Avatars are becoming increasingly popular in contemporary marketing strategies, but their effectiveness for achieving performance outcomes (e.g., purchase likelihood) varies widely in practice. Related academic literature is fragmented, lacking both definitional consistency and conceptual clarity. This article makes three main contributions to avatar theory and managerial practice. First, to address ambiguity with respect to its definition, this study identifies and critically evaluates key conceptual elements of the term avatar, offers a definition derived from this analysis, and provides a typology of avatars’ design elements. Second, the proposed 2  2 avatar taxonomy suggests that the alignment of an avatar’s form realism and behavioral realism, across different contingencies, provides a parsimonious explanation for avatar effectiveness. Third, the authors develop an emerging theory of avatar marketing, by triangulating insights from fundamental elements of avatars, a synthesis of extant research, and business practices. This framework integrates key theoretical insights, research propositions, and important managerial implications for this expanding area of marketing strategy. Lastly, the authors outline a research program to both test the propositions and insights as well as advance future research.

1. Miao et al. (2021)
An Emerging Theory of
Avatar Marketing

2. Miao et al. (2021)
What is an Avatar?
• A digital entity
• Anthropomorphic appearance
• Controlled by a human or software
• Ability to interact

3. Avatar Marketing
 Predicted to increase by:
• 241% in the travel and hospitality industry
• 187% for consumer goods
 Effectiveness of avatar marketing varies widely across
applications
• Successes (e.g., ING bank’s Inge)
• Failures (e.g., IKEA’s Anna)
Miao et al. (2021)

4. Types of Avatars
Low High
Low
Simplistic Avatar Superficial Avatar
High
Intelligent & Unrealistic
Avatar
Digital Human Avatar
From: Miao et al. (2021)
Form Realism
Behavioral
Realism
PTSD Therapist
Ellie
ING Netherland’s
Inge
Nordnet’s Amelia
UB’s Daniel Kalt

5. Low Behavioral Realism and Consumer Behavior
Simplistic Avatar
(low form realism)
Superficial Avatar
(high form realism)
Unrealistic appearance
lowers consumers’ expectations
of competence
Can provide hassle-free
convenience by performing
quick and specific tasks
Most effective for
low-risk transactions (e.g., basic
customer inquiries, inexpensive
online purchases)
Realistic appearance increases
consumers’ expectations of competence,
leading to negative disconfirmation
Effective at improving
productivity of low-risk
transactions
Can prove detrimental to
customer experience in
high-risk transactions
(e.g., stock purchase) due
to lower intelligence
From: Miao et al. (2021)

6. High Behavioral Realism and Consumer Behavior
Intelligent Unrealistic Avatar
(low form realism)
Digital Human Avatar
(high form realism)
Unrealistic appearance
lowers consumers’
expectations
of competence, leading
to delight when expectations
are disconfirmed
Especially effective for complex
relational transactions
involving sensitive personal
information (e.g., mental health) by
providing reassurance that the avatar is not
judging the consumer.
Alignment of high
intelligence and realistic
appearance provides
highest levels of
consumer experience
Most effective for
long-term relational
exchange by providing
highest levels of cognitive,
affective, and social
customer experiences.
From: Miao et al. (2021)