Understanding Consumer Behavior in the Metaverse : a Study on the Effect of Product, Tripartite Value, and Buying & Brand Perception in Virtual Vs. Physical Environments

Trading of virtual goods in the metaverse is a highly lucrative business predicted to be worth hundreds of billions in the next few years. This is, therefore, an area that is gaining increasing attention from brands and marketers internationally. Understanding consumer behavior concerning these virtual goods is crucial, especially with how their value is determined and how this affects brand attitude and purchase intention. Consequently, not much knowledge exists on the tripartite of value for these goods and how this affects future purchase intention and brand attitude. To bridge this gap, the study intends to contribute theoretically by filling the gap in the literature and providing critical information on consumer behavior for virtual goods in the metaverse. Across a controlled experiment in the context of metaverse vs physical environment with the positivism philosophy, the findings led to the conclusion that the consumer’s processing of products in the metaverse differs from the real (physical) world in studying the impact on intention to purchase. This effect is mediated by the tripartite value (hedonic, functional, and social) placed on virtual products in the metaverse which positively influences the brand attitude and future purchase intention. Additionally, the ability to fantasize and openness to experience were found to have a more significant moderating impact on the brand attitude and purchase intention for physical goods than virtual ones. Age was also tested as a control variable and found to influence the future purchase intention for virtual goods. This paper contributes to the knowledge of consumer behavior in the metaverse and provides theoretical and practical implications