Can Advertisers Overcome Consumer Qualms with Virtual Reality?

Perceived lack of authenticity and inferences of manipulative intent by an advertiser can impede an advertisement's intended effect. This research posits that 360-degree virtual tours offer realistic content, thereby helping consumers to overcome such reservations. Using an operational-transparency framework, three studies show that 360-degree panoramic tours increase telepresence, improve authenticity, lower inferred manipulative intent, and stimulate approach intentions. Accounting for control variables—device, locus of control, mood, and processing style—adds evidence for the robustness of these effects across a number of individual and situational contexts. The findings offer initial insight on how advertisers can employ computer-mediated experiences to attract customers.