Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach

The adoption of Virtual Reality (VR) technology in retail offers transformative opportunities to enhance customer experiences, differentiate businesses, and drive sales. However, its implementation remains limited, particularly among small and medium-sized enterprises (SMEs), due to barriers such as...

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Main Author: Mousa Al-Kfairy
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Telematics and Informatics Reports
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2772503025000167
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author Mousa Al-Kfairy
author_facet Mousa Al-Kfairy
author_sort Mousa Al-Kfairy
collection DOAJ
description The adoption of Virtual Reality (VR) technology in retail offers transformative opportunities to enhance customer experiences, differentiate businesses, and drive sales. However, its implementation remains limited, particularly among small and medium-sized enterprises (SMEs), due to barriers such as high costs, technical readiness, and uncertain customer demand. This study aims to address these challenges by developing a conceptual model grounded in the Diffusion of Innovations (DoI) theory and the Technology-Organization-Environment (TOE) framework. Using Monte Carlo simulation, the study analyzes the impact of five key factors — perceived benefits, cost influence, technical infrastructure, customer demand, and competitive pressure — on VR adoption scores.The findings confirm that customer demand is the most significant driver of VR adoption, followed by perceived benefits and technical infrastructure. Cost influence acts as a deterrent, while competitive pressure, although relevant, is less impactful. The simulation identifies optimal conditions for adoption, providing actionable insights into strategies for retailers to overcome adoption barriers. These results underscore the importance of fostering customer interest, ensuring technical readiness, and addressing cost concerns to maximize the adoption of VR technology in retail. This research offers valuable contributions to both theory and practice, guiding stakeholders in navigating the complexities of VR adoption and implementation.
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spelling doaj-art-3ba33d61e33d44bbbc66d28d275555502025-08-20T02:28:26ZengElsevierTelematics and Informatics Reports2772-50302025-06-011810020110.1016/j.teler.2025.100201Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approachMousa Al-Kfairy0College of Technological Innovation, Zayed University, Abu Dhabi, P.O. Box 144534, United Arab EmiratesThe adoption of Virtual Reality (VR) technology in retail offers transformative opportunities to enhance customer experiences, differentiate businesses, and drive sales. However, its implementation remains limited, particularly among small and medium-sized enterprises (SMEs), due to barriers such as high costs, technical readiness, and uncertain customer demand. This study aims to address these challenges by developing a conceptual model grounded in the Diffusion of Innovations (DoI) theory and the Technology-Organization-Environment (TOE) framework. Using Monte Carlo simulation, the study analyzes the impact of five key factors — perceived benefits, cost influence, technical infrastructure, customer demand, and competitive pressure — on VR adoption scores.The findings confirm that customer demand is the most significant driver of VR adoption, followed by perceived benefits and technical infrastructure. Cost influence acts as a deterrent, while competitive pressure, although relevant, is less impactful. The simulation identifies optimal conditions for adoption, providing actionable insights into strategies for retailers to overcome adoption barriers. These results underscore the importance of fostering customer interest, ensuring technical readiness, and addressing cost concerns to maximize the adoption of VR technology in retail. This research offers valuable contributions to both theory and practice, guiding stakeholders in navigating the complexities of VR adoption and implementation.http://www.sciencedirect.com/science/article/pii/S2772503025000167VR shopping adoptionMonte Carlo simulationRetailer decision-makingTechnology adoptionVirtual reality in retail
spellingShingle Mousa Al-Kfairy
Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
Telematics and Informatics Reports
VR shopping adoption
Monte Carlo simulation
Retailer decision-making
Technology adoption
Virtual reality in retail
title Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
title_full Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
title_fullStr Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
title_full_unstemmed Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
title_short Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
title_sort modeling retailer adoption of vr shopping using monte carlo simulation a conceptual approach
topic VR shopping adoption
Monte Carlo simulation
Retailer decision-making
Technology adoption
Virtual reality in retail
url http://www.sciencedirect.com/science/article/pii/S2772503025000167
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