Enhancing the customer experience with virtual and augmented reality: The impact of content and device type

TLDR

Virtual and augmented reality are transforming customer interactions, yet prior research has largely ignored comparing their effectiveness. The study examines how content type and device embodiment affect users’ sense of presence and pre‑experiences with hotels, and compares conventional VR and AR experiences. A lab experiment varied content realism (360‑degree videos versus other) and device type (head‑mounted display versus smartphone) to assess presence and pre‑experience outcomes. Results show that highly realistic content (360‑degree videos) enhances presence, imagination, visual appeal, and booking intentions, especially when delivered via head‑mounted displays, with presence mediating the effect of content on booking intentions.

Abstract

Virtual and augmented reality are changing how companies interact with customers. However, previous research has paid little attention to compare their effectiveness. This study focuses on the perceptions of presence elicited by different types of contents (real or digital) and embodied devices (head-mounted display or smartphone), and their impact on user's pre-experiences with hotels. Results from a lab experiment show that contents with high levels of factual realism (360-degree videos) have a positive influence on perceptions of presence, ease of imagination, and visual appeal, and on booking intentions. These effects are stronger when high embodied devices (head-mounted displays) are applied. Additionally, presence positively influences ease of imagination and visual appeal, which mediate the impact of content on booking intentions. These findings stress the importance of inducing presence as a key driver for behavioral intentions in hospitality. The comparative influence of conventional VR and AR experiences is also discussed.