Modeling multi-channel fashion retail adoption of virtual dressing room technologies
(R2022-111777)

AUTHORS

Amir Heiman, The Hebrew university of Jerusalem; David Zilberman, Department of Agricultural and Resource Economics, UC Berkeley, USA

ABSTRACT

Virtual dressing room (VDR) technologies, aiming to reduce the risk associated with online purchases and increase customers’ satisfaction are in the market for a decade, yet their adoption is still in its infancy stage. This is surprising given the increasing proportion of products returned to retailers as the volume of the online trade is increasing. In this study, we analyze the adoption of VDR by retailers. Our main findings are: (1) Larger retailers are more likely to adopt earlier than smaller ones. (2) The higher the retailer’s share of online trade, the earlier the adoption. (3) Credit constrains suppress adoption.