Abstract
Virtual reality (VR) holds significant potential in retailing, yet retailers often lack clear guidance on creating VR experiences that enhance consumer responses. This work aims to address this gap by, first starting with a systematic literature review. Based on discrepant findings, we categorize VR experiences into distinct types based on how they influence information processing, the value they deliver, and their impact on consumer responses. Subsequently, we present a typology of VR retail experiences based on two dimensions: the purpose of the VR experience (attribute- vs. benefit-focused) and the duration of its availability (short- vs. long-term). This approach delineates four main types of VR experiences: transactional, informational, leveraging, and deepening. Using construal level theory and the heuristic-systematic model, we supplement the typology with a theoretical framework and thirteen propositions. We theorize how each experience type influences the way shoppers think and make decisions, from rapid, intuitive processing to more deliberate, thoughtful consideration. The framework considers additional factors such VR system immersivity, the decision-making stage, decision complexity, and product knowledge. After putting forth a future research agenda, the paper offers practical implications for retailers to leverage VR effectively, enhancing consumer engagement and business outcomes.