Augmented reality: Designing immersive experiences that maximize consumer engagement

Innovative marketers can now leverage augmented reality to craft immersive brand experiences, create more interactive advertising, and enable consumers to experience products and spaces in novel ways. Augmented reality (AR) is the practice of displaying digital information over people's real-time view of objects, people, or spaces in the physical world. While AR can play a valuable role in integrated marketing programs, little is known about the practice and how to execute effective AR programs in the marketplace. We address this gap by presenting a framework that describes the active and passive ingredients of augmented reality. We then describe the basic design decisions that marketers need to make when planning an augmented reality campaign. In addition, we explain how understanding and addressing the dynamics between various active and passive AR ingredients can help marketers to optimize their AR campaigns and enhance various types of consumer engagement: user-brand engagement, user-user engagement, and user-bystander engagement. Through our framework and analysis, we develop eight actionable recommendations—described with the acronym ENTANGLE—marketing managers can use to design immersive AR experiences that maximize consumer engagement.     

Is Augmented Reality Technology an Effective Tool for E-commerce? An Interactivity and Vividness Perspective

This study evaluates the effectiveness of augmented reality (AR) as an e-commerce tool using two products — sunglasses and watches. Study 1 explores the effectiveness of AR by comparing it to a conventional website. The results show that AR provides effective communication benefits by generating greater novelty, immersion, enjoyment, and usefulness, resulting in positive attitudes toward medium and purchase intention, compared to the web-based product presentations. Study 2 compares the paths by which consumers evaluate products through AR versus web with a focus on interactivity and vividness. It is revealed that immersion mediates the relationship between interactivity/vividness and two outcome variables — usefulness and enjoyment in the AR condition compared to the web condition where no significant paths between interactivity and immersion and between previous media experience and media novelty are found. Participants' subjective opinions about AR are examined through opinion mining to better understand consumer responses to AR.     

‘It’s an illusion,but it looks real!’ Consumer affective,cognitive and behavioural responses to augmented reality applications

ABSTRACT

The paper investigates two augmented reality (AR) applications and corresponding consumer responses to their media characteristics. Firstly, it discusses the role of interactivity with AR technology. Secondly, it introduces augmentation as a salient media characteristic of AR applications and tests measurement items of perceived augmentation. Two experimental studies replicate the research design of Van Noort et al. [Van Noort, G., Voorveld, H. A. M., & van Reijmersdal, E. A. (2012). Interactivity in brand web sites: cognitive, affective, and behavioral responses explained by consumers’ online flow experience. Journal of Interactive Marketing, 26, 223–234], applying it in the context of AR. The results show that perceived augmentation represents a fitting concept for understanding consumer responses to AR features and, furthermore, that flow mediates effects of perceived augmentation on consumers’ affective responses and behavioural intentions. AR features on the other hand do not increase perception of interactivity. Finally, implications of the study and further research directions are discussed.     

Virtual and augmented reality: Advancing research in consumer marketing

Virtual reality (VR) and augmented reality (AR) technologies are having a profound impact on a variety of marketing practices and are attracting increasing attention from marketing researchers. In this article, we review developments in VR/AR applications and research in the area of consumer marketing. We propose a conceptual framework for VR/AR research in consumer marketing that centers around consumer experiences provided by VR/AR applications along the customer journey and the effectiveness of such applications, and delve into the key concepts and components of the framework. Next, we provide a comprehensive overview of VR/AR applications in current practices and extant research on VR/AR in consumer marketing. Finally, based on this framework, we offer an outlook for future developments of VR/AR technologies and applications, discuss managerial implications, and prescribe directions for research on consumer marketing.     

Consumer Acceptance of Interactive Media in Service Marketing Encounters

This study considers a number of factors that could influence consumer acceptance of interactive information systems in complex service marketing situations. Further, it investigates the potential relevance of various theoretical perspectives to research involving new communication media such as videotex and teletext. Technical characteristics of the medium, which determine its degree of interactivity, are found to affect user perceptions of the medium's ‘personalness' or ‘social presence’. Characteristics of both the medium and the user are found to affect consumer acceptance of an interactive medium in a financial services setting.     

The effect of augmented reality versus traditional advertising: a comparison between neurophysiological and self-reported measures

Despite the growing application of augmented reality in advertising, there is limited understanding about how customers respond to their interaction with the augmented reality advertising and how it differs from a standard paper-based advertising. Augmented reality ads are immersive, interactive, and lifelike, which means they may help companies create an emotional connection with their customers. The authors test if customers would respond in terms of emotional and affective intensity differently to augmented reality versus standard paper-based advertising. The results of two laboratory studies that consider physiological measures of arousal (galvanic skin response), self-reported measure of affect intensity and willingness to pay show that the higher willingness to pay for customers exposed to augmented reality as opposed to standard paper-based ads is driven by the physiological arousal, but not by the self-reported affect intensity and that processing fluency possibly underlies consumer’s enhanced emotional responses toward AR. These results suggest that replacing traditional advertisements with augmented reality advertisements enhances customer physiological responses and willingness to pay, with possible implications on customer segmentation and marketing communication.

     

Interactivity's Unanticipated Consequences for Marketers and Marketing

The digital interactive transformation in marketing is not unfolding, as some thought it would, on the model of direct marketing. That model anticipated that marketing, empowered by digital media using rich profiling data, would intrude ever more deeply and more precisely into consumer lives than broadcast media had been able to. Instead the transformation is unfolding on a model of consumer empowerment, in which consumers use digital media to communicate with one another and deal with marketing's intrusions, showing none of the passivity displayed by mass media audiences. This paper categorizes five roles for the interactive consumer and draws implications for marketing practice. It concludes that the balance of power over marketplace meaning-making is shifting from marketer to consumer to the extent that media usage migrates from broadcasting to interactivity. The new marketplace rewards more participatory, more sincere, and less directive marketing styles than the old.     

Concepts and practices of digital virtual consumption

Despite the popularity of online spaces that simulate aspects of consumption‐like experiences (online virtual worlds, video games and interactive functions on online retailers) conceptual tools that aim to comprehend such consumer practices are yet to emerge. In an effort to better understand them this paper puts forward a taxonomy that may help us capture emerging consumer behavior in the digital virtual terrain in relation to virtual and material consumption. This may be read as a fluid template that considers the movement between what resides in consumer imaginations as ideal or virtual, its actualization in material and now also digital virtual spaces. We then offer examples of the practices that are emerging, specifically the increase in imaginative resources that interactive media provide; practices that actualize probable, everyday commodities and experiences in the digital virtual and practices that actualize fantastic commodities and experiences in the digital virtual. Finally, we discuss the potential for these to produce new consumer subjectivities and new markets, and as a result we conclude with a discussion of the implications of such developments for consumer cultures, noting the potential for both liberatory/celebratory and critical discourse as well as avenues for future research.     

Adoption of augmented reality in online retailing and consumers’ product attitude: A cognitive perspective

With the application of augmented reality (AR) technology by online retailers to improve online services, the impact of AR adoption on consumer behavior has attracted attention both in academic and in practical circles. Based on the cognitive perspective of information processing and from the two aspects of cognitive load and cognitive fluency, this study discusses the influence of AR adoption on online consumers' product attitudes. The results of the experimental study show that two AR characteristics—environmental embedding and simulated physical control—can reduce consumers’ cognitive load, enhance their cognitive fluency, and improve their product attitude. Furthermore, product type can moderate the influence of AR environmental embedding and simulated physical control on cognitive fluency.     

How mobile augmented reality applications affect continuous use and purchase intentions: A cognition-affect-conation perspective

Augmented reality (AR) is rapidly gaining attention in practice, and research as the adoption of smartphones and technological advancements persist. The focus of current literature on AR has been on its use for improving visual and display quality. However, limited guidance is offered on how consumers evaluate their experience and how that, in turn, influences their behaviors, especially in the smartphone context. This study seeks to extend this line of research by applying the cognition-affect-conation framework to examine how mobile augmented reality (MAR) experiences shape the consumer decision-making process. Data collected from 316 users in the United States were analyzed using partial least squares structural equation modeling (PLS-SEM). The results reveal that consumers’ cognitive evaluation of MAR applications stimulates their affective reactions, which eventually create conative behaviors. Thus, this study offers an integrated perspective for investigating continuous use and purchase intentions jointly in one research model. In addition, it examines how perceived value, a cognitive trait variable, influences consumer conative responses directly and indirectly through affective responses. The results confirm the relationships proposed in the cognition-affect-conation framework and empirically support the direct and indirect influence of perceived value on conative efforts in the MAR context. The findings contribute to AR theory building, application design, and marketing strategy development.     

The State of Augmented Reality Advertising Around The Globe: A Multi-Cultural Content Analysis

As a new form of advertising, augmented reality (AR) advertising offers a unique opportunity to study how new technology-facilitated ad campaigns are constructed across cultures. This research analyzes the content of 117 AR ad campaign videos uploaded on YouTube, and reveals the prevalent characteristics of AR campaigns. We compared videos from individualistic countries with those from collectivistic countries. Results suggest that AR ad campaigns from more individualistic cultures tend to include product information and enable a user to control the virtual AR content, whereas AR ad campaigns from more collectivistic cultures tend to allow a user to become part of the virtual AR content without manipulating it. In closing, we discuss managerial implications for marketers and advertisers as well as opportunities for future research.     

Beyond presence: Creating attractive online retailing stores through the cool AR technology

Augmented reality (AR) is increasingly coming into the spotlight for its potential to improve the consumer experience through the creation of presence. This research aims to explore the theoretical mechanisms through which AR-based product presentation influences online store attractiveness and whether the effects differ in the purchasing contexts of hedonic and utilitarian product types. From the perspective of consumers' bidimensional experience, we find that AR increases online store attractiveness by creating perceived coolness (intrinsic attribute) and spatial presence experience (extrinsic attribute), which would further have a positive impact on consumers' purchase intention. The mediating mechanisms are different in purchasing contexts of various product types: for hedonic products, perceived coolness and spatial presence are parallel mediating factors leading to the improvement of online store attractiveness; while for utilitarian products, only the mediation effect of spatial presence presents. Our findings enrich the literature on AR marketing by proposing an insightful mediating force (i.e., perceived coolness) to complement the effect of presence, and explore the different purchasing contexts. We also provide managerial guidance for e-retailers to differentiate AR interface design for diverse product types to apply AR technology effectively.     

How focused identities can help brands navigate a changing media landscape

In today's rapidly changing and fast-paced media landscape, consumer attention is a rare and fractured commodity. Within this environment, marketing and branding must serve customers who are attending to multiple media simultaneously, while brand placement moves brands outside of advertisements and into incidental exposure. Some brands offer a strong, consistent, and focused brand identity on all consumer-facing fronts, from advertising to event promotion and retail environments. These brands can retain their effectiveness in this new media reality, as mere exposure is all that's required to activate their rich brand identity. At the same time, brand exposure effects illuminate the vast role of nonconscious attention and processing in consumer cognition and behavior. New research shows that even incidental exposure to a brand can alter consumer behavior in manners consistent with brand identity, producing effects which may persist outside of marketing contexts and occur even when the product is not purchased or consumed. These findings suggest that strong brand identities can retain effectiveness in the modern media environment, but further work is needed to explore their multi-dimensional effects on consumer life.     

The impact of “e-atmospherics” on physical stores

Marketing literature abounds with discussions of the importance of environmental and atmospheric variables for determining the consumer shopping experience. Through a field a study conducted in a toy brand flagship store, this research studies the effects of using two technologies in a physical toy store (magic mirror with augmented reality, interactive game terminals) on holistic perceptions of store atmospherics, affective reactions, and perceived shopping values, which should have consequences for satisfaction and patronage intentions. These results offer an initial exploration of the effect of new technologies on shopping experiences in physical stores; they confirm that digital in-store technologies and generalized multichannel consumer behaviors reduce boundaries between classical in-store atmospherics and e-atmospherics.     

论中国当代的消费主义文化——以电子产品的消费为例

在当下中国,在外来文化特别是商业文化的冲击下．传统的消费文化发生了很大变化,其内涵也越来越深刻。首先,电子产品以其独特之处以及其在消费市场所构成的特别消费现象,成为中国当代消费主义文化的基本态势,商品作为某种特定的符号意义进行生产消费。其次,传媒和中国当代消费主义文化的联系更加紧密,时尚在促进文化交流、活跃市场经济方面的作用越来越巨大,但也造成国人消费观念的畸形发展。再次,传媒在影响中国当代消费主义文化的同时也带来了积极变化：传统媒体信息传播方式发生改变,媒体对消费个体单向度的信息灌输变成了有消费者参与的信息传播的双向互动过程,特别是互联网的普及,个人在信息的选择上拥有了更多的自主性。     

Leveraging social media-based determinants to build customer-based brand equity of a retailer

ABSTRACT

Social media is all about consumer networks and consumer relations that challenge marketers to leverage social media as a means to develop and improve their connections with consumers. Though tremendous opportunities via social media are alluring, businesses are still finding it hard to penetrate the clique of consumer interactions that are largely personal in nature. Despite the opportunities available through social media marketing activities, understanding customers and their behavior, and incorporating that information in marketing strategy formulation is critical to successful strategy implementation. This study takes a significant leap forward in this direction. Theoretically grounded in diverse fields, this study demonstrates how retailers can build customer-based brand equity using social media-based brand determinants. Using seemingly unrelated regression technique, this study examines how retailer brands can leverage consumer characteristics on social media to successfully integrate and capitalize on social media marketing activities. This research study has important implications for both marketing theory and practice.     

Choice deferral: The interaction effects of visual boundaries and consumer knowledge

Choice deferral is a common and lousy phenomenon for companies and consumers. This research examines how visual boundaries (by-alternatives vs. attributes) interact with consumer knowledge to influence choice deferral. Five studies (N = 1,245) and two single-paper meta-analyses demonstrate that by-alternative (vs. attribute) visual boundaries reduce choice deferral and that choice difficulty mediates this effect. The research also shows that these effects are stronger for less knowledgeable consumers. However, the interactive effect of visual boundaries and consumer knowledge on choice deferral depends on task and context characteristics. We discuss future research about choice deferral moderators and how to facilitate consumer choice.     

Consumer brand engagement and its social side on brand-hosted social media: how do they contribute to brand loyalty?

ABSTRACT

Social media offer brands new opportunities to interact with their customers. This paper focuses on consumer brand engagement (CBE) and its social facet in the context of brand-hosted social media. It highlights that CBE (consumer–brand interactions encompassing cognitive, affective and behavioural dimensions) and brand-based consumer–consumer interactions (social brand engagement (SBE)) lead to brand loyalty intentions. Brand customers were surveyed about their favourite brands on Facebook. Results indicate that self-brand connections and SBE are two drivers of CBE, and that CBE is the key element in inducing brand loyalty. In addition, configural analysis shows that high brand loyalty can be achieved through several combinations of social and CBE with various levels of cognitive, affective and behavioural engagement.     

Interactivity,Inspiration, and Perceived Usefulness! How retailers’ AR-apps improve consumer engagement through flow

This study investigates the antecedents and outcomes of consumer engagement through AR apps and suggests a new conceptual model. The purpose of the paper is to examine how consumer engagement is shaped via AR apps, which eventually leads to a positive attitude towards brand and brand usage intent. To this end, a face-to-face survey instrument was administered to 350 participants in Turkey, where participants tried an AR app and then answered a questionnaire. The structural equation modeling (SEM) and Hayes' Process analyses were applied to test the hypotheses and moderated mediation relationships. Findings showed that interactivity and inspiration are two major antecedents of consumers' flow experience. The flow experience with AR can generate favorable attitudes towards AR apps and more trust in AR apps, which trigger consumer engagement with AR apps and then improve brand attitude and brand usage intent. The outcomes of flow experience with AR (i.e., attitude and trust) mediate the relationship between flow and engagement. Although perceived usefulness increases the effect of consumers' attitudes towards AR on engagement, it has no moderating effect on the relationship between trust in AR and engagement. Furthermore, the results of Hayes' Process revealed that the indirect effect of flow on consumers’ engagement with AR through attitude towards AR is moderated by perceived usefulness. So that, if AR marketers aim to strengthen the link between consumer flow experience and engagement via attitudes towards AR, they should therefore consider enhancing the perceived usefulness of AR. Surprisingly, perceived usefulness had no moderating effect on the indirect relationship between flow and engagement via trust. Finally, this paper discusses both the theoretical and managerial implications.     

Twitter use related to reality television characters: Association with increased marijuana use

In the United States, there are debates about marijuana legalization for either medical or recreational use. These debates may be reflected in traditional media, such as reality television, and through social media, such as Facebook or Twitter. We study the relationship of social media use for reality television topics and marijuana use. We surveyed 572 college students about marijuana use, demographic characteristics, reality television related Facebook and Twitter use, and other reality television variables. Logistic regression analyses studied the relationships of these variables to marijuana use. Following a reality television character on Twitter was significantly associated with increased odds for marijuana use. Reality television Facebook use was not significantly associated with marijuana use. In addition, women and Asian Americans were significantly associated with decreased odds for marijuana use. Those born in the United States were significantly associated with increased odds for marijuana use. Attitudes for reality television is fun, perceived realism of reality television, and behavior of watching a reality television program on health/medical topics were not associated with marijuana use. As following a reality television character on Twitter is significantly associated with increased odds for marijuana use, marketing campaigns can play a role with use of Twitter whether advocating for use or against use of marijuana. Marketing implications are provided regarding Twitter use for the various areas where marijuana use is either illegal or legal.