Using Virtual Reality (VR) Demonstration and Visualization in Retail Grocery Industries

Using Virtual Reality (VR) Demonstration and Visualization in Retail Grocery Industries

Erianne Rhay S. Billano, Ma. Jelyn L. Maulion, Rachelle M. Quinatadcan, Jielene E. Zulueta

Bachelor of Science in Office Administration, Polytechnic University of the Philippines – Parañaque City Campus

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8120045

Received: 23 November 2024; Accepted: 26 November 2024; Published: 30 December 2024

ABSTRACT

This article explores the use of virtual reality (VR) in changing the retail grocery industry for the better, enhancing the consumer experience, increasing its effectiveness, and encouraging new ideas. By looking for more relevant studies, it discusses the differences between consumer behavior in VR grocery stores and regular grocery stores, looks at the cost of implementing VR technology, and provides examples such as place-based VR shopping, product projection, and VR training. Further, this review presents arguments in favor of the application of VR technology to address marketing and eco-friendly issues and provides specific recommendations to retailers on how VR will change the expectations in grocery shopping.

Keywords: Virtual Reality, Retail Grocery, Consumer Behavior, Immersive Shopping, Operational Efficiency

INTRODUCTION

According to LogiCommerce (2021), the retail grocery industry is nowadays under a technological revolution with the help of VR (virtual reality) as the main image. VR transforms the shopping experience from the traditional to an immersive and interactive atmosphere featuring operational efficiency for retailers.

VR is a technological advancement that bridges the gap between the physical and digital retail settings. It meets and exceeds the client’s experience through the use of interactive shopping, customer personalization, and convenience (HQSoftware Lab, 2021). According to InContext Solutions (2022), businesses in the retail sector are open to a fresh and innovative way to experience their stores, access their products, and purchase goods through the realistic virtual simulations of grocery stores, goods, and experiences. Customers’ expectations are also being affected by the unforeseen shift from the traditional shopping paradigms towards an immersive experience, which opens up new opportunities to reach out to implicit new markets.

The capability to penetrate the realistic virtual setting of retail stores in the comfort of your own home just by the touch of a device (Food Institute, 2021). Consumers can enter the aisles of the stores, check out products, and make educated choices. It enhances the visual and tactile aspect of purchasing products and allows the operation of never-before-seen state-of-the-art marketing strategies, individualized recommendations, and data-customizable insight into consumer behavior. VR facilitates effective employee training programs, and optimal supply chain management, and encourages eco-friendly practices throughout the retail chain (Food Institute, 2021).

It also examines the multiple operations of VR in retail grocery settings. These applications include the creation of engaging virtual shopping experiences, enhancing employee training, marketing initiatives, and superior product display. We probe the potential financial, operational, and cost-saving advantages of VR technology. In addition, we differ consumer preferences, encounters, and behavior in VR shopping scenarios with conventional physical supermarkets, providing retailers seeking to take advantage of VR as a competitive leverage with insightful information.

Let’s dive into the future of retail grocery, where VR minimizes the difference between reality and fiction, offering customers an immersive, life-changing shopping experience while equipping retailers with the newest technology to leverage in a rapidly evolving industry. This article tackles how virtual reality in the grocery retail setting works, focusing on the engagement of consumers, cost benefits, and innovative marketing strategies.

LITERATURE REVIEW

Introduction to VR in Retail Grocery

VR (Virtual Reality) is a transforming technology that changes the way we shop by making an immersive and interactive experience (HQSoftware Lab, 2021). In supermarkets, VR allows customers to visit and shop virtually. With this technology, the shoppers explore the layout of the supermarket in 3D. The customers give the experience through VR by walking into the stores, looking at shelves, and picking up items from their computers, smartphones, or VR headsets. Instead of browsing pictures of the products on the websites or apps, VR enables the customers to experience the physical stores. It creates a more realistic shopping experience, where the customers can look from a different angle and zoom in for details.

VR allows customers to examine the products in a way that is not possible in traditional online stores. For example, they can see how large or small a product is compared to other items and also can read the labels as if they were holding the product. or can demonstrate the uses of a product. VR helps customers to be detail-oriented before making a decision by giving them a better understanding of what they are buying. In addition, VR can stimulate real-life scenarios that help customers conceptualize the product. For example, if a customer uses a VR to see how clothing would look at them, it gives a virtual fitting room. This reduces help, and customers feel more confident about their purchases. (Adcock Solutions, 2022).

Historical Overview and Evolution of VR in Retail

The technology associated with VR has improved notably. It gained prominence in the gaming and recreation fields prior to moving into retail settings like grocery markets. The initial objective of VR studies in the grocery and retail industries was to enhance consumer satisfaction and functional competence.  VR was once a niche technology mainly employed in simulation and gaming. The technology might be examined for a span of commercial uses at the initiation of the new century’s appreciation for advances in VR hardware and software. Since VR might modify consumer engagements and sales schemes, retailers have been exploring creating virtual domains that surface shopping occurrences (Strivr, 2021).

As captivating technologies have evolved and been merged into customer-oriented programs, VR has become gradually widespread in grocery shopping. The goal of innovators was to make VR frameworks that would let users browse supermarket paths physically, review product details, and even execute filling an online cart (InContext Systems, 2022). Lately, there has been remarkable progress in the service and availability of VR technologies created for retail contexts. The development of immediate dynamic connections, sophisticated perceptual response frameworks, and airy headwear has made VR experiences at grocery shops more useful and realistic (Food Institute, 2021). VR has enhanced from a speculative instrument to a workable way to boost customer engagement and functional impact in retail settings, as these initiatives emphasize.

Consumer Engagement and Experience in VR

In the setting of supermarket retail, VR points to the method of building digital versions of actual stores that enable clients to browse aisles, notice items from different standpoints, and equally act out in-person encounters. This feature helps companies demonstrate their product scope in a more dynamic and captivating way while also improving the acquiring experience (MDPI, 2023). VR is guiding grocery shopping by offering features like collaborative product demos, personalized proposals based on consumer interests, and virtual suitable rooms for perishable goods, above and beyond simple representation (LogiCommerce, 2023). By bridging the gap between the immersive on-site experience and the convenience of online shopping, these technologies aim to fit changing customer tastes and expectations in a market that is becoming more and more digitally determined.

HQ Software Lab (2022) completed research that proposes that VR technology can enhance consumer engagement and operational capability in retail settings. By engaging consumers in realistic virtual contexts, VR creates different and significant shopping experiences. This makes people feel secure, which boosts the odds that they will make a purchase.

Current Trends, Developments, and Debates

VR technology is a transformation of grocery stores in the retail industry, because of the advancement of technology and how to use it. With VR, the tools are available for grocery stores because they can interact with their customers using VR technology. Customers are allowed to promenade and pick up the items using a new technology. In the Grocery Company, VR acknowledges the changes in how they use the customers’ experience using VR technology and how they run their stores. With VR customers get a different experience than the traditional set-up because using VR they provide real-time simulations to the customers and give recommendations for the customers based on their preferences. For stores, this technology helps to streamline operations, making an efficient service and experience of the customers like inventory, and organizing products. Both customers and retailers can benefit from this new technology.

Operational and Efficiency Benefits of VR

Recently, the improvement of VR technology has made it easier for grocery stores to incorporate VR in their daily operations and customer experience. The visuals of VR have high graphics to create a more immersive and unbelievable experience in making online and in-store shopping. The VR headsets are now comfortably used by customers because the development of VR headgear was lighter and more comfortable to use. This makes it easier for stores, VR-based to offer online shopping and customers are encouraged to shop using their new technology. New improvements in VR application and innovation have made the integration of VR into grocery establishments feasible. For better clarity, handy tools, and engaging connection, companies may propose immersive VR knowledgeable for digitally literate consumers. Technology improvements such as virtual try-ons for fresh foods and immediate stock control systems explain how VR may boost consumer satisfaction and lighten retail operations (HQ Software Lab, 2022).

Integration into grocery retail contexts is emerging as more feasible because of recent progress in VR hardware and software. Retailers may now provide interesting VR experiences that are anticipated to appeal to digitally literate consumers thanks to airy equipment, improved sharpness, and engaging connections. Innovations like immediate resource control frameworks and virtual try-ons for fresh foods highlight the possibility of VR to improve consumer pleasure and organize retail operations. Discussions over the feasibility and adaptability of VR in grocery stores continue heated, given its clear benefits. An issue that arises is how much-limited shops must initially disburse on their IT framework and ongoing maintenance. Concerns about the prolonged profit on VR assets and the effects of the competitive store situation on profitability also emerge.

Key Concepts, Theories, and Models

The grocery and retail sectors are using VR, and this usage of VR is established on a number of significant concepts, beliefs, and examples that explain how VR affects consumer conduct and the company’s techniques. VR technology provides comfortable, immersive experiences that bring out potent emotions from users and ease the assessment of products, both of which impact the decision-making process of consumers. Both the Theory of Planned Behavior (TPB) and the Technology Acceptance Model (TAM) offer frameworks for grasping how VR boosts consumer engagement and obtains aim in grocery retail settings (Strivr, 2021).

According to the Technology Acceptance Model (TAM), the degree to which customers and traders take on new technologies, such as VR, is dependent upon their insight into the technologies’ ease of use and benefits. Technologies Vector (2022). Retailers may help consumers accept the technology and get beyond early adoption hindrances by showcasing the applicable benefits of VR, such as enhanced product visualization and modified shopping experiences. The principles of the experience economy, which sustain that unique and pleasant experiences are what push consumer satisfaction and brand commitment, are compatible with VR. Grocery shops might provide captivating and vibrant shopping experiences with VR, pleasant to current consumers seeking ease and tactile activation (InContext Solutions, 2022). VR can alter how food retail businesses run and engage with their clients, as shown by these concepts, beliefs, and examples. Using immersive technology, retailers may set themselves apart from the challenge and shape closer bonds with digitally literate, online shopping expert customers.

Synthesis of a Literature Review

There is still a significant number of pending issues, contradictions, and gaps in the expanding compilation of research on VR in the grocery and retail industries, particularly with regard to the emphasized research gap. One significant gap in the literature is the void of thorough research contrasting customer behavior and experiences in VR settings in supermarkets with traditional shops. Before doing complete analyses that consider both online and offline retail settings, earlier research frequently concentrated on positive elements of VR adoption, such as customer engagement or functional performance (Adcock Solutions, 2022).

The implementation of quantitative or qualitative approaches in research examining the impact of VR on grocery retailing limits our ability to comprehend both measurable outcomes and situational aspects that shape customer choices. Combined methods techniques have the potential to yield a more detailed understanding of the complex ramifications of VR on customer behavior and functional approach (MDPI, 2023). The opposing results show that merchants have different opinions on whether merging VR into grocery shopping is feasible. A number of studies emphasize the potential financial benefits of VR technologies through increased functional approaches; however, additional studies highlight the high costs and uncertain return on investment measures associated with this innovation (Food Institute, 2021).

Our knowledge of both measurable findings and the contextual aspects that influence consumer decisions is limited by knowing that much research that evaluates the impact of VR on grocery retailing utilizes quantitative or qualitative methodologies. Employing combined techniques might result in an advanced comprehension of the complex effects of VR on consumer behavior and business approaches (MDPI, 2023). The opposing results highlight the differences among retailers in evaluating the potential benefits of utilizing VR to boost sales of groceries. While certain surveys emphasize the device’s excessive costs and uncertain ROI computations, additional studies emphasize the potential cost benefits of VR technology due to increased efficiency in operation (Food Institute, 2021).

Aims of the study

To emphasize the necessity to develop a comparison of consumer behavior and experiences in grocery settings using VR versus physical stores. Providing a costing for the implementation of VR  technology in retail grocery settings. They identified specialized skills and knowledge necessary for implementing and managing VR technology in grocery setups.

Problem Statement

This study examines the capability of VR (virtual reality) technology to change the retail grocery industry by analyzing its impacts, applications, and implementation requirements. The problems identified for research are the following:

1. What are the key differences in consumer behavior and experiences between VR grocery settings and physical stores, and how do these differences impact consumer preferences, loyalty, and shopping habits?
2. What are the comprehensive cost-saving benefits of implementing VR technology in retail grocery settings, considering factors such as hardware, software, additional features, and implementation?
3. What are the specific applications of VR in grocery shopping, and how do they enhance the shopping experience, improve operational efficiency, and drive innovation in the retail grocery industry?
4. What are the specialized skills and knowledge necessary for implementing and managing VR technology in grocery stores, and how can these skills be effectively acquired and maintained to ensure successful VR adoption and integration in the retail grocery industry?

The purpose of this research is to provide insights into an aspect of VR modernization in grocery industry, analyzing customer engagement, operational efficiency, and innovation while addressing technical and human resource requirements to be successful implementation. The finding must offer valuable information for grocery retailers considering VR adoption, as well as industry stakeholders focused on advancing digital transformation in retail.

METHODS

This study implements a systematic review methodology to identify the use of VR in the retail grocery industry. All data are gathered from peer-reviewed academic journals, industry reports, and reputable websites. To ensure the quality and relevance of the studies, the review focused on literature published between 2018-2023. The main sources of data include academic databases such as MDPI, industry-specific publications like The Food Institute and HQ Software Lab, and practical insights from report published by tech companies like Strivr and Vection Technologies.To gather data, the search terms were used to identify relevant literature such as “VR in grocery retail,” “consumer engagement with VR,” “VR operational efficiency,” “virtual shopping environments,” and “VR inventory management.” During the initial search stage, gathering data proved to be a challenge due to the large number of articles. Using that information, a filter was used to distinguish relevant and irrelevant information.

Figure 1. Data Gathering and Preparation

(Delmo et al., 2023)

A comprehensive literature review on the applications of VR in the retail grocery industry requires the selection of databases and sources that meet the given criteria regarding relevance, authority, and scope of information. The choices made include the following as a way of ensuring that the literature review is based on a solid foundation of reliable and industry-relevant data:

RESULTS AND DISCUSSIONS

Results

The researchers created the tables below after collecting the data to illustrate the information derived from it and organize them into themes. This address enables researchers to positively interpret each table and achieve their objectives.

Table 1: Key differences in consumer behavior and experiences between VR grocery settings and physical stores, and impact on consumer preferences, loyalty, and shopping habits

Source: Processed by Authors

The table presents a summary of VR across consumer behaviors, in a VR environment that is a grocery store, the consumer behavior and the experience are different from the VR environment of a traditional, physical store. VR offers a unique experience of immersion via vivid visual and haptic prompts, and product interactions become more believable, thereby intensifying affective involvement, in turn leading to deeper attachment to products and brands (FoodInstitute, 2021). This immersive setting also offers unprecedented utility and novelty, where consumers can shop flexibly and fruitfully, and VR is a promising strategy for targeting previously inaccessible consumer populations (InContext Solutions, 2022). In addition, the attentional, as well as the affective involvement in VR experiences, is furthered in such a manner that the observer in VR considers the simulated world as more lifelike, thus leading to a more intense purchase intention, greater degree of satisfaction, and consumer loyalty (MDPI, 2022). VR grocery shopping also potentially achieves highly customized shopping experiences through personalized recommendations and optimal layout, providing an individual experience specific to each shopper’s needs. This personalization has the effect of giving shopping value and interest, as the customer is made to feel that their own personal and wants needs are being fulfilled (LogiCommerce, 2023). In general, VR grocery stores serve to improve consumer interactivity with immersive, easy, and customized experiences, which in turn lead to higher satisfaction, loyalty, purchase intention, etc.

Table 2: Comprehensive cost-saving benefits of implementing VR technology in retail grocery settings

Source: Processed by Authors

The table shows that VR (Virtual Reality) enhanced from a speculative instrument to a workable way to boost customer engagement and for easy shopping or even doing activities. Using VR can create different experiences, this makes people feel secure in shopping and they will always purchase and use this technology. VR technology helps to streamline operations and make efficient services and experiences for the customers by organizing the product. Therefore, VR helps us to easily shop our needs because of this Technology and VR may boost consumer satisfaction.

Table 3: Applications of Virtual Reality (VR) in grocery shopping

Source: Processed by Authors

The table shows a lot of applications of VR technologies with the tendency to enhance purchasing. Virtual stores have enabled browsing through a product inventory in a fully engaged environment by simulating the essence of an actual store from the comfort of one’s own home. Product testing opportunities will allow the shopper to interactively get in touch with products and make an informed purchase decision. Distinctive shopping experiences will design personalized environments that are tailored to individual preferences. This will ensure that customers gain satisfaction with repeat visits, speeding up retail sales. Moreover, transactions become smoother through an efficient checkout system, hence creating an exceptional and competent shopping experience while saving time and effort.

Table 4: Specialized skills and knowledge necessary for implementing and managing Virtual Reality (VR) technology in grocery stores.

The table illustrates the different special skills, VR training offers employees and consumers skills on VR hardware & software, which can help you improve the quality of your service along with the customer experience. With realistic scenarios provided by VR, training time is cut down while elevating the employee’s confidence and readiness for real-world work. In some rare cases, it requires specialized analytical skills to deploy VR correctly, programming, and UI design for building interactive content in a user-friendly environment. The usage of VR for retention of skills and adaptability enables the employees to adapt to the changing personality roles and operational requirements Unlimited VR and AR training, along with focused skill gap assessments, enhances workforce competency; which is a complicated process to master in the real world because the digital environment has fewer controls.

DISCUSSION

In grocery shopping through VR technology, they have made modifications between consumer behavior and experiences in physical stores (Khan & Memon, 2021). These differences may impact preferences, loyalty, and shopping behavior. Consumers can walk thoroughly in aisles virtually and interact with products by entering a simulated environment. It is different from a world where the experience is based on perception of what is real, unlike in physical stores, where the experience is realistic and based on interaction with the environment and the product. VR permits consumers to purchase from the comfort of home, free from excess, and effort. Consumers who consider practicality, and comfort are in favor as studious users. VR technology can amend by integrating promotions and product presentations, enhancing customer interaction further looking and picking items in grocery shopping. Data analytics can provide unique shopping encounters, boosting customer fulfillment and loyalty, and conquering the limited individualized experiences proposed by physical in-stores (Kekare, 2023). VR offers wide product information through collaborative displays, but it may confuse the decision of consumers. The exposure of products allows for easy comparison. Social interactions in physical stores may decrease consumer confidence. However, if effectively used, VR can create brand commitment. The prices may become a concern for VR shoppers, as they can compare prices in real-time without spatial limitations. VR grocery settings may encourage frequent shopping trips, as spatial limitations are eliminated. Consumers in VR may look for digital coupons and promotional offers, while physical store customers may look for discounts regularly.

Implementing VR technology in retail grocery settings suggests some cost-saving benefits that will boost operational efficiency and consumer experiences (Pasquel, 2023). Virtual and online stores should reduce the space to lower the rent, amenities, and repair. They will train employees in virtual platforms, reduce labor costs by streamlining operations, and enable retailers to display more products without being restricted from the inventory. A cost-effective marketing campaign is easily facilitated through VR, engaging the customer without the expensive costs of the physical displays, while also providing valuable data for the successful application of targeted strategies. It also improves product visualization, limits returns from insufficient product information or presentation, and ensures that better-informed purchasing decisions are made, further reducing logistics costs connected with returns. This means that though the initial investment in VR can be pretty stiff, the long-term savings often tend to outweigh the cost, and once created, it is rather easy to scale up and down without significant additional costs. Overall, the introduction of VR technology not only streamlines operations and saves many costs but also enhances engagement with the customer as well as the level of satisfaction they get from services, hence higher profitability.

In their midst are applications that enhance the shopping experience, lead to increased productivity in operations and industry advancement (Chen, 2022). It is now possible for consumers to have virtual stores, detailed analysis of products, and purchase it from the comfort of their homes. For instance, training can be done in VR because employees can learn to execute tasks in a realistic environment, which means integration happens faster and service value is much higher. Through entertainment shops, retailers will be able to design appealing campaigns where their clients engage and become faithful to the brand. Indeed, in grocery retailing, incorporating VR technology will meet modern consumer demands while putting the retailer in a good rivalrous position concerning market evolutions.

 The application and management of VR technology in stores require improved expertise in several associated domains. These include technical expertise in VR equipment, software, and capabilities regarding the knowledge of integrating VR systems into formerly existing retail technologies and suitability with an earlier existing infrastructure (Chen, 2022). Some other significant content advancement skills to produce intriguing and effective VR experiences ask for expertise in 3D modeling, user experience design, and immersive narration. Data analytics would also be in demand in the enhancement of the applications for monitoring interactions and results on how they can further improve and adjust the applications according to feedback from consumers and performance standards (Qualtrics, 2023). Organizations can make use of centralized or special training programs to acquire these skills, offer opportunities for learning through practice with VR technology suppliers, and encourage trained development through workshops and industry conferences.

CONCLUSION

The grocery retail business has the potential to improve consumer experiences and functional achievement through the implementation of VR. A review of the literature demonstrates how the use of VR may provide adaptable and captivating retail areas that increase consumer satisfaction and engagement. From a functional perspective, VR aids in cost reduction, process optimization, inventory management, retail arrangement, and staff learning skills. Regardless of its great promise, VR still faces various problems, particularly with regard to its practicality from a monetary point of view for small-scale retailers and the specific knowledge and abilities needed to put it into practice. A relative assessment of the data highlights these economic elements, indicating that larger retailers would be more eager to take advantage of VR’s potential for distinction and adaptability.

In order to give a thorough knowledge of VR’s influence and thorough evaluations correlating customer behavior in VR and physical stores, the study highlights the significance it is to putting in the gaps that were identified. It is essential to consider sustainability along with return on investment demands over the long run, as well as address disparities in revenue results, for VR to become a commonplace tool in grocery retail. Therefore, the rapidly evolving grocery retail sector finds VR to be highly relevant and significant. Retailers may increase their edge over rivals, fulfill consumer demands, and accomplish equitable growth by utilizing VR technology. In order to guarantee long-term monetary feasibility and consumer acceptability, further studies must concentrate on removing adopting hurdles, investigating innovative uses of VR, and formulating plans to secure funding. By offering new opportunities to raise consumer happiness and boost productivity, virtual reality technology is predicted to completely change the grocery retail sector.

ACKNOWLEDGEMENT

As we end our research, we would like to express our deepest gratitude to all those people who supported and guided throughout this journey. This research would not have possible without your an endless support.

First and foremost, we would like to thank  God for giving us a strength to show our talent in research.He gave hope , courage, and inspiration to do this research.

To our adviser and Campus Director Mrs. Sheryl R. Morales for her guidance, constructive feedback and constant encouragement. Her insights greatly enhanced the quality of this work.

I am also grateful to my friends and collegues for their motivation and collaboration during those challenging moments.

A very heartfelt thanks to our family, whose understand and gave us hope and strength and for their unwavering support.

To this group thank you for not giving up especially during our toughest moments.

Lastly, We would like to acknowledge the resources and support provided by Polytechnic University of the Philippines- Parañaque Campus, which made this project possible.

To future student who will also conduct research may you have patience and strong personality you have.

Thank you all for a big contributions and for having a big impact to this Journey.

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