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1 Student First Name: Raed Student Second Name: Algharabat Copyright subsists in all papers and content posted on this site. Further copying or distribution by any means without prior permission is prohibited, except for the purposes of non-commercial private study or research, as defined in the Copyright, Designs and Patents Act 1988, or as otherwise authorised by statute. To obtain permission, please contact the author of the relevant paper in the first instance or with details of your request. 1

2 Modelling the Impact of 3D Authenticity and 3D Telepresence on Behavioural Intention for an Electrical Online Retailer Abstract This study aims to investigate the effects of authentic three dimensional (3D) product visualisation on consumers virtual experience. Particularly, we define and operationlise virtual experience based on three elements; control, animated colours and 3D authenticity. Moreover, we investigate the effects of control and animated colours on the creation of 3D authenticity and 3D telepresence constructs. We designed a hypothetical retailer website presents a variety of laptops using 3D flash, which permits participants to change the colour of the laptop and see it with animated colours. Also it allows them to get actual and perceived information about the laptop features and attributes. Results show that 3D authenticity has similar antecedents to the 3D telepresence construct. However, 3D authenticity has more impact on consumers behavioral intention than 3D telepresence. INTRODUCTION Scholars (e.g., Li et al., 2001) classify experiences, based on the interaction between a product or an environment and an individual, into three types. First, direct experience permits consumers to interact (physically) directly with a product. Second, indirect experience often allows consumers to interact with second-hand source such as static visual pictures. Third, virtual experience (VE) allows consumers to interact with three dimensional (3D) virtual models. According to Steuer (1992, p.78) virtual reality (VR) is a real or simulated environment in which a perceiver experiences telepresence. In contrast, virtual experience (VE) derives from VR and can be defined as psychological and emotional states that consumers undergo while interacting with a 3D environment (Li et al., 2001, p. 14). A 3D presentation enables consumers to interact with products, enriches their learning processes, and creates a sense of being in a simulated real world. Despite widespread discussions and various definitions of VE, we notice that previous scholars, within the online retail context, consider interactivity, vividness and telepresence (or presence) constructs the centre of 2

3 defining and operationalising consumers virtual experience. Based on this, we claim that for VE to surpass, psychologically, an actual experience with the offline products, telepresence and presence constructs should not be used to represent the VE since they are presenting a process of being mentally transported into other areas or being immersed into an illusion environment. Such notions may not be particularly helpful for marketers and website designers who are concerned with 3D product visualisation of real products. Instead, to define and conceptualise VE in the online retailers, we propose three elements; control, animated colours and 3D authenticity. We therefore compare the effect of 3D telepresence and 3D authenticity on behavioural intention. THEORETICAL BACKGROUND 3D Virtual Experience in Immersive and Non-Immersive Virtual Realities The first appearance of VR terminologies starts with the emergence of external devices, such as head-mounted display, which allow users to interact with virtual environments and to visualise different objects (Suh and Lee, 2005). As a result, previous scholars, in this area, define and operationalise VE based on two categories; the notions of telepresence and presence (Steer, 1992). Whereas presence indicates the direct experience of reality (i.e., a sense of being in any real remote location), telepresence refers to simulated perception of direct experience (i.e., sense of being in a computer-mediated environment). To identify the main determinants of VE, researchers follow interactivity and vividness theories. For example, previous scholars (e.g., Steuer, 1992) assert that interactivity and vividness may represent the main antecedents of a 3D virtual reality experience. Interactivity appears particularly of interest since the appearance of new communication channels such as the World Wide Web, for which it represents a critical concept and primary advantage (Shih, 1998). In contrast, vividness, according to Steuer (1992, p. 81) is the way in which an environment presents information to the senses. To conceptualise consumer experiences in cyberspace, scholars, within the online retailers literature, have empirically tested the influence of 3D on consumers virtual experiences. For example, Shih (1998) posits that the vividness of the information (operationalised as multisensory information, i.e. breadth and depth) that a consumer receives in cyberspace and the interactivity of the cyberspace technology (operationalised as control, speed and feedback) 3

4 provide the main antecedents of VE (i.e., being there or telepresence). In turn, Coyle and Thorson (2001) investigate the effects of progressive levels of interactivity and vividness on Web marketing sites by manipulating levels of interactivity (number of choices and presence of a clickable image) and vividness (audio and animation). They find that high levels of interactivity and vividness increase participants feelings of VE (i.e., being there or telepresence). According to Klein (2003) Macromedia s Authorware 3.0 and 4.0, represents simple technology and thus provides another means to examine the effects of VE (i.e., telepresence; being transported into another area) on consumer responses. Moreover, Klein (2003) finds that interactivity (user control) and media richness (depth and breadth of sense channels) emerge as the main antecedents of consumers VE (telepresence), with significant positive influences on telepresence creation. To that end, Lee (2004) revises all the previous definitions of telepresence or presence and argues that none of the previous definitions could be used to tap the concept of using virtual environment to reflect consumers virtual experience. On that basis, we claim that using the notions of 3D telepresence or presence, and their definitions, to define VE neither help marketers and e-retailers to understand the effect of 3D product visualisation on consumers virtual experience, nor suit the online retail context. Because theses terminologies (i) were built on using external devices, such as headmounted display and (ii) these notions often reflected negative meanings such as immersion, delusion and transportation (Lee, 2004). Instead, we propose the notion of 3D authenticity and its antecedents (control and animated colours), reflecting the authentic representation of VE. The concept of 3D authenticity of the product visualisation implies the ability of the 3D to simulate the product experience in bricks-and-clicks contexts. We propose the following definition of 3D authenticity: 3D authenticity is a psychological state in which virtual objects presented in 3D in a computer-mediated environment are perceived as actual objects in a sensory way. Figure 1 illustrates our research model. Figure 1: conceptual framework (source: the author). Control H 1a 3D Authenticity H 3a H 1b 4

5 Behavioural intention H 2a H 3b Animated colours H 2b 3D Telepresence 3D Virtual Experience Antecedents We use the control construct to represent interactivity in an online retail context. We define control as users abilities to choose the content and form of the 3D virtual model, particularly, their ability to rotate, zoom in or out on the product, and to click on any part of the 3D virtual model to get instant information about it, and the ability of the 3D virtual model to respond to participants orders properly. Previous scholars (Klein, 2003) posit that user control has a positive impact on the creation of 3D telepresence and realism. H 1a : A high level of control of 3D product visualisation increases 3D telepresence. H 1b : A high level of control of 3D product visualisation increases 3D authenticity. Animated coloured pictorial images used in this study to represent consumers ability to see 3D products with different animated skins just as they would see them in person. Highquality online animated colours may enhance consumers perception of the authenticity of the 3D product visualisation (Klein, 2003). Moreover, consumers ability to change the animation (colours) of the 3D product might help them sense authenticity over the product. Therefore: H 2a : A high level of 3D animated colours increases perceived 3D telepresence. H 2b : A high level of 3D animated colours increases perceived 3D authenticity. The Effects of 3D Authenticity and 3D Telepresence on behavioural Intention 5

6 The role of 3D product visualisation in enhancing behavioural intentions appears well supported. For example, Fiore et al. (2005a) assert a positive relationship between telepresence and willingness to purchase from the online retailer. Moreover, Algharabat and Dennis (2009) find a significant impact of 3D authenticity on behavioural intention. Therefore: H 3a : The relationship between 3D authenticity and behavioural intention is positive. H 3b : The relationship between 3D telepresence and behavioural intention is positive. METHODS Stimuli and Participants We designed a hypothetical retailer s Web site with one stimulus for this study. The stimulus was illustrated on 3D product visualisation site that allowed participants to view the focal product, laptops, from different angles; they also can rotate the products and zoom it in or out. The 3D stimulus is intended to help consumers to imagine the product in appropriate and relevant ways and thus enhance their virtual experiences (Li et al., 2001) (Appendix A). The Web site we created for this study was not previously known to users, nor did users have any knowledge of the fictitious brands on it. Thus, we eliminated any impact of previous experiences or attitudes (Fiore et al., 2005). The site offers a wide variety of laptops, similar to those that many college-aged women and men currently buy and use. Therefore, site provides a suitable context for the present sample. Student samples have often been used in online shopping research (e.g., Fiore et al., 2005) this is justifiable as students are computerliterate, have few problems in using new technology. We used a sample of 312 students for the data collection. RESULTS Measurement and Structural equation models Figure 2 shows the results of goodness of fit, structural path coefficients and R 2 of the data. The structural equation model confirms that control and animation have significant positive 6

7 effects on 3D authenticity (H 1a t = 2.633; H 1b t = 6.475) and 3D telepresence (H 2a t = 2.363; H 2b t = 4.582). Finally, as we hypothesised, 3D authenticity has a significant positive effect on behavioural intention (H 3a t = 7.808). However, 3D telepresence has a non-significant effect on behavioural intention (H 3b t = -.766). The average variance extracted by each construct exceeds the minimum value recommended by Hair et al. (1998), (i.e., 0.5 or above), indicating convergent validity. The square roots of the average variance extracted by each construct exceed the correlation between them, demonstrating discriminant validity (Fornell and Larker, 1981). Figure 2: The Results R 2 =.60 Control.35*** 3D Authenticity.15*.40*** R 2 =.15 Behavioural intention.69*** R 2 = Animated colours.36*** 3D Telepresence χ 2 = ; df= 171 CFI= 0.940, RMSEA= *** p < GFI= 0.927, χ 2 /df = 3.3 DISCUSSION AND CONCLUSION This study aims to investigate the effects of authentic 3D product visualisation on consumers virtual experience. Particularly, we define and operationlise VE based on three elements; control, animated colours and 3D authenticity. Moreover, we investigate the effects of the 3D authenticity (i.e., control and animated colours) on the creation of 3D authenticity construct, which in turn impacts consumers behavioural intention. To identify how using a 3D product visualisation influence consumers virtual experience, we add, to the marketing literature, the 7

8 notion of 3D authenticity and present a valid scale to measure it. As such, it is the first study to empirically explore the antecedents of 3D authenticity (control and animated colours) and connects them to the 3D authenticity construct. Finally, we clarify the main differences between authenticity and telepresence; telepresence involves illusion or a sense of being transported to another place, whereas authenticity refers to the ability to imagine a virtual object as real. Although the generalisability of the results is limited by the student sample, we argue that students represent the shoppers of tomorrow (Fiore et al., 2005). REFERENCES Algharabat, R. and Dennis, C. (2009), Modelling 3D product visualisation on the online retailer, Academy of Marketing, Annual conference 2009, Putting Marketing in Its Place, Leeds Metropolitan University, 6-9 July. Ariely, D. (2000), Controlling the information flow: Effects on consumers decision making and preferences, Journal of Consumer Research, 26, pp Coyle, James R., and Thorson, Esther. (2001), The effects of progressive levels of interactivity and vividness in web marketing site, Journal of Advertising, 30(3), pp Fiore, A. M., Kim, J. and Lee, H.H. (2005), Effects of image interactivity technology on consumer responses toward the online retailing, Journal of Interactivity Marketing, 19(3), pp Fornell, C., & Larcker, D. F. (1981), Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research, 18, pp Hair, J., Anderson, R., Tatham, R., and Black, W. (1998), Multivariate Data Analysis, Prentice-Hall, Upper Saddle River, NJ. Klein, L. (2003), Creating virtual product experiences: the role of telepresence, Journal of Interactive Marketing, 17(1), pp Lee, K. (2004), Presence explicated. Communication Theory, 14(1), pp Li, H., Daugherty, T. and Biocca, F. (2001), Characteristics of virtual experience in electronic commerce: a protocol analysis, Journal of Interactive Marketing, 15(3), pp Shih, C. (1998), Conceptualizing consumer experiences in cyberspace, European Journal of Marketing. 32(7/8), pp

9 Steuer, J. (1992), Defining virtual reality: dimensions determining telepresence, Journal of Communication, 42(4), pp Suh, K., and Lee, Y. (2005), The effects of virtual reality on consumer learning: an empirical investigation, MIS Quarterly, 29(4), pp Appendix A: 9

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