or the quantitative research requires respondents who have knowledge and experience of the field of research, however in the case of AR & VR implementation, it is very difficult to identify and select respondents who have information, knowledge or experience of this field of study. On the contrary, the systematic review of literature will help the researcher in reviewing related articles on the topic like the implementation and effect of AR & VR in marketing of other industrial sector to collect relatable data that could be analyzed to achieve a result or hypothesis.

            The data was collected using secondary data in the form of scholarly and journal articles from different areas of business management and industries. The sample size for the research will be based on a minimum of 30 scholarly and journal articles, which will be collected through ProQuest, SunDirect, EBESCO and Google Scholar databases available free from the Whitireia Community Polytechnic online Moodle. The keywords like “Augmented Reality & Virtual Reality in retail”, “AR & VR in marketing”, “Implications of using AR & VR in marketing” and other related keywords will be used on the online data bases to retrieve the related articles. A convenient sampling method from the results will be used to select data based on the year of publication, language and topic that better matches the area of this study. The content analysis method will be employed from the collected data to analyse the findings. To do this, the researcher will take out important and related information from the articles to develop a raw coded data file which will then be analyzed and segregated based on the flow of the report to answer the research questions that solves the objective of this report.


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