Generation Z’s response to the virtual reality advertising in China

Purpose Virtual reality (VR), as a new type of media technology, significantly improves the audience experience with product presentation in the marketing communication field. The apartment rental market, particularly in China, has no exception in adopting VR technology in its communication strategy. VR usage has been boosted since the outbreak of COVID-19 and has become a widespread application in the global apartment rental market. Although extant studies have analyzed how real estate companies use VR technology to enhance customer experience, few studies have been made to explore the power of VR in apartment rental advertising, particularly in targeting the youth in China market. To fill this research gap, this study aims to figure out how young consumers perceive VR advertising and characteristics of VR used in apartment rental advertisements, and how VR advertising affects young consumers’ intentions to rent an apartment. Design/methodology/approach A cross-sectional survey was conducted in 2021 with 301 Chinese university students aged 18 to 23. All respondents were invited offline and guided to watch one selected rental advertisement with VR technology featuring an apartment of about 50 square meters and then complete a questionnaire. Findings VR’s media richness in the apartment rental advertising increases its sense of presence perceived by the survey respondents. Both VR’s media richness and sense of presence positively influence respondents’ attitudes toward the advertised apartment. If respondents evaluate the advertised apartment positively, they are more willing to rent the advertised apartment. Research limitations/implications The sample size is not large enough to represent all Generation Z consumers in China. The use of the nonprobability sampling method also limits the generalizability of the study results. Practical implications To counter the challenges created by COVID-19, apartment rental service providers and apartment owners/landlords are suggested to enhance the application of VR technology to the apartment rental advertisements to grow young consumers’ interest in the advertised apartments and even their renting intention. Originality/value To the best of the authors’ knowledge, this is the first quantitative study to assess young consumers’ responses to VR apartment rental advertising in China.