Strategies and Effects of Luxury Goods in Metaverse Market Marketing: A Study from the Perspective of Consumer Engagement and Brand Awareness

Abstract

The metaverse, an aggregated virtual shared environment born from the intersection of breakthrough technologies such as virtual reality (VR), augmented reality (AR), and artificial intelligence (AI), emerges as a revolutionary stage for brand advertising. The advent of the COVID-19 pandemic expedited digital transformation, compelling brands to venture into creative marketing strategies within this virtual arena. While few studies have forayed into metaverse marketing, a holistic understanding of marketing techniques and their efficacies, especially in luxury brands, remains largely uncharted. This research addresses this lacuna, probing consumer behavior, and luxury brand promotional strategies within the metaverse while gauging their influence on market performance. This study adopts a hybrid research approach amalgamating survey questionnaires and literary analysis. Findings highlight a significant youth demographic within the metaverse. However, they simultaneously reveal that the degree of engagement and recognition of luxury brand promotional initiatives within this virtual world is relatively modest. This research also proposes that present luxury brand promotional strategies exert limited sway over actual purchasing decisions within the metaverse, signaling the necessity for further innovative and adaptive strategies to cater to this novel market landscape. With additional insights and in-depth observations, this research expands the understanding of luxury brand marketing in the metaverse, providing an empirical basis for further study and strategic development in this rapidly evolving digital environment.