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The impact of using a virtual fitting room on purchasing decision at omnichannel showrooms

Student: Romanycheva Svetlana

Supervisor: Svetlana Berezka

Faculty: Graduate School of Business

Educational Programme: Management (Bachelor)

Year of Graduation: 2020

Today the competition in the fashion market has intensified: there is an increase in the number of not only large fashion retailers but also small players - showrooms that sell on several channels: both offline and online. Due to changes in consumer preferences and other external factors, online shopping is gaining more and more popularity. However, online channels have their own limitations, the key of which are inaccuracies in the description of the product and the inability to experience the product. Therefore, the purpose of this study is to identify opportunities to improve customer experience on the way to purchase in modern omnichannel showrooms based on the use of a new function for digital platforms - a virtual fitting room. This work is a subject of practical and academic interest. The practical significance of the study lies in the fact that at present the Russian fashion market is highly competitive and is at the stage of stagnation. Therefore, companies representing small businesses in the fashion industry need to find new ways to retain and attract consumers, thereby enriching the customer experience. The theoretical significance of this final qualification work lies in the study of new areas of knowledge that have not yet been studied in science. These include: • study of the activity of showrooms as independent business units; • study of existing customer experience in small fashion retailers; • analysis of the impact of the virtual fitting room on the decision to purchase in such stores. In order to achieve this goal, the following methodology was chosen: a review of academic and business sources, conducting expert interviews with the management staff of modern Russian showrooms, as well as interviewing the target audience of small fashion retailers. As a result, the results showed that the virtual fitting room has a positive effect on consumer purchasing decisions and can be a useful tool for enriching the customer experience. Moreover, the analysis made it possible to minimize all the risks for the top management of the showrooms on the introduction of a virtual fitting room. The results obtained in the analytical part became the basis for drawing up practical recommendations for improving client experience in the Podium LLC company - the omnichannel showroom Inna Shtrem. Recommendations include: • selection of a service provider for the development and maintenance of a virtual fitting room; • selection of virtual fitting room locations for both online channels and offline; • choosing the type of virtual fitting room and substantiating its pros and cons for both buyers and business founders; • calculation of the economic efficiency of the virtual fitting room. The main limitation of the research presented in the work is that the analysis of customer experience in small fashion retailers was carried out only within Russia, since abroad the use of virtual fitting-room technologies is more popular than in the domestic market. Therefore, the data obtained are relevant only for the Russian business environment. Thus, this study made it possible to fill in the gaps in the study of customer experience in small businesses in the fashion market - omnichannel showrooms. The data obtained are of increased importance. With their consideration the top management of modern showrooms will be able to make decisions to improve the customer experience in their companies through the use of virtual fitting room technology. In the future, this study can be deepened by conducting merchandising tests to diagnose how various layout schemes for goods in a virtual fitting room influence a purchasing decision.

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