Trusting the Virtual: How Virtual Reality Advertising Influences Customer Decisions

Yang Wang, Phoong Seuk Wai, Qiuhan Zhang and Sedigheh Moghavvemi
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Yang Wang: Department of Decision Science, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
Phoong Seuk Wai: Department of Decision Science, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
Qiuhan Zhang: Department of Decision Science, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
Sedigheh Moghavvemi: Department of Decision Science, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia

Journal of Tourism, Sustainability and Well-being, 2025, vol. 13, issue 4, 251-268

Abstract: This study aims to explore the impact of virtual reality, 360-degree video, static image advertisements on customer trust and their tendency to approach shared accommodation. A total of 306 questionnaires were collected through a within-subject field experiment and analysed using Smart PLS, to measure the effectiveness of each advertising method on customer decision making. The findings reveal that both VR and 360-degree video advertisements signifi cantly enhance customer trust and approach tendency compared to static images. Furthermore, the interactivity and vividness of advertisements significantly impact trust in advertising directly while influencing brand trust indirectly. Brand trust has a stronger impact on behaviour in VR and 360-degree video advertising, while advertising trust is more influential in static image ads. For shared accommodation advertisers, enhancing the vividness and interac tivity of advertisements - particularly through the development and use of virtual reality (VR) and 360-degree video ads - is key to building customer trust by creating more immersive user experiences. Managers should recognise that vividness and interactivity influence brand trust indirectly through advertising trust and thus should prioritise enhancing advertising trust as a key strategic objective

Keywords: Virtual Reality; Advertising Effectiveness; Trust; Airbnb; Approach Tendency (search for similar items in EconPapers)
JEL-codes: M37 Z33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jspord:021930

DOI: 10.34623/3px4-6935

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