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Examining the effect of virtual reality technology on marketing performance of fashion industry in Jordan

Authors:
  • University of Sharjah and The University of Jordan
  • Univerity of jordan

Abstract and Figures

This research examined how virtual reality technology affects the marketing performance of the fashion industry in Jordan. Based on a sample composed of 528 online customers, structural equation modeling (SEM) was utilized as a statistical approach for hypothesis testing. The research findings demonstrated that virtual reality technology had a positive significant impact on marketing performance. This examination provides many implications that managers in the fashion industry in Jordan could recognize, the most notable was encouraging them to focus on increased product demos utilizing virtual reality technology in order to improve customers' comprehension of the product and boost their confidence when making purchase decisions.
Content may be subject to copyright.
* Corresponding author.
E-mail address: m.alshurideh@ju.edu.jo (M. T. Alshurideh)
ISSN 2561-8156 (Online) - ISSN 2561-8148 (Print)
© 2024 by the authors; licensee Growing Science, Canada.
doi: 10.5267/j.ijdns.2023.10.023
International Journal of Data and Network Science 8 (2024) 1–6
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Examining the effect of virtual reality technology on marketing performance of fashion industry
in Jordan
Muhammad Turki Alshurideha,b*, Suhaib Anagrehc, Emad Tariqd, Samer Hamadnehe, Nidal Alzbounf,g,
Barween Al Kurdih and Sulieman Ibraheem Shelash Al-Hawaryi
aDepartment of Marketing, School of Business, The University of Jordan, Amman, Jordan
bDepartment of Management, College of Business Administration, University of Sharjah, Sharjah 27272, United Arab Emirates
cHigher Colleges of Technology, United Arab Emirates
dBusiness and Marketing Department, Business School, Liverpool Hope University, United Kingdom
eDepartment of Marketing, School of Business, The University of Jordan, Amman, Jordan
fThe University of Jordan; Amman; Jordan
gThe University of Sharjah, United Arab Emirates
hDepartment of Marketing, Faculty of Business, The Hashemite University, Zarqa, Jordan
iDepartment of Business Administration, Business School, Al al-Bayt University, Jordan
C H R O N I C L E A B S T R A C T
Article history:
Received: July 10, 2023
Received in revised format: Sep-
tember 20, 2023
Accepted: October 20, 2023
Available online: October 20,
2023
This research examined how virtual reality technology affects the marketing performance of the
fashion industry in Jordan. Based on a sample composed of 528 online customers, structural equa-
tion modeling (SEM) was utilized as a statistical approach for hypothesis testing. The research
findings demonstrated that virtual reality technology had a positive significant impact on market-
ing performance. This examination provides many implications that managers in the fashion in-
dustry in Jordan could recognize, the most notable was encouraging them to focus on increased
product demos utilizing virtual reality technology in order to improve customers' comprehension
of the product and boost their confidence when making purchase decisions.
© 2024 by the authors; licensee Growing Science, Canada.
Keywords:
Virtual Reality Technology
Marketing Performance
Fashion Industry
Jordan
1. Introduction
The digital revolution brought about several technologies that have altered our understanding of the world around us. To
enhance the user experience, modern technologies have concentrated on improving sensory awareness and engaging individ-
uals in computer-generated virtual environments (Yuen et al., 2023). Virtual reality technology has conquered markets and
affected user behaviour by merging real and virtual environments, such as customized headsets and sensors (Reer et al., 2022).
Virtual reality technology has found uses in a variety of industries, including entertainment, gaming, education, healthcare,
and marketing (Melo et al., 2022; Park & Kim, 2023; Kurtça & Gezgin, 2023). According to Lv (2020), as this technology
continues to progress rapidly, transformative experiences and novel applications may alter how businesses operate and make
it more complex to meet future aspirations. To make rational decisions in a tumultuous economic environment, companies
seek to acquire useful insights into the effectiveness of their investment plans by observing their consumer reaction and evolv-
ing demand for their products and services (Bader et al., 2022). Marketing performance indicators enable accessibility to
information on the outcomes of marketing initiatives in generating customers (Anh & Gan, 2021), turning them into loyal
2
(Saputra et al., 2022), and eventually improving revenue and business growth (Chong & Ali, 2022). Monitoring marketing
performance is crucial in the digital era to ensure that companies obtain the most out of their marketing spending, uncover
growth prospects, and remain ahead of the competition in a dynamic market (Saura, 2021).
Jordan's fashion industry is a renewable sector that relies significantly on successful marketing methods to attract and retain
customers by concentrating on evolving wants to stay updated with fashion trends. With the increasing use of virtual reality
technology, there is an increasing requirement to comprehend how customers engage with digital models and interact within
the virtual environment, as well as the implications for attracting more customers by satisfying their desires to improve the
marketing performance of Jordan's fashion industry. Therefore, the limited study that attempted to investigate how virtual
reality technology influences marketing performance, especially in emerging economies, encouraged the conduct of this re-
search in order to give experimental evidence that assists fashion companies in achieving their strategic goals. This research
also seeks to answer issues concerning the potential advantages and difficulties of implementing virtual reality technology in
traditionally conservative Middle Eastern contexts, as well as how it influences marketing efforts and outcomes.
2. Literature Review
2.1 Virtual reality technology
The notion of virtual reality mainly focuses on the idea of generating a digital world that duplicates the actual world or displays
fictional worlds focused on stimulating human senses to engage (Park & Kim, 2023). Gong (2021) defined virtual reality
technology as a computer-generated simulation of a 3D space that a user may interact with and explore by establishing a sense
of immersion and presence to excite the user's senses, including vision, hearing, and occasionally touch. Similarly, Bellalouna
(2020) claimed that it is a technology that uses digitally produced picture systems and sensory feedback to build a simulated
world that people may see and interact with as if it were real. Virtual reality technology implements specialized hardware and
software to provide an engaging and immersive experience that allows users to explore and interact with virtual worlds or
simulations (Kurtça & Gezgin, 2023).
Virtual reality technology can be comprehended and evaluated based on technical dimensions such as software, algorithms,
and behavioural dimensions determined from the current research depending on (Yuen et al., 2023; De Gauquier et al., 2019).
Immersion describes the degree to which a person feels totally integrated and absorbed in a virtual world. Higher degrees of
immersion are accomplished by realistic images, spatial sound, and rapid responsiveness. Interaction focuses on the ability of
users to be readily involved with the virtual world and the entities inside it. This includes capabilities like hand and body
tracking, recognizing gestures, and the usage of handheld instruments. Visual realism describes the degree to which visual
features of a virtual environment properly resemble visual signals and details in the actual world. It encompasses aspects like
lighting, shadows, and the amount of detail in virtual objects and settings. Audio realism refers to the degree to which the
auditory features of a virtual environment mimic real-world sounds and audio cues by providing simulations of realistic effects
and spatial audio that enable users to experience sound as they would in the real world.
2.2 Marketing performance
Marketing performance involves the process of reviewing and monitoring the effectiveness and efficiency of marketing oper-
ations and approaches in accomplishing the objectives and goals established (Bader et al., 2022). In general, marketing per-
formance entails assessing the consequences of marketing initiatives' usefulness in terms of acquiring customers and winning
their trust, which improves revenues and raises brand recognition (Saputra et al., 2022). Khalayleh and Al-Hawary (2022)
stated that marketing performance is a continual cycle of measurement, analysis, and continuous improvement that involves
constantly monitoring current trends, identifying opportunities, and proactively modifying approaches to stay ahead of the
competitive landscape.
Marketing performance centres around the examination of numerous metrics and key performance indicators (KPIs) that as-
sess the success of marketing campaigns, initiatives, and investments. Quantitative measures like sales revenue, conversion
rates, and return on investment are examples of these metrics (Khamaludin et al., 2022). According to Baderet al. (2022),
qualitative metrics such as brand awareness, customer happiness, and customer loyalty used in this study are also taken into
consideration. Customer satisfaction evaluates the extent to which customers are fulfilled with a product or service connected
with a particular brand. Customer satisfaction ratings that are high imply that marketing initiatives are meeting or exceeding
customer expectations. Customer retention refers to a company's ability for continue serving current consumers and maintain
them for as long as possible, which includes approaches for nurturing customers, increasing repeat purchases, and lowering
customer turnover.
2.3 Virtual reality technology and marketing performance
The strong association between marketing success and technological advancement in the age of digitalization motivated re-
searchers to intensify their efforts to discover the relationship between virtual reality technology and marketing performance.
Meißner et al. (2020) aimed to explain how virtual reality impacts consumer choice by contrasting consumers' product selec-
tion in a highly immersive environment employing virtual reality techniques with a low-immersion environment that displays
the items as computer-generated, spinnable 3D models. Customers in virtual reality chose a wider range of items and are less
price sensitive, regardless of the fact that pleasure is identical in both environments. Bogicevicet al. (2021) performed a study
to examine how customers respond to technology innovation in marketing hospitality businesses via three major service
M. T. Alshurideh et al. / International Journal of Data and Network Science 8 (2024) 3
preview modes: virtual reality, static picture, and 360-degree tour. The findings revealed that when technology innovation
increases, virtual reality technology improves self-branding, which increases visitors' intent to experience the hotel brand.
Based on the above evidence and debate, the following research hypotheses might be proposed:
H1: There is a positive effect of immersion on marketing performance.
H2: There is a positive effect of interaction on marketing performance.
H3: There is a positive effect of visual realism on marketing performance.
H4: There is a positive effect of audio realism on marketing performance.
Fig. 1 summarizes the proposed theoretical framework for the research and the hypotheses it seeks to verify.
Fig. 1. Conceptual model
3. Methodology
3.1 Population and data collection
The current study follows a cross-sectional design based on a quantitative approach to collect primary data on the impact of
virtual reality technology on marketing performance of the fashion industry in Jordan. Accordingly, the study population was
determined, which consisted of customers of fashion manufacturing and selling companies in Jordan. Hence, the study instru-
ment was disseminated simultaneously to a convenience sample of 593customers via electronic means such as Facebook,
Instagram, and WhatsApp. At the end of the data collection process, 528 responses were obtained that fit the requirements of
the statistical analysis. These responses accounted for 89% of the response rate, which indicates a fair representation of the
target population and achieves the criteria for adequacy of sampling (Sekaran & Bougie, 2016).
3.2 Measures
The electronic questionnaire was the main instrument for collecting the primary data for this study. This instrument consisted
of an introduction that confirms the following research ethics and demonstrates the core objectives of the study. Besides, it
contained a section for collecting demographic data of the respondents, along with two sections for its major variables. In the
sections related to major variables, respondents were required to rate the items based on a five-point Likert scale, which ranged
from a minimum of 1 "strongly disagree" to a maximum of 5 "strongly agree". A section was allocated to the independent
variable, i.e., virtual reality technology, which contained 17 items taken from (Newman et al., 2022). These items formed four
dimensions for the virtual reality technology: four items dedicated for measuring immersion, five items dedicated for meas-
uring interaction, five items dedicated for measuring visual realism, and three items dedicated for measuring audio realism.
On the other hand, the last section of the study instrument contained the measures of the dependent variable, i.e., marketing
performance, which were evaluated using nine items drawn from (Khalayleh& Al-Hawary, 2022). The items of marketing
performance formed two dimensions: five items dedicated for measuring customer satisfaction and four items for measuring
customer retention.
4. Findings
4.1 Measurement model evaluation
To evaluate the impact of virtual reality technology on marketing performance, structural equation modeling (SEM) was relied
upon as a modern approach to examine the interaction between latent constructs measured by observing variables (Wang &
Rhemtulla, 2021). The application of this statistical method requires subjecting the study instrument to a test of validity and
reliability before conducting an evaluation of the effect size. Accordingly, confirmatory factor analysis (CFA), which is one
of the SEM procedures using the AMOS software, was applied to extract the validity and reliability of a measurement model,
which were reported in Table 1.
4
Table 1
Results of validity and reliability tests
Constructs IM IN VR AR CS C
R
IM 0.742
IN 0.415 0.747
VR 0.398 0.418 0.750
AR 0.405 0.466 0.458 0.780
CS 0.631 0.681 0.671 0.604 0.727
CR 0.625 0.625 0.660 0.612 0.528 0.779
VIF 1.251 1.568 1.621 1.135 --- ---
Loadings range 0.715-0.774 0.662-0.792 0.703-0.814 0.752-0.802 0.687-0.764 0.761-0.795
AVE 0.551 0.558 0.563 0.609 0.529 0.606
MSV 0.437 0.450 0.479 0.493 0.477 0.483
Internal consistency 0.827 0.860 0.862 0.822 0.845 0.857
Composite reliability 0.830 0.863 0.865 0.824 0.849 0.860
Note: IM: immersion, IN: interaction, VR: visual realism, AR: audio realism, CS: customer satisfaction, CR: customer
retention, bold fonts indicate to square root of AVE.
The loadings of virtual reality technology on marketing performance items were between 0.662 and 0.814, indicating that
they were all retained as they were above the lower threshold of 0.50 (Al-Lozi et al., 2018; Sung et al., 2019). The average
variance extracted (AVE) values for the research latent constructs were greater than 0.50, which means that they met the
convergent validity condition (Howard, 2018). Moreover, the comparison results confirmed that the values of AVE were
greater than the maximum shared variance (MSV), also, it indicated that the values of the square root of AVE were superior
to the correlation coefficients between the other constructs in the model. These results are evidence of achieving discriminant
validity according to the Fornell-Larcker criteria (Rimkeviciene et al., 2017). On the other hand, the reliability of the meas-
urement model constructs was verified by using Cronbach alpha coefficients (α) for internal consistency and McDonald's
omega coefficients (ω) for composite reliability with a minimum of 0.70 for both measurements. According to the results in
Table (1), the values of Cronbach's alpha coefficients (0.822-0.862) and McDonald's omega coefficients (0.824-0.865) were
greater than 0.70, which indicates that the model constructs were reliable (de Leeuw et al., 2019).
4.2 Structural model
Based on the results of Table 1, it became clear that there was no multicollinearity between the dimensions of virtual reality
technology, where the values of variance inflation factor (VIF) for those constructs were less than 5 (Hair et al., 2017). In this
context, it is possible to continue testing the hypotheses through SEM shown in Fig. 2.
Fig. 2. SEM results of the virtual reality technology effect on marketing performance
The results of Fig. 2 confirm that the structural model for examining the impact of virtual reality technology on marketing
performance of the fashion industry in Jordan gained appropriate values of the goodness of fit. CMIN/DF was less than 3, the
values of CFI and TLI were greater than 0.90, along with the value of RMSEA which was smaller than 0.08 (Shi et al., 2019).
Accordingly, the standardized and unstandardized effect parameters were extracted and listed in Table 2.
M. T. Alshurideh et al. / International Journal of Data and Network Science 8 (2024) 5
Table 2
Hypothesis testing
Hypothesis Path Standardized Beta t value
p
value
H1 IM MP 0.593 9.60 0.000
H2 IN MP 0.681 11.49 0.000
H3 VR MP 0.715 12.43 0.000
H4 AR MP 0.624 10.55 0.000
Note: IM: immersion, IN: interaction, VR: visual realism, AR: audio realism, MP: marketing performance.
The results listed in Table 2 show that virtual reality technology has a positive impact on marketing performance. Moreover,
the results indicated that the highest impact was for visual realism (β= 0.715, t= 12.43, p= 0.000), followed by interaction (β=
0.681, t= 11.49, p= 0.000), then audio realism (β= 0.624, t= 10.55, p= 0.000), and finally the lowest impact was for immersion
(β= 0.593, t= 9.60, p= 0.000). Thus, all the study’s hypotheses were supported.
5. Conclusion
The purpose of this research was to examine the impact of virtual reality technology on the marketing performance of Jorda-
nian fashion companies. According to the findings of the study, the virtual reality behavioural dimensions, i.e., immersion,
interaction, visual realism, and audio realism, had a positive impact on marketing performance which corresponds with
(Meißner et al., 2020; Bogicevic et al., 2021). Consequently, virtual reality technologies enable an engaging experience with
the products and services that the company aims to promote, leaving lasting impressions on customers because of its use of
the customer's numerous sensory elements. Marketers are investing in virtual reality technology to boost trust in products or
services and minimize ambiguity around purchasing decisions by using the interactive advantages associated with these tech-
nologies, which provide comparison possibilities between alternatives. Virtual reality technology, on the other hand, assists
in the formation of emotional ties and a permanent connection with the brand through the ability to create immersive narrative
material that contains different scenarios concerning the brand's earlier experiences.
Virtual reality technologies have a wide range of beneficial implications on marketing performance. Hence, we encourage
Jordanian fashion industry managers to focus on increased product demos utilizing virtual reality technology to improve
customers' comprehension of the product and boost their confidence when making purchase decisions. Furthermore, in indus-
tries such as fashion and beauty, virtual reality technologies are required to enable customers to virtually try on clothes or
customized product options, reducing the need for physical trials or samples and improving the ability to cater to different
tastes. Finally, managers can explore data-driven virtual reality insights about consumer behaviour and preferences to inspire
the design of more successful marketing campaigns and product development that will surpass customer expectations.
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uted under the terms and conditions of the Creative Commons Attribution (CC-BY) license
(http://creativecommons.org/licenses/by/4.0/).
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Virtual reality adalah lingkungan atau objek imajinatif yang memiliki kemampuan untuk menghasilkan suasana tiga dimensi, memberi pengguna kesan bahwa mereka berada di dunia nyata secara fisik. Studi ini bertujuan untuk mengetahui pengaruh penggunaan Virtual Reality terhadap pengalaman wisatawan, pemahaman pengunjung, penyebaran informasi, dan minat pengunjung untuk mengunjungi tempat wisata. Metode yang digunakan adalah studi kasus di daerah objek wisata Caringin, Banten. Data deskriptif kualitatif dikumpulkan melalui observasi dan wawancara. Kegiatan ini melibatkan lima orang staf Desa caringin dan dua puluh pengunjung. Hasil kegiatan menunjukkan bahwa penggunaan Virtual Reality dapat meningkatkan pengalaman wisatawan, meningkatkan pemahaman pengunjung khususnya tentang sejarah, membantu penyebaran informasi lebih mudah dan cepat, dan meningkatkan minat pengunjung untuk mengunjungi tempat wisata.
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