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.     

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.     

Augmented reality in smart retailing: A (n) (A) Symmetric Approach to continuous intention to use retail brands’ mobile AR apps

Smart retailing has recently emerged as a new form of retail brand management enabled by novel technologies such as mobile augmented reality applications, to create better experience and value for customers. Augmented reality has also received significant attention as a growing field in marketing theory and practice. However, there is a limited understanding on how and why customer interactions with an augmented reality app can result in positive customer benefit perception, engagement and behavioural consequences. This study examines the chain of effects from AR attributes on the building blocks of continuous intention to use a shopping AR app and to pay a price premium, by incorporating the roles of a customer's benefits perception, psychological inspiration and engagement via a(n) (A)Symmetric Approach. The results support all direct hypothesised relationships among the variables, except the relationship between interactivity and utilitarian benefits, which was found to be insignificant. The study further demonstrates the moderating role of AR customisation in the proposed model, and reveals that the impact of utilitarian and hedonic benefits on shopping AR application engagement is non-linear. Non-linearity also transpires in the impact of psychological inspiration on willingness to pay price premium. Interestingly, the findings indicate that augmented reality customisation to some extent enhances the relationships in the hypothesised model.     

Strategies for the successful implementation of augmented reality

The potential benefits of augmented reality (AR) to consumers include high levels of interactivity, exposure to an extensive virtual inventory tailored to their needs, high-quality customer support, and better integration between web- and store-based shopping experiences. The anticipated benefits of a successful AR strategy to a brand or retailer include higher inventory turnover, increased average sales, reduced sales costs, lower customer returns, higher levels of related-item selling, and better customer support outcomes. Despite these revenue- and loyalty-enhancing benefits, few companies use AR, develop a highly integrated AR plan, or incorporate AR into their marketing programs. This article focuses on the successful planning and implementation of AR through a six-step process: (1) Determine how AR can help achieve marketing objectives; (2) choose appropriate products, channels, and target markets for AR; (3) select among AR application types; (4) design AR apps; (5) evaluate alternative AR organizational formats; and (6) measure the success of AR programs.     

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.     

Augmented reality: Research agenda for studying the impact of its media characteristics on consumer behaviour

Augmented reality has emerged as a new interactive technology and its unprecedented way of complementing the physical environment with virtual annotations offers innovative modes for accessing commercially-relevant content. However, little is known about how consumers respond to its features. This paper approaches augmented reality (AR) by studying media characteristics of interactive technologies and shows to which extent they are indicative of current AR commercial apps. Based on a literature review about consumer responses to these characteristics, potential media effects of AR on consumer behaviour are discussed. Finally, the article proposes a research agenda for further study of this new phenomenon in marketing.     

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.

     

Consumer Interests and the Ethical Implications of Marketing: A Contingency Framework

The increasing efforts by marketers to target diverse groups of consumers call for a closer examination of the ethical implications of market segmentation and differentiated marketing. Previous research suggests that marketers and consumers often differ in their perceptions of marketing ethics. Based on contingency theory, this research proposes an integrated framework—which includes the nature of the product, consumer characteristics, and market selection—to analyze the ethical complexities of the marketing exchange. Interactions among these factors lead to various contingencies with different ethical implications for marketing managers and public policy makers. Marketers should assess consumer interests and the ethics of marketing programs before their implementation     

Solving the crisis of immediacy: How digital technology can transform the customer experience

Marketers are currently facing a ‘crisis of immediacy’ challenge: how to meet consumers’ need to receive content, expertise, and personalized solutions in real time during their shopping experience. Today's digital technologies—such as video conferencing, location-based mobile apps, and augmented reality—provide a highly personalized and immersive environment that allows for interactivity and rich information exchange between the brand and consumer. We conducted in-depth interviews with over 35 retailers, large-scale surveys with international shoppers, and pilot projects with stores and banking institutions to study how companies are leveraging digital technologies to transform the customer experience. Our findings show that there are two main technology-based models that organizations are deploying to support customers’ immediate needs: the remote expert and the digital assistant. We provide company examples of both models, as well as when they are most appropriate and success factors to inform managers.     

How augmented reality affects advertising effectiveness: The mediating effects of curiosity and attention toward the ad

Many major consumer-driven companies have started to use augmented-reality (AR) technology and AR apps to enrich their customers' shopping experiences and engagement with their brands, and to ultimately increase sales. However, there is scant research discussing the application of AR in an advertising context. Thus, the major goal of this study is to explore how, why, and when augmented reality influences advertising effectiveness. A field experiment and two laboratory experiments demonstrate that an AR advertisement increases consumers’ attitude toward the ad through an increase in their curiosity toward the ad and attention toward the ad (i.e., measured by a physiological measure using eye-tracking). However, the effects only hold when consumers are unfamiliar with the AR ad technology. Overall, this study provides practical implications to advertisers who are considering integrating augmented reality technology in their advertising efforts.     

Social media influencers and consumer engagement: A review and future research agenda

The rise of social media influencers (SMIs) in the recent decade garnered wide interest from academicians and marketers. Academicians try to understand the effect of influencers on consumer behaviour, while marketers use influencers as part of their strategy to achieve marketing objectives. Although, plenty of practical and conceptual research is available in this area, literature reviews in the domain of SMIs and consumer engagement are scarce as it is still developing, and most of the studies have focused on these two concepts separately. In this study, the authors attempted to combine and understand how social media influencers affect consumers engagement. This systematic review of the literature offers a comprehensive view of previous research on social media influencers and consumer engagement. The study reviewed articles published in the Australian Business Deans Council (ABDC), Scopus, and Web of Science indexed journals till 5 June 2021. To understand consumers' engagement with SMIs, authors identified and theorized the antecedents, decision and outcome of such engagement. It also discusses the influencer-follower parasocial relationship on different social media platforms. The study proposes an integrated conceptual framework that can be further used to test and validate the impact of social media influencer's marketing efforts on consumer engagement. This framework also may serve as a foundation for marketers to develop effective influencer strategies for brand promotions. The review concludes the discussion by highlighting theories, methodology, and context of studies conducted by past researchers.     

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.     

Augmented reality in marketing: Conceptualization and systematic review

This systematic review of the literature focuses on the use of AR and its impacts in the marketing area. It provides a multidisciplinary, up-to-date synthesis of the literature and an exhaustive classification of AR. Through the use of the SPAR-4-SLR protocol, 148 articles were selected for analysis. The study has three main objectives. First, it reports the key characteristics (distribution by year, publication outlets, etc.), theoretical models, and methodologies used in this research domain. Second, it suggests a classification of the types of AR according to their triggers and the object of the augmentation (self vs. external). Third, it proposes a framework that presents (1) the AR features and attributes and the AR use experience; (2) the cognitive, affective, and social mediators; and (3) the outcomes of these experiences. Key moderators (types of AR, types of products, individual characteristics, etc.) are also discussed. Using the TCCM framework (theories, context, characteristics, and methodologies), this study offers several future research avenues and highlights the importance of considering the effects of the different types of AR. Finally, it offers pointers for managers on how to develop efficient AR solutions and how these can be used to reduce a company's carbon footprint.     

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.     

Social media marketing: Who is watching the watchers?

The ready access to and availability of social media has opened up a wealth of data that marketers are leveraging for strategic insight and digital marketing. Yet there is a lack of professional norms regarding the use of social media in marketing and a gap in understanding consumers’ comfort with marketers’ use of their social media data. This study analyzes a census-balanced sample of online adults (n = 751) to identify consumers’ perceptions of using social media data for marketing purposes. The research finds that consumers’ perceived risks and benefits of using social media have a relationship with their comfort with marketers using their publicly available social media data. The research extends the applicability of communication privacy management theory to social media and introduces marketing comfort—a new construct of high importance for future marketing research. Marketing comfort refers to an individual's comfort with the use of information posted publicly on social media for targeted advertising, customer relations, and opinion mining. In the context of the construct development, we find that targeted advertising is the strongest contributing component to marketing comfort, relative to the other two dimensions: opinion mining and customer relations. By understanding what drives consumer comfort with this emerging marketing practice, the research proposes strategies for marketers that can support and mitigate consumers’ concerns so that consumers can maintain trust in marketers’ digital practices.     

Digital marketing and social media: Why bother?

Changes in consumer behavior require firms to rethink their marketing strategies in the digital domain. Currently, a significant portion of the associated research is focused more on the customer than on the firm. To redress this shortcoming, this study adopts the perspective of the firm to facilitate an understanding of digital marketing and social media usage as well as its benefits and inhibitors. The second generation of Internet-based applications enhances marketing efforts by allowing firms to implement innovative forms of communication and co-create content with their customers. Based on a survey of marketing managers, this article shows that firms face internal and external pressures to adopt a digital presence in social media platforms. Firms’ digital marketing engagement can be categorized according to perceived benefits and digital marketing usage. To improve digital marketing engagement, marketers must focus on relationship-based interactions with their customers. This article demonstrates how some firms are already accomplishing just that.     

Modeling innovative points of sales through virtual and immersive technologies

This study examines the benefits of virtual and augmented reality for retailing in order to propose a theoretical framework for the development of innovative and efficient stores. The purpose is to investigate the relevance of advanced technologies in the points of sale from user’s standpoint for deeply understanding their influence on consumer’s perception. The study gathers data from 150 respondents for investigating the influence on consumers in terms of ease of use, enjoyment and store perception. To achieve this goal, the research focuses on Structural Equation Model (SEM) approach to map the correlations among variables.The results illustrate consumer’s response towards the introduction of virtual and immersive technologies in traditional points of sales. Specifically, they are prompted to use these stores, which became more attractive and appealing.Managerial and marketing implications are also theoretically discussed, showing how an immersive store might represent the starting point for further advances in retailing.     

Integrating online communities within business-to-business marketing communications: an exploratory study

The article provides a conceptual contribution by developing a framework for business-to-business (B2B) marketers seeking to implement online communities (OLCs). Furthermore, the conceptual contribution is augmented by a small-scale exploratory study comprising in-depth interviews with B2B chief marketing officers (CMOs). The findings challenge existing thinking that B2B marketers can follow generic marketing communication frameworks. This is due to the differences in B2B OLCs in terms of multiple stakeholders and two-way information flows and differences in buyer behaviour. For researchers, the contribution is an embryonic model that will facilitate future conceptual development as well as empirical testing through a series of research propositions. A sequential decision-making framework, which identifies key implementation challenges, is provided for B2B managers.     

More than meets the eye: The functional components underlying influencer marketing

Influencer marketing is the practice of compensating individuals for posting about a product or service on social media. Influencer marketing is on the rise, and many marketers now plan either to start using influencers or to increase their use of them in their media mixes. Despite such growth, relatively little strategic or academic insight exists that is specific to influencers. In this article, we describe the roots of influencer marketing and the many different types of influencers that now exist. We identify influencers’ three functional components: the audience, the endorser, and the social media manager. We then detail for each of these components the different sources of value influencers potentially offer marketers. We draw on relevant academic research to offer advice about how to leverage each component strategically. We close by describing how the interplay of these functional components makes influencers a potentially powerful—and undervalued—marketing tool.     

Does product involvement drive consumer flow state in the AR environment? A study on behavioural responses

Understanding consumers’ behavioural responses is crucial to improve the usage of augmented reality (AR) by retailers. Both in the online and offline retail market, AR enhances consumers’ shopping experiences by offering them enjoyable and immersive information about products and services. This paper explores consumers' behavioural responses by measuring the role played by product involvement in affecting the AR flow experience. To this end, the study employs a quantitative approach based on data collected from August to September 2022. Results show that consumers' involvement with products affects their AR flow experience, along with their behavioural intentions in terms of purchase intention and intention to visit the retailer’s website and recommend or share the experience. In addition, the latter two variables mediate the relationship between the AR flow experience and loyalty, showing interesting insights on high-body-involvement products. The paper ends by highlighting the main theoretical and managerial implications of these results, along with the scope for further research.