From Screen to Reality: How AR Drives Customer Engagement and Purchase Intention

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Jingyi Yang*

Durham University Business School, Mill Hill Lane, Durham DH1 3LB, United Kingdom

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jingyi.yang2@durham.ac.uk

Zhibin Lin

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Durham University Business School, Mill Hill Lane, Durham DH1 3LB, United Kingdom

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zhibin.lin@durham.ac.uk

*Corresponding author
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 From Screen to Reality: How AR Drives Customer Engagement and Purchase Intention

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Abstract

This study investigates the role of Augmented Reality (AR) attributes, particularly

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interactivity and vividness, in promoting online marketing effectiveness through an online

survey. Results reveal that a more interactive and vivid AR shopping platform is found to

enhance media usefulness and media enjoyment, reducing consumers' perceived shopping

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risks associated with online purchases. Moreover, AR technology creates a realistic product

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impression akin to the physical shopping experience, thereby increasing consumer

engagement. The study confirms that high levels of media usefulness and media enjoyment

enhance customer engagement, leading to stronger purchase intentions. Additionally, serial

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mediation analyses demonstrate the sequential relationships between AR attributes, media
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usefulness, media enjoyment, customer engagement, and purchase intention. This research

contributes to a deeper understanding of the theoretical underpinnings of AR marketing and

its implications for enhancing online shopping experiences.

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Keywords: Augmented Reality; interactivity; vividness; media usefulness; media enjoyment;

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customer engagement.
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This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
 1. Introduction

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The rise of online shopping has revolutionized the retail landscape, offering businesses

unprecedented opportunities to reach global audiences. However, this shift to digital

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commerce has also brought challenges, particularly regarding consumers' lack of physical

interaction with products inherent in traditional brick-and-mortar stores (Li et al., 2001;

Steinmann et al., 2014). Without the ability to touch, try on, or test products, online shoppers

often face higher perceived risks and lower purchase intentions. In response to these

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challenges, Augmented Reality (AR) technology has emerged as a promising solution,

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offering interactive and immersive experiences that bridge the gap between the online and

physical worlds. Over the past decade, brands and social media platforms have increasingly
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invested in AR-based marketing tools, anticipating significant growth in this sector

(Rauschnabel et al., 2019). However, despite this investment, creating engaging content with
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AR technology remains a challenge for brands, as the lack of appealing experiences hinders

mass adoption. Therefore, understanding what motivates users to interact with AR

technologies is essential for designing customer experiences that foster engagement and
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purchase intention.
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Previous research highlights AR's potential to revolutionize online shopping by

alleviating consumer concerns and introducing innovative solutions (Li et al., 2001;

Steinmann et al., 2014). AR excels in enriching product understanding and visualization,

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enabling virtual try-on of clothing, furniture visualization, and makeup experimentation, thus

providing immersive shopping experiences (Hilken et al., 2018; Jessen et al., 2020). This
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depth of visualization reduces the uncertainty associated with online shopping, leading to

more informed purchase decisions (Porter & Heppelmann, 2017; McLean & Wilson, 2019).
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Furthermore, AR bridges the physical-digital divide, enabling interactive product interactions

reminiscent of physical stores (Li et al., 2001; Steinmann et al., 2014). Beyond visualization,

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 AR significantly increases consumer engagement and enjoyment by providing interactive

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elements that engage consumers and foster brand loyalty (Porter & Heppelmann, 2017;

McLean & Wilson, 2019). The gamification aspects of AR further enhance the shopping

experience, making it fun and memorable (McLean & Wilson, 2019). In addition, AR enables

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personalized shopping experiences through tailored product recommendations, increasing

relevance and emotional connections between consumers and brands (Jessen et al., 2020;

McLean & Wilson, 2019).

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Despite the growing body of research on AR in marketing, there remains a gap in

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understanding the comprehensive impact of AR on consumer behavior. Specifically, the role

of interactivity and vividness in AR's effectiveness is not fully explored. While existing
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studies suggest that these attributes contribute to user engagement (Porter & Heppelmann,

2017; McLean & Wilson, 2019), their influence on purchase intention through mediating
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factors such as media enjoyment and usefulness requires further investigation. Furthermore,

the mediating role of customer engagement in the relationship between AR and purchase

intention is not fully established. While research suggests that AR fosters engagement (Jessen
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et al., 2020; Hilken et al., 2018), its specific role in influencing purchase decisions through
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other factors remains unclear.

This study aims to address these gaps by investigating the mediating role of media

usefulness, media enjoyment, and customer engagement between AR attributes (interactivity

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and vividness) and purchase intention. Drawing upon the telepresence theory proposed by

Steuer et al. (1995), we hypothesize that AR's interactive and vivid qualities contribute to a
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sense of telepresence, which in turn influences media usefulness and media enjoyment. These

positive perceptions then lead to higher customer engagement, ultimately resulting in

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increased purchase intention. An online questionnaire survey was conducted to test the

hypotheses.

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 This study contributes to the theoretical understanding of customer engagement in AR

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product presentations, identifying the pivotal role of AR attributes such as interactivity and

vividness. By establishing the mediating effects of media usefulness and media enjoyment, as

well as the second-order mediation of customer engagement, the research elucidates the

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pathway through which AR influences purchasing intent. The findings confirm and extend

Steuer's telepresence concept, highlighting its determinant role in AR technology. Moreover,

the study advances understanding by shifting focus from technical aspects to consumer

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perceptions, emphasizing the significance of customer engagement in shaping purchase

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intentions.

2. Theoretical Background er
2.1 Online Product Presentation and Augmented Reality (AR)
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In the traditional online shopping mode and environment, it is hard for consumers to

touch, taste, or try the products (Jiang & Benbasat, 2007). Direct product experiences, such as

product trials and physical engagement, have a greater impact on customer learning and
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persuasion than indirect product experiences, such as exposure to mediated product

information (Hamilton & Thompson, 2007). Therefore, marketers should create a satisfactory
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alternative to the direct customers’ product experience by providing the customer with

specifications, features, and performance information before the purchase phase (Klein,
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2003).

On e-commerce websites, traditional product display methods, such as text information

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and static images, are still preferred. However, the traditional display mode is difficult to

successfully convey product quality information to consumers (Jiang & Benbasat, 2007). In

the previous two decades, the technology used to display products on online shopping
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platforms has evolved a lot. Therefore, to provide greater product presentation, marketers are

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 increasingly adopting new technologies such as video and mobile augmented reality in the e-

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commerce environment (Poushneh & Vasquez-Parrags, 2017).

Augmented reality (AR) is based on human experience with the interplay of actual

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world and virtual objects (Craig, 2013). AR functions as a bridge between the real world and

a computer-generated environment, enhancing the interactivity of the human experience. AR

possesses three distinctive media characteristics: a “mix of realistic and virtual,” “real-time

interaction,” and “3-dimensional base registration.” (Azuma, 1997). AR’s greatest benefit

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over previous virtual reality technologies is its ability to create a “mixed reality environment”

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in which the objects are virtual, but the environment is real (Cho & Schwarz, 2010).

When utilizing AR-based apps, such as AR computer software, the web camera enables
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the users to interact with virtual target projections on the interface, with both objects

appearing simultaneously on the screen (Bell et al., 2001). Some researchers suggested that
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an online shopping platform built on AR technology might provide customers with a more

accurate depiction of items by showing products based on users’ physical characteristics (Ma
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& Choi, 2007). AR’s objective is to increase the interactivity between the real-world

environment and the virtual one for human users.

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AR technology has been characterized as an area of technology that augments real-

world experiences with computer-generated visual objects and audio. Using AR-loading
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products like AR glasses and helmets, the technology provided customers and market

organizations with a novel method for merging product information and data on a virtual

foundation into the real physical world. Compared to prior digital media technology tools
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such as VR-based goods, AR has a greater impact on marketing (Yim et al., 2017). From

previous market research, several nations place a high value on the role of AR technology in
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the marketplace and integrate AR technology with varied organizations to gain competitive

advantages in product sales (Tscheu & Buhails, 2016).

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 Recently, marketers have begun adopting and testing a number of AR apps to

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determine the optimal settings and strategies for exploiting the value (Javornik, 2016). The

use of additional AR technology on smart devices allows consumers to see virtual objects as

they would look in the real world. At the same time, large interactive screens can present

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larger physical environments that contain virtual components. For example, an AR setup in a

shopping center is designed to raise awareness of the need to protect endangered species.

Virtual animals are shown on a large screen strolling through the shopping center as if the

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animals were present in the real environment.

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A fresh paradigm is offered by AR marketing, which improves successful brand

outcomes and creates customer engagement. Brands and transactional components of AR

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apps that place them in the background are more likely to forge genuine connections with

customers (Scholz & Duffy, 2018). To reach organizational goals, AR marketing is defined
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as a strategic tool that integrates digital information or objects into the subject’s experience of

the real world using other media (Rauschnabel et al., 2019). AR marketing enables marketers

to execute AR campaigns and increase consumer engagement (Scholz & Smith, 2016).
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Therefore, AR technology is now being used to create awareness among the public and help
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drive sales and enhance customer engagement with the brand.

2.2 Telepresence Theory

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Telepresence is defined as the feeling of being present in a communication medium

(Steuer et al., 1995). Compared to presence, which refers to the sense of naturally being in an

environment, telepresence refers to the “mediated perception of an environment” (Steuer et

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al., 1995). Two contributing factors to having a presence in a virtual environment, as claimed

by Kim and Biocca (1997), are arrival, referring to the sense of actually being there, and
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departure, referring to the sense of not being in the physical environment. Due to the

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 immersion AR generates for users in the mediated environment (Yim et al., 2017),

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telepresence has a significant impact on consumer behavior during AR experiences.

According to Steuer et al. (1995), interactivity and vividness are two determinant

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components of telepresence. Interactivity refers to the degree to which the content of the

mediated environment can be affected by its users, with speed, range, and mapping being

three key elements of interactivity. Vividness refers to the extent of the sensory richness of

the mediated environment, which can be measured through breadth and depth. However,

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Steuer et al. (1995) explain telepresence and these two components from a technical structure

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perspective. Previous research has investigated the interactivity and vividness of telepresence

from this perspective (e.g., Coyle & Thorson, 2001; Klein, 2003; Lim & Ayyagari, 2018).
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Another stream of study considered the influence of telepresence on perceptual

consequences (e.g., Kim, 2005; Kim & Hyun, 2016; Yim et al., 2017). Following this stream,
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the current study adopts the concept of interactivity and vividness of telepresence as two

determinant antecedents influencing consumers' perceptions toward online product

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presentation with AR, and further explores consumers' attitudes and behavior with AR

technology used in online shopping platforms.

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3. Hypothesis Development

3.1 Interactivity
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Interactivity is understood as the capability to allow mutual communication between

two communication parties (Lee, 2005; Kang et al., 2021), and almost every human activity
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involves interactivity (Heeter, 2000). In the media-mediated world, “everything a human does

to or with a computer is a human-computer interaction” (Heeter, 2000). Although the

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definition of interactivity varies from the different perspectives in the literature (Yim et al.,

2017; Kang et al., 2021), to understand its role in AR marketing, the meanings of interactivity

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 can be divided into two complementary perspectives: (a) technological outcome, (2) user

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perception (Yim et al., 2017).

Considering interactivity as an outcome of technology’s ability, interactivity allows

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users to participate in a mediated environment and modify the content in real time (Steuer et

al., 1995). Scholars in this school have emphasized the technological feature that interactivity

aims to exchange the role of sender and receiver in a computer-enabled environment (Rice,

1984). The process of interactivity should be interchangeable and responsive and “response

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time” and “response contingency” should be the two key elements of interactivity (McMillan

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& Hwang, 2002; Alba et al., 1997). Steuer et al. (1995) examined three factors that contribute

to improving the performance of technological interactivity: speed, which aims to reach real-
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time communication; range, which aims to have a greater number of parameters being

manipulated; and mapping, which aims to generate connections between real-world actions
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and mediated environment.

Other scholars suggested that interactivity should be studied from users’ perceptions
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and experience (Lee, 2005). Interactivity is understood as perceived interactivity with three

dimensions: (1) perceived control, (2) perceived responsiveness, (3) perceived

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personalization (Wu, 2000). To make an extension of the concept of interactivity in the online

environment, Lee (2005) added connectedness, defined as the feeling of being able to share

information through a media-mediated world, as the last key component of interactivity.

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Meanwhile, the prior condition of feeling interactivity is to participate in the interactive

media. Thus, individual traits should be a focus that can induce a sense of interactivity (Yim
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et al., 2017).

3.2 Vividness
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 Vividness is defined as the representational richness of a mediated environment that

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can induce a sense of presence (Steuer et al., 1995). The concept of vividness is also

understood as realness or realism, referring to the consistency of experience between the

virtual environment and the real world (Yim et al., 2017; Witmer & Singer, 1998).

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From the technological perspective, vividness represents a feeling of transparency and

presence and highly depends on the technical features of a medium (Rafaeli, 1988; Steuer et

al., 1995). Two key dimensions related to vividness are sensory breadth, which refers to the

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number of sensory dimensions a medium can generate, and sensory depth, which refers to the

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quality of the sensory dimensions provided by the medium (Steuer et al., 1995; Li et al.,

2002). Therefore, it is expected that a communication medium could be considered to

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generate great vividness if it provided rich sensory dimensions with high definition.

Vividness is related to the quality of product presentation in an e-commerce context

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that is highly associated with consumers’ cognitive elaboration processes (Jiang & Bengasat,

2007; Yim et al., 2017; Kim et al., 2021; Nisbett & Ross, 1980). Combined with the
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understanding from a technological perspective, a vivid online environment should involve

rich sensory content to stimulate consumers’ senses (Steinmann et al., 2014). Vividness helps
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consumers imagine the intended experience of the product in a future consumption

environment (Yim et al., 2017; Phillips et al., 1995) and leads to higher confidence in making

purchase decisions (Nisbett & Ross, 1980).

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3.3 Interactivity and Vividness Enhance Media Usefulness and Media Enjoyment
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Media usefulness, in this paper, refers to the ability of a medium to provide consumers

with sufficient information for evaluating the product and reducing the possibility of poor

choice in virtual shopping (Kim & Forsythe, 2008). In an online shopping environment,
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enhanced interactivity and vividness enable consumers to visually examine the virtual

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 product to enrich the product information (Ariely, 2000). Media usefulness would be

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enhanced if consumers participated in an efficient message-information processing (Bezjian-

Avery, Calder, & Iacobucci, 1998; Childers et al., 2001; Van Noort, Voorveld, & van

Reijmersdal, 2012; Yim et al., 2017).

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VR-based product experiences strengthen consumers’ product knowledge (Daugherty,

Li, & Biocca, 2008). Shopping through VR enables consumers to effectively examine the

product with vivid and realistic images, as if they are in a real-world shopping environment.

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The combination of a naturalistic environment and vivid product presence increases

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consumers’ perceived usefulness (Kim et al., 2021). AR is similarly based on VR systems

and is hoped to provide consumers with the same functions in educating consumers more
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efficiently with high interactivity and vividness (Yim et al., 2017).

Media enjoyment is expected to be associated with interactivity and vividness. Studies

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in video games have revealed that a more interactive game setting generates a higher degree

of enjoyment for players because interactivity is highly related to perceived control in the
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virtual world (Nicholas, Haldane, and Wilson, 2000; Klimmt et al., 2007). The close

relationship between vividness and enjoyment is examined by Heeter (1992) that an

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individual will have a stronger sense of enjoyment when communicating with computer-

generated user images. In addition, compared with 2D advertisements, 3D advertising

triggers a higher level of enjoyment due to vivid images (Yim, Cicchirillo, & Drumwright,
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2012; Yim, Drumwright, & Cicchirillo, 2012).

In the context of online shopping, consumers who visit a vividly designed website will
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have higher quality perceptions toward the retailer and positive emotional responses no

matter whether they are familiar with the brand (Griffith & Gray, 2002). This finding extends
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to the virtual world. Vividness of virtual products is more likely to induce more positive

emotions and attitudes toward the product (Yim et al., 2017; Steinmann et al., 2014). By

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 enhancing the vividness, advanced media technology is committed to enriching consumers’

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imagination construction to achieve the purpose of immersion, so as to provide more media

enjoyment (Yim et al., 2017).

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Researchers have examined the effects of interactivity and vividness on consumers’

perceived utilitarian and hedonic values. For example, interactive technology can positively

influence consumers’ attitudes by enhancing perceived instrumental value and experiential

value (Fiore et al., 2005). A vivid technology helps enrich product information and trigger

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affective experience (Kim et al., 2021). The higher the level of interactivity and visual-spatial

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cues, the greater the perceived informativeness and playfulness (Kang et al., 2020).

Interactive AR program with vivid images helps consumers gather product information and
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generate positive emotions by creating a sense of immersion (Yim et al., 2017). Therefore,

the following is hypothesized:

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H1a: The interactivity of AR has a positive relationship with media usefulness.

H1b: The interactivity of AR has a positive relationship with media enjoyment.

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H2a: The vividness of AR has a positive relationship with the media usefulness.

H2b: The vividness of AR has a positive relationship with media enjoyment.

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3.4 The Mediating Role of Customer Engagement

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Customer engagement is a psychological state that is created by interactive and co-

creative customer experiences with an object (Brodie et al., 2011). Utilitarian factors and

enjoyment are two important elements that positively influence customer engagement
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(McLean, 2018). It can be assumed that customers who are involved and enjoy the online

shopping experience tend to have an optimistic attitude toward the brand (Wirtz et al., 2013).
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Customers is willing to purchase online because they have a higher commitment to a brand

and are indirectly involved in the brand’s failures and successes (Huang & Liao, 2015).

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 Customer engagement is a psychological state beyond purchase that combines

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consumers’ attitudes and behaviors. It is a mix of consumers’ cognitive, emotional, and

behavioral activities related to the brand (McLean & Wilson, 2019). According to the

technology acceptance model (Davis, 1989), consumers have utilitarian and hedonic

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considerations of adopting new technology (Kim & Forsythe, 2008), which leads to

consumers’ attitudes towards the technology and their intention to behave. Two

representative factors of utilitarian and hedonic perception in the technology acceptance

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model are perceived usefulness and perceived enjoyment (Kim et al., 2021). Therefore, this

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study examines the impact of media usefulness and media enjoyment on the behavioral and

attitudinal aspects of customer engagement in AR marketing.

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The intention to purchase at a specific time is expected to be positively and directly

associated with consumer engagement. To achieve higher customer purchase intention

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toward a specific brand in the future, marketers agreed that greater customer engagement is

essential which leads to stronger relationships with the brand (Algesheimer, et al., 2010).

This brand relationship will foster a sense of connection and loyalty (Thakur, 2016), which in
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turn, might positively impact customer intention to make a purchase. Besides, engaged
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customers are more likely to become brand advocators which improve word-of-mouth (de

Oliveira Santini et al., 2020), which directly affected the purchase intention (Chiou et al.,

2010). Thus, it is hypothesized:

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H3a: Media usefulness has a positive relationship with customer engagement.

H3b: Media enjoyment has a positive relationship with customer engagement.

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H4: The effect of (a) media usefulness and (b) media enjoyment on purchase intention is

mediated by customer engagement.

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Figure 1. Conceptual model of this research

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4. Method

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4.1 Data Collection

An online survey was developed to examine each hypothesis. Due to the reason that it is
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unable to determine the actual number of AR shopping app users, the sample size is not well-

defined. A non-probability and purposive sampling method was used to collect data for the
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study. To achieve this objective, the research used online data collection in the form of a

panel-based judgmental sample of Chinese customers with experience using an online AR

product presentation platform. The selection was further restricted to those with sufficient
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experience with shopping augmented reality apps from an of the following brand. before data

collection, screening questions ensured compliance with the criteria. From 5th August to 15th
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August 2021, a total of 357 questionnaires were received. Responses from people with no

experience of AR use were removed from the valid response. At last, 308 valid
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questionnaires were accepted.

4.2 Questionnaire and Construct Measures

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The body of the questionnaire was divided into three sections. The first section focused

on the respondent’s online buying experience and habits. The second section addressed the
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evaluation of each variable in this study. constructs were measured using a five-point Likert

scale ranging from 1 (strongly agree) to 5 (strongly disagree). A total of 23 items were used

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 to measure the six latent constructs: interactivity, vividness, media usefulness, media

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enjoyment, customer engagement, and purchase intention. The next step is to acquire

fundamental demographic data.

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Measurements of each variable are adopted from the literature and modified accordingly.

Interactivity (Cronbach’s α = .77), vividness (Cronbach’s α = .86), media usefulness

(Cronbach’s α = .87), and media enjoyment (Cronbach’s α = .90) were measured by adapting

the scales of Yim et al. (2017) to the context of this study. A four-item scale for measuring

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customer engagement (Cronbach’s α = .84) was adapted from Hollebeek et al. (2014).

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Purchase intention (Cronbach’s α = .77) was measured using 3 items by Chen and Chang

(2018). Details of each item are presented in Appendix.

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4.3 Pilot Study
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A pilot study was carried out to improve the overall quality of the questionnaire. 15

marketing students from a university in the United Kingdom were invited to participate in a

pilot study through an online questionnaire. Results showed that some participants reported
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that they were unable to differentiate between AR and other technologies when it came to

real-world experience. Some respondents also pointed out that some adjectives in the Chinese
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translation of the questionnaire were too similar to be separated. To deal with the above-

mentioned problems. A description of the differentiation along with some examples of AR

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was included in the questionnaire. Chinese translation was modified to assist respondents in

better understanding the content of the survey, and a student English translator was invited to

check and modify the translated questionnaire.

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5. Results
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There were 308 valid and complete responses from the 357 questionnaires received, for

an 86% response rate. Of these, 33% were male and 67% were female. A total of 16% of the

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 respondents reported that they purchase from online platforms at least one time per day, 51%

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had done so 3-5 times per week, 31% less than 3 times per week, and 2% did not specify.

And 27% of the respondents had spent less than ¥500, 35% spend ¥500 to ¥1000, 25% spent

¥1000 to ¥3000, 13% spent more than ¥3000 on online shopping in one month.

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H1a and H1b assumed that media usefulness is influenced by the interactivity and

vividness of the AR technology. H2a and H2b propose that media enjoyment is affected by

interactivity and vividness. It is expected that AR technology used for online shopping should

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be more interactive and vivid that triggers greater perceived media usefulness and media

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enjoyment of the consumers. To test these four hypotheses, a multiple linear regression

analysis was conducted, with media usefulness as the dependent variable. Results indicate
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that interactivity and vividness explain 51.3% of the variance in media usefulness (R2 =

0.513, F (2, 305) = 160.809, p < 0.001). The regression coefficients indicate that interactivity
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(β = 0.467, p < 0.001) and vividness (β = 0.310, p < 0.001) are significant components of the

relationship. H1a and H1b are supported. Interactivity and vividness can also explain 55.5% of

the variance in media enjoyment (R2 = 0.555, F (2, 305) = 190.034, p < 0.001). The
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regression coefficients reveal that interactivity (β = 0.302, p < 0.001) and vividness (β =
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0.504, p < 0.001) are significant roles shaping media enjoyment, supporting H2a and H2b.

H3a and H3b infer that media usefulness and media enjoyment furtherly influence

customer engagement of AR technology. An online shopping platform with AR that are

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perceived to be useful and enjoying can trigger consumers’ positive attitudes and behaviors,

which generate greater sense of engagement. With regard to these proposed effects, findings
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from multiple linear regression analysis show significant main effects of media usefulness (β

= 0.374, p < 0.001) and media enjoyment (β = 0.422, p < 0.001) on customer engagement (R2
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= 0.536, F (2, 305) = 176.167, p < 0.001). Thus, H3a and H3b are supported.

Table 1. Results of multiple regressions analysis

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 Unstandardized Standardized
Dependent Independent coefficients coefficients

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variable variable B Std. Error β R2 F
MU IN 0.482 0.057 0.467*** 0.513*** 160.809
MU VI 0.331 0.055 0.310***
ME IN 0.357 0.062 0.302*** 0.555*** 190.034
ME VI 0.578 0.060 0.504***

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CE MU 0.363 0.052 0.374*** 0.536*** 176.167
CE ME 0.358 0.046 0.422***
Notes: IN = interactivity; VI = vividness; MU = media usefulness; ME = media enjoyment;
CE = customer engagement. ***P < 0.001.

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H4 predicts a mediating effect of customer engagement between the (a) media usefulness

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and (b) media enjoyment and purchase intention. For H4a, PROCESS model 4 with 5000

bootstrapping samples was used for mediation analysis, with media usefulness as the

predicting variable, customer engagement as the mediator, and purchase intention as the
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dependent variable (higher value indicate higher purchase intention). The mediating effect

customer engagement of media usefulness and purchase intention is significant (β = 0.287,

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95% CI = [0.193, 0.392]). After controlling for the mediation of customer engagement, the

direct effect media usefulness on purchase intention is significant (β = 0.281, 95% CI =

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[0.186, 0.377]), which suggests that customer engagement partially mediated the effect of

media usefulness on purchase intention. Thus, H4a is supported.

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For H4b, PROCESS model 4 with 5000 bootstrapping samples was used for mediation

analysis, with media enjoyment as the predicting variable, customer engagement as the
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mediator, and purchase intention as the dependent variable (higher value indicate higher

purchase intention). The mediating effect customer engagement of media enjoyment and
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purchase intention is significant (β = 0.253, 95% CI = [0.168, 0.349]). After controlling for

the mediation of customer engagement, the direct effect media enjoyment on purchase

intention is significant (β = 0.248, 95% CI = [0.163, 0.333]), which suggests that customer
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engagement partially mediated the effect of media enjoyment on purchase intention. Thus,

H4b is supported.

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 This study also tested the mediating role of media usefulness, media enjoyment, and

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customer engagement in the relationship between interactivity, vividness, and purchase

intention. To test the above serial mediating relationships, SPSS PROCESS model 6 with

5000 bootstrapping samples were adopted. The result reveals that interactivity (β = 0.130,

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95% CI = [0.077, 0.196]) and vividness (β = 0.118, 95% CI = [0.068, 0.182]) have indirect

effects on purchase intention in the presence of media usefulness and customer engagement.

Interactivity (β = 0.126, 95% CI = [0.0757, 0.187] and vividness (β = 0.142, 95% CI =

v
[0.084, 0.216]) also have indirect effects on purchase intention via media enjoyment and

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customer engagement with a 95% confidence interval not including 0.

Table 2. Results of mediation analysis er 95% CI

Indirect effect path β SE Lower Upper
MU  CE  PI 0.287 0.051 0.193 0.392
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ME  CE  PI 0.253 0.046 0.168 0.349
IN  MU  CE  PI 0.130 0.030 0.077 0.196
VI  MU  CE  PI 0.118 0.029 0.068 0.182
IN  ME  CE  PI 0.126 0.028 0.075 0.187
VI  ME  CE  PI 0.142 0.033 0.084 0.216
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Notes: IN = interactivity; VI = vividness; MU = media usefulness; ME = media

enjoyment; CE = customer engagement; PI = purchase intention.
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6. Discussion and Conclusion

This study investigated the attributes of AR as a tool for promoting online marketing
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through an online survey, with a focus on the effect of interactivity and vividness. Results of

the survey reveal that AR-based online marketing has the ability to encourage more purchase
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intention through media usefulness, media enjoyment, and customer engagement.

Specifically, findings from the current research show that a more interactive and vivid online
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shopping platform employing AR technology will positively affect media usefulness and

media enjoyment. Obviously, AR technology providing consumers with a virtual shopping

This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
 environment with interactivity and vividness is expected to reduce consumers’ shopping risks

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due to the loss of physical product examination. AR technology, therefore, generates a

realistic impression of the product, making online shopping similar to the experience of

shopping in physical stores (Li et al., 2001; Steinmann et al., 2014).

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This study confirmed that media usefulness and media enjoyment positively influence

customer engagement. If consumers have high media usefulness and media enjoyment in the

e-commerce experience, they are inclined to enhance engagement. This finding is consistent

v
with previous research indicating that media usefulness and media enjoyment are essential

re
factors for enhancing customer engagement and generating a sense of immersion (Yim et al.,

2017). Porter and Heppelmann (2017) have examined that AR enables individuals to
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personalize content based on their preferences and interests, thus arousing user curiosity and

attention. AR applications can provide more product information, creating unique, clear, and
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detailed views of combined virtual and real-world experiences (McLean & Wilson, 2019).

With high media enjoyment, the shopping experience is likely to resonate with the peer group

and thus enhance customer engagement (Nikhashemi et al., 2021).

ot

The results of the mediation analysis have shown that customer engagement is an
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important mediator. Consumers who perceive the media as useful and enjoyable have

stronger purchase intentions due to enhanced customer engagement. This finding is consistent

with Jessen et al. (2020), indicating that AR characteristics foster customer engagement to
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increase satisfaction with purchase decisions. In addition, customer engagement expanded by

AR experiences is considered a potential measure of success for AR applications at the front

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end of the customer purchase journey (Hilken et al., 2018). This study also confirmed four

serial mediation relationships. With a higher degree of feeling of interactivity and vividness
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that AR-based online shopping platforms possess, consumers have a greater sense of media

This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
 usefulness and media enjoyment, encouraging their engagement with the platform, which

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ultimately increases their purchase intention.

6.1 Theoretical Implications

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E-commerce applications of AR are undergoing rapid development. This study enhances

the theoretical understanding of the antecedents and behavioral outcomes of customer

engagement using AR product presentations. The research identifies the role of AR attributes

v
and defines AR interactivity, AR vividness, AR media usefulness, and AR media enjoyment.

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Specifically, the research identifies the AR and technological aspects that drive customer

engagement, as well as the positive influence of AR product presentations on purchasing

intent, while establishing the function of media usefulness and media enjoyment as the first-
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order mediators, and customer engagement as the second-order mediator. Moreover, the

research demonstrates the importance of AR in assisting consumers during the decision-

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making process by eliminating the need to visualize how products may appear.

The positive effects of interactivity and vividness of AR on consumers’ perceived media

ot

usefulness and enjoyment precisely confirm Steuer’s et al. (1995) telepresence concept in the

context of AR. When further testing these factors, this study found that media usefulness and
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media enjoyment are first-order mediators that trigger purchase intention via enhanced

customer engagement. In this serial mediation, telepresence plays an important role in

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affecting perceptions toward the media. These findings clearly emphasize the determinant

role of telepresence in AR technology.

ep

By addressing the study topics, the present work provides various theoretical

implications. Firstly, this study provides a deeper understanding of telepresence in the context

of AR marketing. By investigating the relationship between interactivity, vividness, media

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usefulness, media enjoyment, and customer engagement, the results of this work confirm and

This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
 extend Steuer’s et al. (1995) telepresence theory from a technical perspective to the

ed
perspective of consumers' perceptions. Previous research on AR approaches primarily

focused on the technical components, with only a few studies examining the marketing

implications of AR. This study reveals the effects from the perspective of consumers’

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perceptions. Results show that customer engagement plays a significant mediating role

between consumer perceptions of AR approaches and their purchase intentions.

6.2 Managerial Implications

v
re
Marketers have always desired to comprehend consumers’ consumption patterns and

how to influence and cultivate them. This study provides Chinese e-commerce marketers

with information to assist them in developing appropriate marketing strategies to attract

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consumers and boost their willingness to purchase.
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In the Chinese e-commerce industry, marketers can apply AR technology in product

presentations to attract consumers’ attention. As young female customers have a greater

propensity to purchase online, AR can be applied to items whose target customers are young
ot

people. AR is an effective tool for inducing optimal process experiences and increasing

customer engagement in the e-commerce environment. Marketers are encouraged to apply

tn

AR on online platforms to attract more engaged customers and gain more purchase actions.

Marketers should be aware that higher levels of AR media usefulness, particularly

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regarding customers who will be exposed to the technology for the first time, can foster more

positive attitudes and directly influence their behaviors. To improve customers’ incentive to
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interact, product information and the advantages of utilizing technology must be simply

understood. Therefore, marketers are suggested to provide consumers with all the information

they require to make a more informed purchase decision, including high-quality virtual
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product images and the ability to virtually try on the product in an AR-based environment.

This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
 AR technology is expected to enhance product display by combining the real and virtual

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worlds and provide easy access to the online shopping platform.

6.3 Limitations and Future Research

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The current study investigates consumer perceptions towards AR, focusing on

interactivity and vividness. Future research should explore other AR technology

characteristics, such as perceived ease of use, and delve deeper into interactivity's sub-

v
concepts like responsiveness and personalization. This study examines direct and mediating

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effects between concepts, but future research should explore potential boundary conditions.

For instance, users with technology anxiety might resist adopting AR, affecting their

purchase intention negatively. The study establishes a model of consumer engagement and
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positive behavior through AR functions in online platforms. Future research could compare

experiences between traditional and AR-enabled platforms, as well as invite a more diverse
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participant pool to account for varying demographics' attitudes towards online shopping and

new technology.
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tn
rin
ep
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This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4726408
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 Appendix

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Appendix a. Measurements of each construct

Variables Items Reference

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Interactivity 1. The AR technology had the ability to respond to Yim et al.

my specific needs quickly and efficiently in e- (2017)

commerce platform.

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2. I was in control of my navigation through the AR

technology in product presentation.

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3. I had control of the AR technology that I wanted

to see the product information

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Vividness 1. The visual display of product information through Yim et al.

AR technology was clear in e-commerce platform. (2017)

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2. The visual display of product information through

AR technology was detailed in-commerce platform.

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3. The visual display of product through AR

technology was vivid in e-commerce platform.

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4. The visual display of product through AR

technology was well-defined in e-commerce

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platform.
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 Media 1. The AR product presentation enhances my ability Yim et al.

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usefulness to make product choices more effectively. (2017)

2. Using the AR technology in e-commerce

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platform saves me time.

3. Using the AR technology in e-commerce

platform improves the quality of my search for

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products.

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4. The AR technology in e-commerce platform

enables me to acquire product information more

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quickly.
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5. Overall, I find the AR in product presentation is

useful in my shopping experience.

Media 1. I found that the AR product presentation was Yim et al.

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enjoyment entertaining. (2017)

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2. I found the AR product presentation experiences

was enjoyable.
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3. The online shopping experience with AR was

pleasing.
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4. The online shopping platform embedded with AR

technology was fun to use.

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 Customer 1. This app gets me thinking about the brand. Hollebeek et

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engagement al. (2014)
2. This app stimulates my interest in the brand.

3. I feel positive of the brand when I use the app.

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4. I feel good when I use this app.

Purchase 1. I plan to visit the brand’s store when I need to Chen and

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intention purchase the related products in the future. Chang (2018)

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2. I plan to visit the brand’s website to explore when

I need purchase related products in the future.

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3. I plan to purchase the products of the brand after
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using the AR product presentation function.
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