Augmented reality's perceived immersion effect on the customer shopping process: decision-making quality and privacy concerns

Abstract

PurposeThis study investigates the role of an augmented reality (AR)-based tool in customers' shopping processes.Design/methodology/approachUsing the stimulus-organism-response (SOR) and consumer decision-making models, this study builds a comprehensive theoretical model that investigates the mechanism sequentially connected AR-enabled shopping tool and customer responses. Décor Matters was chosen as the AR-enabled mobile application for this study. Qualtrics, which conducted the survey, collected 150 responses in the USA. The authors used structural equation model to test the hypotheses.FindingsThis study enriches the retail-related AR theory by offering a holistic and structural view of the factors that connect customers' cognitive and affective internal processes with customers' shopping task. However, having used only one type of AR-enabled app in the study, the findings remain limited.Research limitations/implicationsThis research advances the understanding of AR's role in the customer shopping process by validating the positive effect of immersion on purchase intention, as well as revealing the mediating effect of decision-making quality and the moderating effect of privacy concerns. However, as only one type of AR-enabled app was used in the study, the findings are still limited.Practical implicationsThe findings can help retailers to understand why and how firms can benefit from investing in AR-enabled apps (i.e. by focussing on customer perceived immersion and decision-making quality with AR).Originality/valueThis study's originality lies in the SOR model's extension, which integrates the customer decision-making model, allowing for connecting customers' cognitive and affective internal experiences with their shopping task. The findings can help retail managers to understand more clearly and in-depth why and how AR works in customers' shopping process.