This study aims to understand the influence of AR attributes, namely interactivity, vividness, novelty, and personalization, on consumers' experiential values like hedonic value andutili
INTRODUCTION
Research background
The retail landscape, especially in the apparel sector, has experienced significant changes driven by shifting consumer preferences and the impact of the COVID-19 pandemic Today's shopping habits differ greatly from the past, as advancements in science and technology have made e-commerce more accessible Factors such as the pandemic and increased distance between retailers and consumers are leading to a decline in traditional shopping in favor of online purchases In this evolving environment, Augmented Reality (AR) has become a crucial element, enhancing the consumer experience and transforming conventional shopping methods The pandemic has intensified the need for contactless and immersive retail experiences, accelerating the adoption of AR technologies.
Augmented Reality (AR) is a groundbreaking technology that enhances retail experiences by integrating computer-generated graphics into real-world environments in real-time According to IDC’s Augmented and Virtual Reality Spending Guide, the consumer sector leads AR spending, accounting for 53% of the market share in 2020 This significant figure highlights AR's potential to transform consumer lifestyles, impacting social interactions, learning, engagement, and shopping behaviors.
Mobile AR applications are revolutionizing fashion retail, with brands like Gucci, Burberry, and M.A.C leveraging this technology to enhance customer experiences By offering interactive features, AR allows consumers to virtually engage with products, reducing uncertainty and improving the shopping journey It also acts as a valuable customer service tool, helping shoppers evaluate products and address the challenges of online shopping, where tactile interaction is often lacking Research shows that nearly 46% of global respondents cite the inability to touch or feel items as a major drawback of online shopping, highlighting the importance of product quality assessment before purchase The experiential value provided by AR significantly influences consumer purchasing decisions, adding value for retailers To maximize this potential, it is essential to understand the features that enhance customer experiences with AR applications.
As technology increasingly influences consumers' lives, their expectations rise, prompting retailers to innovate (Saifeddin Alimamy and Juergen Gnoth, 2022) Key concepts such as prosumption (Toffler, 1980), co-production (Vargo and Lusch, 2004), and co-creation (Prahalad and Ramaswamy, 2004a) highlight the evolving role of consumers in the marketplace The business environment is transforming into a conversational platform involving diverse participants (Yen and Dey, 2019; Mariani & Borghi, 2021), where customer-value co-creation significantly impacts fellow consumers' decision-making (Niu et al., 2016; Mariani et al., 2021) Despite this, a research gap exists concerning the effects of AR-integrated platforms on co-creating brand value and the role of customer experiential value in linking engagement to value co-creation and business benefits The upcoming study seeks to fill these gaps by proposing strategies to enhance AR integration, improve user experiences, and maximize collaborative value co-creation in the apparel retail sector.
Research gaps
Despite previous research highlighting the influence of augmented reality (AR) on customer experience in online shopping, there are notable gaps in its application within the beauty industry This study aims to fill these gaps through a comprehensive literature review.
There is a notable gap in research regarding the impact of augmented reality (AR) features on the value co-creation process The integration of AR in e-commerce enhances user experience and adds significant value (Nikhashemi et al., 2021) Furthermore, numerous studies have explored AR as an effective experiential marketing tool (Haumer, Kolo, & Reiners, 2020; Bulcarca & Tamarjan, 2010; Hsu, Tsou, & Chen, 2021; Javornik, 2016).
Recent studies by Wang, Ko, and Wang (2022) have examined the effects of augmented reality (AR) on usage intention, purchase intention, and technological acceptance Foroudi et al (2019) highlight that brand platform features significantly influence customer engagement and participation in value co-creation, ultimately enhancing a firm's brand image and reputation Despite this, there is a notable lack of research exploring how AR features affect value co-creation, which underscores the importance of this study.
There is a notable gap in research regarding the outcomes of customer engagement and brand loyalty, with existing studies primarily focusing on brand equity aspects like brand loyalty and brand awareness (Anubhav et al., 2022) Cossio-Silva et al (2016) highlighted a significant link between value co-creation and attitudinal loyalty, emphasizing the connection between ownership and loyalty Additionally, Jaakkola and Alexander (2014) established a relationship between customer engagement behavior and value co-creation Despite evidence of the impact of customer engagement and loyalty on value co-creation, empirical studies exploring the outcomes of the relationship between customer engagement and brand loyalty remain limited Consequently, this study aims to incorporate value co-creation to achieve the desired research outcomes.
The reason to choose the topic
In today's market, consumers can easily access a wide array of brands, products, and price ranges, allowing for quick comparisons of pricing and quality To stay competitive, many retail businesses are adopting technology and embracing online retailing or e-commerce.
Online shopping presents certain drawbacks, primarily concerning the physical attributes and quality of products Many consumers globally view these issues as significant disadvantages Therefore, it is crucial for online marketers to offer comprehensive product information, including details, attributes, and performance data, to effectively substitute for the in-person shopping experience.
Augmented Reality (AR) is a groundbreaking technology that enhances customer engagement with brands (Yim et al., 2017) By integrating AR into e-commerce platforms, businesses can elevate customer value and enrich the shopping experience (Kowalczuk et al., 2021) Furthermore, personalized product recommendations illustrate the increasingly intuitive relationship between companies and consumers as technological advancements progress (Alimamy & Gnoth).
In today's competitive landscape, businesses must prioritize value co-creation to meet evolving customer needs (Lambert & Enz, 2012) By personalizing online environments, companies foster co-creation and enhance customer engagement (Riegger et al., 2021) With the rise of new media technologies, customers are increasingly involved in the value creation process, gaining more control over their experiences with products and services (Esmark et al., 2016) Augmented Reality (AR) technology serves as a valuable resource, facilitating co-creation by providing personalized, contextually rich content that encourages deeper interactions in self-service environments like websites (Alimamy & Gnoth, 2022).
The incorporation of augmented reality (AR) technology into online cosmetics shopping platforms reflects the growing trend in the beauty industry In 2022, the global beauty and personal care market achieved impressive revenues of $581.87 billion (Statista, 2023), highlighting the significant potential within this sector.
An innovative online cosmetics shopping platform utilizes integrated augmented reality (AR) technology, allowing users to select products from various suppliers Customers can virtually try on lipstick, mascara, and powder using their smartphone cameras, enhancing their shopping experience (Nugroho & Wang, 2023) This AR capability enables users to explore products in a mobile or online environment, empowering them to make informed purchasing decisions (Whang et al., 2021).
The Vietnamese market has become increasingly familiar and is recognized for its significant number of online shoppers In 2020, retail sales via the internet reached 13 billion VND (Minh Ngoc, 2023) A 2022 poll indicated that more than 60% of Vietnamese Internet users had made online purchases, contributing to a steady rise in online shoppers, which reached over 57.6 million by 2022 (Statista, 2023) Research reveals that 4 out of 5 consumers are engaging in e-commerce, highlighting the growing trend of online shopping in Vietnam.
Vietnamese users know about the concept of using AR for retail shopping, and 3 out of
Generation X and Generation Z are leading in augmented reality (AR) usage, particularly in Vietnam's booming cosmetics retail market, which is projected to generate $2.69 billion by 2027, with a compound annual growth rate (CAGR) of 3.32% from 2023 to 2027 A recent Q&Me report highlights that 95% of respondents use beauty care products weekly, with 62% using them at least twice a week, reflecting a growing demand for beauty and shopping in Vietnam.
Academics and marketers are increasingly exploring the impact of value co-creation on consumer behavior, particularly within online communities on social media platforms (Mariyudi & Matriadi, 2018; Wang et al., 2024) Customers who view their relationships with brands as long-lasting are more inclined to engage in co-creation opportunities, which enhances relational value and offers competitive advantages This collaborative approach not only boosts a company's reputation and brand image but also highlights the significant influence of platform features on consumer participation and engagement (Foroudi et al., 2019).
Augmented Reality (AR) technology significantly influences customer value co-creation in the beauty industry, particularly on online shopping platforms This innovative approach aims to enhance the customer experience by allowing users to interact with products in a more immersive way, ultimately leading to increased engagement and satisfaction.
Research objectives
This study investigates the impact of AR on customer value co-creation when using an online beauty products shopping platform with integrated AR features.
The specific objectives of the study are the following:
• To examine how customers’ experiences with AR features enhance brand relationship performance and value co-creation in the e-commerce platform.
• To identify the impact of the AR Features including Interactivity, Vividness, Novelty, and Personalization on the Experiential values of customers when shopping cosmetics on the online platform.
• To investigate the relationship between Customer Engagement, Brand Loyalty and Co-creation Value.
• To examine the impact of the moderator variable Privacy Concerns when using
AR beauty products shopping apps on the relationship between Experiential Values and Customer Engagement as well as Brand Loyalty.
• To measure and analyze the influence of Customer Engagement and Brand Loyalty on Customer’s Value Co-creation.
• Provide recommendations to e-commerce service providers and AR developers in personalizing the online cosmetics shopping experience based on consumer preferences, attracting target customers, and accomplishing business growth goals.
Research methodology
The authors employed a quantitative research method, utilizing a survey questionnaire to interview customers in Vietnam familiar with Augmented Reality applications in e-commerce, particularly within the beauty products sector The research sample was obtained through convenience sampling.
The authors utilized the Partial Least Squares Structural Equation Model (PLS-SEM) methodology to analyze quantitative data, focusing on measurement scales and hypothesis testing They employed a measurement model to evaluate reliability, convergent validity, and discriminant validity, while a structural model was used to examine multicollinearity, R2, f2, significance, and coefficient strength Furthermore, a multiple regression model assessed the impact of factors from two types of campaigns on purchase intention.
Scope and subject
Respondents: The research focuses on people living, studying, and working in Vietnam who have known AR of brands through e-commerce, particularly in beauty products.
Research time: The investigation, survey, and data collection were conducted from December 2023 to January 2024.
Research location: The study was carried out in Vietnam.
The impact of factors in the characteristics of AR on customer attitudes and behaviors toward products as well as brands, through studying each of the following influences:
Determine the relationship between AR features (interactivity, vividness, novelty, personalization) with experiential values (hedonic value, utilitarian value) of customers when experiencing AR applications
Investigate the relationship between experiential values and customer behavior through brand, including customer engagement, brand loyalty, and value co-creation.
LITERATURE REVIEW
The basic concepts, definitions
Augmented Reality (AR) is a cutting-edge technology that enhances the realism of virtual items within the physical environment, blending real life with simulated elements One of its key features is the real-time interaction between 3D virtual objects and the actual environment AR is widely used across websites, physical retail spaces, and mobile applications, providing a more vivid and immersive experience compared to traditional webpages and apps This technology allows users to virtually try products at home, creating a sensory-rich shopping experience that eliminates the need for in-store visits and significantly enhances the virtual product evaluation process for online and mobile shoppers.
Augmented Reality (AR) is transforming the retail sector by enhancing online and offline shopping experiences (Kang et al., 2023; Hilken et al., 2018; Javornik, 2016a) In the beauty industry, brands such as Maybelline, L'Oreal, and Ulta Beauty have adopted virtual try-on features on their websites and e-commerce platforms like Shopee, known as BeautyCam This innovative technology allows customers to virtually apply makeup products, including lipstick and foundation, using photos or live camera feeds, thereby facilitating informed purchasing decisions regarding color and shade Data indicates that users of mobile AR apps engage more with products, spending additional time browsing and making more purchases compared to non-users (Tan et al., 2021) Ultimately, AR enhances customer satisfaction by enabling users to visualize products in a realistic context, fostering a seamless connection with their preferred brands beyond traditional marketing methods (Dacko, 2017; Yim & Park, 2019).
Augmented Reality (AR) is defined by three key characteristics: the seamless integration of real and virtual elements, the provision of real-time interactive experiences, and its operation within a three-dimensional registered space Unlike traditional virtual reality (VR) technologies, AR uniquely creates a mixed reality environment Early research by Azuma (1997) highlights these fundamental traits that distinguish AR from other immersive technologies.
Interactivity, as a fundamental aspect of human actions, is defined and conceptualized in various ways, with a common perspective highlighting users' subjective perceptions and individual traits that foster a sense of engagement Newhagen, Cordes, and Levy (1995) emphasize that the experience of interactivity is influenced by an individual's motivation to interact with media, suggesting that advanced technology can enhance interactivity but may not be perceived without sufficient motivation To effectively shape users' perceptions, it is crucial to develop a technologically efficient delivery process that encourages voluntary engagement In the context of virtual try-ons, interactivity focuses on how users can control the visual representation of their physical presence while integrating additional virtual content for product visualization.
Vividness, as defined by Steuer (1992), refers to a technology's ability to create a sensorially immersive environment by blending real and imaginary sensory experiences (Lee, 2004) In e-commerce, vividness is often associated with the quality of product presentations, which significantly impacts consumers' cognitive processes and cognitive elaboration (Jiang and Benbasat, 2007) To enhance vividness, it is essential to improve both the depth, or quality of represented information, and the breadth, or range of sensory dimensions offered by the communication medium (Li et al., 2002; Wilmer and Singer, 1998).
Augmented Reality (AR) offers unique, user-specific sensory experiences tailored to individual circumstances (Petit et al., 2019) Each interaction with AR presents distinct stimuli resulting from the interplay between the virtual and real worlds It's important to note that this novelty refers not to the technology's newness but to the personalized information users encounter during each engagement AR content can be delivered in various formats, such as text, images, audio, and video (Javornik, 2016).
Personalization features in AR apps enable the delivery of tailored content that aligns with individual customer preferences This level of customization significantly enhances persuasive influence by directly addressing the unique needs and interests of each consumer.
Personalization in technology occurs when consumer data is utilized to create tailored experiences (Vesanen, 2007) In augmented reality (AR), this allows users to visualize products in a context that is personally relevant, known as context-driven personalization (Tam & Ho, 2006) For example, consumers can see how products look on their own bodies or in their surroundings, enhancing the shopping experience This personalized approach also includes providing customized information about economic benefits, helping customers efficiently process large amounts of information while considering factors like time savings, reduced search costs, increased options, and cost savings (Choi et al., 2017).
These characteristics have been explored in relation to consumer responses towards AR, with particular emphasis on interactivity (Yim et al., 2017) and immersion (Javornik,
2016) A positive affective reaction is created by interactivity as it entertains and immerses users (Yim and Park, 2019).
2.1.3 Augmented Reality Beauty Shopping Apps
Utilizing augmented reality in e-commerce platforms has the potential to enhance consumer satisfaction and provide an unique shopping experience (Kowalczuk el al.,
2021) Moreover, AR technology incentivizes customers to transition from traditional brick-and-mortar stores to online shopping, with expectations that many will explore and purchase experiential products (Hsu & Chen, 2018).
Augmented reality (AR) apps are transforming the cosmetics industry by allowing users to virtually try on products like lipstick, mascara, and foundation before purchasing Major retailers such as La Roche Posay, M.A.C., and L'Oreal are adopting these innovative applications to create immersive shopping experiences By integrating AR technology with smartphone cameras, customers can interact dynamically with cosmetic items, helping them select products that best meet their needs This trend highlights the growing importance of AR in enhancing customer engagement and satisfaction in online shopping.
The popularity of e-commerce platforms like Shopee, Lazada, and Tiktok Shop has significantly increased, leading to a rise in the integration of augmented reality (AR) features to enhance customer experiences These AR Beauty Shopping Apps allow consumers to access product information akin to in-store interactions and virtually "try on" products before making a purchase This innovative approach not only enriches the online shopping experience but also aligns with consumer expectations for realism and engagement in their purchasing decisions.
Augmented Reality (AR) effects and real-world product trials enable consumers to quickly share their feedback on products and services within e-commerce platforms This immediate feedback fosters co-creation value for brands, businesses, and potential customers alike.
This study explores the application of augmented reality (AR) features in online shopping, specifically focusing on the Shoppe BeautyCam feature of the Maybelline brand, which is exclusively available on the Shopee mobile app.
The S-O-R paradigm, developed by environmental psychologists Mehrabian and Russell in 1974, serves as a framework for understanding user behaviors across various domains This model posits that environmental cues (stimuli) perceived by individuals can initiate an internal evaluative state, influencing their reactions and behaviors.
(organism), which then results in either positive or negative behaviors (response) for stimuli (Mehrabian & Russell, 1974) This framework can be constructed as the following:
Source: Mehra bion and Russel/ (1974)
The SOR framework has been extensively utilized in research to analyze consumer behavior in retail settings, highlighting the influence of external stimuli on cognitive and behavioral processes (Schmidt et al., 2021; Mehrabian & Russell, 1974; Gao & Bai, 2014; Islam et al., 2020; Laato et al., 2020) By manipulating these stimuli, marketers can foster more favorable consumer responses (Arghashi, 2022) Recent studies have applied the S-O-R model to explore the impact of mobile AR app features on user behavior, revealing that unique AR characteristics, such as interactivity and virtuality, enhance consumer attitudes and intentions through hedonistic and utilitarian gratification (Hsu et al., 2021; Qin et al., 2021) Furthermore, research by Nikhashemi et al (2021) indicates that AR attributes like novelty, customization, and vividness can trigger both hedonic and utilitarian benefits, influencing consumers' continued use of AR and their willingness to pay a premium Mollen and Wilson (2010) also identified augmentation quality, vividness, novelty, and interactivity as key antecedents of functional and experiential value in AR applications.
Stimuli are environmental cues that trigger consumer responses, influencing their psychological states and decision-making processes (Kamboj et al., 2018; Jung et al., 2021) In the realm of augmented reality (AR), key attributes such as product informativeness, system quality, and reality congruence shape consumer perceptions (Kowalczuk et al., 2021; Park and Yoo, 2020) This study identifies four critical AR features that impact consumer attitudes: interactivity, vividness, novelty, and personalization.
Previous and relevant research model
Shopping with augmented reality: How wow-effect changes the equations!
Novelty, Wow effect, Inspiration, Information overload, Distraction, Hedonic shopping motivation, Purchase intention
This study found that information overload, regardless of AR presence, increases positively perceived distraction for consumers
Augmented Reality (AR) inspiration plays a significant role in driving purchase intentions by enhancing hedonic shopping values However, the study also uncovered an unexpected negative effect of the AR wow-effect on both hedonic motivation and purchase intention related to AR experiences.
From virtual to reality: The power of augmented reality in triggering impulsive purchases
Presence, Instant gratification, Impulse buying intention
This study found that all three
AR characteristics (Interactivity, Vividness, Authenticity) can stimulate consumers to varying degrees, leading to impulse purchase intentions
Interactivity provides moderate instant gratification stimulation, while vividness creates the strongest visual presence and the highest level of instant gratification
Quantitative hand plays a crucial role in enhancing product visibility by fostering trust and perceived quality; however, it falls short in delivering immediate gratification Consequently, when creating augmented reality (AR) experiences aimed at encouraging impulse purchases, prioritizing vividness and interactivity proves to be the most effective strategy.
Why not use augmented reality?” customer responses to experiential presentations of AR-based applications
Perceived customer support, Continued usage intention
Hedonic value significantly influences the continuous usage intention of AR apps, surpassing the impact of utilitarian value While personalization features are crucial for enhancing utilitarian value, it is the hedonic value that primarily drives sustained engagement with AR applications Additionally, perceived customer support may further enhance the connection between hedonic value and the intention to continue using these apps.
Augmented reality in smart retailing: A (n) (A) Symmetric Approach to continuous intention to use retail brands’ mobile AR apps
Vividness, Utilitarian Benefits, Hedonic Benefits, Retail App Brand
Engagement, Psychological inspiration, Continuance Intention to Use the App, Willingness to pay a price premium
This study reveals that both utilitarian and hedonic benefits significantly influence customers' brand enjoyment and psychological inspiration, ultimately fostering their ongoing intention to engage in shopping.
AR app and, more crucially, their willingness to pay a premium price through the shopping AR app.
A Conceptual Model for Building the Relationship Between
Interactivity, vividness, modality, novelty, media richness, hedonic values, utilitarian values, brand association, brand awareness, customer-brand engagement, brand loyalty
The study emphasizes the lack of research on the impact of Augmented Reality (AR) in e-commerce It introduces a framework that investigates AR's psychological effects through the S-O-R model, highlighting the overlooked influence of modality The findings indicate significant implications for understanding AR's role in enhancing the online shopping experience.
AR features can significantly impact customer experiential value and various dimensions of brand equity in the e commerce sector.
Augmented reality in online retailing: a systematic review and research agenda.
Response (S-O-R) Model vividness, reality, aesthetics, concentration, playfulness and exploratory behavior, individualism and fashion innovativeness, vividness, reality and aesthetics
Research shows that in the fashion and beauty makeup sectors, consumers value the vividness, realism, and aesthetics of augmented reality (AR) experiences more than control features AR promotes a sense of playfulness and encourages exploration, which significantly impacts purchase intentions.
Individualism and fashion innovativeness levels lead to diverse perceptions of purchase intention in mobile
I want it my way! The effect of perceptions of personalization through augmented reality and online shopping on customer intentions to co-create value
Value co creation and pcrsonalizati on theory
Perceived trust, Perceived personalization, Perceived risk, Intention to co creation
This study highlights that personalization significantly influences consumers' willingness to engage in co-creation Additionally, perceived danger and trust play a mediating role in this relationship, particularly in the contexts of augmented reality (AR) shopping and online shopping.
How do experiences enhance brand relationship performance and value co creation in social commerce?
The role of consumer engagement and self brand connection
Cognitive value, Hedonic value, Social value, Ethical value,
Customer engagement, Self-brand connection, Satisfaction, Brand loyalty, Value Co creation
This study enhances theoretical understanding by exploring the relationship between experiential value and customer involvement within a social commerce brand community, confirming its significance in the existing body of knowledge.
Second, by taking a comprehensive approach to experiencing value, this study offers insights into the beneficial impact of online brand engagement on brand relationship performance results.
Effects of experiential motivation and customer engagement on customer value creation:
Analysis of psychological process in the experience based retail environment
Experience economy theory, Self- determinatio n theory (SDT)
Social Interaction, Functional Value, Hedonic Value, Social Value,
Shopping Memories, Customer Satisfaction, Word of Mouth, Revisit Intention
This study investigates the psychological motivation of customer engagement and examines the underlying factors of customer behavior in offline retail environments.
Cocreation of value through authentic experiential augmented reality: the mediating effect of perceived
Perceived Authentic Experience, Customer Engagement, Vigor,
This research explored the impact of Augmented Reality (AR) on the intention to co-create Although AR effectively produced genuine experiences, its direct influence on co-creation intention was not clearly established Nonetheless, the findings indicated an indirect effect, suggesting that the authenticity generated by AR plays a significant role in shaping co-creation intentions.
Quantitative ethics and customer engagement
Privacy, Security, Fulfillment/Rel lability, Service Recovery, Non
Deception, Value co- crcation intentions, Age, Gender,
Familiarity positively impacts perceived ethics and customer engagement, both of which in turn boosted co-creation intention.
Augmented reality (AR) app use in the beauty product industry and consumer purchase intention
Spatial Presence, Concentration, Playfulness, Exploratory behavior, Decision Comfort, Purchase Intention
In the realm of fashion and beauty makeup, research indicates that consumers place greater importance on the vividness, realism, and aesthetics of augmented reality (AR) experiences rather than on their ability to manipulate or customize virtual content.
Beyond the inherent playfulness of AR, the study revealed its ability to encourage exploratory behavior in consumers, directly impacting their purchase intention
Furthermore, the research also highlights the influence of individual differences.
• Is this real? Cocreation of value through authentic experiential augmented reality: the mediating effect of perceived ethics and customer engagement - Alimamy & Nadeem, 2021
Recent advancements in augmented reality (AR) technology have created new opportunities for value co-creation between clients and service providers This study explores how authentic experiences generated through AR impact consumers' willingness to co-create value, while also examining the mediating roles of perceived ethics and customer engagement in this dynamic.
This study integrates value co-creation theory to develop a comprehensive theoretical model that highlights the importance of perceived authentic experiences, customer engagement, ethical perceptions, and value co-creation intentions, providing a deeper understanding of these interconnected elements.
Figure 2 Model researched by Alimamy & Nadeem (2021)
The study by Alimamy and Nadeem (2021) reveals that augmented reality (AR) influences perceptions of authentic experiences; however, there is no direct link between the intention to co-create value and these experiences On the other hand, authentic experiences facilitated by AR enhance customer perceptions of ethics and engagement, which in turn increases their intention to co-create value Overall, these findings offer valuable insights into the co-creation process and the role of technology within it.
• A Conceptual Model for Building the Relationship Between Augmented Reality, Experiential Marketing & Brand Equity - Prasad et al (2022)
In the age of E-commerce, Augmented Reality (AR) is revolutionizing online shopping through immersive virtual experiences While much research has explored AR's diverse effects, there is a lack of studies specifically addressing its impact on brand equity in online transactions This study aims to bridge that gap by analyzing how AR attributes—such as interactivity, vividness, modality, novelty, and media richness—affect consumer experiences and brand-related behaviors By focusing on these AR features, the research seeks to uncover their influence on experiential values and overall brand equity.
This study, grounded in the Stimulus-Organism-Response (S-O-R) Model by Mehrabian & Russell (1974), utilizes a systematic literature review to create an integrated conceptual model It highlights augmented reality (AR) as a key experiential marketing tool, examining the effects of interactivity, vividness, modality, novelty, and media richness on customer purchasing experiences and brand equity in the context of e-commerce.
Figure 3 Model researched by Prasad et al (2022)
Hypothesis development
2.3.1 Interactivity is positively correlated with Henonic Value
To enhance consumer engagement, retailers should develop augmented reality (AR) try-on applications that allow online shoppers to interactively position their faces on-screen, enabling them to assess their appearance in real-time without limitations.
User perceptions play a crucial role in interaction, highlighting unique characteristics that enhance interactivity Researchers emphasize the need to improve technology's subcomponents, such as range, mapping, and speed, to increase user engagement Range pertains to the extent of content manipulation in a mediated environment, mapping relates to the similarity of controls to real-world interactions, and speed refers to the responsiveness of content manipulation In augmented reality apps, interaction is defined by users' ability to engage with the interface and access diverse content An effective delivery method that embodies augmented reality fosters high interactivity and positive emotional responses Moreover, highly interactive experiences are linked to a sense of playfulness, connecting interactivity to the hedonic aspects of AR technologies.
Augmented reality (AR) significantly enhances user experience in product displays compared to traditional web-based formats, offering increased novelty, immersion, enjoyment, and utility, which positively influences consumer attitudes and purchase intentions (Yim et al., 2017) In the beauty industry, AR allows customers to virtually interact with cosmetics, enabling them to explore various products and access comprehensive information without visiting physical stores This innovative approach heightens customer excitement and satisfaction with their selections, leading to the following hypothesis:
Hl: Interactivity is positively correlated with Henonic Value 2.3.2 Interactivity is positively correlated with Utilitarian Value
Interactivity in technology is crucial for enhancing user engagement, as noted by Downes & McMillan (2000) and Hoffman & Novak (1996) Augmented Reality (AR) technologies significantly improve search quality, helping consumers find relevant information and increasing utilitarian value (Kim and Forsythe, 2008) For instance, an augmented reality beauty app can provide reliable and useful makeup knowledge, encouraging continued user engagement AR transforms aesthetics and environments using virtual materials (Rauschnabel et al., 2019; Yim et al., 2017) Furthermore, when users interact with such an app, it remembers their previous login details and displays relevant personal information, creating a positive user experience (Fang, 2017) and enhancing the overall shopping value through advanced technical features.
& Yoo, 2020) We can understand that AR features, including interactivity features, also contribute to bringing utilitarian value to users Therefore, this study proposes the following hypothesis:
H2: Interactivity is positively correlated with utilitarian Value 2.3.3 Vividness is positively correlated with Hedonic Value
Vividness combines “the sensory experience of actual objects", with
Hallucination refers to the nonsensory experience of imaginary objects (Lee, 2004) In e-commerce, vividness is often associated with the quality of product presentations (Jiang & Benbasat, 2007), enhancing customers' ability to mentally visualize future product experiences (Phillips et al., 1995) To improve customer reactions to product promotions, e-commerce platforms should utilize advanced display technologies that provide high-resolution, visually vivid product images, along with enhanced multi-dimensional sound (Yim et al., 2017).
In augmented reality (AR), "vividness" signifies the immersive quality of the environment created by shopping AR apps, enhancing the visual appeal and presentation of products As noted by Yim et al (2017), vividness merges imaginary experiences with real sensory perceptions, facilitating clear visualization and fostering positive consumer responses (Nikhashemi et al., 2021) The goal of AR vividness is to offer customers an aesthetically pleasing experience that impacts their cognitive and emotional processing by presenting products in a vibrant and unique manner For Vietnamese consumers, the vividness feature of AR can enhance the selection of makeup products like lipstick and foundation, allowing for sharper and more vibrant color representations on their devices This technology not only aids in making informed choices but also promotes satisfaction and enjoyment in exploring a variety of products Consequently, this study proposes the following hypothesis:
H3: Vividness is positively correlated with Hedonic Value 2.3.4 Vividness is positively correlated with Utilitarian Value
Features that enhance vividness in augmented reality (AR) significantly motivate users to engage more effectively with information, leading to improved consumer search experiences and heightened perceptions of media usefulness in decision-making (Van Noort et al., 2012) Kim and Forsythe (2008) highlight that a 3D AR shopping experience allows consumers to verify product qualities before purchase, demonstrating practical benefits Vividness positively influences both the utility and enjoyment of media, shaping attitudes toward AR applications when perceived customer advantages are realized (Nikhashemi et al., 2021) Rauschnabel et al (2019) assert that unique elements of AR apps, such as quality and novelty, enhance user experiences by accelerating the recognition of utilitarian and hedonic benefits AR vividness not only provides a distinct sense of realism but also aids consumers in visualizing products in real life, facilitating more informed purchase decisions (Nikhashemi et al., 2021) Additionally, clear representation, personalized content, and trustworthy insights enable consumers to select beauty products with greater ease and confidence, while also fostering delight and excitement (hedonic benefits) alongside practical experiences (utilitarian benefits) Thus, this study proposes the following hypothesis:
H4: Vividness is positively correlated with utilitarian Value 2.3.5 Novelty is positively correlated with Hedonic Value
Augmented Reality (AR) apps are revolutionizing online shopping by offering unique and personalized experiences that enhance consumer engagement According to Massetti (1996), novelty in this context is defined by the perception of newness and uniqueness, while McLean and Wilson (2019) highlight that AR's novelty lies in the fresh and personalized content users encounter with each interaction System quality plays a vital role in user satisfaction, as noted by Ashfaq et al (2020), and effective shopping experiences should provide prompt responses to user inquiries, reflecting the immediacy of in-store shopping (Nikhashemi et al., 2021) Sohn (2017) underscores the necessity for high-quality technical and functional features in online stores Furthermore, Nikhashemi et al (2021) point out that users can experience enjoyment and hedonic benefits from these interactions Hence, this study proposes a hypothesis to explore these dynamics further.
H5: Novelty is positively correlated with Hedonic Value
2.3.6 Novelty is positively correlated with Utilitarian Value
Research has investigated the effects of augmented reality (AR) on e-commerce platforms, focusing on two essential aspects of the shopping experience: utilitarian evaluation, which pertains to the usefulness of the store, and hedonic evaluation, which relates to the pleasure derived from shopping (Babin et al., 1994; Childers et al., 2001; Voss et al.).
Research shows that the integration of Augmented Reality (AR) services positively influences both utilitarian and hedonic perceptions of online stores, enhancing customer engagement and satisfaction (Beck and Crié, 2018; Hilkcn et al., 2017; Poushneh and Vasquez-Parraga, 2017; Yim et al., 2017) This improvement in attitudes towards online shopping indirectly boosts purchase intentions Additionally, enjoyment, which is associated with cognitive, utilitarian, and hedonic emotions, plays a significant role in this dynamic (Bae et al., 2020; Rauschnabel et al., 2020).
Research by McLean and Wilson (2019) indicates that augmented reality (AR) media novelty enhances the consumer shopping experience during online purchases Additionally, Yim, Chu, and Sauer (2017) found that AR media novelty significantly influences individuals' cognitive flow, leading to increased mental arousal towards products and brands.
(2019) proposes that personalized innovative features spark customers' curiosity and encourage them to explore further for new information For instance, Rauschnabel et al
In 2019, it was argued that augmented reality (AR) applications, characterized by their novelty, vividness, and quality, can significantly enhance users' functional and enjoyment experiences This enhancement, in turn, accelerates the perception of utilitarian benefits among users Based on this premise, the study proposes the following hypothesis.
H6: Novelty is positively correlated with Utilitarian Value 2.3.7 Personalization is positively correlated with Hedonic Value
User personalization in AR apps enhances user experience by delivering tailored content based on individual preferences, which meets specific needs and interests (Kim et al., 2013) This customization provides significant economic benefits, such as saving time and money, and helps users efficiently navigate vast information (Choi et al., 2017) Marketers use GPS-enabled applications to create personal connections, exemplified by TripAdvisor, which utilizes location data to offer customized recommendations for accommodations, travel, and dining through features like "just for you" that consider users' past behaviors By minimizing irrelevant messages, personalization improves user satisfaction and enhances the app's utilitarian value Retailers can employ various schemes and cookies to cater to diverse customer needs within their AR apps, fostering a pleasant environment that emphasizes personalized experiences Moreover, personalized offers are shown to lower customers' search costs (Hsu et al., 2021), indicating that integrating personalized information can facilitate navigation and streamline the AR service process (Găthke, 2020) Thus, this study proposes the following hypothesis:
H7: Personalization is positively correlated with Hedonic Value 2.3.8 Personalization is positively correlated with utilitarian Value
Personalization significantly enhances persuasive effectiveness by addressing the unique needs and interests of individual consumers Advanced technologies enable the creation of tailored experiences, utilizing consumer data to deliver customized content.
Personalization strategies can significantly enhance user experience by tailoring communication, such as using recipients' names, and offering personalized recommendations based on online behavior Additionally, innovative approaches like virtual models for trying on clothes further personalize interactions When users recognize these personalized cues, the information becomes linked to their identity, leading to a perception of a more customized experience.
The proposed model
Figure 6 Conceptual framework for research
Source: The author of the research