Abstract

This research uses the theory of flow to examine the effect of 2D versus 3D virtual world environments on brand equity and use intention. The results suggest that a 3D virtual world environment has both positive (indirect) and negative (direct) effects on brand equity. The positive, indirect effect of the 3D virtual world environment occurs through feelings of telepresence and enjoyment, both of which contribute positively to brand equity and, in turn, induces a higher behavioral intention. The negative, direct effect can be explained using distraction-conflict theory, where attentional conflict is faced by users of a highly interactive and rich medium. This paper explains the flow experience and its effects on brand equity in 2D versus 3D virtual world environments, and provides insights to practitioners for designing 3D virtual world sites to enhance brand equity and behavioral intention.

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