Metaverse is a virtual world where users can engage in various activities, and its market is expected to grow rapidly in the coming years (Hwang, 2021). Generation Z, also known as digital natives, are heavily involved in social media and often share selfies, making them more sensitive to body image concerns (Ameen, 2022). In the metaverse, users can create customized avatars, allowing them to experience an ideal body image. This study applies the “extraordinary self” theory to avatar creation, a concept that explains how people create an ideal, fantastic, or transcendent self by consuming experiences that set them apart from their mundane real self (Procter, 2021). Based on the theory, this study examines how dissatisfaction with body image of Generation Z can lead to the creation of avatars that manifest an ideal body image, which in turn, can influence self-congruence with the avatar and self-esteem in the metaverse. This study also looks into the possible effects of enhanced self-esteem on user’s intention to purchase virtual products and their loyalty to a specific metaverse platform. Therefore, the following hypotheses are developed.

Today, the metaverse is everywhere; it has become a major buzzword. The term was first coined in an American writer’s 1992 science fiction novel, Snow Crash, as a portmanteau of meta (Greek prefix meaning beyond) and universe. Nearly three decades later today, it is no longer the setting of a science fiction epic. Rather, it is becoming as real as the physical world. In the current time, the metaverse is used as a concept to describe a seamless convergence of the physical and digital worlds, or a virtual community where people can work, play-to-earn, transact and socialize (J.P. Morgan, 2022).

With the infusion of advanced technology, interactions between customers and firms’ representatives take place in brick-and-mortar stores, 2D online sites, and even 3D metaverse environments. In the metaverse, a firm’s sales avatars interact with other users while representing the firm, recommend, and sell virtual items. Previous literature about the effectiveness of sales representatives agrees that a firm representatives’ smiling faces engender customer satisfaction and better interactions. However, it is unclear whether smiling faces of sales avatars will work the same way in the metaverse as they do in the real world. The current research examines whether a firm’s sales avatars with sad facial expression (vs. those with smiling facial expression) stimulate higher user intentions to interact with firm representative avatars, to purchase virtual items from the representative avatars, and to spread positive WOM about their experience in the metaverse. Moreover, focusing on subcultural appeal, we investigate why this unconventional phenomenon happens in the metaverse unlike in real world. We conducted two experiments to manipulate a firm representative avatar’s facial expression (smiling vs. sad) in the metaverse. We newly designed a metaverse place, and participants who put on a virtual reality headset are exposed to either a hat (Experiment 1) or shoes (Experiment 2) store where they can purchase a virtual hat or shoes. Experiments 1 and 2 basically tested the same things repeatedly. However, to improve internal validity and generalizability, Experiment 2 used human-like sales avatars instead of cartoon character-like sales avatars in Experiment 1, changed virtual stores from a hat store to shoes store, and finally controlled for various extraneous variables such as attractiveness, warmth, and competence of sales avatars, and user’s previous experience about metaverse. Sales representatives with a smile are believed to contribute to beneficial consumers’ attitudes and behaviors in offline stores. However, our experiments demonstrate that this well-received belief does not necessarily apply in the metaverse, where subcultural appeal plays a more critical role. In the metaverse, users evaluate sales avatars with sad facial expression (vs. with smiling facial expression) as more unique and cool (i.e., higher subcultural appeal), leading to their higher intention to interact with the sad sales avatar, to purchase a virtual item, and to spread positive WOM about their experiences. Our results imply that previous findings supported in the offline or 2D online sites may not work the same way in the 3D metaverse.