Author ORCID Identifier
Noha Tarek Amer: https://orcid.org/0000-0002-9447-4789
Shan Rahman: https://orcid.org/0000-0001-5720-5582
Jeff Baker: https://orcid.org/0000-0003-2757-9887
Nicholas J. Ashill: https://orcid.org/0000-0002-7868-6175
Abstract
While luxury brands have widely adopted Internet-based digital technologies, their engagement with metaverse-based technologies remains underexplored. This study addresses that gap by examining how foundational luxury principles—sensorial richness, exclusivity, brand prestige, artisanal craftsmanship, and heritage—interact with emerging metaverse characteristics such as digital simulation, democratized access, co-creation, digital aesthetics, and narrative-driven engagement. This tension is conceptualized as The Metaverse Dilemma: the strategic challenge luxury brands face in preserving exclusivity while selectively integrating metaverse technologies. To investigate this dilemma, the study poses two key questions: (1) What are the defining characteristics of metaverse technologies as applied by luxury brands? and (2) How do these applications vary across luxury sectors? Using a refined 8Cs framework, the study analyzes how brands navigate the dual imperatives of innovation and exclusivity. A cross-sectoral analysis of 60 luxury brands spanning fashion, beauty, jewelry, watches, yachts, and automobiles reveals sector-specific patterns of metaverse technology deployment. Findings highlight the influence of buyer demographics, particularly age, on adoption strategies. Additional factors include product complexity, the balance between technical and symbolic luxury, the sensorial nature of offerings, sustainability commitments, and the brand’s orientation toward social interaction and community building. These insights inform enhancements to the 8Cs framework, extending its relevance to metaverse contexts. The study contributes to academic discourse by offering a conceptual lens for understanding strategic adaptation in luxury branding. Implications are discussed for researchers, technologists, and marketing practitioners seeking to align luxury brand identity with evolving digital environments.
DOI
10.17705/1CAIS.05754
Recommended Citation
Tarek Amer, N., Rahman, S., Baker, J., & Ashill, N. J. (2025). From the Internet Dilemma to the Metaverse Dilemma: Exploring Luxury Brands’ Adoption of Metaverse Technologies. Communications of the Association for Information Systems, 57, 1242-1269. https://doi.org/10.17705/1CAIS.05754
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