What is the impact of virtual and augmented reality technologies on transforming retail and consumer experiences?
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The Impact of Virtual and Augmented Reality Technologies on Transforming Retail and Consumer Experiences
Augmented Reality (AR) in Retail: Enhancing User Experience and Satisfaction
Augmented Reality (AR) has a significant impact on retail customer experiences, influencing user satisfaction and willingness to buy. AR enhances various aspects of product quality, which in turn shapes the overall user experience (UX). This improved UX is derived from pragmatic quality, aesthetic quality, and hedonic qualities such as stimulation and identification, leading to higher user satisfaction and increased purchase intentions.
Factors Influencing AR Acceptance in Retail
The acceptance of AR in retail is influenced by multiple factors. A thematic analysis of existing literature identified eight key themes that model the decision-making process of users. These themes are integrated into a conceptual framework based on the technology acceptance model (TAM). Marketers are encouraged to incorporate AR into their experiential marketing strategies, leveraging existing toolkits or collaborating with technology companies to enhance their offerings.
Transforming Customer Experience with New Technologies
New technologies, including AR and Virtual Reality (VR), are transforming the customer experience across all stages of the shopping journey—pre-transaction, transaction, and post-transaction. These technologies, often powered by Artificial Intelligence (AI), create experiential value by enhancing the shopping experience and providing new ways to engage with customers.
Consumer Behavior and AR in Retail
AR in retail generates both utilitarian and hedonic value, improving decision-making and personalizing the virtual self. However, there are potential negative effects of AR usage that retailers need to be aware of. A systematic literature review highlights the importance of understanding consumer behavior with AR to maximize its benefits while mitigating any adverse impacts.
Strategic Use of AR and VR in Experiential Retailing
AR and VR can be strategically used to align online and offline retail experiences. Research shows that AR is more effective in stimulating purchase intentions due to its support for product-focused mental imagery, while VR is better suited for improving brand attitudes through context-focused mental imagery. Combining AR and VR in a specific sequence (AR followed by VR) can enhance both purchase intentions and brand attitudes, aligning with the customer's journey from online to offline.
Comparative Analysis of AR and VR in Retail
AR and VR technologies are rapidly developing and are used in both physical and online retailing to enhance the shopping experience. A comparative analysis of these technologies highlights their applications, consumer acceptance, and implementation issues. This analysis provides a foundation for future research and practical applications in the retail sector .
Enhancing Online Decision-Making with AR
AR technologies, such as virtual try-on systems, significantly enhance the online decision-making process. Studies comparing different cultural settings show that AR can support consumers in making better purchase decisions by providing high-quality information, aesthetic quality, interactivity, and quick response times. These insights help retailers manage online and mobile channels more effectively.
Consumer Acceptance of AR Apps
The acceptance of AR apps by consumers varies based on the type of AR application. Interactive kiosks, smart mirrors, and mobile apps all use AR to enhance the shopping experience by placing virtual content in real environments. The technology acceptance model (TAM) is used to measure user perceptions and experiences, highlighting the importance of both hedonic and utilitarian aspects for different AR applications.
Conclusion
Virtual and augmented reality technologies are transforming retail and consumer experiences by enhancing user satisfaction, improving decision-making, and aligning online and offline shopping experiences. Retailers must strategically implement these technologies to maximize their benefits and address any potential negative effects. As AR and VR continue to evolve, their role in shaping the future of retail will become increasingly significant.
Sources and full results
Most relevant research papers on this topic
Discernible impact of augmented reality on retail customer's experience, satisfaction and willingness to buy
Factors influencing acceptance of augmented reality in retail: insights from thematic analysis
Transforming the Customer Experience through New Technologies
Consumer behavior with augmented reality in retail: a review and research agenda
How to strategically choose or combine augmented and virtual reality for improved online experiential retailing
Augmented Reality and Virtual Reality in Physical and Online Retailing: A Review, Synthesis and Research Agenda
Enhancing the online decision-making process by using augmented reality: A two country comparison of youth markets
Study of Retail Applications with Virtual and Augmented Reality Technologies
Technological Innovations Transforming the Consumer Retail Experience: A Review of Literature
How augmented reality apps are accepted by consumers : a comparative analysis using scales and opinions
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