Abstract
This chapter aims to investigate the rise of Metaverse by considering the merge of interactive technologies (such as augmented and virtual reality and artificial intelligence) into a new retail landscape. The research flow of this chapter is guided by three theories able to identify and clarify how a smart Extended Reality in the Metaverse-Tailing can be considered as the rise of new retail environment. First, the affordance theory of technology will help to understand the possibility of obtaining value from specific technology, deriving from the Metaverse world. Secondly, the lens of regulatory engagement theory is helpful to understand the positive engagement of people during their experience in a specific object or environment thanks to the exploitation of augmented and virtual reality in a Metaverse world. In line with the regulatory engagement theory, this chapter aims to underline the possible way of involvement in the Metaverse during a shopping journey and exploiting potentialities deriving from Augmented Reality, Virtual Reality and Artificial Intelligence, such as interaction, immersion, inspiration and satisfaction. Finally, the self-determination theory identifies the possible intrinsic or extrinsic motivation that leads people to experience retailing in the metaverse-tailing as a fusion of several advanced technologies.
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1 Introduction
In the last few years, the emergent technologies (Grewal et al. 2021, 2020a) that are modifying retail settings are imposing profound reflections on how it is possible to adapt to these changes. Particularly, on one side, retailers and practitioners need to re-think their strategies (Grewal et al. 2021, 2020b) to adapt to these technologies and exploit them in the best possible way to face the rise of new retail settings such as the Metaverse. On the other side, consumers are constantly involved in new shopping experiences considering several external factors. For example, the rapid spread of COVID-19 modified the way of shopping and accelerated the adoption of technologies such as augmented and virtual reality (Caboni and Pizzichini 2022) and artificial intelligence in general. The development of always new desires and needs pushes people to explore interactive technologies’ potentiality, and consequently, the shopping experience continues in evolution, adapting to the continual reshaping of retail. In this chapter, the approach to the Metaverse considers several interactive technologies such as the Internet, social media, mobile technologies, augmented reality (AR), and virtual reality (VR). In this regard, people can have practical access to information and consumption channels (Shankar et al. 2021) anywhere any time, increasing their endless shopping experience. Finally, thanks to the exploitation of interactive technologies, it is simple to imagine how the shopping experience assumes a new dimension where people can engage in virtually seamless connections with retailers, manufacturers, consumers, and influencers (Dolbec and Fischer 2015; Grewal et al. 2017). People in the realm of emergent, intelligent and interactive technologies (Grewal et al. 2021, 2020a) have at their disposal the possibility to share not only shopping information with others but also decisions and evaluations on products and services, creating huge shopping community both physically and virtually. In this scenario appears fundamental to consider the new and modified ways of shopping often accelerated by the adoption of technologies such as augmented and virtual reality and artificial intelligence in general. In this venue people can explore interactive technologies’ potentiality and adapting to the continual reshaping of retail. In this dynamic context, this chapter approaches the rise of Metaverse by considering the fusion of interactive technologies such as augmented and virtual reality and artificial intelligence into a new retail landscape. The research flow of this chapter is guided by three theories (Fig. 17.1) able to identify and clarify how a smart Extended Reality in the Metaverse-Tailing can be considered as the rise of new retail landscape. In particular, this chapter aims to answer to the following research questions:
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RQ1: How it is possible to obtain value from the Metaverse?
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RQ2: How to stimulate a positive engagement in the Metaverse?
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RQ3: What intrinsic or extrinsic motivation, may lead people in the Metaverse experience?
To answer to the above-mentioned questions, this chapter will consider the affordance theory of technology (Gaver 1991), the regulatory engagement theory (Higgins and Scholer 2009), and finally the self-determination theory (Deci and Ryan 1980; 1985a; 1985b; 1987; 2000, 2012). Specifically, the affordance theory of technology (Gaver 1991) will help to understand the possibility of obtaining value from specific technology, deriving from the Metaverse world. Then, the lens of regulatory engagement theory (Higgins and Scholer 2009) is helpful to understand the positive engagement of people during their experience in a specific object or environment thanks to the exploitation of augmented and virtual reality and artificial intelligence, in a Metaverse world. In line with the regulatory engagement theory (Higgins and Scholer 2009), this chapter aims to underline the possible way of involvement in the Metaverse during a shopping journey and exploiting potentialities deriving from the fusion of augmented, virtual reality and artificial intelligence, such as interaction, immersion, inspiration and satisfaction. Finally, the self-determination theory (Deci and Ryan 1980; 1985a; 1985b; 1987; 2000, 2012) identifies the possible intrinsic or extrinsic motivation that led people to experience retailing in the Metaverse-tailing as a fusion of several advanced technologies.
2 Theoretical Background
To approach the rise of a new retail landscape such as the Metaverse-tailing, consider the merge of interactive technologies such as augmented and virtual reality and artificial intelligence into a new retail landscape. Notably, the section below will be presented a general description of the Metaverse by following the three theories used in this chapter to understand more deeply the smart extended reality in the Metaverse-tailing.
2.1 Smart Extended Reality in the Metaverse-Tailing
Identifying a smart extended reality appears particularly innovative and interesting, considering the rapid and new development of what scholars contemplating as the Metaverse. The term Metaverse was coined 30 years ago when Neal Stephenson, in his fiction novel called “Snow Crash” used the word Metaverse (Papagiannidis et al. 2008; Wright et al. 2008; Marmaridis and Griffith 2009; Sourin 2017; Murray 2020; Key et al. 2021; Park and Kim 2022), and several definitions in the course of time has been developed (see Table 17.1). More specifically, this term was used to identify a place based on one principal feature: the co-presence of real and virtual elements (Joeng 2022). Basically, from the analysis of this term derive two subordinate words: one prefix as “Meta” with the meaning of beyond and a suffix “verse” that refers to the universe (Marmaridis and Griffith 2009; Lee et al. 2011; Dionisio 2013; Fang et al. 2021; Jeon 2021; Kye et al. 2021; Jeong 2022). So literally, a meta world could be considered in this chapter as a smart world because it is composed of smart elements such as interactive and intelligent technologies and innovative services.
Specifically, the academic literature until this moment categorized the Metaverse as a place composed of interactive technologies such as Augmented reality, Mirror worlds, and Virtual worlds (Park and Kim 2022; Nevelsteen 2018; Lee et al. 2011). The value of this world rises drastically with the younger generation, such as generation Z that has a considerable attitude toward using intelligent technologies (Park and Kim 2022). At this moment, the academic literature with a specific reference to business and management still needs to be developed, and there is a paucity of studies able to identify how this meta-world is developing. However, the 2021 can be considered a milestone because Facebook (now called Meta) started to invest several amounts of money in developing its Metaverse strategy (Binson 2021; Rauschnabel et al. 2022; Rospigliosi 2022; Wiederhold 2022). This example allows us to glimpse how, in the coming years, the Metaverse will constitute a great source of economic, commercial and social value (Papagiannidis 2008; Daz et al. 2020; Park and Kim 2022) for different categories of people and companies that will be present in the Metaverse. In fact, after Facebook’s investment on the Metaverse (Binson 2021; Rauschnabel et al. 2022; Rospigliosi 2022; Wiederhold 2022), people started to express their interest in this murky world. Moreover, it might be desirable to think that shortly a smart extended reality will be the first-place where people will go to experience immersive experiences (Papagiannidis 2008). Notably, thanks to the support of intelligent and smart technologies, people can socialize and interact (Wright et al. 2008) in a parallel world such as the Metaverse. Since the rise of the words Metaverse, scholars have developed several attempts to define and analyse the different features of this technology. Scholars refer to this world as a combination of virtual objects in a natural environment (Lee et al. 2011; Davis et al. 2009; Gadalla 2013; Jeong 2022). And as a virtual world where people can interact in real-time with others thanks to the support of an avatar (Leenes 2008; Davis et al. 2009; Owens et al. 2011; Gadalla 2013; Daz et al. 2020; Laviola et al. 2022; Wiederhold 2022). All in all, the main characteristics of the Metaverse can be identified in the following points (summarised in Fig. 17.2):
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(1)
A collaborative environment (Kumar et al. 2008; Wright et al. 2008; Gadalla 2013) because people collaborate to achieve several different goals such as economic, social and leisure (Kumar et al. 2008).
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(2)
An online place because people are immersed in an online environment based on three dimensions (Papagiannidis 2008; Marmaridis and Griffith 2009; Owens et al. 2011; Gadalla 2013; Kawaguchi et al. 2020; Binson 2021).
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(3)
A shared world (Kim 2021) because people have the possibility to share their activities, opinion, and information (Binson 2021; Davis et al. 2009; Papagiannidis 2008) and the shopping becomes a networked experience (Pantano and Gandini 2018).
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(4)
An augmented and technological place (Huggett, 2020) because people thanks to the support of augmented reality have the possibility to augment their experience (Caboni and Hagberg 2019; Caboni and Pizzichini 2022), and also socialize and interact (Wright et al. 2008) thanks to the support of virtual elements, technologies and the Internet (Han et al. 2010a, b).
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(5)
A multiuser environment (Daz et al. 2020) because people can use the same technologies or conduct the same activities at the same time, as an extension of their real life (Kuam et al. 2008).
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(6)
An unlimited world because the Metaverse could be the reproduction a physical world but without any physical limitations (Marmaridis and Griffith 2009; Papagiannidis 2008; Daz et al. 2020; Kawaguchi et al. 2020; Leenes 2008).
3 Affordance Theory of Technology
The term affordance introduced by Gibson in 1977, refers to the invitation to use an object that through its physical quality suggests people how to use it. Specifically, Gibson (1977; 1979) explained how animals, without resorting to any kind of reasoning, were able to grasp the intrinsic meaning of an object using simply sensory perception. Hence, the concept of affordance refers to the perception, originated by the senses, that a user has of the relationship that is established between him and an object within an environment. After Gibson (1977; 1979), Norman (1988; 1999), highlighted another point of view by studying the perceptions that an object transmits to an actor and from which it is possible to define a product architecture that is intuitive and usable. According to these two principal concepts related the affordance and extending those in the Metaverse environment, the affordances deriving from the Metaverse are related to a user relationship with the Metaverse environment obtaining specific value from the exploitation of technologies in this world. In this context, the application of the concept of affordance to the technology comes from Gaver (1991) that stated that affordances are properties of the world that pay off possible some action to an organism to act in specific ways. Hence, the affordance theory of technology (Gaver 1991) appears useful to understand how it is possible to obtain value from the use of technology and more specifically from the Metaverse environment considered as a melting pot of several technologies such as augmented reality, virtual reality and internet of thing, or artificial intelligence more in general. In particular, as expressed by Gaver (1991) the affordance theory of technology refers to using a specific technology under specific environmental circumstances to address particular goals.
In the Metaverse environment, it is possible to identify specific conditions and circumstances from which people can obtain value (Gibson 2014) and satisfying their needs and desires. As this world is online, shared, unlimited, collaborative, technological and multiuser environment, people can satisfy their needs for an immersive experience and obtain value (Gibson 2014) from the interactive technologies (Pantano 2016; Pantano and Gandini 2017). In particular a world described as a smart extended reality could be characterized by several stimuli deriving from the use of immersive and interactive technologies (Pantano 2016) that are able to influence the consumers behaviour’s (Pantano and Gandini 2017). In this regard the affordance theory of technology (Gaver 1991) applied to the Metaverse make it possible to consider this place as a plethora of technologies (Augmented, Virtual, Artificial) with different affordances that permit people to make possible their actions as in a normal life. In fact, according to the affordance theory, the focus to understand how to get a value from the Metaverse should be not properly on the technologies but on the fundamental interactions between users, context, environment and technologies (Fig. 17.3). In accord to the affordance theory of technology (Gaver 1991) the value from the Metaverse derives from the connection of the elements composing the Metaverse such as users (real and avatars), the context (technological and digital) where people take place their actions, and the environment (shared, collaborative, multiuser, unlimited) where they conduct their experience.
4 Regulatory Engagement Theory
The engagement is another element that people (firms and practitioners more in general) involved in the creation and exploitation of a Metaverse need to take into consideration to create as much as possible an immerse experience (Pantano 2016; Pantano and Gandini 2017) for users. Particularly, considering the regulatory engagement theory (RET) the psychological state of a person related to the engagement (Higgins 2006; Higgins and Scholer 2009), is referred the attention stimulated by an attractive or repulsive motivational factors. In fact, a positive engagement (such in the Metaverse environment) is able to induces and attractive experience and on the contrary if the experience has a negative value people are prompt to reject the experience (Kuvykaite and Tarute 2015). More in depth, this theory appears useful to discern the motivational factors (strong or weak) that lead in their experience and the directions they take, towards or away (Higgins and Scholer 2009). In this way it is possible to predict the consumers behaviour in a new environment and understand the process followed by user in co creation of value (Scholer and Higgins 2009) in the Metaverse. Accordingly, to the regulatory engagement theory (Higgins 2006; Higgins and Scholer 2009) a positive engagement of an object, such as the Metaverse, can produce an engaging experience (Arghashi and Yuksel 2022). A strong engagement (Higgins and Scholer 2009), deriving from the immersion in the Metaverse world by using different kind of smart technologies (Augmented, virtual, artificial intelligence), can increase the positive consumer experience in this smart extended reality. In line with RET, the different ways of engagement (Fig. 17.4) in the Metaverse immersion (Yim et al. 2017) are related to the interaction (Nikhashemi et al. 2021), inspiration (Rauschnabel et al. 2019) and satisfaction (Hinsch et al. 2020) of the needs of touch and haptic imagery.
In line with the regulatory engagement theory (Higgins 2006; Higgins and Scholer 2009), the level of engagement in this smart extended reality could derive from level of interaction with other users and smart technologies; the inspiration deriving from the environment able to involve user in acting as in normal life; and finally, from the satisfactions of their needs in a Meta-word such as in the physical word.
In the Metaverse experience the user experience with the technologies affecting this smart extended reality has a central role on the decision to use the Metaverse to conduct everyday activities as in an everyday life. In this regard, and in line with the regulatory engagement theory, the analysis highlights that the consumer engagement is the principal force able to motivate the Metaverse experience.
5 Self-Determination Theory
The self-determination theory (Deci and Ryan 1980; 1985a, b; 1987, 2000, 2012) is based on three principal pillars: autonomy, competence and relatedness. This theory can explain how is essential the need for autonomy for a person in order to self-organize its own life (Deci and Ryan 1985a, 1987). Consequently, the need for competence refers to the ability to be or become effective in each action/interaction with the environment where a person is immersed (Deci and Ryan 1980, 1985a). The need for relatedness (Baumeister and Leary 1995), attend to the necessity to have a feeling connection with other people able to support each action in everyday life. In this regard, the self-determination theory (Deci and Ryan 1980; 1985a, b; 1987, 2000, 2012) could be an excellent support to understanding the principal psychological needs in new smart reality such as Metaverse. People can conduct their everyday activities in a new environment (Metaverse) with new features and characteristics by using technology at their disposal. However, according to this theory, each action is finalized to achieve the need for autonomy, competence and relatedness. People need to self-determine their life (Deci and Ryan 1985a, 1987) to feel control over their choices. For this reason, they need to understand how a smart extended reality could work by discovering its features and potentialities. According to the self-determination theory, people are constantly motivated to grow and acquire new competence skills to satisfy their three psychological needs (Deci and Ryan 2000; 2012). In this context, the Metaverse could be a smart extended reality where people can also satisfy their needs when they cannot conduct the same activities in the physical world.
In fact, in the Metaverse world, people can satisfy their competence needs by learning what they want in digital reality, where they can find several solutions to satisfy this primary need. Then, as the Metaverse is a place enriched by several interactive technologies, people can stay connected with others (relatedness), and preserve their social activity in an unlimited way, thanks to the potentiality of a Metaverse. The self-determination theory (Deci and Ryan 2000; 2012) focuses principally on internal motivation to do something such as the need to gain knowledge or independence (intrinsic motivation), so the Metaverse environment allows people to satisfy their need for autonomy and competence in a smart extended reality. Then, as expressed by self-determination theory (Deci and Ryan 2000; 2012) people need to experience a sense of belonging and attachment to other people, and the Metaverse permits people to achieve a sense of belonging to a community (Baumeister and Leary 1995) by exploiting the potentiality of this world.
To summed up the contribution of the self-determination theory (Deci and Ryan 1980; 1985a, b; 1987, 2000, 2012) to a smart extend reality such as a Metaverse (Fig. 17.5), it is possible to highlight that this environment appears rich of potentiality to satisfy the three basic psychological needs of people. In particular, the Metaverse is a smart environment where people can have at their disposal different way to get new knowledge to satisfy their need of competence. In the Metaverse environment people are also needed to conduct several kind of activities able to support their need of autonomy. And finally, the Metaverse is a place where people can have strong relationships with others, and easily satisfy their need of belonging.
6 Discussion and Conclusion
To identify a punctual definition of a smart extended reality such as the Metaverse appear difficult for the paucity of the study in marketing and management able to emphasis the characteristics and benefits and outcomes of this new and not well-defined environment. This chapter aimed to focus the attention on some theories useful and helpful for researcher and practitioners to understand how and from what specific point of view it is possible to understand this new world. More specifically (as represented in Fig. 17.1) the three theories described in this chapter, the affordance theory of technology (Gaver 1991), the regulatory engagement theory (Higgins and Scholer 2009), and the self-determination theory (Deci and Ryan 1980; 1985a; 1985b; 1987; 2000, 2012) could be a valid support to answer how conceptualize a new smart extended reality that is still under investigated. In fact, thanks to the support of the affordance theory of technology (Gaver 1991) this chapter explained how it is possible to get value from specific technology, deriving from the Metaverse world. According to this theory the value from the Metaverse derives from the connection of the elements composing it such as users (real and avatars), the context (technological and digital) where people take place their actions, and the environment (shared, collaborative, multiuser, unlimited) where they conduct their experience.
Then, from the regulatory engagement theory (Higgins and Scholer 2009), this chapter identified how a positive engagement of people during their experience in a specific object or environment could derive from the exploitation of augmented and virtual reality and artificial intelligence, in a Metaverse world. Therefore, in line with the regulatory engagement theory (Higgins and Scholer 2009), this chapter underlined the possible way of involvement in the Metaverse during a shopping journey and exploiting potentialities deriving from the merge of augmented, virtual reality and artificial intelligence, such as interaction, immersion, inspiration and satisfaction. In fact, the level of engagement in a smart extended reality could derive from level of interaction with other users and smart technologies; the inspiration deriving from the environment able to involve user to conduct their actions and regular activities as in normal life; and finally, from the satisfactions of their needs in a Meta-word such as in the physical word.
Finally, the self-determination theory (Deci and Ryan 1980; 1985a; 1985b; 1987; 2000, 2012) identified the intrinsic motivation that led people to experience retailing in the Metaverse-tailing as a fusion of several advanced technologies. According to the self-determination theory (Deci and Ryan 1980; 1985a, b; 1987, 2000, 2012) a smart extend reality (such as the Metaverse) seems to be an environment with high potentiality able to satisfy the three basic psychological needs of people. In particular, the Metaverse appears a smart environment where people can have at their disposal different way to get new knowledge to satisfy their need of competence, and where they can do different activities to satisfy their need of autonomy, and they can also have strong relationship with others, and satisfy easily their need of belonging.
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Caboni, F., Pizzichini, L. (2023). Smart Extended Reality in the Metaverse-Tailing: The Rise of New Retail Landscape. In: Geroimenko, V. (eds) Augmented Reality and Artificial Intelligence. Springer Series on Cultural Computing. Springer, Cham. https://doi.org/10.1007/978-3-031-27166-3_17
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