From E-commerce to V-commerce: Understanding the Impact of Virtual Reality and Metaverse on Economic Activities

This paper explores the transformative journey from traditional e-commerce to the emerging realm of virtual commerce (v-commerce) within the metaverse, a collective virtual shared space created by the convergence of virtually enhanced physical reality and physically persistent virtual reality. The metaverse, with its immersive and interactive capabilities, is reshaping the landscape of economic activities, creating a paradigm shift in the way consumers shop, sell, and buy goods and services. The study delves into the impact of virtual reality (VR) technologies on consumer behavior, business models, and the overall economy. It investigates how VR is revolutionizing the shopping experience by offering immersive, personalized, and interactive platforms, thereby influencing con-sumer decision-making processes. The paper further examines the implications of these changes for businesses, particularly in terms of strategy, operations, and customer engagement. Moreover, the paper discusses the challenges and opportunities presented by the metaverse economy, including issues related to privacy, security, digital divide, and regulatory frameworks. It also highlights the potential of v-commerce to drive economic growth, innovation, and sustainability in the digital age. The paper concludes with a discussion on the future directions of v-commerce and the potential strategies for businesses to thrive in this new economic landscape.


Introduction
The advent of the metaverse, a collective virtual shared space created by the convergence of virtually enhanced physical reality and physically persistent virtual reality, is revolutionizing the landscape of economic activities, commerce and finance [1,2].This new frontier, characterized by immersive and interactive capabilities, is transforming the traditional e-commerce into a more dynamic and engaging virtual commerce (v-commerce) [3].
The metaverse is not merely a digital extension of our physical world, but a new realm that offers unprecedented opportunities for businesses and consumers alike [14,43].It is reshaping the way consumers shop, sell, and buy goods and services, thereby influencing consumer behavior and decision-making processes [7].For businesses, the metaverse presents a paradigm shift in terms of strategy, operations, and customer engagement [9].However, the metaverse economy also presents several challenges.Issues related to privacy, security, and the digital divide are among the major concerns that need to be addressed.
Moreover, the regulatory frameworks for the metaverse economy are still in their nascent stages, which adds to the complexity of operating in this new economic landscape [31].Despite these challenges, the potential of the metaverse economy is immense.It offers opportunities for economic growth, innovation, and sustainability [18].The integration of advanced technologies such as virtual reality (VR), artificial intelligence (AI), and blockchain is driving the growth of the metaverse economy [56].These technologies are not only enhancing the shopping experience but also transforming the way businesses operate and engage with their customers [25].
This paper aims to provide a comprehensive understanding of the impact of VR and the metaverse on economic activities.It delves into the transformative journey from traditional e-commerce to v-commerce, explores the implications of these changes for businesses and consumers, and discusses the challenges and opportunities presented by the metaverse economy.The findings of this study will provide valuable insights for policymakers, business leaders, and researchers interested in the economic implications of VR and the metaverse.
The paper is structured as follows.Section 2 provides an overview of the metaverse and the role of VR in this new realm.Section 3 discusses the impact of VR on economic activities, focusing on the transformation of the shopping experience, the influence on consumer behavior, and the implications for business models.Section 4 explores the challenges and opportunities in the metaverse economy.Section 5 presents case studies of v-commerce in action.Section 6 discusses future directions and strategies for thriving in the metaverse economy.Finally, Section 7 concludes the paper with a summary of the findings and implications for future research.

Definition and Characteristics
The metaverse is often described as a collective virtual shared space, a convergence of virtually enhanced physical reality and physically persistent virtual reality [1].It is a digital universe that exists parallel to our physical world, where individuals can interact with a computer-generated environment and other users in real-time [43].
The metaverse is not a single, monolithic virtual world, but a vast network of interconnected digital spaces, each with its unique characteristics and rules.It encompasses various forms of digital realities, including virtual reality (VR), augmented reality (AR), mixed reality (MR), and extended reality (XR).These realities, powered by advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain, create an immersive and interactive environment that blurs the boundaries be-tween the physical and virtual worlds [56].One of the defining characteristics of the metaverse is its persistent nature.Unlike traditional digital platforms that are session-based, the metaverse exists continuously, irrespective of whether users are logged in or not.This persistence allows for the creation of a dynamic and evolving digital universe that mirrors the complexity and richness of the physical world [38].
Interactivity is another key feature of the metaverse.Users can not only explore and navigate the virtual environment but also interact with other users and digital objects in a multitude of ways.They can create and modify digital content, participate in virtual events, engage in social interactions, and even conduct economic transactions [9].This high level of interactivity enhances the sense of presence and engagement, making the user experience in the metaverse more immersive and compelling [7].
The metaverse also embodies the principle of user agency.Users have the freedom and autonomy to shape their experiences and identities in the virtual world.They can customize their avatars, choose their activities, and determine their interactions with the environment and other users.This user agency not only enriches the user experience but also fosters creativity, innovation, and diversity in the metaverse [41].
Moreover, the metaverse is characterized by its interoperability.Digital assets, identities, and experiences can be transferred and utilized across different virtual spaces within the metaverse.This interoperability is facilitated by blockchain technology, which provides a decentralized and secure infrastructure for the creation, ownership, and exchange of digital assets [56].
The metaverse also has a social dimension.It serves as a social platform where users can connect, communicate, and collaborate with others, regardless of geographical distances.It fosters a sense of community and social belonging, and enables new forms of social interactions and relationships [34].
In terms of its economic structure, the metaverse represents a new frontier for commerce.It offers a virtual economy where goods and services are bought and sold, and where real-world economic principles apply.This virtual economy, often referred to as v-commerce, is expected to generate significant economic value and opportunities for businesses and consumers alike [3,19].
In summary, the metaverse is a complex and multifaceted concept that represents the next evolution of the digital world.It is a persistent, interactive, and interoperable virtual universe that offers a high degree of user agency and fosters social and economic activities.As the metaverse continues to evolve and mature, it is expected to have profound implications for various domains, including commerce, education, entertainment, and social interaction, among others.

The Role of Virtual Reality in the Metaverse
Virtual Reality (VR) plays a pivotal role in the realization of the metaverse, serving as the technological backbone that enables imersive and interactive experiences in the digital universe.VR technology, which creates a simulated environment that users can interact with in a seemingly real or physical way, is integral to the creation of the metaverse's immersive environments [40].The primary function of VR in the metaverse is to provide a sense of presence, the feeling of being 'inside' the virtual world.This is achieved through the use of head-mounted displays (HMDs) that provide stereoscopic 3D visuals, spatial audio, and head tracking to create a convincing illusion of being in a different place [38].The sense of presence is further enhanced by the use of motion tracking and haptic feedback technologies, which allow users to interact with the virtual environment in a natural and intuitive way [29].
VR also enables the creation of user avatars, digital representations of users in the metaverse.Avatars serve as the users' virtual bodies, allowing them to navigate and interact with the virtual environment and other users.Avatars can be customized to reflect the users' identities and preferences, providing a means for self-expression and identity exploration in the virtual world [41].
Moreover, VR facilitates social interactions in the metaverse.Through the use of avatars and spatial audio, users can engage in real-time social interactions with others, regardless of their geographical location.They can communicate through voice, gestures, and body language, participate in shared activities, and form social relationships.This social dimension of VR is crucial for fostering a sense of community and social belonging in the metaverse [34].
In addition to social interactions, VR enables economic activities in the metaverse.Users can browse and purchase virtual goods, attend virtual events, and even own virtual real estate.This virtual economy, often referred to as v-commerce, leverages the immersive and interactive capabilities of VR to create engaging and novel shopping experiences.For instance, users can try on virtual clothes, inspect virtual products from all angles, and experience virtual services before making a purchase [3].
Furthermore, VR plays a key role in content creation in the metaverse.Users are not just consumers of premade content, but also creators who can shape the virtual world according to their imagination.They can design and build virtual spaces, create virtual objects, and even script interactive behaviors.This user-generated content, facilitated by VR creation tools, contributes to the richness and diversity of the metaverse [9].
VR also contributes to the accessibility of the metaverse.Through the use of VR interfaces, users with different abilities can access and interact with the virtual world.For instance, users with mobility impairments can navigate the virtual environment using gaze or voice commands, while users with visual impairments can interact with the environment through haptic and audio cues [38].
In summary, VR plays a crucial role in the metaverse, enabling immersive and interactive experiences, social interactions, economic activities, content creation, and accessibility.As VR technology continues to evolve and mature, it is expected to further enhance the realism, interactivity, and diversity of the metaverse, bringing us closer to the vision of a fully immersive and interactive digital universe.

Relation to Fourth Industrial Revolution
The metaverse, as a manifestation of Virtual Reality (VR), is intrinsically linked to the Fourth Industrial Revolution (4IR) [50].The 4IR is characterized by the fusion of the physical, digital, and biological worlds, driven by advancements in technologies such as artificial intelligence (AI), the Internet of Things (IoT), robotics, and indeed, VR.The metaverse, as a digital universe that mirrors and extends the physical world, embodies this fusion and is set to play a pivotal role in shaping the future of the 4IR.

Integration of Advanced Technologies
The metaverse is not a standalone technology but a convergence of multiple advanced technologies that are central to the 4IR.VR provides the foundation for creating immersive, 3D virtual environments.AI enables intelligent interactions and personalization in these environments.The IoT connects the metaverse with the physical world, allowing for real-time data exchange and interactivity.Blockchain technology ensures secure and transparent transactions in the virtual economy [56].
For instance, in a virtual shopping scenario, VR can create a realistic shopping environment, AI can recommend products based on the shopper's preferences and behaviors, IoT devices can track the shopper's physical movements and translate them into virtual actions, and blockchain can facilitate secure and transparent payments [17,23].
This integration of advanced technologies can enhance the functionality, usability, and value of the metaverse, making it a key driver of the 4IR.However, it also poses challenges in terms of technical complexity, interoperability, and standardization [56].

Transformation of Industries
The metaverse has the potential to transform various industries, much like the 4IR.In retail, the meta-verse can provide immersive shopping experiences, personalized promotions, and social shopping op-portunities [23].In entertainment, the metaverse can offer virtual concerts, movies, and games that transcend the limitations of physical venues and devices [30].In education, the metaverse can facilitate virtual classrooms, labs, and field trips that enhance learning engagement and outcomes [5].In healthcare, the metaverse can enable virtual consultations, surgeries, and therapies that improve healthcare accessibility and quality [15].These transformations can bring benefits, such as increased efficiency, effectiveness, and customer satisfaction.However, they also require businesses to rethink their business models, develop new capabilities, and manage the risks associated with the virtual environment [31].

Impact on Society and Economy
The metaverse, like the 4IR, has far-reaching implications for society and the economy.On the one hand, the metaverse can create new economic opportunities.It can generate new jobs in areas such as VR development, content creation, and virtual services.It can also create new markets for virtual goods, services, and real estate, contributing to economic growth [45].On the other hand, the metaverse can also exacerbate social and economic inequalities.Those who lack access to VR technology, digital literacy, or high-speed internet may be excluded from the benefits of the metaverse.Moreover, the virtual economy may be subject to speculation, fraud, and monopolistic practices, posing risks to economic stability and fairness [51,53].Therefore, the development of the metaverse needs to be guided by policies and regulations that promote inclusivity, fairness, and sustainability.This requires collaboration among governments, businesses, civil society, and academia, much like the governance of the 4IR [50].

Ethical and Legal Considerations
The metaverse raises ethical and legal issues that are characteristic of the 4IR.These include privacy, security, intellectual property, and digital rights.In the metaverse, users' activities, interactions, and data can be tracked, analyzed, and monetized, raising concerns about data privacy and security.The creation and exchange of virtual content can involve issues of intellectual property rights and digital ownership.The behaviors and norms in the virtual environment can also raise questions about digital ethics, such as online harassment, misinformation, and addiction [53].Addressing these issues requires a comprehensive and balanced approach that respects users' rights, promotes innovation, and maintains social order.This may involve legal reforms, technological solutions, ethical guidelines, and educational initiatives [53].Therefore, the metaverse is closely related to the 4IR in terms of technology integration, industry transformation, societal impact, and ethical considerations.As the metaverse continues to evolve, its role in shaping the 4IR is expected to grow.

V-commerce: concept, definitions and characteristics
V-commerce, or virtual commerce, is a term that has emerged with the advent of the metaverse, referring to the economic activities that occur within these virtual spaces [20,21].It represents the evolution of e-commerce, transitioning from two-dimensional online platforms to immersive, three-dimensional virtual environments [6].
V-commerce can be defined formally as a Business Process as follows.Let  be the V-commerce business process.We can define  as a function that transforms a set of inputs I into a set of outputs  through a sequence of tasks  .Each task  ∈  is a function that transforms its input i ∈ I into an output  ∈ .Formally, we can write: ∀ ∈ ,  ∶  → The inputs I can include factors such as the consumer's shopping needs and preferences, the available products, and the consumer's VR equipment.The tasks T can include actions such as browsing products, interacting with virtual objects, making purchase decisions, and completing transactions.The outputs O can include the purchased products, the consumer's shopping experience, and the transaction data.The concept of v-commerce is rooted in the broader context of the digital economy, which encompasses all economic activities that are based on digital technologies.However, v-commerce distinguishes itself from traditional e-commerce by its immersive nature, enabled by technologies such as virtual reality (VR), augmented reality (AR), and blockchain [23].
V-commerce involves the buying and selling of virtual goods and services within the metaverse.These virtual goods can range from digital clothing and accessories for avatars, virtual real estate, digital art, to virtual experiences such as concerts or educational courses.The services can include anything from virtual interior design services to consulting services offered in a virtual office [7].
One of the defining characteristics of v-commerce is its immersive and interactive nature.In a v-commerce environment, consumers can interact with products in a way that closely mimics real-world interactions.For instance, they can try on virtual clothes, walk around a virtual house, or test drive a virtual car.This level of interactivity provides consumers with a richer and more engaging shopping experience compared to traditional ecommerce [25].
Another key characteristic of v-commerce is the use of avatars.In the metaverse, consumers navigate and interact with the virtual environment through their avatars.These digital representations not only allow consumers to engage in social interactions but also play a crucial role in the shopping experience.For instance, consumers can use their avatars to try on virtual clothes or accessories, providing a more realistic and personalized shopping experience [41].
V-commerce also leverages the social and communal aspects of the metaverse.Shopping in the metaverse is not a solitary activity but a social one.Consumers can shop together with their friends, share their shopping experiences, and even attend virtual shopping events.This social dimension of v-commerce can enhance consumer engagement and foster a sense of community among shoppers [26].
The virtual economy of the metaverse also introduces new business models and monetization strategies [46].For instance, businesses can generate revenue by selling virtual goods, offering premium virtual experiences, or leasing virtual real estate.They can also monetize user-generated content, such as digital art or custom avatar designs.Furthermore, the use of blockchain technology enables the creation of unique digital assets, known as nonfungible tokens (NFTs), which can be bought, sold, or traded in the metaverse [56].
However, v-commerce also presents new challenges.For instance, the lack of physicality in the virtual world can make it difficult for consumers to assess the quality of virtual goods.The immersive nature of v-commerce can also raise concerns about consumer privacy and data security.Moreover, the legal and regulatory frameworks for v-commerce are still in their infancy, leading to uncertainties and risks for businesses and consumers alike [53].
In conclusion, v-commerce represents a new frontier in the digital economy, offering immersive and interactive shopping experiences in the metaverse.As technologies continue to evolve and the metaverse expands, v-commerce is expected to play an increasingly important role in our economic activities.

The Impact of Virtual Reality on Economic Activities
Virtual Reality (VR) is a transformative technology that has the potential to revolutionize various economic activities, particularly in the realm of commerce [47].By creating immersive, interactive, and personalized experiences, VR is reshaping the way consumers shop and interact with brands, thereby influencing the dynamics of the global economy.

Transforming the Shopping Experience
The advent of VR has brought about a paradigm shift in the shopping experience, moving away from the traditional brick-and-mortar stores and even the two-dimensional online platforms to more immersive and interactive virtual environments.This transformation is largely driven by the unique capabilities of VR, which allows users to be transported into a simulated world, offering a sensory experience that closely mimics, and in some cases surpasses, real-world interactions.

Immersive Shopping
One of the key ways VR is transforming the shopping experience is through the creation of immersive shopping environments.VR technology can create realistic, three-dimensional virtual stores that consumers can navigate just as they would in a physical store [7].They can walk down virtual aisles, pick up products, examine them from different angles, and even try them out.For example, a consumer shopping for furniture in a VR environment can place a virtual sofa in their virtual living room to see how it fits with the rest of their decor [23].This level of immersion offers several advantages over traditional shopping methods.For one, it allows consumers to shop from the comfort of their own homes, without the need for physical travel.This not only saves time and reduces inconvenience but also opens up opportunities for consumers who may be unable to visit physical stores due to geographical constraints or physical disabilities [25].
Furthermore, the immersive nature of VR shopping can lead to more informed purchasing decisions.By allowing consumers to interact with products in a virtual environment, VR can provide a more accurate representation of the product, reducing the uncertainty that often comes with online shopping.This can, in turn, lead to higher customer satisfaction and lower return rates [41].

Personalization and Interactivity
Another significant impact of VR on the shopping experience is the heightened level of personalization and interactivity it offers.VR technology can be used to create personalized shopping experiences tailored to the individual preferences and needs of each consumer.For instance, a VR shopping platform can use data analytics to recommend products based on a consumer's past purchases, browsing history, and preferences [26].Moreover, VR allows for greater interactivity during the shopping process.Consumers can use their avatars to try on clothes, test out furniture, or experiment with different cosmetic products.They can also manipulate the virtual environment to their liking, such as changing the lighting in a virtual fitting room or rearranging furniture in a virtual home [56].
The interactivity of VR shopping extends beyond product interaction.VR platforms can also facilitate social interactions, allowing consumers to shop together with friends or family members, even if they are physically apart.They can share their views on products, seek advice, or simply enjoy the shopping experience together.This social aspect of VR shopping can enhance the shopping experience, making it more enjoyable and engaging [53].
In conclusion, VR is transforming the shopping experience by creating immersive, personalized, and interactive shopping environments.As VR technology continues to evolve and become more accessible, its impact on economic activities, particularly in the realm of commerce, is expected to grow.

Influence on Consumer Behavior
The introduction of Virtual Reality (VR) into the shopping experience has profound implications for consumer behavior.The immersive and interactive nature of VR can significantly influence consumers' decision-making processes and levels of engagement, leading to new patterns of consumption and potentially reshaping the landscape of commerce [52].

Decision-making Processes
Consumer decision-making is a complex process that involves several stages, from need recognition and information search to evaluation of alternatives, purchase decision, and post-purchase behavior.VR can influence each of these stages in unique ways.During the need recognition stage, VR can stimulate needs and wants by providing immersive demonstrations of products and services.For instance, a consumer might not realize they want a new sofa until they see it in a virtual environment that mirrors their living room [23].Similarly, VR can enhance the information search process by providing rich, interactive product information.Consumers can examine products from all angles, try them out, and even receive personalized recommendations based on their preferences and past behavior [26].
The evaluation of alternatives is another stage where VR can have a significant impact.Traditional online shopping platforms often struggle to convey the tactile qualities of products, leading to uncertainty and risk in the consumer's evaluation process.VR can mitigate this by providing a more realistic representation of products, allowing consumers to virtually touch, feel, and try products before making a purchase decision [25].This can lead to more confident and satisfied purchases, reducing the likelihood of returns.
Finally, VR can enhance post-purchase behavior by providing immersive after-sales services, such as virtual product tutorials or customer service interactions.This can increase customer satisfaction and loyalty, leading to repeat purchases and positive word-of-mouth [41].

Consumer Engagement
Beyond influencing decision-making processes, VR also has the potential to enhance consumer engagement.Engagement refers to the level of a consumer's active participation and emotional connection with a brand or product.High levels of engagement can lead to increased customer loyalty, advocacy, and overall profitability.VR can enhance consumer engagement in several ways.Firstly, the immersive nature of VR can lead to heightened emotional responses, creating memorable experiences that foster a deeper connection with the brand [53].For instance, a consumer might feel a stronger attachment to a clothing brand after using their VR platform to attend a virtual fashion show.Secondly, the interactivity of VR can increase the consumer's active participation in the shopping process.Consumers can customize their shopping experience, interact with products, and even influence the virtual environment.This sense of agency can lead to higher levels of engagement and satisfaction [56].Finally, VR can facilitate social interactions, adding a communal dimension to the shopping experience [54].Consumers can shop together with friends or family members in a virtual environment, share their views on products, and even meet new people with similar interests.This social aspect can enhance the sense of community and belonging, leading to higher levels of engagement [49].
In conclusion, VR has the potential to significantly influence consumer behavior, from decision-making processes to levels of engagement.As VR technology continues to evolve and become more integrated into the shopping experience, its impact on consumer behavior is expected to grow.

Implications for Digital Marketing
The metaverse, powered by Virtual Reality (VR), has significant implications for digital marketing.The immersive and interactive nature of the metaverse provides marketers with new opportunities to engage consumers, build brand loyalty, and drive sales.However, it also presents new challenges that require innovative marketing strategies and tactics.

Immersive Advertising
In the metaverse, advertising can be transformed from a passive, one-way communication into an immersive, interactive experience.Traditional forms of digital advertising, such as banner ads and pop-ups, can be replaced by virtual billboards, product placements, and branded virtual environments [46].For instance, a car manufacturer can create a virtual showroom where consumers can explore different car models, customize their features, and take them for a virtual test drive.A fashion brand can set up a virtual fashion show where consumers can view the latest collections, try on virtual clothes, and purchase them for their avatars.A travel agency can offer virtual tours of holiday destinations, allowing consumers to experience the sights, sounds, and even the weather of different locations [25].These immersive advertising experiences can evoke strong emotional responses, create memorable brand impressions, and influence purchase decisions.However, they also require a high level of creativity, technical expertise, and resources.Moreover, they need to be designed with respect for user privacy and consent, to avoid intrusive or annoying experiences [34].

Personalized Promotions
The metaverse also enables personalized promotions that are tailored to the individual preferences, behaviors, and contexts of consumers.By tracking and analyzing consumer interactions in the virtual environment, marketers can gain deep insights into consumer needs, interests, and motivations.These insights can be used to deliver personalized product recommendations, promotional offers, and content [6].For example, a retailer can recommend products based on a consumer's browsing history, shopping cart, and social interactions in the metaverse.A game developer can offer in-game items or rewards based on a player's game progress, performance, and preferences.A media company can suggest movies or music based on a user's viewing or listening history, ratings, and social shares [26].
Personalized promotions can enhance consumer satisfaction, engagement, and loyalty.However, they also raise concerns about data privacy and security.Marketers need to ensure that consumer data is collected, stored, and used in a transparent, secure, and ethical manner [13].

Social Media Marketing
The metaverse can enhance social media marketing by providing a more immersive and interactive social experience.In the metaverse, social media can evolve from a text-based, 2D platform into a 3D, virtual world where users can interact with each other as avatars.This can facilitate more engaging and meaningful social interactions, such as virtual meetups, parties, and concerts [41].Marketers can leverage these social interactions to build brand communities, foster user-generated content, and facilitate viral marketing.For instance, a brand can host a virtual event where users can interact with the brand, share their experiences, and invite their friends.A brand can also encourage users to create and share content related to the brand, such as virtual outfits, home decorations, or game mods [55].Social media marketing in the metaverse can enhance brand awareness, engagement, and advocacy.However, it also requires a deep understanding of the social dynamics and cultural norms of the metaverse.Marketers need to engage with users in a respectful and authentic manner, and avoid behaviors that may be perceived as spammy or manipulative [41].

Search Engine Optimization
In the metaverse, search engine optimization (SEO) can take on new dimensions.Instead of optimizing for textbased search queries, marketers may need to optimize for voice commands, visual searches, and spatial navigation.This may involve new techniques, such as 3D modeling, spatial audio design, and virtual reality markup language (VRML) [37].SEO in the metaverse can help businesses attract more visitors to their virtual spaces, improve user experience, and increase conversion rates.However, it also requires new skills and technologies, and a deep understanding of the search algorithms and user behaviors in the metaverse [37].
The metaverse offers exciting opportunities and challenges for digital marketing.Marketers need to rethink their strategies and tactics, and develop new capabilities to succeed in the metaverse.As the metaverse continues to evolve, its impact on digital marketing is expected to grow.

Implications for Business Models
The advent of the metaverse and the integration of Virtual Reality (VR) into economic activities have profound implications for business models.The immersive and interactive nature of VR can transform business strategy and operations, and redefine customer engagement in the virtual space.

Strategy and Operations
The metaverse offers businesses a new frontier for strategic positioning and operational efficiency.The ability to create immersive, interactive, and personalized experiences for customers can serve as a unique value proposition, distinguishing businesses from their competitors in the increasingly crowded digital marketplace [28,31].
From a strategic perspective, businesses can leverage the metaverse to create new products and services, enter new markets, and build strategic partnerships.For instance, fashion brands can offer virtual clothing for avatars, real estate companies can sell virtual properties, and entertainment companies can host virtual concerts or sports events [30].Moreover, businesses can collaborate with technology providers, content creators, and other stakeholders to create a vibrant ecosystem that enhances the value of their offerings [32].
From an operational perspective, VR can enhance efficiency and effectiveness in various areas.In product development, VR can facilitate rapid prototyping and user testing, reducing time-to-market and improving product quality [45].In marketing, VR can enable immersive advertising and personalized promotions, improving marketing effectiveness [34].In sales, VR can provide a seamless and engaging shopping experience, increasing conversion rates and customer loyalty [46].In customer service, VR can offer interactive and personalized support, enhancing customer satisfaction and retention [41].
However, leveraging the metaverse also poses challenges.Businesses need to invest in VR technology, develop new capabilities, and manage the complexity of the virtual environment.They also need to address ethical and legal issues, such as privacy, security, and intellectual property rights [53].Therefore, businesses need to carefully consider their strategic and operational decisions in the metaverse.

Customer Engagement in the Virtual Space
The metaverse offers a new paradigm for customer engagement.In the physical world, customer engagement is often limited by geographical distance, physical constraints, and temporal factors.In the metaverse, these limitations are largely removed.Customers can interact with businesses anytime, any-where, and in any way they want, leading to unprecedented levels of engagement [59].
In the metaverse, businesses can create immersive brand experiences that evoke strong emotional responses, foster a deep sense of connection, and build brand loyalty.For instance, a car manufacturer can let customers test drive a new car model in a virtual environment, a travel agency can offer virtual tours of holiday destinations, and a retailer can create a virtual store that mirrors its physical store [23].Businesses can leverage the interactivity of VR to involve customers in the value creation process.Customers can customize their products, participate in product development, and co-create content.This sense of agency can enhance customer satisfaction, loyalty, and advocacy [56].Businesses can facilitate social interactions in the metaverse, enhancing the communal dimension of customer engagement.Customers can shop together with friends, share their experiences, and join virtual communities of interest.This social aspect can enhance the sense of belonging, leading to higher levels of engagement [49].
However, engaging customers in the metaverse also poses challenges.Businesses need to manage the complexity of the virtual environment, ensure a seamless and enjoyable experience, and address privacy and security concerns.They also need to understand the unique behaviors, preferences, and expectations of customers in the metaverse, which may differ from those in the physical world [63].
The metaverse offers exciting opportunities and challenges for business models.Businesses need to rethink their strategy and operations, and redefine customer engagement in the virtual space.As the metaverse continues to evolve, its impact on business models is expected to grow.

Framework of V-commerce adoption
The adoption of V-commerce, like any other technological innovation, is a complex process that involves multiple factors and stages.Here we propose a comprehensive framework for understanding and facilitating the adoption of V-commerce.This framework is based on the Technology Acceptance Model (TAM), the Diffusion of Innovations theory, and the literature on e-commerce and V-commerce adoption.

Understanding the Technology Acceptance Model (TAM)
The Technology Acceptance Model (TAM) is a widely used model for understanding the adoption of new technologies.The model suggests that the adoption of a new technology is primarily determined by two factors: perceived usefulness and perceived ease of use [10].

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Perceived usefulness refers to the degree to which a person believes that using a particular system would enhance his or her job performance.In the context of V-commerce, perceived usefulness could be influenced by factors such as the immersive shopping experience, the personalized and interactive shopping features, and the convenience and efficiency of shopping in the virtual environment.

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Perceived ease of use refers to the degree to which a person believes that using a particular system would be free of effort.In the context of V-commerce, perceived ease of use could be influenced by factors such as the user-friendliness of the VR interface, the accessibility and reliability of the VR technology, and the availability of customer support and technical assistance.

Applying the Diffusion of Innovations Theory
The Diffusion of Innovations theory is another useful framework for understanding the adoption of new technologies.The theory suggests that the adoption of a new technology is influenced by five key factors: relative advantage, compatibility, complexity, trialability, and observability [44].
Relative advantage refers to the degree to which a new technology is perceived as being better than the existing technology.In the context of V-commerce, relative advantage could be influenced by factors such as the superior shopping experience, the innovative shopping features, and the competitive pricing and promotions in the virtual environment.
Compatibility refers to the degree to which a new technology is perceived as being consistent with the existing values, past experiences, and needs of potential adopters.In the context of V-commerce, compatibility could be influenced by factors such as the alignment with the customer's lifestyle, the fit with the customer's shopping habits, and the match with the customer's technological skills.
Complexity refers to the degree to which a new technology is perceived as difficult to understand and use.In the context of V-commerce, complexity could be influenced by factors such as the learning curve of the VR technology, the technical requirements of the VR system, and the complexity of the VR content and interactions.
Trialability refers to the degree to which a new technology can be experimented with on a limited basis.In the context of V-commerce, trialability could be influenced by factors such as the availability of VR demos, the flexibility of VR trials, and the reversibility of VR purchases.
Observability refers to the degree to which the results of a new technology are visible to others.In the context of V-commerce, observability could be influenced by factors such as the social sharing of VR experiences, the public display of VR products, and the word-of-mouth about VR shopping.

Incorporating E-commerce and V-commerce Adoption Factors
In addition to the TAM and the Diffusion of Innovations theory, the literature on e-commerce and V-commerce adoption provides additional insights into the factors influencing the adoption of V-commerce.
From the e-commerce literature, factors such as trust, security, privacy, and customer service have been found to significantly influence the adoption of e-commerce [39].These factors are also likely to influence the adoption of V-commerce, given the similar online nature of the two commerce modes.
From the V-commerce literature, factors such as immersion, interactivity, personalization, and social presence have been found to significantly influence the adoption of V-commerce [4].These factors highlight the unique characteristics of V-commerce that differentiate it from traditional e-commerce.

Proposing a Comprehensive Framework for V-commerce Adoption
Based on the above discussion, we propose a comprehensive framework for understanding and facilitating the adoption of V-commerce.This framework includes four main components: perceived usefulness, perceived ease of use, innovation characteristics, and adoption factors.

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Perceived usefulness and perceived ease of use are derived from the TAM and represent the individual's cognitive evaluation of the V-commerce technology.These components can be influenced by various factors, such as the features and benefits of the V-commerce technology, the user's technological skills and experiences, and the user's task and context. Innovation characteristics are derived from the Diffusion of Innovations theory and represent the individual's perception of the V-commerce technology relative to the existing technology.These components can be influenced by various factors, such as the advantages and compatibility of the V-commerce technology, the complexity and trialability of the V-commerce technology, and the observability of the V-commerce technology. Adoption factors are derived from the e-commerce and V-commerce literature and represent the individual's assessment of the V-commerce environment.These components can be influenced by various factors, such as the trust and security of the V-commerce platform, the privacy and customer service of the V-commerce platform, and the immersion and interactivity of the V-commerce experience [63].This framework provides a comprehensive and integrative perspective on the adoption of V-commerce, and it can be used to guide future research and practice in the metaverse economy.

Technological Components of V-commerce Framework
The technological components of a V-commerce framework are the building blocks that enable the creation of immersive, interactive, and engaging virtual commerce experiences.These components are interconnected and work together to facilitate various V-commerce activities, such as browsing products, interacting with virtual sales representatives, and making purchases.This subsection will delve into the key technological components of a Vcommerce framework, including virtual reality (VR) technologies, artificial intelligence (AI), blockchain, and Internet of Things (IoT).

Virtual Reality (VR) Technologies
Virtual reality (VR) is the cornerstone of V-commerce.It provides the immersive environment where virtual commerce takes place.VR technologies include hardware devices such as headsets, gloves, and treadmills, as well as software applications that create and manage the virtual environment [11].VR headsets, such as the Oculus Rift, HTC Vive, and PlayStation VR, provide the visual and auditory experiences of the virtual world.They track the user's head movements and adjust the display accordingly to create a sense of presence in the virtual environment.Some VR headsets also come with built-in headphones for 3D audio effects, further enhancing the immersion.VR gloves and treadmills are used to enable more natural and intuitive interactions with the virtual environment.Gloves can hand movements and provide haptic feedback, allowing users to "touch" and "grab" virtual objects.Treadmills let users "walk" or "run" in the virtual world, adding another layer of immersion.On the software side, VR applications are responsible for creating the virtual environment and managing interactions within it.They use computer graphics techniques to generate realistic 3D models and physics engines to simulate natural movements and collisions.Some VR applications also incorporate AI technologies to create intelligent virtual characters and personalize the user experience.

Artificial Intelligence (AI)
Artificial intelligence (AI) plays a crucial role in enhancing the V-commerce experience.It can be used to analyze user behavior, personalize content, and automate interactions.AI algorithms can analyze user behavior in the virtual environment to gain insights into their preferences and needs [16].For example, they can track which products a user looks at, how long they spend on each product, and what actions they take.These insights can then be used to personalize the V-commerce experience, such as recommending products that the user might like or adjusting the virtual environment to their preferences.AI can also be used to create intelligent virtual characters, such as sales representatives, customer service agents, dialogue agents or chatbots [24].These characters can interact with users in a natural and human-like manner, answering questions, providing information, and assisting with purchases.This not only enhances the user experience but also improves the efficiency of V-commerce operations by automating tasks that would otherwise require human intervention.

Blockchain
Lockchain technology can provide a secure and transparent infrastructure for V-commerce transactions.It can be used to create a decentralized ledger of transactions, ensuring that all transactions are recorded and cannot be tampered with.This can help build trust among V-commerce participants and prevent fraud.In addition, blockchain can enable the creation of digital assets and virtual currencies, which can be used in the V-commerce environment.Digital assets, such as virtual goods or properties, can be represented as tokens on the blockchain, ensuring their uniqueness and ownership.Virtual currencies, such as Bitcoin or Ethereum, can be used for transactions in the virtual environment, providing a secure and efficient payment method.

Internet of Things (IoT)
The Internet of Things (IoT) can connect the virtual and physical worlds in V-commerce.IoT devices, such as sensors and smart home devices, can collect data from the physical world and send it to the virtual environment [62].This can be used to create more immersive and interactive V-commerce experiences.For example, a temperature sensor in a user's home could send data to the virtual environment, adjusting the virtual weather to match the real-world weather.A smart home device could be controlled from the virtual environment, allowing a user to turn on their real-world lights by flipping a virtual switch.
In summary, the technological components of a V-commerce framework are diverse and interconnected.They work together to create immersive, interactive, and engaging V-commerce experiences, transforming the way we shop and interact with commerce.As these technologies continue to evolve, we can expect to see even more innovative and exciting developments in the world V-commerce.

Generic scenario of v-commerce adoption
A generic scenario of V-commerce adoption could unfold as follows:  Awareness and Interest: A consumer becomes aware of the existence of V-commerce through various channels such as social media, news, or word of mouth.They develop an interest in exploring this new way of shopping and start researching more about it. Exploration and Learning: The consumer starts exploring the V-commerce platforms available.They learn about the requirements for using these platforms, such as the need for VR equipment and a stable internet connection.They also learn about the benefits of V-commerce, such as immersive shopping experiences, personalized recommendations, and secure transactions.

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Trial and Evaluation: The consumer decides to try V-commerce.They purchase the necessary VR equipment and create an account on a V-commerce platform.They start browsing the virtual stores, interacting with virtual products, and making purchases.They evaluate their experience based on factors such as the ease of use, the quality of the VR environment, the accuracy of product representations, and the security of transactions.

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Adoption and Integration: If the consumer is satisfied with their V-commerce experience, they start integrating it into their regular shopping habits.They might start using V-commerce for certain types of purchases, such as clothing or furniture, where the immersive experience can provide significant benefits.They might also start using V-commerce for social shopping experiences, such as shopping together with friends in a virtual mall [57].

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Advocacy and Promotion: As the consumer becomes more comfortable and satisfied with V-commerce, they start promoting it to their friends and family.They share their positive experiences on social media and encourage others to try V-commerce.This advocacy helps spread the adoption of V-commerce to more consumers.Throughout this scenario, various factors can influence the consumer's decision to adopt V-commerce.These factors can include the perceived usefulness and ease of use of V-commerce (as suggested by the Technology Acceptance Model), as well as the relative advantage, compatibility, complexity, trialability, and observability of Vcommerce (as suggested by the Diffusion of Innovations theory).The consumer's personal characteristics, such as their technology literacy and openness to new experiences, can also play a significant role in the adoption process.

Case Studies of V-commerce in Action
The following section provides an in-depth examination of a specific case where V-commerce has been successfully implemented, highlighting the practical application of the concepts discussed in this paper.

Case Study 1: The Virtual Reality Transformation of IKEA
IKEA, the Swedish multinational conglomerate known for its ready-to-assemble furniture and home accessories, has been a pioneer in leveraging virtual reality (VR) technology to enhance its customer experience and business operations.This case study explores how IKEA has integrated VR into its business model, transforming the traditional shopping experience into an immersive, interactive, and personalized V-commerce experience.

The IKEA VR Experience
In 2016, IKEA launched its first VR application, the IKEA VR Experience (Figure 2 (left)), on the Steam gaming platform [9].The application allowed users to explore a virtual IKEA kitchen, change the color of cabinets and drawers, and view the kitchen from different perspectives, such as the perspective of a child or a tall person.The application also allowed users to interact with the kitchen, such as opening drawers, cooking virtual food, and recycling waste.The purpose of the application was to solicit customer feedback and learn about their preferences and behaviors in a virtual environment.In 2017, IKEA launched its second VR application, the IKEA Place (Figure 2 (right)), on the Apple App Store and Google Play Store [25].The application used augmented reality (AR) technology to allow users to place virtual IKEA furniture in their real environment, see how the furniture fits and looks in their space, and share the images with their friends and family.The application also allowed users to purchase the furniture directly from the application, integrating the virtual shopping experience with the e-commerce process.

The Impact on IKEA's Business
The integration of VR into IKEA's business model has had a significant impact on its customer experience and business operations.
From the customer perspective, the IKEA VR applications have enhanced the shopping experience by making it more immersive, interactive, and personalized.Customers can explore and interact with the virtual IKEA products and environments, visualize and customize the products in their own space, and engage in virtual activities and communities.The applications have also made the shopping experience more convenient and efficient, as customers can shop from home, avoid the crowds and queues, and make informed decisions.
From the business perspective, the IKEA VR applications have provided valuable insights into customer preferences and behaviors, facilitated customer feedback and engagement, and driven online traffic and sales.The applications have also demonstrated IKEA's innovation and leadership in digital technology and sustainable living, strengthened IKEA's brand image and customer loyalty, and differentiated IKEA from its competitors.

The Lessons Learned
The IKEA case provides several lessons for other businesses considering integrating VR into their business model.First, VR can enhance the customer experience by making it more immersive, interactive, and personalized.Businesses should consider how they can leverage VR to create unique and memorable customer experiences, such as virtual product demonstrations, virtual store tours, or virtual customer service.Second, VR can provide valuable insights into customer preferences and behaviors.Businesses should consider how they can leverage VR to collect and analyze customer data, such as customer interactions, customer feedback, or customer journeys.Third, VR can drive online traffic and sales.Businesses should consider how they can leverage VR to attract and retain customers, such as through VR marketing, VR promotions, or VR loyalty programs.Finally, VR can demonstrate a business's innovation and leadership.Businesses should consider how they can leverage VR to showcase their technology, sustainability, or community initiatives, and to differentiate themselves from their competitors.
The IKEA case illustrates the potential of VR in transforming the shopping experience and business operations, and provides valuable lessons for other businesses in the metaverse economy.

Case Study 2: Balenciaga's Virtual Reality Fashion Show
In addition to the IKEA case, another example of successful V-commerce implementation can be found in the fashion industry.This case study focuses on the luxury fashion brand, Balenciaga, and its innovative use of virtual reality to revolutionize the traditional fashion show experience [33].Balenciaga, a luxury fashion house founded in Spain and now based in Paris, has been at the forefront of integrating virtual reality into the fashion industry [8].In December 2020, Balenciaga unveiled its Fall 2021 collection in an unconventional manner: through a video game.Titled "Afterworld: The Age of Tomorrow," the game was a bold experiment in the use of virtual reality for fashion presentation.

The Balenciaga VR Experience
"Afterworld: The Age of Tomorrow" (Figure 3) was a fully immersive, VR video game that allowed players to navigate through different zones, each representing a theme from Balenciaga's Fall 2021 collection [45].The game was set in the year 2031, and players could interact with various characters dressed in outfits from the collection.The game was designed to be a hero's journey, with the player's character advancing through levels, facing challenges, and ultimately reaching a utopian finale.The game was developed using advanced graphics technology, and it was designed to be accessible to anyone with an internet connection.Players could experience the game on their computers, smartphones, or VR headsets.The game was also accompanied by a soundtrack featuring new music from various artists, adding another layer of immersion to the experience.

The Impact on Balenciaga's Business
The integration of virtual reality into Balenciaga's fashion presentation has had a significant impact on its customer experience, business operations and advertising [48].
From the customer perspective, the Balenciaga VR experience has transformed the traditional fashion show into an immersive, interactive, and personalized gaming experience.Customers can explore and interact with the virtual Balenciaga collection, engage in a narrative-driven adventure, and enjoy a sensory-rich environment.The experience has also made the fashion show more accessible and inclusive, as customers can participate from anywhere in the world, regardless of their location or status.
From the business perspective, the Balenciaga VR experience has provided a unique platform for showcasing the brand's creativity and innovation, telling the brand's story, and engaging with the brand's community.The experience has also generated significant media attention and social buzz, driving online traffic and brand awareness.

The Lessons Learned
The Balenciaga case provides several lessons for other businesses considering integrating VR into their business model.First, VR can transform traditional events into immersive and interactive experiences.Businesses should consider how they can leverage VR to reinvent their events, such as product launches, trade shows, or corporate meetings.Second, VR can make events more accessible and inclusive.Busi-nesses should consider how they can leverage VR to reach a wider audience, such as remote customers, international customers, or disabled customers.Third, VR can provide a unique platform for brand storytelling and community engagement.Businesses should consider how they can leverage VR to convey their brand values, engage their brand community, or create brand content.Finally, VR can generate media attention and social buzz.Businesses should consider how they can leverage VR to create news-worthy experiences, engage influencers, or drive social sharing [36].
The Balenciaga case illustrates the potential of VR in transforming the fashion show experience and business operations, and provides valuable lessons for other businesses in the metaverse economy.

Challenges and Opportunities in the Metaverse Economy
The metaverse economy, while presenting a plethora of opportunities for economic growth and innovation, also brings forth a set of challenges that need to be addressed.These challenges range from privacy and security issues to the digital divide and the need for appropriate regulatory frameworks.

Privacy and Security Issues
The metaverse, being a digital universe, inherently involves the collection, storage, and processing of vast amounts of data.This data, which includes personal information, behavioral data, and transactional data, is crucial for providing personalized experiences, facilitating transactions, and generating insights in the metaverse economy [53].However, it also raises significant privacy and security concerns.
From a privacy perspective, users may be unaware of the extent to which their data is collected, used, and shared in the metaverse.They may also lack control over their data, as it may be difficult to opt out of data collection or to delete their data in the metaverse.Moreover, the use of advanced technologies such as AI and IoT in the metaverse may enable more invasive forms of data collection, such as biometric data and real-time location data, which may further infringe on users' privacy [53].
From a security perspective, the metaverse may be vulnerable to various cyber threats, such as data breaches, identity theft, and cyberattacks.These threats may be exacerbated by the complexity and novelty of the metaverse, which may make it difficult to secure.For instance, the integration of multiple technologies in the metaverse may create new attack vectors, the use of blockchain in the metaverse may pose risks of smart contract vulnerabilities, and the decentralization of the metaverse may challenge traditional security measures [53].
Addressing these privacy and security issues is crucial for building trust in the metaverse economy.This may involve implementing robust data protection measures, developing secure technologies, promoting transparency and user control over data, and educating users about privacy and security in the metaverse [53].

The Digital Divide
The metaverse economy, while promising to democratize access to economic opportunities, may also exacerbate the digital divide.The digital divide refers to the disparity in access to digital technologies and the ability to use them effectively, which is often associated with factors such as income, education, age, and geography [42].
In the context of the metaverse, the digital divide may manifest in several ways [22].First, access to the metaverse may be limited by the availability and affordability of VR devices and high-speed internet, which may be out of reach for many people, particularly in developing countries.Second, the use of the metaverse may require digital literacy skills, such as navigating virtual environments, interacting with AI, and managing digital assets, which may be lacking among certain populations.Third, participation in the metaverse economy may be influenced by socio-cultural factors, such as gender norms and language barriers, which may exclude or disadvantage certain groups.
Bridging the digital divide in the metaverse economy is a complex and multifaceted challenge.It may involve promoting digital inclusion policies, investing in digital infrastructure, providing digital literacy education, and fostering a diverse and inclusive metaverse culture.

Regulatory Frameworks
The metaverse economy, due to its novel and complex nature, poses significant regulatory challenges.These challenges pertain to various aspects of the metaverse, including data protection, consumer protection, competition, taxation, and digital rights.
Data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union, may need to be adapted to address the unique privacy issues in the metaverse, such as biometric data collection and AI-driven personalization [53].Consumer protection regulations may need to be updated to cover virtual goods and services, which may involve issues of quality, safety, and fairness that are different from physical goods and services [41].Competition regulations may need to be enforced to prevent monopolistic practices in the metaverse, such as platform lock-in and data monopolies [31].
Taxation regulations may need to be developed to tax economic activities in the metaverse, which may involve cross-border transactions, virtual currencies, and digital assets that challenge traditional taxation principles [58].Digital rights regulations may need to be established to protect users' rights in the metaverse, such as the right to identity, the right to privacy, and the right to freedom of expression [53].
Developing regulatory frameworks for the metaverse economy is a daunting task, given its global, decentralized, and rapidly evolving nature.It requires international cooperation, multi-stakeholder dialogue, and forward-looking and flexible regulations [31].

Potential for Economic Growth and Innovation
Despite the challenges, the metaverse economy offers immense potential for economic growth and innovation.By creating a virtual universe that mirrors and extends the physical world, the metaverse can generate new economic value, foster innovation, and drive economic transformation.The metaverse can generate new economic value by creating new markets for virtual goods, services, and real estate.These markets can offer diverse and unique economic opportunities, from virtual fashion and art to virtual tourism and education.They can also enable microtransactions, peer-to-peer transactions, and programmable transactions, facilitated by blockchain and smart contracts, which can increase the efficiency and inclusivity of the economy [45].
The metaverse can foster innovation by providing a platform for experimenting with new ideas, technologies, and business models.Businesses can use the metaverse to innovate their products, services, and customer experiences, leveraging VR, AR, AI, and other advanced technologies.They can also use the metaverse to innovate their operations, such as by conducting virtual meetings, trainings, and collaborations, or by using digital twins for simulation and optimization.Furthermore, they can use the metaverse to innovate their business models, such as by adopting platform models, subscription models, or token economy models [31].
The metaverse can drive economic transformation by reshaping various sectors and aspects of the economy.In the retail sector, the metaverse can transform shopping into an immersive, interactive, and personalized experience, thereby enhancing customer engagement and satisfaction [23].In the entertainment sector, the metaverse can create immersive and interactive forms of entertainment, such as virtual concerts, games, and sports, thereby enriching cultural and social experiences [38].In the work sector, the metaverse can enable remote and flexible work, thereby improving work-life balance and productivity [1].In the education sector, the metaverse can provide immersive and interactive learning experiences, thereby enhancing learning outcomes and accessibility [38].
In addition to these sectoral transformations, the metaverse can also contribute to broader economic transformations.It can contribute to the digital transformation of the economy, by accelerating the digitization of economic activities and the adoption of digital technologies.It can contribute to the green transformation of the economy, by reducing the environmental impact of economic activities, such as by reducing physical travel and consumption [35].It can contribute to the inclusive transformation of the economy, by democratizing access to economic opportunities and by fostering diversity and inclusion in the economy.The metaverse economy, while presenting challenges in terms of privacy, security, digital divide, and regulation, also offers immense opportunities for economic growth and innovation.By addressing these challenges and harnessing these opportunities, we can shape the metaverse economy to be a force for good, contributing to a prosperous, innovative, and inclusive future.

Future Directions and Strategies for the Metaverse Economy.
The metaverse economy, while still in its nascent stages, is rapidly evolving and holds significant potential for reshaping our economic landscape.This section explores the emerging trends in V-commerce, strategies for businesses to thrive in the metaverse economy, and policy recommendations to foster a conducive environment for the growth and development of the metaverse economy.

Emerging Trends in V-commerce
As the metaverse economy continues to evolve, several trends are emerging that are likely to shape the future of V-commerce.
First, the integration of artificial intelligence (AI) and machine learning (ML) technologies into V-commerce platforms is expected to enhance personalization and predictive capabilities, thereby improving customer experiences and business outcomes [12].AI and ML can be used to analyze customer behavior and preferences, predict customer needs and responses, personalize product recommendations and promotions, and automate customer service and support.
Second, the use of blockchain and cryptocurrency technologies in V-commerce is expected to enhance security, transparency, and efficiency, thereby improving customer trust and business performance [56].Blockchain can be used to secure transactions and data, verify identities and ownerships, and automate contracts and payments.Cryptocurrency can be used to facilitate cross-border transactions, reduce transaction costs, and enable new business models, such as token economy and decentralized finance.
Third, the development of immersive and interactive technologies, such as virtual reality (VR), augmented reality (AR), and haptic technology, is expected to enhance sensory and emotional experiences, thereby enriching customer engagement and satisfaction [29].VR and AR can be used to create immersive and interactive shopping environments, product demonstrations, and customer interactions.Haptic technology can be used to simulate tactile and kinesthetic experiences, such as the feel of a product or the motion of an activity.

Strategies for Businesses
To thrive in the metaverse economy, businesses need to adopt proactive and innovative strategies.First, businesses need to embrace digital transformation, by integrating digital technologies into their operations, products, and services, and by developing digital capabilities and culture [3].This includes adopting advanced technologies, such as AI, ML, blockchain, cryptocurrency, VR, AR, and haptic technology, and fostering a digital mindset, such as agility, experimentation, collaboration, and customer Hahnel centricity.
Second, businesses need to innovate their business models, by exploring new ways of creating, delivering, and capturing value in the metaverse economy [31].This includes adopting platform models, subscription models, or token economy models, and exploring new revenue streams, such as virtual goods, services, experiences, or advertisements.
Third, businesses need to engage their customers, by creating immersive, interactive, and personalized customer experiences, and by building trust and relationship with their customers [23].This includes using VR, AR, and haptic technology to create immersive and interactive shopping experiences, using AI and ML to personalize product recommendations and promotions, and using blockchain and cryptocurrency to secure transactions and data.

Policy Recommendations
To foster a conducive environment for the growth and development of the metaverse economy, policy-makers need to adopt forward-looking and balanced policies.
First, policymakers need to promote digital literacy and inclusion, by ensuring that all individuals and businesses have the knowledge, skills, and access to participate in the metaverse economy [1].This includes providing education and training in digital technologies and skills, promoting access to digital infrastructure and services, and supporting digital entrepreneurship and innovation [60,61].
Second, policymakers need to protect privacy and security, by establishing robust legal and regulatory frameworks that safeguard personal data and transactions in the metaverse economy [53].This includes enacting data protection and cybersecurity laws, enforcing compliance with these laws, and promoting best practices in privacy and security.
Third, policymakers need to foster innovation and competition, by creating a supportive environment for the research, development, and commercialization of new technologies, products, and services in the metaverse economy [27].This includes providing funding and incentives for research and development, facilitating collaboration between academia, industry, and government, and ensuring fair and open competition in the metaverse economy.
The metaverse economy presents a new frontier for economic activities, with significant opportunities and challenges.By understanding the emerging trends in V-commerce, adopting proactive and innovative strategies, and implementing forward-looking and balanced policies, we can navigate this new frontier and thrive in the metaverse economy.

Conclusion
The metaverse economy, underpinned by the integration of virtual reality and other advanced technologies, represents a significant shift in the way economic activities are conducted.This paper has examined the impact of virtual reality on various economic activities, the challenges and opportunities presented by the metaverse economy, and the strategies for thriving in this new economic landscape.
The findings of this paper can be summarized as follows: The metaverse, as a virtual universe, pro-vides an immersive, interactive, and personalized environment for various economic activities, such as shopping, selling, buying, and commerce, thereby transforming the customer experience and business operations.The metaverse economy presents significant opportunities for economic growth and innovation, by enabling new forms of products, services, experiences, and business models, and by driving digital, green, and inclusive transformations of the economy.The metaverse economy also presents significant challenges, in terms of privacy, security, digital divide, and regulation, which need to be addressed to ensure the sustainable and inclusive development of the metaverse economy.Businesses can thrive in the metaverse economy by embracing digital transformation, innovating their business models, engaging their customers, and adopting proactive and innovative strategies.

Figure 1
Figure 1 presents a component diagram of the technological components of a V-commerce framework, including interactions between components and their relation to Diffusion of Innovations factors and the Technology Acceptance Model (TAM).This diagram represents the four main technological components of a Vcommerce framework: Virtual Reality (VR) Technologies, Artificial Intelligence (AI), Blockchain, and Internet of Things (IoT).The arrows between the components represent interactions between them, such as personalization, security, real-time data, and immersive experience.The diagram also includes the Diffusion of Innovations factors and the Technology Acceptance Model (TAM), showing how the technological components can influence these factors and model.For example, VR technologies can increase the perceived usefulness and improve the observability, and AI can reduce the complexity and improve the perceived ease of use.

Figure 1 .
Figure 1.A conceptual model of v-commerce framework.