Adverse impacts of metaverse-induced cognitive biases on the immersive shopping experience: A conceptual model developed from a qualitative approach

Immersive shopping (IS) is the usage of simulation-based technology like metaverse to create interactive and highly personalised shopping experiences for customers wherein they spend quality time selecting the products, which increases their familiarity with the brand. When compared to a standard shopping experience, the IS experience (ISE) offers brick-and-mortar retailers a positive brand image. However, the metaverse can induce cognitive biases (CBs) in customers that can negatively influence their reasoning and decision-making. CB is the systematic error in thinking that occurs when people are processing and interpreting information during the shopping, which affects their decisions and judgments. Therefore, this study explores the adverse impacts of metaverse-induced CBs on ISE for brick-and-mortar retail customers. Using simple random sampling, data were collected from 20 customers, and a qualitative approach was used for data analysis. The finding produces three adverse impacts for ISE. First, metaverse-induced CBs create a digital divide between customer communities, and the integration of retail services with the metaverse further aggravates the risk of this divide. Second, metaverse-induced CBs create financial malfeasance, which makes the metaverse susceptible to financial biases. Third, metaverse-induced CBs increase business reputation risk by adversely impacting decision-making, strategy formulations, and outcomes.