Virtual reality is gaining ground in retail, but success is still uneven. Many brands are experimenting with everything from pop-ups and 360-video to fully immersive brand worlds, yet results vary widely. New research co-authored by Dr Kirsten Cowan, Senior Lecturer in Marketing at The University of Edinburgh Business School, gives retailers a practical framework for creating VR experiences that strengthen connection, confidence and loyalty.
Man wearing VR goggles

Published in the Journal of Retailing, the study is the first to clearly map how virtual reality (VR) works in retail. It explains why some brand experiences capture attention while others fall flat, and how companies can design VR that genuinely improves customer engagement and sales.

The research combines insights from consumer psychology and information processing to show how the structure and intent of a VR experience influence how customers think, feel and act. It gives retailers a roadmap for using VR strategically rather than as a novelty.

Dr Cowan worked with colleagues from the University of St. Thomas Business School to analyse research across marketing and psychology in retailing. They argue that success depends less on the technology itself and more on how clearly it serves a brand’s purpose. The message is simple: start with intent, not innovation.

They identified four distinct types of VR retail experiences, based on what retailers aim to achieve and how long they run:

  • Transactional: short-term and focused on product details, such as a time-limited property or a new car launch.
  • Informational: long-term and educational, helping shoppers compare or learn about products.
  • Leveraging: short-term and emotional, designed to create buzz or strengthen brand meaning.
  • Deepening: long-term and immersive, building brand stories and loyalty over time.
Virtual reality offers huge potential for retail, but many brands still treat it as an experiment. Our framework helps them design experiences that align with their goals, whether that’s driving quick sales, educating customers, or building long-term relationships. A short-term pop-up, designed to excite people, needs a very different approach from a long-term brand environment, which is designed to tell a story. Matching the experience to the objective is what makes VR work in retail.
Dr Kirsten Cowan
Kirsten Cowan

Kirsten Cowan is our Senior Lecturer in Marketing.