Shopping in Virtual Worlds

Master Thesis: Shopping in Virtual worlds [2008]
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SHOPPING IN VIRTUAL WORLDS
An investigation into the determinants of
attitude towards using virtual world stores.
“Shoppers have become guests, shopping has become an experience and malls have
become entertainment centers with communities” (Kumar and Benbasat, 2002, p.8).
Master Thesis
Bertjan Hopster

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Colophon
Author: Bertjan Hopster
Student number: 1591304
E-mail: b.hopster@gmail.com
Version: 1.2
Date: February 24th, 2008
Course: Master thesis Business Administration
Coordinator: Dr. J.F.M. Feldberg

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Foreword
This thesis is written for graduation to the VU University Amsterdam for the degree of Master of
Science in Business Administration. This thesis is the final step in completing the track E-
Business and Knowledge Management.
I would like to thank my supervisor, dr. Frans Feldberg, for his guidance and advice during the
development of this piece of academic work. Special thanks go to Ferry Eshuis MSc for his sup-
port during the statistical analysis of this research. Furthermore, I want to thank my family and
friends for supporting and stimulating me during the writing of the thesis.
Bertjan Hopster
Januari 30, 2008

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Abstract
Many existing e-commerce applications on the Internet provide the visitors a relatively simple,
browser-based interface to show available products. Visitors are not provided with the same shop-
ping experience as they would in an actual store or mall. Virtual worlds promise to cover new
opportunities for simulating real life shop environments. Virtual worlds are simulated environ-
ments accessed by multiple users through an online interface.
The main purpose of this study is to provide insight in shopping attitudes in virtual worlds. Based
on theoretical foundations, a research model will be presented to answer the main research ques-
tion of this study:
Which factors determine the attitude towards the use of stores in virtual worlds?
The theoretical underpinnings of the research model developed in this study are mainly adopted
from the Technology Acceptance Model (TAM). The variables trust, perceived enjoyment, per-
ceived usefulness, and perceived ease of use were expected to determine the attitude towards the
use of virtual world stores.
To apply the TAM model for a specific context, in this case virtual worlds, the TAM model needs
to be extended with additional variables. Different studies show that online stores have little so-
cial appeal and lacking human warmth. Virtual worlds cover possibilities to enhance the percep-
tion of social presence. The construct social presence was added to the research model. It was
assumed that visitors of virtual worlds perceive a higher degree of social presence than visitors of
a shopping website.
Respondents were selected on shopping experience in the virtual world Second Life. The ques-
tionnaire was accessible on an external website. The sample includes 85 respondents. The date
supported 7 out of ten 10 hypotheses. The most important findings of this study are: the attitude
towards using virtual world stores depends on trust, perceived enjoyment, and perceived ease of
use. The data indicated significant influences from social presence on trust and perceived enjoy-
ment.

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CONTENTS
Foreword ............................................................................................................................................. 3
Abstract ............................................................................................................................................... 4
CONTENTS........................................................................................................................................... 5
INTRODUCTION................................................................................................................................. 8
1.1 The evolution of the Internet ................................................................................................... 8
1.2 The rise of Virtual Worlds....................................................................................................... 9
1.3 The virtual world Second Life............................................................................................... 10
1.4 Retail stores in Second Life................................................................................................... 12
1.5 TAM...................................................................................................................................... 13
1.6 Research objective................................................................................................................. 14
1.7 Research question.................................................................................................................. 15
1.8 Sub Questions........................................................................................................................ 15
1.9 Research design..................................................................................................................... 15
1.10 Scope ..................................................................................................................................... 16
1.11 Contributions......................................................................................................................... 16
1.12 Structure of the thesis............................................................................................................ 16
2. THEORY...................................................................................................................................... 17
2.1 Virtual reality (VR) ............................................................................................................... 17
2.1.1 Benefits of a VR Store.................................................................................................... 18
2.2 Virtual worlds........................................................................................................................ 20
2.4 E-commerce.......................................................................................................................... 24
2.5 TAM...................................................................................................................................... 26
2.5.1 TAM 1............................................................................................................................ 26
2.5.2 TAM 2............................................................................................................................ 27
2.5.3 Perceived usefulness and perceived ease of use........................................................... 29
2.5.4 Enjoyment...................................................................................................................... 30
2.5.5 TAM Hypotheses............................................................................................................ 31
2.6 Trust ...................................................................................................................................... 32
2.6.1 Trust in E-commerce ..................................................................................................... 32
2.6.2 Trust in Virtual Reality.................................................................................................. 33
2.6.3 Trust Hypothesis............................................................................................................ 35

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2.7 Social presence...................................................................................................................... 35
2.7.1 Social presence and trust............................................................................................... 36
2.7.2 Social presence and enjoyment ..................................................................................... 36
2.7.3 Social presence and usefulness ..................................................................................... 37
2.7.4 Social presence hypotheses ........................................................................................... 38
2.8 Research model ..................................................................................................................... 39
3. RESEARCH METHODOLOGY............................................................................................... 39
3.1 Research design..................................................................................................................... 39
3.2 Measurement scales............................................................................................................... 40
4. RESULTS..................................................................................................................................... 42
4.1 Exploration of the data .......................................................................................................... 42
4.1.1 Test of normality............................................................................................................ 42
4.1.2 Outliers.......................................................................................................................... 42
4.2 Sample demographics............................................................................................................ 43
4.3 Descriptive statistics.............................................................................................................. 44
4.4 Measurement validation ........................................................................................................ 45
4.4.1 Scale reliability.............................................................................................................. 45
4.4.2 Construct validity .......................................................................................................... 45
4.4.3 Unidimensionality.......................................................................................................... 47
4.4.4 Overall measurement validation ................................................................................... 47
4.5 Regression analyses............................................................................................................... 48
4.5.1 Multicollinearity............................................................................................................ 48
4.5.2 Regression analyses....................................................................................................... 49
4. DISCUSSION............................................................................................................................... 52
4.1 Conclusion............................................................................................................................. 52
4.2 Implications........................................................................................................................... 54
4.3 Limitations............................................................................................................................. 54
4.4 Directions for further research............................................................................................... 55
5. References .................................................................................................................................... 56

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Appendices ........................................................................................................................................... 71
Appendix A: SPSS Output – Exploration of the data........................................................................ 72
Appendix B: SPSS Output - Descriptive statistics ....................................................................... 76
Appendix C: SPSS Output - Reliability statistics............................................................................. 79
Appendix D: SPSS Output - Spearman’s Test .................................................................................. 80
Appendix E: SPSS Output - Regression analysis............................................................................. 81
Appendix F: The online questionnaire .............................................................................................. 86
Appendix H: Finding respondents in Second Life ............................................................................ 95
Appendix I: Open comments questionnaire ...................................................................................... 96

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INTRODUCTION
1.1 The evolution of the Internet
The Internet has revolutionized the computer and communications world like nothing before
(Leiner, 1999). The Internet started as four interconnected computers in 1969 as a means to allow
researchers to share information. It has transformed into a universal information sharing medium
that allows people to share and access information worldwide (Leiner, 1999). Different stages of
the evolution of the Internet can be distinguished. During the first stage, the Internet was a static
structure with passive viewers, similar to newspapers, radio, and television (Web 1.0). Due to the
development of broadband connections, a major evolution took place in the way people entertain
themselves, interact, and learn (Liesegang, 2007). The term “Web 2.0” was coined by O’Reilly
Media at a conference in 2004 and it has become the mechanism to refer to the next evolution
phase of the Internet. Web 2.0 refers to the second generation of dynamic Internet-based services
and communication tools that emphasize the active or interactive online collaboration, contribut-
ing, and sharing among users in an “architecture of participation.” (O’Reilly, 2005, p.17). Web
2.0 is not just an upgrade but a conglomeration of technologies, ideas, and approaches that
represent a new way of interacting online (Liesegang, 2007). One of the key concepts around
Web 2.0 is the notion of ‘social software’ – the kind that facilitates the building and maintenance
of virtual communities, self-expression, participation and dialogue: wikis, weblogs and other par-
ticipatory forms. Virtual worlds can be considered as a part of the Web 2.0, because virtual worlds
are community- and social driven applications (Benfold, et al., 2001). Another aspect of the Web
2.0 concept is the idea of ‘user generated content’. In the virtual world Second Life (further ex-
plained in paragraph 1.3) people have the freedom to utilize their creative energies and develop
content which represents their knowledge and skills (Agna, 2006). This aspect also partly covers
the idea of using ‘wisdom of crowds’ another aspect of the Web 2.0 concept (O’Reilly, 2005).

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1.2 The rise of Virtual Worlds
These days, millions of people from around the globe play online role playing games, in which a
large number of players interact with one another in a virtual world (Papagiannidis, et al., 2007).
A virtual world can be described as ‘an electronic environment that visually mimics complex
physical spaces, where people can interact with each other and with virtual objects, and where
people are represented by animated characters’ (Bainbridge, et al, 2007, p.2). Virtual worlds are
extremely popular in Korea and China, and at least one-quarter of those online in the virtual world
Second Life at any moment are European (Bloomfield, 2007). To a large and growing number of
people, virtual worlds are an important source of material and emotional well-being (Book, 2004).
According to Fetscherin and Lattemann (2007) some virtual worlds are not designed as games,
there are no levels, no scores, and there is no “game over”. They exist in real time where individ-
uals communicate, cooperate and collaborate with each other, like in real world. It can be assumed
that the behavior of the users is very similar to real world behavior (Fetscherin & Lattemann,
2007). In some virtual worlds there is a real exchange between virtual money and a real currency.
Second Life is a virtual world that provide such an exchange. The growing popularity of virtual
worlds has gained considerable attention in the scientific literature (Hemp, 2006; Lattemann,
2007; Book, 2004; Neville, 2006; Jackson, 2007). Within this relative new phenomenon, compa-
nies seek for (business) opportunities in virtual worlds (Book, 2004; Castronova, 2003; Jackson,
2007). The importance of virtual worlds has been highlighted by Gartner that estimates the 80
percent of active Internet users (and Fortune 500 companies) will have a ‘second life’, but not
necessarily in Second Life” by 20111
. Currently there are hundreds of virtual worlds in develop-
ment (MacInnes, 2006). As virtual reality technologies improve, broadband adoption grows, and
subject matter covered becomes wider, there can be little doubt that online worlds will eventually
reach mass markets throughout the developed world (MacInnes, 2006).
1
http://gartner.com/it/page.jsp?id=503861

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1.3 The virtual world Second Life
Within this thesis the virtual world ‘Second Life’ will be used as an example of a virtual world.
Second Life, according to its website, “is a 3-D virtual world entirely built and owned by its resi-
dents,” a vast digital continent, teeming with people, entertainment, experiences and opportunity.2
Second Life grew out of the vision of the ‘Metaverse’ described in Neal Stephenson’s novel Snow
Crash. “Stephenson was the first to describe an online environment (The Metaverse) that was a
real place to its users, one where they interacted using the real world as a metaphor and socia-
lized, conducted business and were entertained” (Ondrejka, 2004, p. 81). A person who joins
Second Life creates an “avatar”, a computer-generated image who can do many of the same things
in the virtual world that an ordinary human being could do in the real world (Ondrejka, 2005).
According to Castranova (2003) an avatar is the representation of the self in a given physical en-
vironment. There is no specific objective or mission that residents of Second Life must achieve.
As representations of each visitor, avatars play a pivotal role in a virtual world’s community for-
mation and social structure (Book, 2004). Many activities in virtual worlds are concentrated on
the avatar, including avatar customization classes, avatar clothing sales, costume contests, and
fashion shows. A great deal of time, energy, and even money is spent on these virtual bodies
(Book, 2004). Avatars act like regular people. They go shopping, go out on dates and get mar-
ried, attend concerts, have jobs. In fact, many residents are making money in real life from the
work they are doing in Second Life.
Second Life was the first virtual world to explicitly recognize the user’s intellectual property
rights over anything the user creates and owns on the server. This means that players can realize
real world profits from their content and businesses within the game without violating terms of
service (MacInnes, 2006). Consequently in Second Life, residents can develop land, design
clothes, and build amusement parks and then charge other residents who want to buy a house,
shop for clothes or visit the amusement park. To do all of this, the users must exchange Euros for
Linden Dollars (L$), the currency of Second Life, via currency exchange websites. The exchange
rate is currently around 740 L$ to one Euro. Objective statistical usage data is not available. Al-
though there are some indicators present that give some insights in usage of Second life. Second
Life users are about 57% male, almost all have completed some form of higher education, and
38% are between the ages of 25-343
. These characteristics of the Second Life population are also
an important reason for the growing (marketing) attention of commercial businesses (Jackson,
2007). At the moment of writing (September, 2007) there are almost 10 million registered users of
2
“What is Second Life?,” http://secondlife.com/whatis/ (visited July 17, 2007).
3
http://www.frogloop.com/care2blog/2007/9/6/second-life-debunking-myths-identifying-opportunities.html

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Second Life4
. This number doesn’t give a right representation of the actual and active usage of
Second Life. Everyone that once downloaded the software and had a single visit in Second Life is
included within this total user amount. To get a sound insight in the growing interest and usage of
Second Life the chart of user ours spend is presented (Fig.1)5
.
Figure 1: User Hours of the Second Life residents (provided by Linden Labs, September 2007)
With the growing number of participants, organizations have to take the concept virtual world into
account as well. The virtual world Second Life has brought discussions about virtual worlds out
of the geeks’ basement and into the harsh light of business life (Jackson, 2007). Strategy profes-
sionals should investigate virtual worlds as a new channel for reaching the most influential seg-
ments of consumer markets (Jackson, 2007). Some established real world brands have already
taken their place in Second Life. Coca Cola, Toyota, and Adidas are examples of brands that have
early adapted virtual worlds as part of their marketing strategies (EPN, 2006). These companies
are breaking new ground in Second Life, making connections with many of the early adopters
among the Second Life community, experimenting and learning how to adapt business, marketing
and communication models to a new and emerging marketplace (Neville, 2006). In Second Life,
users can be whoever they want to be and do whatever they want to without many of the various
constraints of the physical world. To participate in Second Life users need only to download and
install the required software. They can then connect to the grid and customize their avatars, i.e.
the virtual character that will be representing them (Papagiannidis, et al., 2007). The popularity of
Second Life is not only due to the fact that participating is inexpensive, as creating a basic ac-
count is free (premium accounts cost around $72/year), but mainly due to the opportunity it pro-
vides the participants with to make anything they want out of the game (Papagiannidis, et al.,
2007).
4
http://secondlife.com/whatis/economy_stats.php
5
http://secondlife.com/_img/economy/07_Q2_TotalHours.jpg

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1.4 Retail stores in Second Life
Linden Labs, the creator of Second Life, has welcomed the entrepreneurial inclinations of its
community in two important ways. First, Linden dollars, the in-world currency, are easily traded
for dollars at the official Second Life website6
. Second, Linden Labs offers the possibility of al-
lowing players to retain the intellectual property for their in-game creations (Tiffany, 2007)7
.
Thus, an important factor influencing commercial opportunities in Second Life is the existence of
a virtual currency. Within Second Life, the residents use a virtual currency – the Linden Dollar –
for commercial transactions. Linden dollars can be purchased with, and converted into, real world
money easily (1 EURO = approximate L$ 370). The exchange rate is controlled by Linden Labs,
depending on the supply and demand in the market. According to Yamaguchi (2004) , for a virtual
currency to become a meaningful one, the existence of an exchange rate is a requirement. Fur-
thermore, the creators maintain the intellectual property of their creations and have the right to
exploit it, more than half of them can potentially assume a selling role in the metaverse
(Papagiannidis, et al., 2007). Specific figures with respect to the number of stores in Second Life
are not available. About 40.000 residents of Second Life are identified as business owners. This
measurement consists of the total amount of residents that has a ‘positive monthly Linden Dollar
flow (PMLF)’8
. Architects, fashion designers, automotive manufacturers (Fig. 2), real estate
agents and night club owners are examples among the growing number of entrepreneurs who pro-
vide their products and services in-world.
Figure 2: Example of a automotive retailer in Second Life
6
http://secondlife.com/currency/
7
http://www.entrepreneur.com/startingabusiness/businessideas/article172768.html
8
http://www.secondlife.com/whatis/economy_stats.php

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Residents of Second Life are able to choose stores based on text searches, the popularity of the
store, and the recommendations of other residents (Ondrejka, 2005). One of the major advantages
of 3D virtual stores is that they create ultimate imaging and their effectiveness in e-commerce lies
in their ability to generate a virtual environment for the consumer in which experiences will mim-
ic, as close as possible, the physical environment (Burk, 1996). Research also shows that 3D vir-
tual product presentations provide a stimulating experience due to vivid sensory information and
the psychological sensation of being present in the online environment (Li, et al., 2001). Second
Life has the advantage that it is easy to create and build in their virtual world (Ondrejka, 2004).
With the considerable amount of stores in Second Life (Linden Labs, 2007) and the promising
advantages of 3D virtual stores, important to know is how these stores are perceived and what
factors determine the attitude towards the use of these the stores.
1.5 TAM
To investigate the perceptions of Second Life users towards the use of virtual stores, determinants
of the Technology Acceptance Model (TAM), founded by Davis (1986, 1989), will form the basis
of this research. During the past decade, researchers have applied the technology acceptance mod-
el (TAM) (Davis, 1986, 1989) to examine IT usage and have verified that user perceptions of both
usefulness and ease-of-use are key determinants of individual technology adoption (Koufaris,
2002; Moon, et al., 2001; Lin, et al., 2000). TAM posits that perceived usefulness (PU) and per-
ceived ease-of-use (PEOU) affect the acceptance and use of IT (Davis, 1986, 1989). The Technol-
ogy Acceptance Model (TAM), based on the Theory of Reasoned Action from Ajzen and Fishbein
(1980), was developed to provide an explanation of the determinants of computer acceptance
across a broad range of end-user computing technologies and user populations (Davis, 1989).
TAM proposes that individual customer acceptance is essential for the use of new IT (Davis,
1989). Information technology is the hardware, software, telecommunications, and the services of
IT personnel (Oz, 2005). A virtual world is considered to be a new part of information technology
because to make use of it, users first need to download required software. The software only
works properly with the right hardware features and there is also an internet connection (broad-
band) required to enter the virtual world of Second Life. Virtual worlds can also be considered as
entertainment-oriented IT (Holsapple, 2007).

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The main variables of TAM: Perceived ease of use, perceived usefulness, attitude towards use,
and behavioral intention to use form the core of the research model. Perceived ease of use (PEOU)
is “the degree to which a person believes that using a particular system would be free of effort”
(Davis 1989, p. 320). While perceived usefulness (PU) is “the degree to which a person believes
that using a particular system would enhance his or her job performance” (Davis 1989, p. 320).
These two beliefs create a favorable disposition or intention toward using the IT that consequently
affects its self-reported use (Gefen & Straubl, 2000). In the context of online shopping, TAM
stipulates that a customer’s intention to use a online shopping service is jointly determined by the
perceived usefulness of the service and attitude toward using the technology. This attitude is de-
termined by the perceived usefulness and the perceived ease of use of online shopping (Chau, et
al., 2000). McKnight, et al., (2003) indicate that consumer decisions to adopt B2C commerce
involve not only perceptions of the technology (perceived usefulness and the ease of use) but also
beliefs about the vendor. The shopping process in real life is a social one and therefore, a e-
commerce application should integrate elements from the social context, such as trust, one of the
most prominent social aspects of shopping, in physical and online settings (Maamar, 2003). Ac-
cording to Moon and Kim (2000), depending on the specific technology context, additional expla-
natory variables may be needed beyond the ease of use and usefulness constructs. Thus, besides
the core determinants of TAM, other determinants will be used to explain the attitude towards
using stores in virtual worlds. A reason to do so is that the original TAM model doesn’t pay atten-
tion to the social aspects of technology acceptance. It is also assumed that virtual worlds inhibit a
high degree of social interaction. The purpose of this study is to extend the TAM with variables
that cover virtual world aspects, in order to measure attitudes towards shopping in virtual worlds.
The additional variables will be presented in the theory chapter.
1.6 Research objective
The importance of virtual worlds has been highlighted by Gartner that estimates the 80 percent of
active Internet users (and Fortune 500 companies) will have a ‘second life’, but not necessarily in
Second Life” by 2011. Therefore, virtual worlds need considerable attention from a academic
perspective. The main objective of this research is to discover which factors influence and deter-
mine the attitude towards, and intention to use virtual stores in virtual worlds. Constructs from
different scientific perspectives will be presented. These perspectives are adopted from social
psychology and information technology research.

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1.7 Research question
Within this paragraph the research question will be discussed. The research question of this re-
search is stated as follows:
Which factors determine the attitude towards the use of stores in virtual worlds?
A key difference between online and offline consumer markets that is stifling the growth of e-
commerce is the absence of the human and social elements. Virtual worlds promise to inhabit
elements that can enhance human and social elements.
1.8 Sub Questions
Based on this the previous paragraph sub-questions are specified:
- What is a virtual world?
- What’s the role of the avatars in virtual worlds?
- What are the determinants of TAM? And, which of them are applicable in Virtual Worlds?
- Which constructs can be added to the TAM to cover the virtual world store perspective?
1.9 Research design
A quantitative research will be carried out to study the attitude and intention towards the use of
stores in virtual worlds. Based on established measurement scales, a survey instrument will be
developed. Through this survey instrument the hypotheses will be empirically tested. The research
sample includes residents of the virtual world Second Life. The author will enter Second Life to
ask residents to answer the different questions from the survey. A regression analysis will be per-
formed to test the different relationships (hypotheses) that are presented within the research model
(presented in chapter 3). A thorough explanation of the research design can be found in chapter 4.

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1.10 Scope
The focus of this thesis will be on virtual products. Virtual products such as fashion, avatar cus-
tomizations, furniture, and gadgets are very common sold items in Second Life (Hemp, 2007).
The research will take place in the virtual world Second Life. Second Life is a popular online vir-
tual world with millions of registered users and its own economy and currency, known as the Lin-
den dollar, which can be exchanged for U.S. dollars.
1.11 Contributions
Virtual worlds have value to educators and researchers in all disciplines because of their immer-
sive nature and their global reach (Bloomfield, 2007). The Internet environment of most of the
ordinary shopping places is strictly confined by two-dimensional graphic displays, limiting the
naturalness customers can feel in a real shopping environment, and possibly degrading the cus-
tomer satisfaction (Lee, et al., 2007). Currently the determinants of the attitude towards the use of
stores in virtual worlds are not very well known. Therefore from a scientific perspective it is in-
teresting to have insights in this area. Practically, the focus on virtual products can lead to new
insights for entrepreneurs and brands. Perhaps, the insights found in this study, can be incorpo-
rated in the retail strategy of virtual world entrepreneurs.
1.12 Structure of the thesis
In order to answer the research questions a study of scientific literature will be presented within
the next chapter. The research questions have to deal with identifying the factors that have a posi-
tive influence on the attitude towards, and use of stores in virtual worlds. Since virtual worlds
(e.g. Second Life) are a dimension of information technology, the technology acceptance model
(TAM) (Davis, et al., 1989), which is one of the most widely used models of IT adoption, will be
used as the basis for explaining the attitude towards to use virtual stores. After that, the two addi-
tional determinants trust and social presence will be presented, in order to better cover the specif-
ic characteristics of a virtual world. Finally, the hypotheses and research model of this thesis will
be presented. In chapter four the research methodology will be presented. The empirical results
and conclusions will also be presented within that chapter.

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2. THEORY
2.1 Virtual reality (VR)
In order to understand the concept of a virtual world it is important to know the basis of it. Most
virtual worlds are based on the concept of virtual reality (Stoakley, et al., 1995;
Balasubramanian, et al., 2001). The human history is marked by a progression of media used to
convey and experience ideas. Perhaps the most recent step in this progression is the use of virtual
reality (Sherman, 2003). In the early days people painted on cave walls to express the happenings
of the hunt and sharing stories to chronicle the history of a community or tribe. It was the impor-
tance of communication that raised the storyteller to a position of high esteem in the community
(Sherman, 2003). Virtual reality is a relative new medium brought about by technological ad-
vances in which much experimentation is now taking place to find practical applications and more
effective ways to communicate. Howard Rheingold (1991) defines virtual reality (VR) as “an ex-
perience in which a person is surrounded by a three-dimensional computer-generated representa-
tion, and is able to move around in the virtual world and see it from different angles, to reach into
it, grab it, and reshape it” (p.14). From a technological point of view, virtual reality is defined as:
“a technology that convinces the participant that he or she is actually in another place by substitut-
ing the primary sensory input with data received and produced by a computer (Heim, 1998, p.5).
The immersive nature of virtual reality applications is often accomplished by presenting images in
3D and surrounding users with display screens. This gives the users a greater sense of presence
and realism, as they visit the virtual world (Clipburn, 2004). Incorporating sensory feedback (such
as sound and touch) in virtual reality applications adds to the illusion, and makes participants
more likely to "believe" they are really in the virtual place (Clipburn, 2004). For the illusions to
be truly effective, users must be able to interact with the virtual environment in real time, receiv-
ing nearly constant feedback as they move about (Clipburn, 2004). Sherman and Craig present in
their book ‘ Understanding Virtual Reality’ four key elements of Virtual Reality Experience. The
four key elements are: Virtual world, immersion, sensory feedback (responding to user input), and
interactivity.
Second Life is not what virtual reality purists would describe as an immersive virtual world be-
cause it does not engage the user through virtual reality goggles or tactile interfaces. However, it
still resides squarely in the discourse of virtual reality because it provides a high level of interac-
tivity and tele-presence within a parallel world that allows for the construction of place and self
(Jones, 2006).

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Within Second Life, there is tangible value and meaning for its users, particularly by enabling
them to build and create (Jones, 2006). Virtual reality holds a promising potential for e-
commerce applications (Maamar, 2003; Walsh and Pawlowski, 2002). Virtual reality technology
allows for the development of electronic shopping environments which can realistically simulate
physical ones. In addition, such environments provide enhanced functionality and interactivity
and can address limitations of e-commerce transactions related to the lack of face to- face interac-
tion and direct product contact (Walsh 2002). As such, virtual reality environments can provide a
new type of online shopping experience, which is closer to the real-world counterpart and superior
to that offered in existing web stores (Papadopoulou, 2006).
Virtual reality has the potential to make shopping an experience – not merely in terms of provid-
ing a virtual substitute for the human shop assistant, but also in terms of its ability to recognize
and provide what each individual user seeks from his/her shopping. In the next paragraph the ben-
efits of a store based on virtual reality will be described.
2.1.1 Benefits of a VR Store
The application of virtual reality in e-commerce has enormous potential for transforming online
shopping into a real-world equivalent (Papadopoulou, 2007). Several research efforts have pro-
posed virtual reality environments for online shopping (e.g. Lee, and Chung, 2005; Ye, et a.,.
2005; Shen., et al. 2002; Han, et al,. 2002; Mass, and Herzberg 1999). Virtual reality applications
for e-commerce allow for the accommodation of the social context by simulating a real-world
experience, especially in the case of virtual shopping mall environments (Papadopoulou, 2007).
Research shows that 3D virtual product presentations provide a stimulating experience due to
vivid sensory information and the psychological sensation of being present in the online environ-
ment (Li, et al., 2001). Chitaro, et al (2002) indicates what benefits virtual reality brings to E-
Commerce. A Store based on virtual reality has some relevant advantages:
- It is closer to the real world shopping experience, and thus more familiar to the buyer.
- It supports buyer’s natural shopping actions such as walking, and looking around the store.
- It can satisfy emotional needs of buyers by providing a more immersive, interactive, and
visually attractive experience.
- It can satisfy social needs of buyers by allowing them to meet and interact with people.

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Furthermore, VR-shops not only contribute much more to customer retention than ordinary e-
shops, they also lend themselves better to incorporate well-proven marketing strategies. Haubl,
and Figuiera (2002) conducted several experiments to examine the effects of interactive 3D prod-
uct presentations on buying behavior. The results show that with the availability of 3D product
presentation, instead of still images, buyers tend to spend a greater amount of time viewing the
products, and that there is a higher likelihood of purchase. Interestingly, interactive 3D product
presentation has a better effect on individuals with prior online shopping experience (Haubl, and
Figuiera, 2002). Product presentation is not the only benefit 3D Virtual Worlds provide. Social
interactions play an important role in real world commerce and will definitely be important factors
in the future of E-Commerce (Preece, and, Maloney-Krichmar, 2003). The following chapter
consists of a more comprehensive elaboration of the term “Virtual World”. It is important to note
that virtual worlds are not the same as virtual reality (VR), which has a much more specific mean-
ing. Virtual reality is primarily concerned with the mechanisms by which human being can inte-
ract with computer simulation (Bartle, 2003). Virtual Reality is a technology that provides users a
realistic, interactive computer environment (Suh, and Lee, 2005).
With virtual reality, developers can provide users high quality three-dimensional images, interac-
tivity and increased telepresence (Klein, 2003). Telepresence is defined as the experience of pres-
ence in an environment by means of a communication medium (Klein, 2003).
Figure 3 : Example of a traditional store Figure 4 : Example of a virtual world store

20
2.2 Virtual worlds
Though no strict definition of the term ‘virtual world’ exists, a virtual world generally refers to a
digital space defined by two components: an environment containing the objects of the real world,
and an interface linking the user and the environment (Sikora, et al., 2000). Virtual worlds can
have many forms. They may attempt to represent reality, or they can be a product of someone's
imagination (Clipburn, 2004). The first virtual worlds were text-based, in that their environments
and events occurring within them were described using words rather than images (Bartle, 2003).
The term “virtual world” encompasses a wide variety of interactive online environments. Virtual
worlds are created in many different formats and designed in a variety of styles, ranging from a
2D or “2-1/2 D” cartoon style (Fig. 5) to more realistic 3D creations (Fig. 6). There is a useful
distinction between VW-based multiplayer games, such as Everquest or World of Warcraft, and
virtual world -based social environments, such as Second Life and Sony's Home. Multiplayer
games are goal-oriented, with social interaction used as a tool for task completion; such worlds
are set in an internally-consistent fictional or fantasy-based realm. In most, entertainment is a pri-
mary goal. In so-called “serious games,” training and education are primary goals (Smart, 2007).
Figure 5: Habbo Hotel, 2D. Figure 6: Second Life, 3D.
2D virtual worlds are constructed from a series of rooms loaded separately by each visitor, while
3D worlds allow users to move continuously through a landscape or cityscape. The thematic con-
tent of virtual worlds also varies widely, from fantasy role playing game settings, to futuristic
science fiction sites, to suburban domestic spaces (Book, 2004). Some virtual worlds are not just
games, as there are no levels, no scores, and there is no “game over”. Second Life does not call its
virtual environment a game, but rather calls it “an expansive online society, lived in and built by
its participants” (Secondlife.com). They exist in real time where individuals communicate, coope-
rate and collaborate with each other, like in real world. It can be assumed that the behavior of the
users is very similar to real world behavior (Fetscherin, and Lattemann, 2007).

21
The virtual world visitors communicate with each other via chat solutions, (realistic) body mo-
tions or speaking to each other through live voice chat applications. In case of the virtual world
Second Life, chat provides a local method of communicating, such as saying hello to an avatar
standing near you, while IM provides a private method of communicating over any distance
(Ondrejka, 2005). From the outside it may appear unreal, but to the participants it fulfills a power-
ful reality and sense of belonging (Dodge, 1999). Jackson (2007) produced a matrix (Fig.7) in
which different commercial virtual worlds are categorized.
Figure 7: The landscape of virtual Worlds (Jackson, 2007, p.7)
One can extend the virtual world to be similar to a real shopping mall or a specific store, which
would facilitate the adaptation of users not used to browser based interface (Oliveira, et al., 2000).
Existing electronic commerce applications only provide the user with a relatively simple browser-
based interface to access the available products. Buyers, however, are not provided with the same
shopping experience, as they would have in an actual store or shopping mall (Oliveira, et al.,
2000). A virtual world also provides an interface between the environment and the user, who acts
through his/her avatar. This interface usually comprises a 3D graphical representation and allows
the user to explore the world, to communicate with other avatars and to act on the environment
(Sikora, et al., 2000). The next paragraph will pay more attention to the role of avatars in virtual
worlds. The avatar is important for representation and identity formation in virtual worlds (Suler,
2002).

22
2.3 Avatars
The word “avatar” has its derivation in the ancient Indian language Sanskrit and refers to the em-
bodiment of a deity on earth (Holzwarth, et al., 2006). Consistent with this original definition,
present day definitions of an avatar refer to a representation of an entity. For example, an avatar is
described as “a representation of the user as an animated character in virtual worlds” (Loos,
2003, p.17), or as “pictorial constructs to actual inhabit graphical worlds” (Schroeder, 2002, p.
40). Avatars have long been used in various fields on the Internet such as games, chat rooms, and
a live forum for online conversation (Morningstar, et al., 1991). In the virtual world, avatars serve
as an intermediary between the individual and the community (Taylor, 2003).
Broadly defined, an avatar encompasses not only complex beings created for use in a virtual envi-
ronment but any visual representation of a user in an online community (Hemp, 2006). Avatars
can talk to each other which has the effect of enabling a kind of face-to-face communication be-
tween users (Dodge, 1998). Most of the time an avatar can be customized extensively and can
though take the form of almost anything. Visitors can set their avatar as animal (Fig. 8), regular
human representation (Fig. 9) or whatever they feel comfortable with. Thus, a user's avatar may
take any form, although they are usually based on human form (Doyle, et al., 1998). The appear-
ance of the avatar is depending on the mood and creativity of the visitor, but also on the technical
capabilities of the virtual world (Taylor, 2002).
Figure 8: Animal avatar (Second Life) Figure 9: Regular human avatar (Second Life)
The avatar as a bodily presence in virtual space provides a focus for conversation and social inte-
raction (Rossney, 1996). Humans use their bodies to provide immediate and continuous informa-
tion about their presence, activity, attention, availability, mood, status, location, identity, capabili-
ties and many other factors (Blascovich, 2002).

23
The selection of the avatar is also important in the formation of the virtual persona, just like the
physical body is at the core of our real-world identities (Slater, et al., 2000). The avatar chosen
by a user does not necessarily resemble his/her real physical self, although it can (Nowak, 2004).
While avatars’ anonymity is part of their appeal, many people take considerable pride in their
creations as public expressions of hidden aspects of their identities (Hemp, 2006). Independent on
how close or far the avatar mirrors the offline appearance of the human behind it, the customiza-
tion of the avatar can be an experience of self-discovery for its creator (Taylor, 2002). In other
words, the mutability of our self-representations in online environments is a fundamental aspect of
what it means to have a virtual identity (Turkle, 1995).
Figure 10: Adjustment options of the avatar (Second Life)
Because these avatars are constantly redrawn for each user during interaction, unique possibilities
for social interaction emerge (Blascovich, et al., 2002). Having information about the identity of
those with whom you communicate is essential for understanding and evaluating an interaction
(Donath, 1998), but in computer mediated communication, many of these cues are eliminated or
attenuated (Carlson, and George, 2004). Avatars can serve as identification figures, as personal
shopping assistants or as conversation partners. In these roles, avatars have the potential to fulfill
the consumer’s desire for more interpersonal communication during the shopping experience
(Bauer, et al., 2005). On account of their similarity to human beings and their competence based
on knowledge, avatars are principally suitable for holding positions as representatives of busi-
nesses and as trust intermediaries in interactive environments (Bauer, et al., 2005).

24
2.4 E-commerce
Within this thesis the term ‘E-commerce’ is often used. In this paragraph attention will be paid to
the definition and important factors of E-commerce. Electronic Commerce radically changed the
way business is conducted around the world (Coltman, 1999). E-commerce allows regional busi-
nesses and economies to be less local and more global in keeping with long-term trends toward
market liberalization and reduced trade barriers (Brynjolfsson, et al., 2000).
When the term “Electronic commerce” was first introduced, it was understood as simple as trans-
actions over the Internet (U.S. Department of Commerce, 1999). Zwass (1996) defines e-
commerce as “…the sharing of business information, maintaining business relationships, and
conducting business transactions by means of telecommunications networks” (p.12). He points
out that e-commerce includes not only buying and selling goods, but also various processes within
individual organizations that support that goal. Applegate et al., (1996) point out that e-
commerce involves using network communications technology to engage in a wide range of activ-
ities up and down the value chain both within and outside the organization. Online retail sales
alone have grown with a double digit percentage every year and the growth till 2008 is expected
to be as high as 19% (NRF, 2007). The internet has opened up a new channel for retailing and
offers more flexibility and choice to the consumer (Alba, et al., 1997). The consumer can pur-
chase from anywhere there is an internet connection and at any time of the day or night. The loca-
tion of the retailer does not matter and business hours can be at any time. These benefits also hold
for virtual worlds (Waters, et al., 1997) because virtual worlds are accessible via the internet, and
24 hours a day accessible.
Figure 11: Information Technology is freeing consumers from time and location
constraints of traditional retailers. (Hasty & Reardon, 1997)

25
Inspired with the success of 3D graphical user interfaces, on application domains such as comput-
er games and virtual worlds, researchers tried to apply this new technology to E-Commerce
(Bogdanovych, et al., 2004). A truly functional E-Commerce system that supports business activi-
ties cannot be obtained without taking care of social issues behind these activities (Hawkinds,
1998). Designing e-commerce applications that simulate the feeling of being in a real market
will definitely give more confidence to users in carrying out commerce transactions. Similar
to 3D video games, the e-commerce applications will enhance the customers’ shopping expe-
rience by allowing them to walk around the streets of the market, visit shops, read adds, and chat
with vendors (Mamaar, 2003). 3D Virtual Worlds provide a consistent and immersive environ-
ment which implicitly incorporates location awareness of other users and offers mechanisms for
social interaction. Virtual Worlds support, to a certain extent, the way humans operate and interact
in the real world. Such immersive environments integrate social context, allowing customers to
meet and interact with other people, and have the potential to address the needs of both rational
and emotional customers. Virtual Worlds go beyond the document and form based interface of the
World Wide Web, embedding the customers as avatars (Damer, 1998) and permitting them to
operate and interact. According to Fogg et al., (2001) the most effective way to enhance the cre-
dibility of a Web site is to include elements that highlight the brick-and-mortar nature of the or-
ganization it represents.

26
2.5 TAM
Within this paragraph the TAM model will be presented. The model, founded by Davis (1989) has
been widely used and verified as being an important predictor of system use.
2.5.1 TAM 1
Users of virtual worlds have to interact with technology to purchase the products they need. The
physical shop environment is replaced by an electronic shopping environment or, in other words,
by an information system (IS). A perspective for exploring the antecedents of consumer intentions
to purchase online is the Technology Acceptance Model (TAM). The Technology Acceptance
Model (TAM) is an information systems theory that models how users come to accept and use a
technology (Bagozzi, 1992; Davis, et al, 1989). The model (see fig. 12) suggests that when users
are presented with a new technology, a number of factors influence their decisions about how and
when they will use it. Information technology is the hardware, software, telecommunications, and
the services of IT personnel (Oz, 2005). A virtual world is considered to be part of information
technology because to make use of it, users first need to download required software. The soft-
ware only works properly with the right hardware features and there is also an internet connection
(broadband) required for entering the virtual world of Second Life. In a shopping context, users of
virtual worlds have to interact with technology to purchase the products they need. The physical
shop environment is replaced by an electronic shopping environment or, in other words, by an
information system (IS). The technology acceptance model was developed by Fred Davis and
Richard Bagozzi (Bagozzi, 1992; Davis, et al, 1989). It was an extension of the work of Ajzen and
Fishbein’s theory of reasoned action (TRA). TRA is an important model from social psychology
that focuses on the drivers of consciously intended behaviors. According to TRA (see figure 13),
behavioral intention and attitude drives an individual’s performance. TAM replaces many of the
TRA attitude measures with the technology acceptance measures, ease of use, and usefulness
(Davis, et al, 1989). TRA and TAM, both have strong behavioral elements, assume that when
someone forms an intention to act, he or she will be free to act without limitation. Within the
normal operating environment there are many constraints, such as limited ability, time constraints,
environmental or organizational limits, or unconscious habits which will limit the freedom to act
(Bagozzi, 1992). TAM appears to be able to account for 40% to 50% of user acceptance (Aversa-
no, 2005).

27
Figure 12 : Original Technology Acceptance Model (Davis, 1989).
Figure 13 : Model of the Theory of Reasoned Action (Fishbein & Ajzen, 1975).
2.5.2 TAM 2
TAM2 extended the original model to explain perceived usefulness and usage intentions in terms
of social influence and cognitive instrumental processes. The extended model was tested in both
voluntary and mandatory settings. The results strongly supported TAM2 (see figure 14) and the
authors were able to explain 60% of their adoption model using this updated version of TAM
(Venkatesh, and Davis, 2000). The study highlights social influence through subjective norm,
defined as “person’s perception that most people who are important to him think he should or
should not perform the behavior in question”, (Venkatesh and Davis, 2000, p.4) significantly in-
fluences perceived usefulness. Cognitive factors also play an important role. For example, the
greater the perceived job relevance, (defined as “the individuals perception regarding the degree
to which the target system is applicable to his or her job” of a new system is) , the more important
output quality (defined as the “consideration of how well the system performs those tasks”) be-
comes (Venkatesh, and Davis, 2000, p.191). The authors draw a number of practical conclusions
from their results e.g. it’s important to empirically demonstrate the comparative effectiveness of a
new system to influence potential users. In addition, considering the social influence factors, such
demonstrations should be done by or with the explicit endorsement of people important to the
potential users.

28
Figure 14: TAM 2 (Venkatesh and Davis, 2000)
TAM postulates that external variables intervene indirectly by influencing PEU and PU. Table 2
presents the external variables considered. Legris et al., (2003) note that there is no clear pattern
with respect to the choice of the external variables considered. The following table provides an
overview of external variables that are researched in combination with TAM (based on Legris et
al., 2003, p.196).
Author(s) External variables used
Jackson et al. [16] Situational involvement, intrinsic involvement, prior
use, argument of change
Igbaria et al. [15] Internal computing support, internal computing train-
ing, management support, external computing
support, external computing training
Gefen and Keil [13] Perceived developer responsiveness
Agarwal and Prasad [1,2] Role with regard to technology, tenure in workforce,
level of education, prior similar experiences,
participation in training
Karahanna et al. [17] Compatibility, trainability, visibility, result demonstra-
bility
Dishaw and Strong [11] Tool functionality, tool experinece, task technology fit,
task characteristics
Venkatesh and Davis [28,29] Subjective norms, voluntariness, image, job relevance,
output quality, result demonstrability
Venkateshand Morris [30] Gender, experience

29
Taylor and Todd [26,27] Affect of experience
Chau [6] Implementation gap, transitional support
Table 2: Overview of research TAM in combination with external factors
A separate ‘‘attitude’’ construct is often modeled as a mediator of the system evaluations (e.g.
perceived usefulness and perceived enjoyment) and intentions to use. Various research has fo-
cused on the antecedents and consequences of website usability, or, in TAM terminology, per-
ceived ease of use.
2.5.3 Perceived usefulness and perceived ease of use
Chen et al. (2002) found in their study that usefulness and ease of use are the primary determi-
nants of consumer attitude towards using virtual stores. According to Van der Heijden et al.,
(2003) perceived ease-of-use is an antecedent of attitude towards online purchasing. Perceived
usefulness is defined as the prospective user's subjective belief that using a specific application
system will increase his or her job performance within an organizational context. A system high in
perceived usefulness, therefore, is one which the user believes in the existence of a positive user
performance relationship. In other words, the user believes that the use of such a system would
yield positive benefits for task performance (Thompson, et al., 1999). Several researchers (Van
der Heijden, et al., 2003; Chen, et al., 2002; Chau, et al., 2001) found a positive relationship be-
tween the usefulness of a WWW store and the attitude towards the use of it. Furthermore, in an
online store scenario, support has been found for ease-of-use being an antecedent of usefulness
(Gefen & Straub, 2000). Other studies (Van der Heijden et al., 2003; Chen et al., 2002) also found
support for the positive impact of perceived ease of use on usefulness.

30
2.5.4 Enjoyment
A more recent addition to the technology acceptance model is the “enjoyment” construct, or the
extent to which the activity of using the new technology is perceived to provide reinforcement in
its own right, apart from any performance consequences that may be anticipated (Davis et al.,
1992). Summarizing, the contribution of TAM and other similar models is that they explain why
online transactions are conducted from a technological point of view. Understanding the determi-
nants of consumers’ attitude, it is argued that this attitude has a strong, direct, and positive effect on
consumers’ intentions to actually use the new technology or system (Bobbitt ,and Dabholkar, 2001;
Davis, 1993).
Within the TAM framework, usefulness of the interactive media can be thought of as reflecting
the more instrumental aspects of shopping, while enjoyment embodies the hedonic aspect of
shopping (Pavlou, 2000). While some consumers may be shopping primarily for instrumental pur-
poses, others may be primarily enjoying these interactive media, and thus both factors can ultimately
affect their attitude toward using interactive forms of shopping (Pavlou, 2000). In a virtual world,
visitor perceive according to Li., et al (2001) a virtual experience. Li, et al., (2001) defined virtual
experience as “psychological and emotional states that consumers undergo while interacting with
products in a 3D environment” (p.1). Within the qualitative research of Li et al., (2001) all partic-
ipants perceived some type of enjoyment when interacting with the 3D modeled products. They
conclude that virtual experience could potentially impact attitude and behavior. Fiore et al, (2001)
concluded that the novelty of the virtual experience itself led to enjoyment. Various studies have
found a positive relationship between perceived enjoyment and attitude towards using a WWW
store (Moon, and Kim, 2000; Van der Heijden, 2003). Agarwal and Karahanna (2000) showed that
perceived enjoyment is the antecedent of perceived usefulness and perceived ease of use. There-
fore it is hypothesized that when the visitors of virtual world stores perceive the visits as enjoya-
ble experiences it will influence their attitude towards using them.

31
2.5.5 TAM Hypotheses
The previous chapters presented the Technology Acceptance Model. Within this chapter the gen-
eral TAM hypotheses will be presented. The original TAM hypotheses are translated in a virtual
world store context. They will serve as basis for the research model.
-Perceived enjoyment positively influences the attitude towards using a virtual world store
-Perceived usefulness positively influences the attitude towards using a virtual world store
-Perceived ease of use positively influences the perceived usefulness of a virtual world store
-Perceived ease of use positively influences the attitude towards using a virtual world store
-Attitude towards using a virtual world store positively influences the intention to use a virtual
world store.
The TAM Model will be used as part of departure within this study.
Figure 15: TAM constructs for research model
TAM is criticized for ignoring the social influence on technology acceptance (Chen et al., 2002;
Moon and Kim, 2001). Although “ease of use”, “usefulness”, and “enjoyment” are believed to be
fundamental in determining the acceptance and use of various corporate information technologies
(Davis, 1989, 1993), these beliefs, however, may not only explain consumers’ behavior toward
newly emerging technologies, such as virtual world shopping. Factors contributing to the accep-
tance of a new IT are likely to vary with the technology, target users, and context (Moon and Kim,
2001). Thus, for our specific virtual world shopping context, additional explanatory factors are
needed beyond the usefulness, ease of use, and enjoyment constructs. Therefore, two exogenous
variables are incorporated in the research model for understanding the attitude towards shopping
in a virtual world. These variables are ‘trustworthiness’ and ‘social presence’. In the following
paragraph these variables will be described.
Perceived store
enjoyment
Attitude towards
using a virtual store
Intention to use
a virtual store
Perceived usefulness
Perceived ease of
use

32
2.6 Trust
What exactly is trust? It’s so easy to talk about, so hard to pin down.—Keen et al. (1999)
2.6.1 Trust in E-commerce
Trust in e-commerce has been extensively addressed as a research topic from different viewpoints
and to different levels of analysis. Even though trust is so important, it has been very difficult to
study. One reason is that it is very difficult to define and measure (Mayer, et al., 1995; Gulati,
1995). Trust, according to the Oxford English Dictionary (1971), is defined as “confidence in or
reliance on some quality or attribute of a person or thing, or the truth of a statement” (p. 3422).
According to Wang & Emurian (2005), trust has existed as long as the history of human beings
and the existence of human social interactions. Nearly every aspect of a person’s life is based on
some form of trust. Despite the Oxford Dictionary’s definition, trust is often conceptualized by
researchers according to the features of specific context. The next table (no. 3) will provide an
overview of the different conceptualizations of trust in an e-commerce context.
Study Theoretical base Conceptualization
Gefen, D. Social Psychology
(Luhmann’s theory)
‘‘The confidence a person has in his or her favorable expectations of what
other people will do, based, in many cases, on previous inter-actions’.
Gefen and Straub Social Psychology Belief that other people will react in predictable ways
Gefen et al Social Psychology
(TRA-TAM)
‘‘The expectation that other individuals or companies with whom one
interacts will not take undue advantage of a dependence upon them’’
Gefen et al. Social Psychology ‘‘A set of specific beliefs such as integrity, benevolence, ability, and pre-
dictability’’
Jarvenpaa and
Tractinsky
Social Psychology ‘‘Consumer’s willingness to rely on the seller and take action in circums-
tances where such action makes the consumer vulnerable to the seller’’
Jarvenpaa et al Social Psychology ‘‘Governance mechanism in exchange relationships that are
characterized by uncertainty, vulnerability, and dependence’’
Kimery and Mc-
Cord
Social Psychology
(Zucker’s theory)
‘‘Consumer’s willingness to accept vulnerability in an online transaction
based on positive expectations of the future behavior of an e-retailer’’
Koufaris and
Hampton-Sosa
Social Psychology Examines initial trust; ‘‘the willingness to rely on a third party after the first
interaction with that party.’’
Lee and Turban Social Psychology ‘‘Willingness of a consumer to be vulnerable to the actions of an Internet
merchant in an Internet shopping transaction, based on the expectation
that the Internet merchant will behave in certain agreeable ways, irres-
pective of the ability of the consumer to monitor or control the Internet
merchant’’
Liu et al. Social Psychology
(TRA)
Belief that an online transaction will occur in a manner consistent
with his or her expectations

33
Noteberg et al. Social Psychology
(Commitment-trust
theory)
‘‘An expectancy, a belief, or a feeling that the word of an exchange part-
ner can be relied on’’
Pavlou Social Psychology Belief that allows consumers to willingly become vulnerable to Web retail-
ers after having considered the retailers’ characteristics.
Roy et al. Social Psychology ‘‘The willingness of a party to be vulnerable to the actions of another party
based on the expectation that the other will perform a particular action to
the trustor, irrespective of the ability to monitor or control that other party’’
Stewart Social Psychology Belief about the extent to which a target is likely to believe that the mer-
chant will behave in a way that is benevolent, competent, honest and
predictable
Suh and Han Social Psychology Belief that one can rely upon a promise made by another and that the
other, in unforeseen circumstances, will act toward oneself with goodwill
and in a benign fashion
Walczuch and
Lundgren
Social Psychology ‘‘Psychological state comprising the intention to accept vulnerability ba-
sedupon positive expectations of the intentions or behavior of another’’
Table 3: Overview of conceptualizations of trust in an e-commerce setting
Technical and practical research journals are unanimous in their decision that “without trust, de-
velopment of e-commerce cannot reach its potential“ (Lee and Turban, 2001, p. 75). Trust is an
especially important factor under conditions of uncertainty and risk. Jarvenpaa et al., (2000) stated
that the perceived trust in an online store directly influences the attitude towards this store. Van der
Heijden et al., (2003) also found a link perceived trust and attitude towards online purchasing.
2.6.2 Trust in Virtual Reality
The shopping process in real life is a social one and therefore an e-commerce application should
integrate elements from the social context, such as trust, one of the most prominent social aspects
of shopping, in physical and online settings (Papadopoulou, 2007). From the technical point of
view, in the literature on human-computer interface and ergonomics, trust is also identified as a
factor affecting human choice of the use of computerized systems (Muir, 1996). Virtual world
shopping is an activity that necessarily entails primary interactions with computer systems. As a
new form of commercial activity, online shopping involves more uncertainty and risk than tradi-
tional shopping. For example, a consumer cannot physically check the quality of a product before
making a purchase, or monitor the safety and security of sending sensitive personal and financial
information through the Internet (Virtual World) to a party whose behaviors and motives may be
hard to predict. Lack of trust has been touted as one of the main reasons for consumers not engag-
ing in e-commerce (Pavlou, 2003).

34
While several research models have been proposed for building trust in e-commerce (Cheung, and
Lee, 2006; Hampton-Sosa, and Koufaris, 2005; Gefen, and Straub 2004; Koufaris, and Hampton-
Sosa, 2004; Gefen, et al. 2003; Corbitt, et al. 2003; McKnight, et al. 2002; Jarvenpaa, et al,.
2000; Gefen, 2000), they do not explain how trust is built during customer interaction with an
online store.
One approach to increase trust with web-based shopping experiences is to use avatars (Redmond,
2002). Earlier in this thesis attention has been paid to the role of avatars in virtual worlds, as rep-
resentatives from each user. Like humans in real-life, in virtual life avatars can have different
purposes or/and functions. Avatars can serve as identification figures, as personal shopping assis-
tants or as conversation partners (Bauer, and Neumann, 2005). Shopping assistants offer help in a
store, provide additional information on products and simplify decision making processes helping
to find a product that satisfies customer’s requirements and various constraints. One of the major
drawbacks that E-Commerce is facing today is the lack of such sales clerks (Bogdanovych, et al.,
2005). There is strong evidence that in brick and mortar stores customers find interaction with a
sales person very beneficial. People value and are willing to pay for the reduction of perceived
risk, the optimal configuration of the transaction for their specific usage context, and the en-
hancement of the in-use experience, which shopping assistants can provide them with (Bogdano-
vych, et al., 2005). Therefore, shopping assistants are able to cause dramatic increase in sales. A
study showed that contact with a shopping assistant resulted in 18% more purchases (Chowdhury,
2004). From this perspective avatars can have the potential to fulfill the consumer’s desire for
more interpersonal communication during the shopping experience. A central finding of their re-
search, the authors Bauer & Neumann (2005) indicate that avatars can take the position of a trust
intermediary in electronic commerce. If avatars enhance the personification of a technology, they
should influence the purchase process in a manner similar to human sales agents. Human sales
agents have been shown to increase satisfaction with a retailer, enhance attitudes toward products
sold by the retailer, and increase the consumer’s intention to buy (Katz, and Lazarsfeld, 1955;
Webster, 1968). Furthermore, Holzwarth, et al., (2006) conclude that avatars can have a positive
influence on the attitude towards using a virtual store.

35
2.6.3 Trust Hypothesis
Within the previous paragraphs the construct of trust has been presented. After that, the possibili-
ties in virtual worlds using avatars as trust intermediaries were presented. The elaborated theoreti-
cal evidence leads to the following hypothesis:
- Perceived trust in an virtual world store positively influences the attitude towards using an vir-
tual world store.
2.7 Social presence
Researchers have pointed out that social needs of customers play a crucial role and are of great
importance in E-Commerce applications (e.g. Preece, et al., 2003), these needs are mostly neg-
lected in nowadays systems. Most system analysts perceive E-Commerce systems from a purely
technical viewpoint without trying to establish the social and business norms that companies and
consumers abide by. A truly functional E-Commerce system that supports business activities can-
not be obtained without taking care of social issues behind these activities (Hawkins, 1998).
When consumers interact with service people online, they have far less social and emotional cues
available to sense the person’s personality or trustworthiness as they would have in a physical
store during a face-to-face conversation (Qiu, et al., 2005). Short et al., (1976) define social pres-
ence as the “degree of salience of the other person in the interaction and the consequent salience
of the interpersonal relationships...” (p. 65). According to Gunawardena (1995) this means the
degree to which a person is perceived as a “real person” in mediated communication. It has also
been defined by Lombard et al., (1997) as the “social richness” aspect of presence. An investiga-
tion of presence as social richness reveals the extent to which a medium is perceived as sociable,
warm, sensitive, personal, or intimate when it is used to interact with other people. E-commerce
may be viewed as lacking human warmth, since it is more impersonal, anonymous and automated
than traditional person-to-person commerce (Head, et al., 2001). It is important to note that social
presence is defined as simulation, because the simulation occurs whether or not the perceived
intelligence is another human or nonhuman intelligence, including artificial intelligence (Biocca,
1997). According to Biocca et al., presence is frequently presented as consisting of two interre-
lated phenomena. Telepresence is defined as “..the phenomenal sense of ‘being there’ and mental
models of mediated spaces that create the illusion” (Biocca et al., 2000, p.2).

36
Social presence is defined as “..the sense of ‘being together with another’ and mental models of
other intelligences (i.e., people, animals, agents, gods, etc.) that help us simulate other minds “
(Biocca et al., 2000, p.2). It is generally believed that a communication medium that involves
more human senses will generate stronger feelings of social presence. Some researchers character-
ize the social presence of a medium as its capacity to transmit information about facial expres-
sions, posture, dress and non-verbal cues (Short, et al. 1976). Within virtual worlds people can see
other avatars and also hear real voices of the people behind the avatars. Thus, it is assumed that
virtual worlds inhibit some degree of social presence.
2.7.1 Social presence and trust
The study of Gunawardena (1995) has indicated that despite the low social bandwidth of the me-
dium, users of computer networks are able to project their identities whether “real” or “pseudo,”
feel the presence of others online, and create communities with commonly agreed on conventions
and norms that bind them together to explore issues of common interest. Since human interaction
with the trusted party, whether face-to-face or by any other means, is a precondition of trust
(Blau, 1964), the perception of a high degree of social presence, implying direct or indirect human
contact, in the relationship should, arguably, contribute to the building of trust (Gefen, and Straub,
2004). Thus, social presence is a important enabler of the development of trust, because trust is
created within the context of a social environment (Blau, 1964). Several researchers have stated
that trust will be stronger in an environment with a higher perceived social presence (Gunawarde-
na, 1995; Hassanein, and Head, 2006).
2.7.2 Social presence and enjoyment
Social presence is generally viewed as a desirable characteristic in communication media, and it is
generally believed that a communication medium that involves more human senses will generate
stronger feelings of social presence (Qiu, et al., 2005). For example, Short et al,. (1976) observed
that participants in an experiment reported a stronger impression of social presence after an audio-
visual task-based interaction than after one based on audio only. Factors that contribute to the
social presence of a communication medium include facial expressions, orientation and position-
ing, posture, dress, and other nonverbal vocal cues (Short, et al., 1976). It is assumed that avatars
in virtual worlds can express these factors. Aberg and Shahmehri (2000; 2001; 2003) have ex-
plored the impact of integrating human assistance and computer-based support into a Web Infor-
mation System.

37
They concluded that such integration can make a Web site more fun to use, it can increase con-
sumer trust in a store, and it can improve the store atmosphere. In virtual worlds it is possible to
integrate human assistance in the form of avatar involvement. So, it can be suggested that social
presence has a positive influence on the enjoyment in the virtual world store.
In a shopping context, human sales agents have been shown to increase satisfaction with a retailer,
enhance attitudes toward products sold by the retailer, and increase the consumer’s intention to
buy (Webster, 1968). It can be assumed that avatars have the same influence on customers (Red-
mond, 2002). Face-to-face interactions with sales agents are effective not only because sales
agents can provide information, be empathic, and build rapport (Barlow, et al, 2004) but also
because the agent’s information is perceived as more accurate and is more likely to be believed
(Soldow, and Thomas, 1984). Sales agents enhance the value of the information provided and
increase the pleasure of the shopping experience, especially in a retailing environment (Reynolds,
and Beatty, 1999). Hassanein and Head (2004, 2006) found support of the positive impact of so-
cial presence on enjoyment. Heeter (1995) found that users experimenting with a virtual reality
entertainment system enjoyed the system more when they felt a stronger sense of social presence.
Perhaps the most prominent psychological impact of social presence is enjoyment (Lombard, et
al., 1997).
2.7.3 Social presence and usefulness
When consumers shop online, the perceived usefulness of online support tools depend to some
extent on how well the tools create the perception of a shopping environment that is similar to
consumers’ physical in-store experiences, that is, the online environment’s compatibility with the
physical world which Moore and Benbasat (1991) found to be an important predicator for tech-
nology adoption. Karahanna (1999) and Gefen (1997) have suggested that there is a psychological
connection between a medium’s social presence and its perceived usefulness across a range of
communications tasks, especially when information technology serves as a communication inter-
face. Zhu and Benbasat (2004), in their study of tools that enable collaborative online shopping
with friends (VoIP communication and collaborative browsing interfaces), observed that the feel-
ing of social presence leads to higher level of perceived usefulness of the collaborative tools. In a
Internet context, different researchers have found a positive relationship between social presence
and perceived usefulness (Gefen, and Straub, 1997; Gefen, and Straub, 2003). Based on the
theory, it can be concluded that perceived social interaction has a positive influence on the per-
ceived usefulness.

38
2.7.4 Social presence hypotheses
Within the previous paragraphs the construct of enjoyment has been presented. After that, the
possibilities theoretical connections with the determinants perceived usefulness, perceived trust
and perceived enjoyment were presented. The elaborated theoretical evidence leads to the follow-
ing hypotheses:
- Perceived social presence positively influences the perceived usefulness of a virtual world store.
- Perceived social presence positively influences the perceived trust in a virtual world store.
- Perceived social presence positively influences the perceived enjoyment in a virtual world store.

39
2.8 Research model
In this final paragraph of theoretical part of this thesis, the research model (fig. 16) will be pre-
sented. The arrowed connections represent the hypotheses.
Figure 16: The final research model
In the next chapter the research methodology will be presented. After that chapter the results of
the quantitative research will be elaborated.
3. RESEARCH METHODOLOGY
This chapter describes the empirical research method of this thesis. The intention of this chapter is
to explain the methodological choices. In the first paragraph the research design will be described.
In the second paragraph the adopted measurement scales will be presented. Finally, the research
procedures will be presented.
3.1 Research design
The goal of this research is to test the hypotheses. In order to achieve this, a digital questionnaire
was developed. This instrument is based on existing measurement scales within the e-commerce
literature. The measurement scales will be presented in the following paragraph. The question-
naire was online available via thesistools.com. The main reason to put the questionnaire on the
internet is to make it accessible for every potential respondent. Within the virtual world Second
Life residents are asked to fill out the questionnaire. Residents can only participate within the
H1a
H1b
H1c
Perceived Social
presence
H3
H4
Perceived trust
Perceived store
enjoyment
H5
H6
H7Attitude towards
using a virtual store
Intention to use
a virtual store
H2a
H2b
Perceived usefulness
Perceived ease of
use

40
research if they have experience with shopping in Second Life stores. When selecting respondents
some questions will be asked to verify if someone has shopping experience in Second Life. To
attract residents a small reward will be given for every unique completed questionnaire. This re-
ward will be 150 L$ (approximately 0.65 Euro). This strategy is chosen because it is usual in
Second Life to give a financial reward for participation in research.
3.2 Measurement scales
The process of item generation is based upon established qualitative research and scales devel-
oped by others (Mathwick et al., 2001). The following multi-item scales will be used within the
research.
Social presence adopted from Gefen & Straub (2004):
(measured on a seven-point Likert scale from strongly disagree to strongly agree)
Social presence 1 : There is a sense of human contact in a virtual world store
Social presence 2 : There is a sense of personalness in a virtual world store
Social presence 3 : There is a sense of sociability in a virtual world store
Social presence 4 : There is a sense of human warmth in a virtual world store
Social presence 5 : There is a sense of human sensitivity in a virtual world store
Trust adopted from Gefen et al., (2003):
Trust 1: I feel that this a virtual world vendor is honest
Trust 2: I feel that this virtual world vendor is trustworthy
Trust 3: I feel that this virtual world vendor cares about customers
Trust 4: I feel that this virtual world vendor would provide me with good service
Enjoyment adopted from Babin et al., (2004):
Enjoyment 1 :Time spent on this web site was truly enjoyable
Enjoyment 2 :Shopping on this web site was a very nice time out
Enjoyment 3 :This web site immersed me in exciting products it offers
Enjoyment 4 :I enjoyed this web site for its own sake, not just for the items I may have purchased

41
Ease of use adopted from Chau et al., (2000):
Ease of use 1 : Learning to use a virtual world store is easy.
Ease of use 2 : It is easy to get the store to do what I want it to do.
Ease of use 3 : The interactions with a virtual world store are clear and understandable.
Ease of use 4 : Second Life is flexible to interact with.
Ease of use 5 : Second Life is easy to use.
Usefulness adopted from Van der Heijden et al., (2003):
Usefulness1 : The online purchasing process on virtual world store is fast.
Usefulness2 : It is easy to purchase products in virtual world stores.
Usefulness3 : The virtual world store is useful to buy the products they sell.
Attitude towards adopted from Van der Heijden and Verhagen (2004)
Attitude1: I am positive towards buying products in a virtual world store
Attitude 2: The thought buying a product in the a virtual world store is appealing to me.
Attitude 3 : I think it is a good idea to buy product in a virtual world store
Intention to use adopted from Van der Heijden and Verhagen (2004)
(measured on a seven-point Likert scale from highly unlikely to highly likely)
Intention to use 1 : How likely is it that you would return to a virtual world store ?
Intention to use 2 : How likely is it that you would consider the use a virtual world store for buy-
ing products?
Intention to use 3 : How likely is it that you would consider the use a virtual world store for buy-
ing products in the long term?
Intention to use 4 : How likely is it that you would consider the purchase of a product at a virtual
world store if you need the product?

42
4. RESULTS
Within this chapter the results of the quantitative research will be presented. Before the hypothe-
sis can be tested through multiple regression analyses, some methodological steps have to be tak-
en. In the first paragraph the exploration of the data will be presented. Within that paragraph at-
tention will be paid on the outliers of the data, and the normality of the data will be tested. In the
second paragraph, the demographic characteristics of the respondents will be introduced. In the
following paragraph the descriptive statistics will be presented. Next to that, the scale validation
will be investigated. Finally, the results of the regression analysis will be discussed. The statistical
analysis was carried out using SPSS version 14.
4.1 Exploration of the data
4.1.1 Test of normality
One assumption for the examination of a multiple regression analysis is the normal distribution of
the residuals. This implies that all data variables from the proposed research model have to be
tested on normality. The normal distribution was checked using the Kolgomorov-Smirnov and
Shapiro-Wilk test. Almost all tests resulted in α = 0,000 significance level. The results indicate
that the data is not normally distributed. Therefore, the results should be interpreted with some
caution. The detailed output of the normality tests can be found in Appendix A.
4.1.2 Outliers
An outlier is an observation that lies outside the overall pattern of a distribution (Moore, and
McCabe, 1999). Outliers can have a negative effect on the results of the quantitative research.
Hair et al., (1998) developed a guideline for removing outliers from the dataset. According to Hair
et al., (1998), data points “ mean +- (2.5 * standard deviation)” can be interpreted as outliers.
Therefore, four respondent data entries were deleted from the research. These entries were consi-
dered as extreme or incomplete in comparison with the other data entries. The original amount of
the sample was 89. After omitting the outliers the sample consisted of 85 respondents.

43
4.2 Sample demographics
The total final sample of this research consisted of 85 respondents. From these 85 respondents, 44
were males (52 %), and there were 41 females (48 %). Most respondents were younger than 25
years or between 31 and 40 years. The education measure shows that the respondents are relative-
ly highly educated. More than half of the sample visits Second Life several times a day. Further-
more, more than 65% of the respondents have more than 20 shopping experiences in Second Life.
One of the requirements to participate in the research was shopping experience in Second Life.
Fashion and avatar customizations together, cover more than 70% of the most frequently pur-
chased items. So product items that are closely related with the avatar seem very important in
Second Life. Most of the respondents spend less than 500 L$ per month. While the amount of
respondents that spend more than L$ 2.000 is 22,4 %. Table 4 presents the complete demographic
statistics of this research.
Measure Frequency Percent
Gender
Male 44 51,8 %
Female 41 48,2 %
Age
< 25 30 35,3 %
25 – 30 11 12,9 %
31 – 40 25 29,4 %
> 40 19 22,4 %
Education
Primary school or below 6 7,1 %
Secondary school 22 25,9 %
College degree 29 34,1 %
Postgraduate 28 32,9 %
Second Life experience
< 3 months 22 25,9 %
3 – 6 months 16 18,8 %
6 months – 1 year 24 28,2 %
> 1 year 23 27, 1 %
Frequency of visiting Second Life
Several times a month 5 5,9 %
2 – 3 times a week 8 9,4 %
Once a day 26 30,6 %
Several times a day 46 54,1 %
Shopping experience in Second Life
< 5 times 7 8,2 %
6 – 10 times 16 18,8 %
11 – 20 times 6 7,2 %
Table 4: Demographic statistics of the research

44
4.3 Descriptive statistics
Table 5 presents the mean and standard deviation of the composed research constructs. All con-
structs, except the ‘intention to use’ construct, are based on a seven-point Likert scale, ranging
from strongly disagree to strongly agree.
Construct Mean Std. Deviation
Social presence 3,65 1,43
Trust 5,02 1,07
Enjoyment 5,03 1,21
Usefulness 5,79 1,01
Ease of use 5,17 1,07
Attitude 5,63 1,14
Intention* 5,47 1,23
*intention is based on a seven-point Likert Scale ranging from highly unlikely to highly likely
> 20 times 56 65,9 %
Most frequently purchased items
Fashion 53 62,4 %
Avatar customizations 18 21,2 %
Gadgets 5 5,9 %
Furniture 4 4,7 %
Others 5 5,9 %
Average amount of money spend in Second Life
> 500 L$ 28 32,9 %
500 – 1.000 L$ 14 16,5 %
1.000 – 1.500 L$ 13 15,3 %
1.500 – 2.000 L$ 11 12,9 %
> 2.000 L$ 19 22,4 %
Table 5: Mean and standard deviation of the research construct (n=85)

45
4.4 Measurement validation
Within this paragraph the reliability and validity of the scales will be examined. In order to test
the reliability and validity of the scales, the Cronbach’s alpha test and exploratory factor analysis
were conducted. According Churchill et al., (1984), the reliability and validity of the scales are an
important requirement for conducting a proper regression analysis.
4.4.1 Scale reliability
As test for reliability of the scales, Cronbach’s alpha is typically used (Cronbach, 1951). A widely
advocated level of adequacy for coefficient alpha has been at least 0.70 (Cortina, 1993). Table 6
displays the alpha coefficients for each of the constructs. The results indicate that all scales were
sufficiently reliable (α > 0.7). It is not very surprising that the constructs meet the condition for
reliability, because all scales are well established and verified within different scientific direc-
tions.
Construct Number of items Cronbach (α)
Social presence 5 0,91
Trust 4 0.87
Enjoyment 4 0.87
Usefulness 3 0.71
Ease of use 5 0,80
Attitude 3 0,88
Intention 4 0,93
4.4.2 Construct validity
Before the actual regression tests can be executed and the results can be interpreted, an investiga-
tion has to be executed whether or not the measurement instrument measures what is has to meas-
ure (Churchill, 1979). The Principal component analysis with varimax rotation was used to assess
the convergent and discriminant validity of the scales, their reliability, and unidimensionality. The
two validities capture some of the aspects of the goodness of fit of the measurement model, i.e.,
how well the measurement items relate to the constructs. Convergent validity represents the de-
gree to which a construct is similar to other constructs to which it theoretically should also be
similar to. The criterion for convergent validity is that items will load more than 0.5 on a factor.
All items that loaded higher than 0,5 are highlighted in table 7. The results indicate a good con-
Table 6: Construct reliability

46
vergent validity. Discriminant validity implies that one can empirically differentiate a construct
from other constructs that may be similar, and can determine what is unrelated to the construct
(Bagozzi, et al., 1991). The most important criterion for discrimininant validity is that each indi-
cator must load more highly on its associated construct than on any other construct. This criterion
has been achieved because none of the related constructs loaded higher than 0.5. Because there
were no crossloadings above 0,5, the discriminant validity is also good.
Item Component
1 2 3 4 5 6
SP1: During shopping in SL there is a sense of human contact ,044 ,897 -,084 ,085 ,110 ,032
SP2: During shopping in SL there is a sense of personalness -,112 ,697 ,229 ,192 ,020 -,071
SP3: During shopping in SL there is a sense of sociability ,054 .820 ,099 ,063 ,128 ,037
SP4: During shopping in SL there is a sense of human warmth ,058 ,905 ,120 -,027 ,089 -,018
SP5: During shopping in SL there is a sense of human sensi-
tivity
,080 ,849 ,107 ,107 ,021 -,046
TR1: I feel that a shop owner in SL is honest ,286 ,039 ,237 ,028 ,759 ,206
TR 2 : I feel that a shop owner in SL is trustworthy ,290 ,077 ,257 -,014 ,782 ,102
TR 3: I feel that a shop owner in SL cares about customers ,292 ,372 ,109 ,261 ,667 ,105
TR 4: I feel that a shop owner in SL would provide me with a
good service
,110 ,263 ,243 ,255 ,605 ,364
EN 1: The time spent on shopping in SL was truly enjoyable ,303 ,088 ,776 ,198 ,214 ,098
EN 2: Shopping in SL was a very nice time out ,229 ,021 ,844 ,037 ,182 ,074
EN 3: SL virtual stores immersed me in exciting products it
offers
,267 ,082 ,789 ,057 ,158 ,003
ENJ 4: I enjoy shopping in SL for its own sake, not just for
the products I may have purchased
,118 ,347 ,723 -,051 ,076 ,132
PU 1: The purchasing process SL virtual stores is fast ,087 -,051 ,104 ,184 -,033 ,811
PU 2: It is easy to purchase in a SL virtual store ,064 -,134 ,054 ,150 ,335 ,749
PU 3: A virtual store in SL is useful to buy the products they
sell
,287 ,075 ,057 ,021 ,263 ,611
PEOU 1: Learning how to use a virtual store in SL is easy ,229 ,079 ,169 ,687 -,134 ,282
PEOU 2: It is easy to get the virtual store to do what I want it
to do
,161 ,048 ,083 ,757 -,064 ,137
PEOU 3: Interaction in a SL virtual store a clear and unders-
tandable
-,081 -,015 ,036 ,723 ,427 -,064
PEOU 4: It is flexible to interact with virtual stores in SL ,101 ,246 -,105 ,730 ,253 -,006
PEOU 5: Virtual stores in SL are easy to use ,435 ,163, ,021, ,530 -,007 ,344
ATT 1: I am positive towards buying product in a SL virtual
store
,616 ,057 ,220 ,476 ,116 ,256
ATT 2: The thought buying a product in a SL virtual store is
appealing to me
,687 ,139 ,457 ,249 ,176 ,066
ATT 3: I think it is a good idea to buy products in a SL virtual
store
,500 ,172 ,254 ,415 ,183 ,117
ITU 1 : How likely is it that you would return to a SL virtual
store for buying products
,772 -,103 -,106 ,006 ,189 -,004
ITU 2: How likely is it that you would consider the use of a
SL virtual store for buying products
,867 -,003 ,207 ,135 ,192 ,172
ITU 3: How likely is it that you would consider the use of a
SL virtual store for buying products in the long term
,859 ,048 ,173 ,076 ,104 ,093
ITU 4: How likely is it that you would consider the purchase
of a product at a virtual store if you need the product
,898 ,079 ,183 ,116 ,138 ,131
Rotation method: Varimax with Kaiser Normalization
Table 7: Explanatory factor analysis extracting six factors using principal component analysis
with varimax-rotation

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