Smarter real estate marketing using virtual reality to influence potential homebuyers' emotions and purchase intention

Purpose

This paper aims to investigate the potentials of virtual reality (VR) for residential real estate marketing to influence house purchase intention.

Design/methodology/approach

Based on the relevant literature in consumer behaviour, this study hypothesised the relationships between atmosphere with pleasure and arousal emotions and the subsequent influence of emotions towards house purchase intention in a virtual environment. A within-subjects experimental design was conducted with 60 real potential homebuyers to test the hypotheses. Data were analysed using paired samples t-test and partial least squares-structural equation modelling (PLS-SEM).

Findings

Results revealed that there is a significant difference in the atmosphere and house purchase intention between real and virtual environments. On the other hand, pleasure and arousal emotions evoked in real and virtual environments showed no significant difference. The results show that the atmosphere significantly affects pleasure and arousal, where pleasure, in turn, has a significant effect on purchase intention, and arousal showed an insignificant effect on purchase intention in the virtual environment.

Research limitations/implications

Due to budget limitation, this study was constrained to the use of HTC Vive as the VR equipment and evaluation of only one type of housing design.

Practical implications

This study contributes to facilitating the revitalisation of real estate marketing with the integration of VR by providing notable empirical results and recommendations based on the research findings.

Originality/value

This study extends the current knowledge from the stimulus-organism-response framework for a smart real estate marketing strategy using VR.