Telematics and Informatics Reports (Jun 2025)
Modeling retailer adoption of VR shopping using Monte Carlo simulation: A conceptual approach
Abstract
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.
