11 Trends in AR VR MobileCommerce

Bachelor: E-Commerce
11. New Trends in E-Commerce (VR, AR, mobile)

Prof. Dr. Jella Pfeiffer
BWL XII: Digitalisierung, E-Business und Operations Management
BWL XII: Digitalisierung, E-Business und Operations

Prof. Dr. Jella Pfeiffer 1
Management
JUSTUS-LIEBIG-UNIVERSITÄT GIESSEN
Learning Goals
• You know about the importance of mobile

commerce, can differ between types of
mobile software and apps and the possibilities
for mobile advertising
• You are sensitive about privacy issues
regarding m-commerce
• You know the difference between AR and VR
• You have an idea of what is possible with AR
and VR and might be interesting commerce
applications in the future

Management
Structure of Class
AND BEYOND
STAYING New Trends in

SUCCESSFUL E-Commerce (VR, AR,
BECOMING mobile)
SUCCESSFUL How to stay safe and

secure in the e-
WHAT TO DO commerce
How to implement and
measure an e-commerce environment?
HOW DOES IT What is offered in business‘ success? Security and Payment
e-commerce? Implementation and User System
WORK Products and Services Evaluation
in Electronic How do companies
How does it Commerce How do customers digitally trade with one
technically work? behave and what do we another?
Technologies, How do e-commerce learn from their reviews? B2B Commerce
Standards and companies create Customers in E-
Architecture value? Commerce
E-Commerce Business
Models How to get the
customer‘s attention?
E-Commerce Marketing
and Advertising
© Katemangostar/Freepik
Management
Agenda
• 1 Mobile E-Commerce
• 2 AR-Commerce
• 3 VR-Commerce
4
Internet Access in the United States, 2018
Laudon and Traver (2019) p. 48

Management
The Growth of Retail M-commerce Worldwide
Based on data from eMarketer, Inc., 2019h, 2019i. Laudon and Traver (2019) p. 465

Management
Mobile Presence Design Considerations

Feature Implications For Mobile Platform
Hardware Mobile hardware is smaller, and there are more resource
constraints in data storage and processing power.
Connectivity The mobile platform is constrained by slower connection
speeds than desktop websites.
Displays Mobile displays are much smaller and require simplification.
Some screens are not good in sunlight.
Interface Touch-screen technology introduces new interaction
routines different from the traditional mouse and keyboard.
The mobile platform is not a good data entry tool but can
be a good navigational tool.
• Mobile first design

• Desktop website design after mobile design
• Most efficient Laudon and Traver (2019) p. 216

Management
Developing a Mobile Website and Building Mobile

Applications
Types of m-commerce software
• Mobile website
• Responsive web design (RWD): CSS site adjusts layout of site according to device screen
resolutions
• Adaptive web design (AWD): Server delivers different templates or versions of site optimized
for device
• Mobile Web app (e.g., ebay.com)

• Native app (e.g., WhatsApp)
• Hybrid app (e.g., Uber)

Management
Privacy in M-Commerce
• Phone is continously connected to nearby cell towers
• Apple encrypts this information
• Android sends it to its servers
• Geo-location shared in apps (UBER, Google Maps, etc.)
• Persistent location tracking
• Android and Apple assign anonymous add tracking number to each
smartphone user
• Apps then share this id with third-parties which connect it to user‘s browser
usage
• Cookies not needed because of identification via sim card, etc.; app-
usage
Management
Domino's – Piece of the Pie Rewards
Watch:
https://www.youtube.com/watch?v=PAZFQarJdk8&feature=youtu.be

Management
Domino‘s Pizza Game: Pizze Hero
Watch:
https://www.youtube.com/watch?v=hrfBNecqxOE
Management
Burger King's - Burn That Ad
Watch:
https://www.youtube.com/watch?v=PGByvh25uE0&feature=youtu.be

Management
Agenda
• 2 AR-Commerce
• 3 VR-Commerce
13
Definitions Augmented Reality
A computer-generated extension of the perception of reality

D
By Ronald Azuma
3D visualization in real-time that unites physical surroundings with virtual elements
D

Management
Definitions Virtual Reality
Jaron Lanier
By Ivan Sutherland
Indeed, in the ultimate display one will not look at that world through a window, but will be immersed in it.
D
By Steve Bryson
Virtual Reality refers to the use of three-dimensional displays and interaction devices to explore real-time
D
computer-generated environments.
Von vanz - https://www.flickr.com/photos/vanz/144476323/in/set-72057594131744996/, CC BY 2.0,

https://commons.wikimedia.org/w/index.php?curid=1707896
Management
Reality – Virtuality Continuum
Milgram and Kishino (1994)

Management
xR Overview - Rauschnabel
Rauschnabel et al. (2022)

17
Management
AR Technologies
• Video see-through technology: the digital content is embedded in a video of the
reality (like in movies). This method is used in smartphones and tablets.
• Optical see-through technology: the digital content is displayed on a

transparent display between the eye and reality. This method is used in most
SmartGlasses (not Google Glass!)
https://www.newdirection.de/blog/5-branchen-augmented-reality#chfy-coo-save

Management
Optical See-Through Systems
Epson Moverio BT-300
Magic Leap 2
Lenovo Think Reality A3

Vuzix Blade Upgraded
Microsoft HoloLens 2
Microsoft‘s HoloLens
Watch:
https://www.youtube.com/watch?v=uIHPPtPBgHk

Management
Two Types of AR Visualization
In-View In-Situ
• Content is
• Content is scaled and
anchored in the
fixed on the screen of
world and is only
the AR device
partially visible
• many forms of on the screen of
interaction of classical the AR device,
2D presentations can depending on
be used the user position
Shopping with Augmented Reality Apps
Source: https://www.recode.net/2017/11/1/16592238/amazon-app-augmented-reality-ar-view-3d

Management
AR App: Ikea Place
https://www.youtube.com/watch?v=UudV1VdFtuQ&feature=youtu.be

Management
Action Time

Management
Agenda
• 2 AR-Commerce
• 3 VR-Commerce
26
Motivation – Increasing Popularity of VR
“It‘s not about escaping reality, it is about making reality
better“ (Zuckerberg, 2017)
Mark Zuckerberg, Keynote Oculus Connect 2017 (10/11/17)
Retailers believe in the potential of applying VR technology (Grewal et al. 2017)

First VR environments: Buy+ (Alibaba), virtualSATURN (MediaOnline), IKEA VR (IKEA)
https://www.youtube.com/watch?v=wFcqQX0Gimo&t=632, last accessed on
06/01/18, 9:10 am
Prof. Dr. Jella Pfeiffer
Management
VR systems
• Need to update the presented computer graphical renderings to
match the rendered perspective to the current perspective of the
user
• With low latency of these updates, ideally below 5ms
• If latency is too high, simulator sickness can occur

Management
CAVE: Cave Automatic Virtual Environments
• Collaborative Environment
• Update of the graphical rendering with 30 Hz or faster
• Typical latency 30ms to 50ms
Meißner et al. 2017

Management
Head-Mounted Displays
• Update of the graphical rendering with 90 Hz – 120
Hz or faster and latency around 11 ms – 8ms
• Valve Index has visual stereo display controllers for
tracking the hands
• Uses lighthouses for room scale tracking of the head
and controller position
https://www.vrheads.com/least-painful-way-set-htc-vive-lighthouses
• Left Picture: Oculus Rift DK2 and a Razer Hydra

controller for interaction
• Uses Oculus sensor for tracking the head position in a
smaller interaction space
Management
Technologies Consumer Market
Valve Index Oculus Rift PlayStation VR 2
Oculus Quest 2
Google CardBoard

Management
Example Virtual Saturn
Virtual Saturn, Release date: Sep.15th 2017, Vers. 1.2.1 App Download: https://www.viveport.com/apps/799c68c4-3ef7-4681-ad9c-db2c32638315
BWL XII: Digitalisierung, E-Business und

Operations Management
Macy’s VR Furniture
Macy’s VR Furniture, Release date: Mar..19th 2018, https://vimeo.com/260797254

Management
Your Turn
 Have you ever been in VR?

 Have you ever used augmented reality?
 How did you feel?

Management
Information Overload In Stores
Tomorrow we have
friends visiting. How can I
find this muesli without
I've been buying the
hazelnut but with lots of
same muesli for 10 years.
raisins that their little one
I want something else!
wants?
https://www.flickr.com/photos/kompott/6190158306

Management
Our Idea to solve this problem
Augmented-reality user assistance systems that

(1) build on eye-tracking technology and
(2) are applicable in the physical and the virtual shopping environment.

Management
A user assistance system that builds on eye-tracking
technology
Using eye- We envision a system that:

tracking
Detects if help is needed Detects the search
situation
Infers the required Decides when to interfere

information
Supports the user and

monitors her

Management
Will VR Shopping really happen?
 Display of products in real-size  Hardware equipment needed
and 3D
 Difficulties to walk and control
 Integration of others motion (Lau et al. 2014)
(sales assistants and shoppers)
(Dzardanova et al., 2017, Morotti et al., 2020)  Feeling uncomfortable and
 Increases hedonistic aspects like cybersickness (Martinez-Navarro et al.
enjoyment (Peukert et al. 2019) 2018; Liu & Uang 2016)
 Larger brand recall (Martinez-Navarro et  Technical issues still decrease

al. 2018) and less price sensitivity usefulness (Peukert et al. 2019)
(Meißner et al. 2020, van Herpen et al. 2016)
 Larger variety of product choices
(Meißner et al. 2020)
Prof. Dr. Jella Pfeiffer The Future of AI-Based Consumer Assistance Systems 38
Future of VR?
https://www.youtube.com/watch?v=-2UT2KcnJiE

Management
Summary
Trends in Mobile/AR/VR-Commerce
 M-Commerce B2C is larger than desktop B2C commerce
 Privacy is an important issue in m-commerce
 M-commerce offers interesting opportunities for marketing
 AR and VR Commerce are gaining interest
 Technology evolves fast
 Devices are available for the consumer market
 The future will show whether it will be used tremendously
Outlook:
 Q&A

Management
Readings and Literature

Readings
• Laudon, K. C., and Traver, C.G. 2019. E-commerce 2019: business. technology. society (15th global ed.). Pearson, p. 559, 214-217
Literature
• Azuma, R. T. 1997. “A Survey of Augmented Reality,” Presence: Teleoperators & Virtual Environments (6:4), pp. 355–385.
• Meißner, M., Pfeiffer, J., Pfeiffer, T., & Oppewal, H. (2019). Combining virtual reality and mobile eye tracking to provide a naturalistic
experimental environment for shopper research. Journal of Business Research, 100, 445-458.

Management
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Management

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Bachelor: E-Commerce

11. New Trends in E-Commerce (VR, AR, mobile)

BWL XII: Digitalisierung, E-Business und Operations

• You know about the importance of mobile

BWL XII: Digitalisierung, E-Business und Operations

STAYING New Trends in

SUCCESSFUL How to stay safe and

Internet Access in the United States, 2018

Laudon and Traver (2019) p. 48

BWL XII: Digitalisierung, E-Business und Operations

The Growth of Retail M-commerce Worldwide

BWL XII: Digitalisierung, E-Business und Operations

Mobile Presence Design Considerations

• Mobile first design

BWL XII: Digitalisierung, E-Business und Operations

Developing a Mobile Website and Building Mobile

• Mobile Web app (e.g., ebay.com)

BWL XII: Digitalisierung, E-Business und Operations

Domino's – Piece of the Pie Rewards

BWL XII: Digitalisierung, E-Business und Operations

Domino‘s Pizza Game: Pizze Hero

Burger King's - Burn That Ad

BWL XII: Digitalisierung, E-Business und Operations

Definitions Augmented Reality

A computer-generated extension of the perception of reality

BWL XII: Digitalisierung, E-Business und Operations

Definitions Virtual Reality

Von vanz - https://www.flickr.com/photos/vanz/144476323/in/set-72057594131744996/, CC BY 2.0,

Reality – Virtuality Continuum

Milgram and Kishino (1994)

Rauschnabel et al. (2022)

• Optical see-through technology: the digital content is displayed on a

BWL XII: Digitalisierung, E-Business und Operations

Optical See-Through Systems

Epson Moverio BT-300

Lenovo Think Reality A3

BWL XII: Digitalisierung, E-Business und Operations

Two Types of AR Visualization

Shopping with Augmented Reality Apps

BWL XII: Digitalisierung, E-Business und Operations

AR App: Ikea Place

BWL XII: Digitalisierung, E-Business und Operations

BWL XII: Digitalisierung, E-Business und Operations

Mark Zuckerberg, Keynote Oculus Connect 2017 (10/11/17)

Retailers believe in the potential of applying VR technology (Grewal et al. 2017)

BWL XII: Digitalisierung, E-Business und Operations

Meißner et al. 2017

BWL XII: Digitalisierung, E-Business und Operations

• Left Picture: Oculus Rift DK2 and a Razer Hydra

Technologies Consumer Market

Valve Index Oculus Rift PlayStation VR 2

BWL XII: Digitalisierung, E-Business und Operations

BWL XII: Digitalisierung, E-Business und

Macy’s VR Furniture, Release date: Mar..19th 2018, https://vimeo.com/260797254

BWL XII: Digitalisierung, E-Business und Operations

 Have you ever been in VR?

BWL XII: Digitalisierung, E-Business und Operations

BWL XII: Digitalisierung, E-Business und Operations

Our Idea to solve this problem

Augmented-reality user assistance systems that

BWL XII: Digitalisierung, E-Business und Operations

Using eye- We envision a system that:

Infers the required Decides when to interfere

Supports the user and