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.     

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.     

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.     

Using virtual reality to increase charitable donations

Marketer interest in using virtual reality (VR) as a persuasion tactic continues to rise. Notably, one sector at the forefront of utilizing this tactic for persuasive means is nonprofit marketing. Many charities have devoted considerable resources to creating VR appeals under the assumption that this medium will increase donations over and above present tactics. However, research has not yet examined the persuasive consequences VR may provide over more traditional channels. This research seeks to understand the opportunities and limitations this emerging tactic can offer marketers. Specifically, we examine the donation effectiveness of three real VR charitable appeals by assessing actual donation behaviors, and find that VR appeals increase donations compared to a two-dimensional (2D) format. This work addresses a timely and relevant issue for practitioners and opens doors to future research investigating VR’s applications to marketing.

     

Transforming the Customer Experience Through New Technologies

New technologies such as Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), virtual assistants, chatbots, and robots, which are typically powered by Artificial Intelligence (AI), are dramatically transforming the customer experience. In this paper, we offer a fresh typology of new technologies powered by AI and propose a new framework for understanding the role of new technologies on the customer/shopper journey. Specifically, we discuss the impact and implications of these technologies on each broad stage of the shopping journey (pre-transaction, transaction, and post-transaction) and advance a new conceptualization for managing these new AI technologies along customer experience dimensions to create experiential value. We discuss future research ideas emanating from our framework and outline interdisciplinary research avenues.     

Virtual reality through the customer journey: Framework and propositions

While virtual reality's importance is increasingly recognized in marketing, its role in the customer journey remains nebulous. We define virtual reality through the customer journey (VRCJ) as firms' use of computer-mediated interactive environments capable of offering sensory feedback to engage consumers, strengthen consumer/brand relationships, and drive desired consumer behaviors at any stage of their journey. To better understand VRCJ, we classify VR archetypes, formats, and content features, followed by the development of a conceptual framework and an associated set of propositions of VRCJ. We conclude by discussing important theoretical and practical implications that arise from our analyses.     

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.     

The virtual takeover: The influence of virtual reality on consumption

Looking to current trends, this paper explores the influence of Virtual Reality (VR) on consumption. Specifically, we focus on the influence that VR has on consumer spending by suggesting that identities created in VR will influence consumption behaviour in the real world. While other forms of technology allow consumers to create alternative identities, we suggest that the unique aspects of VR, bolstered by forthcoming advances, will make identities created in VR relatively more self-important and more salient in real world consumption. We also propose implications for marketing research and practice.     

Game theory in marketing science uses and limitations

This paper reviews some major concepts in game theory and indicates how they may apply to marketing science. The theory of games provides a framework for addressing problems of competitive strategies and of buyer-seller interactions. These issues are important in studying industrial markets where there are a small number of buyers as well as for studying how to incorporate knowledgeable, active competitors into consumer marketing mix models.Few marketers have seen much benefit in the past from developments in game theory. This is partly because of the historical preoccupation of game theorists with complete information, zero sum games. The richer area of games of incomplete information may have much more to offer the marketing scientist.In this paper we review how game-theoretic approaches (interactive models) differ from most previous approaches, which are optimizing and asymmetric. We then look at how these alternative approaches apply to two problem areas - competitive entry and bargaining. Then we review potential applications of game theory in marketing and the value of applying marketing science approaches in game theory. We conclude with a perspective on future developments in this field.     

To Justify or Not to Justify: The Role of Anticipated Regret on Consumers’ Decisions to Upgrade Technological Innovations

Prior research suggests that adoption decisions are primarily based on product features and experiential opportunities, like trial and observation. Our research follows inquiries that identify anticipated regret (AR) as an emotion integral to consumer decision making. Prior research and current retailing practice assume that AR can be alleviated by compelling product attribute-based rationales for immediate purchase. These rationales often take the form of direct attribute comparisons between the current best and the future technologies. Counter-intuitively, we find that giving consumers attribute-based justifications for immediate purchase produces a uniform level of AR and purchase delay regardless of the perceived rate of innovation (PRI). However, under conditions of low PRI and no justification, AR decreases significantly. A clear implication of our findings is that firms marketing current technology should not rush to provide consumers with justifications for immediate upgrade since such communications will remind consumers of what they might miss if they adopt now, resulting in increased AR and purchase delays. Instead, we suggest that retailers focus promotional efforts on highlighting the hedonic benefits consumers experience by adopting today.     

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.     

Information Privacy Research: Framework for Integrating Multiple Publics,Information Channels,and Responses

This article puts forth a framework for understanding critical consumer information privacy issues in direct and interactive marketing that consists of three broad dimensions: (1) multiple publics, (2) information channel developments, and (3) the publics' responses to privacy actions. Within this structure, the authors review and integrate existing research and issues, and identify an agenda for future research.     

Nostalgia beats the wow-effect: Inspiration,awe and meaningful associations in augmented reality marketing

Augmented Reality (AR) is an innovative concept that enriches consumers’ perception of the real world with virtual content. Prior research has shown that AR has the potential to inspire consumers and improve marketing outcomes, yet very little is known about the mechanisms through which AR inspires users. This research decomposes the AR-inspiration relationship and shows how psychological inspiration (i.e. inspired-by) translates to behavioral inspiration (i.e. inspired-to). The Lego Playground AR app is used to empirically test the hypotheses that the “wow-effect” (awe) and nostalgia serve as important mediators to the AR initiated inspiration process. While nostalgia is found to fully mediate the link between psychological and behavioral inspiration, the “wow-effect” does not significantly mediate this relationship. This research is the first to show inspiration unfold as a granular process. The meaningful associations generated through nostalgia translate psychological inspiration into consumer action, and this understanding may allow legacy brands to leverage latent nostalgia in new AR applications to influence consumer behavior.     

‘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.     

How 3D Virtual Reality Stores Can Shape Consumer Purchase Decisions: The Roles of Informativeness and Playfulness

The recent rise of consumer virtual reality (VR) hardware raises important questions in the field of online marketing: what makes 3D VR more informative and playful than conventional 2D media such as a still image and a video, and how it affects the online purchase decision-making process. In this study, we mainly focus on three interface features—interactivity, visual–spatial cues, and graphics quality. We explore how each of these three interface features enhances playfulness and informativeness of shopping interface and further influences subsequent product evaluation and purchase intention. The results of the study provide two meaningful insights. First, interactivity and visual–spatial cues significantly enhance perceived informativeness and playfulness; however, the role of graphics quality was found to be more critical for 2D displays than for 3D VR environment. Second, informativeness and playfulness influence the purchase decision-making process in distinct ways. More specifically, a playful interface may enhance consumers' preference for hedonic product benefits (e.g., a stylish and attractive design), whereas informativeness is a more important explanatory variable for subsequent purchase intentions. We discuss the theoretical contribution and managerial insights the research provides for online retailers and designers.     

Examining artificial intelligence (AI) technologies in marketing via a global lens: Current trends and future research opportunities

Artificial intelligence (AI) has captured substantial interest from a wide array of marketing scholars in recent years. Our research contributes to this emerging domain by examining AI technologies in marketing via a global lens. Specifically, our lens focuses on three levels of analysis: country, company, and consumer. Our country-level analysis emphasizes the heterogeneity in economic inequality across countries due to the considerable economic resources necessary for AI adoption. Our company-level analysis focuses on glocalization because while the hardware that underlies these technologies may be global in nature, their application necessitates adaptation to local cultures. Our consumer-level analysis examines consumer ethics and privacy concerns, as AI technologies often collect, store and process a cornucopia of personal data across our globe. Through the prism of these three lenses, we focus on two important dimensions of AI technologies in marketing: (1) human–machine interaction and (2) automated analysis of text, audio, images, and video. We then explore the interaction between these two key dimensions of AI across our three-part global lens to develop a set of research questions for future marketing scholarship in this increasingly important domain.     

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.     

RFID Applications for Integrating and Informationalizing the Supply Chain of Foodservice Operators

Abstract

By enabling easier and real-time information sharing among supply chain partners, Internet applications foster and support new forms of collaborative supply chain management (SCM) practices within the foodservice sector. Advances in Radio Frequency Identification (RFID) technologies extend such collaborative SCM practices by increasingly integrating and synchronizing demand and supply chains. The objective of this paper is to investigate and analyze how RFID technologies can seamlessly tie customer interactions with the food supply chain and revolutionize the accuracy, efficiency, personalization-interaction, and security of foodservice marketing, production, and distribution simultaneously. To achieve this, the paper discusses the RFID implementation issues, practices, and benefits within the foodservice sector. The food industry's perspectives on the adoption and benefits of RFID developments are reported by discussing the results of a reality-check study conducted in the Greek foodservice sector.     

Recycling as a marketing problem: A framework for strategy development

This article provides a framework for integrating past recycling research by conceptualizing recycling compliance as a marketing problem. Within a social marketing framework, recycling behavior is considered the product, and the marketing problem is to sell recycling to the consumers or public. Recycling research is then categorized as consumer research (research on characteristics of the recycler), pricing research (research on the costs to the consumer, including implicit or less tangible costs), distribution research (research on modes of participation for the recycler), and promotional research (research on intervention strategies such as raffles and contests, personal selling techniques such as block leader programs, and persuasive communications). Using this framework, we provide an integration of a vast amount of recycling research, and also suggest how this research can be used to design actionable strategies for the development of community recycling programs. © 1994 John Wiley & Sons, Inc.     

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.