The Dual-Channel Model of Immersive Virtual Reality

Immersive virtual reality (IVR) is a disruptive technology that enables social connections and storytelling in the virtual space. Little research has been conducted on how storytelling in IVR influences consumers' transactional response in varying modes of virtual economies. This study proposes a dual-channel model of immersive virtual reality that is rooted in the foundations of narrative transportation, presence, and consumers' transactional response. The model is empirically tested using data from 200 IVR users. The study sheds light on the duality of narrative transportation and presence in consumer engagement particularly when immersive storytelling is used to promote and sell goods and services. Practical implications for organizations seeking to invest in IVR to engage customers are presented along with recommendations for decision makers and brand managers seeking to maximize transactional responses in virtual economies.