Unveiling the metaverse: A comparison of multiple environments

Abstract

The advent of the metaverse is fundamentally altering the relationship dynamics between brands and users. Brands that successfully navigate this new landscape create deeper engagement and foster lasting brand loyalty. Using a multi-method, multi-study approach, we examine the interplay between user characteristics and brand perception in a real metaverse environment called “Universe”, created by a large public sector bank in India. Study 1 involves a qualitative analysis (i.e., focus group discussion) to derive insights for the conceptual model. Study 2 involves quantitative analysis of survey data conducted in three different experimental settings: first-person perspective (1PP), third-person perspective (3PP), and third-person perspective with peer interaction (3PP social). The study reveals that users' social connectedness, technology readiness, and domain literacy positively impact brand perception via two distinct mechanisms: sense of presence and product engagement. Further, our analysis shows that these outcomes vary significantly across the three experimental settings. Whereas product engagement emerges as the dominant mechanism in the 1PP environment, sense of presence emerges as the dominant mechanism in the 3PP social setting. Our study provides several important theoretical and managerial implications for brands, users, and decision science scholars.