EFFECTIVENESS OF AUGMENTED REALITY IN ENHANCING ONLINE SHOPPING EXPERIENCE

Despite the promise that augmented reality
(AR) and virtual reality (VR) can help experiential
merchants integrate online and offline experiences, there
is a lack of guidance on how to choose or combine these
technologies. In three experiments, we fill this research
gap by looking at the individual and combined effects of
AR and VR on important marketing objectives. First, we
show that AR is more successful than VR in driving
purchase intentions because of its potential to let clients
engage in fluent, product-focused mental imagery.
Second, we show that VR is better suited to enhancing
brand attitudes than AR because it allows buyers to
build fluent, context-focused mental images. Third, we
demonstrate that combining AR and VR can increase
both purchase intentions and brand attitudes, but only if
the deployment sequence is AR followed by VR. This is
because experiential retail aligns more closely with the
customer's online-to-offline journey. When used the
other way around, we see a negative impact on purchase
intentions and a potential negative influence on brand
attitudes. Our study presents a comprehensive
theoretical viewpoint on AR and VR in marketing as
well as evidence-based advice for experiential retailers to
incorporate AR and VR into their online retailing
strategies.