To Adopt or Not to Adopt, That is the Question: An Analysis of Drivers and Barriers for Adoption of Virtual Fitting Rooms in the Swedish online fashion retail market

Abstract: The immense increase in returns amongst Swedish online fashion retailers has given rise to severe challenges, not least from a sustainability perspective. Several studies have shed light to Virtual Fitting Rooms (VFRs) as a potential solution for reducing online returns. However, as of today, only a limited number of Swedish fashion online retailers have adopted the technology, and even in those cases, customer usage has been low. Therefore, the aim of this thesis is to create an understanding into the drivers and barriers that influence the adoption or rejection of VFRs among consumers in the Swedish online fashion retail market. The methodology employed in this thesis takes a qualitative approach based on 15 semi-structured interviews incorporating a visual elicitation technique. The results suggest six drivers that encourage adoption of VFRs, rooted in intrinsic and extrinsic motivation. Further, the results suggest eleven barriers impeding the adoption of VFRs, divided in functional-, psychological- and situational barriers. The theoretical contribution of this thesis includes the introduction of a third category, situational barriers, in addition to the widely recognized functional- and psychological barriers. This thesis also holds practical implications since the drivers and barriers discovered can be used to develop VFRs tailored to consumer needs. This in turn can enhance adoption and encourage sustainable consumer behavior.