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Journal of Strategy
Unveiling the transformative power and Management
of augmented reality in retail:
a systematic literature analysis
Praveen Kumar Pandey
School of Commerce and Management, Lingayas Vidyapeeth, Faridabad, India, and
Prashant Kumar Pandey Received 12 May 2023
Revised 25 June 2023
Department of Management, Fortune Institute of International Business, 18 August 2023
4 October 2023
New Delhi, India 1 January 2024
7 January 2024
Accepted 21 December 2024

Abstract
Purpose – This study investigates the influence of augmented reality (AR) on consumer behavior and decision-
making in the context of retail. By developing a conceptual framework that highlights AR’s distinct
characteristics and its contribution to the theme of human-centricity and resilience, this research explores the
cognitive and affective responses triggered by AR experiences and their subsequent impact on consumer
choices.
Design/methodology/approach – The study employs a comprehensive literature review approach, delving into
the intricate relationships between AR, consumer behavior and decision-making. Through the exploration of
factors such as interactivity, vividness, body image perception, narcissism, information processing preference,
privacy concerns and situational surroundings, the study develops a nuanced understanding of the mechanisms
underlying AR’s effects.
Findings – The study aligns with the contemporary focus on human-centeredness and resilience in the digital
age. It reveals that interactive and vivid AR experiences significantly enhance consumer enjoyment and
influence decision-making processes. Furthermore, the study uncovers how individual traits and contextual
factors shape consumer responses to AR, shedding light on the broader landscape of consumer behavior.
Research limitations/implications – While acknowledging limitations in generalizability and potential
publication bias, this study offers a fresh perspective by accounting for moderating effects and situational
contexts. Future research directions might involve longitudinal studies to capture evolving trends in the dynamic
realm of AR in retail.
Practical implications – Businesses and marketers have the opportunity to utilize the knowledge acquired from
this study to effectively integrate AR technologies into their customer engagement strategies, thereby promoting
a customer-centric approach in their operations. The results emphasize the utmost importance of creating AR
experiences that align with user preferences and provide meaningful interaction, ultimately leading to the
development of sustainable consumer decisions in the digital age.
Originality/value – Distinct from existing literature, this study contributes to the theme of human-centricity and
resilience by examining the influence of AR on consumer behavior. This contribution enriches discussions on
sustainable consumer choices in the digital era. Employing a comprehensive literature review approach, we
explore key factors including interactivity, vividness, body image perception, narcissism, information
processing preference, privacy concerns and situational surroundings. This approach deepens our understanding
of AR’s influence on consumer behavior, presenting a valuable addition to the field.
Keywords Augmented reality (AR), Consumer behavior, Decision-making, Information processing style,
Word-of-mouth, Purchase intention
Paper type Conceptual paper

1. Introduction
Think of a world where shopping transcends the bounds of reality and merges with the digital
realm - this is the realm of Augmented Reality (AR) (Javornik, 2016). With its ability to
superimpose computer-generated graphics onto real-world environments in real time, AR

Declaration: The authors of this study hereby affirm that no external funding was secured from any
Journal of Strategy and Management
institution to carry out the research reported within this manuscript. Furthermore, the authors assert that © Emerald Publishing Limited
there are no conflicts of interest present among them or any financial or non-financial interests that could e-ISSN: 1755-4268
p-ISSN: 1755-425X
potentially compromise the integrity of the work reported within this manuscript. DOI 10.1108/JSMA-05-2023-0101
JSMA promises to unleash a revolution in shopping experiences (Javornik, 2016). No longer are
customers limited to just imagining how a product would look in their space; AR lets them
virtually try it on before they buy it – be it clothing, footwear, accessories or cosmetics. This
enhances the visual appeal of products and delivers a shopping experience like never before:
immersive and interactive (Suh and Prophet, 2018; Pantano et al., 2017). The retail industry is
embracing AR with open arms, using it as a tool to augment their customers’ shopping
experiences and make them memorable.
One of the most popular applications of AR in retail is virtual try-ons. This feature allows
customers to virtually try on clothing, footwear, accessories, and cosmetics, without the need
to physically visit a store. This can be especially beneficial for online shoppers who may be
hesitant to purchase items without being able to try them on first. Additionally, AR can also be
used to showcase items in consumers’ homes, providing customers with a better understanding
of how the product will look and fit in their living space. This can be particularly useful for
furniture and home d�ecor items, as customers can see how the item will look in their own space
before making a purchase.
AR in retail brings forth a novel way of providing customer service (Heller et al., 2021),
where interactivity takes center stage. Picture this: customers donning virtual spectacles,
evaluating products with the flick of a wrist (Pantano et al., 2017; Hilken et al., 2017; Chopra,
2019; Heller et al., 2019). They scrutinize the product’s aesthetics, imagine it in their living
rooms and try it on, all through the magic of AR. Such a scenario not only enhances the
customer’s purchasing experience but also leads to informed buying decisions, resulting in
higher customer satisfaction and loyalty. The icing on the cake? AR-powered customer
service, where retailers can assist customers in real-time, by providing them with all the
information they need to make an informed decision. All of this combined makes AR in retail a
winning formula for increased sales.

1.1 Literature review

The journey of research on AR in retail has been a thrilling one, where technological
advancements and human curiosity have collided. It all started with the pursuit of developing
AR technology, exploring how it can improve the shopping experience (Pantano and Servidio,
2012). As AR gained momentum and became a staple in the retail world, the focus shifted
towards its marketing applications. Researchers delved into the depths of consumer behavior,
studying the impact of AR on purchasing decisions and the customer experience.
To provide a comprehensive overview of the existing literature, we conducted a thorough
review of key foundational studies in the field of AR in retail. These studies have significantly
contributed to our understanding of AR’s impact on consumer behavior and retail strategies.
For instance, the work of Azuma (1997) laid the groundwork for understanding AR
technology and its potential applications. Building on this, Olsson et al. (2013) explored user
expectations of mobile augmented reality services, providing crucial insights into consumer
perceptions of AR in retail contexts.
The research on the use of Augmented Reality in the retail industry is still in its early stages,
with only a few reviews having been published to date. Five studies, including one systematic
review, have been conducted and summarized in Table 1 (Caboni and Hagberg, 2019; Hilken
et al., 2018; Javornik, 2016; Perannagari and Chakrabarti, 2020; Bonetti et al., 2018). These
studies have made significant contributions to the field, each focusing on different aspects of
AR in retail.
Despite the potential benefits of AR in retail, there are also a number of challenges that need
to be addressed. One of the biggest challenges is the cost of implementing AR technology.
Developing and maintaining AR systems can be expensive, and small retailers may not have
the resources to invest in this technology. Additionally, there are also concerns about privacy
and data security, as customers may be hesitant to share personal information with retailers in
order to use AR services.
Table 1. Summary of studies on augmented reality in the retail industry Journal of Strategy
and Management
Number of studies
Study analyzed Objective of study

Javornik (2016) 44 Investigates the pulse-pounding pulse of interactive media and

explores the varied reactions it evokes from consumers.
Critical insights into the emotional impact of AR
Bonetti et al. (2018) 35 Decodes the propulsive forces fueling the adoption of AR and
VR in retail, unearthing practical applications and examining
consumer acceptance. Offers valuable insights into adoption
dynamics
Hilken et al. (2018) 20 Explores the power of AR to forge a seamless connection
between physical and digital realms, ultimately elevating the
customer experience. Critical examination of the
transformative potential of AR
Caboni and Hagberg 65 Investigates the enigma of Augmented Reality, delving into its
(2019) lexicon and deciphering applications for both shoppers and
merchants. Critical reflections on the ambiguity and potential
of AR applications
Perannagari and 35 Examines crucial factors of AR affecting consumer habits.
Chakrabarti (2020) Critical insights into the key determinants shaping consumer
behavior in AR-driven retail environments
Source(s): Authors’ own work

Another challenge is the lack of standardization in AR technology. Different retailers may

use different AR systems, and customers may have to download different apps or use different
equipment to access AR services. This can lead to confusion and frustration for customers, and
may discourage them from using AR services. Furthermore, there’s a lack of research on the
long-term effects of using AR, and how it could affect consumer behavior in the long run.
Despite these hindrances, the power of AR to elevate the retail sphere is irrefutable. AR
offers the chance to transform the shopping experience, providing customers with an all-
encompassing and interactive journey. It serves as an asset in customer service and product
evaluation, presenting immense potential for enhancing the customer experience and
bolstering sales. As retailers strive to innovate and meet the evolving needs of consumers, AR
emerges as a trailblazer in the quest for retail innovation.
While previous reviews have laid the groundwork for understanding the role of Augmented
Reality (AR) in the retail industry, this study aims to carve a distinctive path by
comprehensively analyzing the intricate relationships between AR, consumer behavior, and
decision-making. By developing a conceptual framework that uniquely integrates key factors
such as interactivity, vividness, body image perception, narcissism, information processing
preference, privacy concerns, and situational surroundings, our research offers a nuanced
exploration into the cognitive and affective responses triggered by AR experiences.
By addressing this critical gap in the existing literature, our literature survey not only
enriches discussions on AR in the retail context but also establishes a robust foundation for
further exploration into the benefits and challenges associated with AR. The unique
perspective offered by our study, coupled with a comprehensive literature review approach,
positions it as a pivotal contribution in advancing our comprehension of how AR influences
consumer behavior and enhances customer experiences, thereby contributing significantly to
the overall progress of the field.
Furthermore, this study contributes to the theme of “human-centricity and resilience in the
age of digital transformation” by deepening our understanding of Augmented Reality (AR)
within the retail industry. It lays the groundwork for future research into the practical
applications of AR and its potential to shape the trajectory of the shopping experience. With
JSMA the ongoing advancement of technology and the increasing adoption of AR, a promising
outlook emerges for its integration in the retail sector.
To further elaborate on the practical implications of our research, we propose a series of
actionable recommendations for key stakeholders in the AR retail ecosystem. For businesses,
it is imperative to invest in user-friendly AR interfaces that prioritize ease of use and seamless
integration with existing shopping platforms. This approach should be complemented by the
development of AR applications that address specific pain points in the customer journey, such
as product visualization or size fitting. Moreover, implementing robust data protection
measures is crucial to address privacy concerns and build trust with consumers.
Policymakers play a vital role in shaping the AR retail landscape. We recommend the
development of guidelines and standards for AR implementation in retail to ensure consumer
protection and fair competition. Additionally, policymakers should encourage research and
development in AR technology through funding initiatives and tax incentives. It is equally
important to address potential societal impacts of widespread AR adoption, such as digital
divide issues and accessibility concerns, to ensure equitable access to these technologies.
In the education sector, our findings suggest the need for incorporating AR-related
curricula in marketing, computer science, and user experience design programs to prepare
future professionals for the evolving retail landscape. We also advocate for conducting
interdisciplinary research to explore the long-term effects of AR on consumer behavior and
societal norms. Furthermore, the development of educational AR applications can enhance
learning experiences and prepare students for a technology-driven future.
The insights gleaned from this study not only enrich the existing literature but also establish
a robust basis for further exploration into the benefits and challenges associated with AR in the
retail context. By addressing these practical implications, we aim to bridge the gap between
theory and practice, ensuring that our research has tangible impacts on the retail industry,
policy-making, and education sectors. This multifaceted approach to implementing AR in
retail can foster innovation, protect consumer interests, and prepare the workforce for the
future of shopping experiences.

2. Research approach
The utilization of Augmented Reality (AR) in the retail industry is attracting increasing
attention among researchers due to its potential to fundamentally transform the shopping
experience. By merging the physical and virtual realms, AR allows customers to engage with
products in a more interactive and immersive manner. To obtain a thorough comprehension of
the existing knowledge on AR in retail, we implemented a rigorous two-pronged approach to
meticulously examine the existing literature for relevant studies.
Our research process began with a comprehensive keyword search of major databases. We
used specific combinations of terms such as “augmented reality” and “AR” with “consumer
behavior,” “customer experience,” “human factors,” “retailing,” “user experience,” and “UX
design”. This initial broad search allowed us to identify a large number of potential studies on
the topic. To ensure the highest quality of sources, we then employed a rigorous selection
process focusing on credible journals. We evaluated the standing of journals within academia,
considering their ranking in the SJR Ranking of Journal System (First or Second Quarter) and
their inclusion in the Chartered Association of Business Schools (ABS) Academic Journal
Guide of 2018. This approach provided a nuanced understanding of the prestige and reputation
of the journals under consideration, ensuring that our findings would be based on the most
reliable and credible information available.
Following this initial selection, we applied strict inclusion and exclusion criteria to further
refine our selection. We included studies published in the last 10 years and excluded those not
focused on AR in retail or lacking an empirical component. To ensure comprehensiveness, we
also conducted a manual search and checked cited references for any missed studies. This
meticulous process resulted in a final sample of 76 papers, providing a robust foundation for Journal of Strategy
our analysis. and Management
The selected papers were then analyzed chronologically and coded for key themes. These
themes were synthesized and examined using thematic analysis to identify focus areas,
research gaps, key findings, methodologies employed, and limitations of the studies. The use
of this two-step method and strict inclusion/exclusion criteria helped to minimize bias and
increase replicability, resulting in a comprehensive and representative sample of studies on AR
in retail.
Our database search strategy, as outlined in Table 2, consisted of two main stages. The first
stage involved the initial keyword search, refinement of search scope to include articles from
ABS 1–4* or Q1-Q2 ranked journals in the SJR ranking system, and a manual search in
renowned journals such as JIM, CHB, JRCS, JBR, MTA, IJRDM, and JR. The second stage
focused on applying our inclusion and exclusion criteria, centering on AR topics and AR-
related problems in retail while removing VR-focused studies, non-retail specific issues, and
engineering/computer science research. We also conducted a forward search, which led to the
discovery of three additional relevant articles.
This comprehensive approach not only contributes to the existing body of knowledge but
also ensures the inclusion of the most relevant and reliable sources. As we move forward, it is
crucial to continue conducting research in this field to further our understanding of the
opportunities and challenges that arise when using AR in retail environments, particularly
within the Indian context.

3. Outline and consolidated analysis

3.1 Time spread and dominant publication
Our analysis of the literature reveals a steady rise in published works on augmented reality
(AR) in retail, with a notable surge between 2014 and 2020. This proliferation can be attributed
to advancements in AR technology, making it more accessible and cost-effective for retailers,
coupled with the widespread use of smartphones, which offer numerous opportunities for AR
mobile applications. The research carried out by Javornik (2016), Dacko (2017), and Plotkina
and Saurel (2019) uncovered a considerable amount of published works on the use of AR in
retail. A total of 12 articles were published in 2019, comprising two comprehensive reviews,
and 16 articles in 2020, inclusive of those that were accepted and made available online but yet
to be assigned to a volume and issue (see Figures 1–2).

Table 2. Databases search strategy

1st Step Keyword search Combine the search terms “augmented reality” and “AR” with
stage 1 “consumer behavior,” “customer experience,” “human factors,”
“retailing,” “user experience,” and “UX design” to find relevant
articles
Step Refinement of Refined search to include articles from ABS 1–4* or Q1-Q2 ranked
2 Search Scope journals in the SJR ranking system
Step Manual Search Conducted manual search in renowned journals such as JIM, CHB,
3 JRCS, JBR, MTA, IJRDM, and JR
2nd Step Inclusion Criteria Selection criteria for articles centered around AR topic and AR-
stage 4 related problems in retail
Step Exclusion Criteria Criteria for removal
5 i. VR-focused studies, not AR-centric
ii. Non-retail specific issues
iii. Engineering/computer science research
Step Forward Search Three more articles discovered through forward search and cited
6 reference search
Source(s): Authors’ own work
JSMA

Figure 1. Years of publication

Figure 2. Journals taken under analysis

3.2 Research methodologies

It is worth noting that a substantial proportion of these publications stem from marketing and
business journals, demonstrating the escalating interest among retail marketing scholars. The
emergence of AR in retail has captured the imagination of many scholars in the marketing and
business fields, who are eager to explore its potential to revolutionize the shopping experience.
 The research methodologies employed across studies investigating Augmented Reality Journal of Strategy
(AR) in the retail sector demonstrate a diverse array of approaches. It’s important to note that and Management
our study is being conducted within the Indian context, focusing on the impact of AR on
consumer behavior and decision-making in the retail sector of India. The comprehensive
landscape of methodologies encompassed literature reviews, surveys, interviews, mixed
methods, observations, experiments, and theoretical/conceptual papers. Notably, 60.5% of
studies utilized quantitative methods such as surveys and experiments, aiming to
quantitatively assess consumer responses. A quarter of the studies were conceptual or
review papers, contributing to a comprehensive understanding of the subject, while 9%
adopted qualitative approaches like interviews or observations to delve deeper into the subject
matter.
A few pioneering studies (Parise et al., 2016; Poushneh, 2018; Rauschnabel et al., 2018;
Plotkina and Saurel, 2019) ventured into mixed methods research, highlighting a growing
trend toward holistic approaches. These studies serve as guiding examples, promoting the
amalgamation of methodologies for a more comprehensive comprehension of the subject.
The evolution of research methodologies within the field of AR in retail and marketing is
evident. The trajectory shifted from initial conceptual explorations to empirical research post-
2014. Early works, like those of Huang and Liao (2015), predominantly employed survey and
experimental methods. In contrast, recent studies (Scholz and Duffy, 2018; Chopra, 2019;
Cuomo et al., 2020; Romano et al., 2021) delve into the qualitative realm, reflecting the
maturation of the field and its progression toward in-depth, exploratory investigations.
Our study distinguishes itself by broadening the scope to encompass marketing and
consumer engagement in the Indian retail context. This extension captures the transformative
potential of AR within varied contexts, specifically within India. Moreover, while a substantial
portion of the studies relies on quantitative data (Chylinski et al., 2020; Yim and Park, 2019),
our study adopts a mixed-methods approach, allowing for an enriched comprehension of
emotional and psychological dimensions inherent in consumer-AR interactions.
This methodological synthesis positions our study uniquely within the Indian context,
enabling an exploration that diverges from existing research paradigms. By encompassing
diverse application contexts and adopting a comprehensive research design, our study aims to
provide a nuanced and holistic understanding of AR’s influence on consumer behavior and
decision-making within the Indian retail landscape.
Our analysis weaves together the various threads of research that have explored the realm
of AR in retail. Predominantly, the studies in this domain have honed in on consumer reactions
and experiences, with a resounding agreement that the integration of AR in retail elicits a
favorable response from consumers (Park and Yoo, 2020; Baytar et al., 2020; Dacko, 2017;
Chopra, 2019). AR has been found to offer a bounty of benefits for marketing, including
reducing doubt in the buying process (Plotkina and Saurel, 2019), boosting the chances of
making a purchase (Poushneh and Vasquez-Parraga, 2017), fostering customer loyalty (Smink
et al., 2019; Scholz and Duffy, 2018), and fortifying consumer-brand relationships. Despite
these promising results, the adoption of AR in retail has been slow, with many businesses still
wary of the technology (Chylinski et al., 2020; Yim and Park, 2019) (see Figures 3).
The slow adoption of AR in retail highlights the need for improvements in AR platform
design and user experience to fully harness its potential for both consumers and businesses
(Scholz and Smith, 2016; Chylinski et al., 2020). Retailers must focus on enhancing key
elements of the AR customer experience, such as augmentation, interactivity, personalization,
vividness, and user experience (Poushneh and Vasquez-Parraga, 2017; Javornik, 2016; Yim
et al., 2017; Hilken et al., 2017; Parise et al., 2016; Chopra, 2019). It’s also essential to
consider factors that could negatively impact the AR shopping experience, like perceived body
image and privacy concerns (Poushneh, 2018; Hilken et al., 2017; Yim and Park, 2019). Only
with a comprehensive understanding of these intricacies can retailers unleash the full potential
of AR and create a truly immersive shopping experience.
JSMA

Figure 3. Chart of focused research on augmented reality in retail industry

The value that AR can offer to consumers and the shopping environment cannot be
overstated. By enhancing both hedonic and utilitarian value, and by helping in the decision-
making process, AR holds tremendous potential to enhance the shopping experience (Hilken
et al., 2017; Yim et al., 2017; Dacko, 2017; Romano et al., 2021; Jessen et al., 2020). However,
it’s essential to be aware that AR can also have a detrimental effect due to technical limitations,
inadequate representation, perceived intrusion, and privacy concerns (Poushneh, 2018; Hilken
et al., 2017; Smink et al., 2020; Plotkina and Saurel, 2019; Rauschnabel et al., 2018). To fully
realize the potential of AR in retail, particularly within the Indian context, it is important to
address these challenges and strive to create AR experiences that are seamless, high-quality,
and respectful of consumers’ privacy. Our study aims to contribute to this goal by providing a
comprehensive understanding of AR’s impact on consumer behavior and decision-making in
the Indian retail sector.

4. Results and discussion

A trifecta of research topics has surfaced from the comprehensive examination, as depicted in
Table 3.

4.1 Exploring the utilization of AR through the lens of technology acceptance models
The adoption of Augmented Reality (AR) in retail has been predominantly analyzed through
the lens of Davis’ Technology Acceptance Model (TAM). Originally proposed in 1989, TAM
has proven to be an invaluable tool in understanding the impact of utilitarian and hedonic
values on consumer adoption of AR in retail (Pantano and Servidio, 2012; Huang and Liao,
2015; Rese et al., 2017). As AR continues to transform the retail experience, the examination
of its adoption through TAM remains a topic of significant interest.
TAM has unveiled the intricate relationship between Perceived Usefulness (PU), Perceived
Ease of Use (PEOU), and Perceived Enjoyment (PE) in AR. While PU and PEOU embody the
utilitarian aspect of AR, PE encompasses its hedonic and sensory qualities. Research has
Table 3. Summary of research themes in augmented reality and consumer behavior Journal of Strategy
and Management
Research themes Indicative articles

Theory of value and AR shopping encounter Smink et al. (2020), Dacko (2017), Watson et al. (2018),
Hilken et al. (2018), Scholz and Duffy (2018), Poushneh
(2018), McLean and Wilson (2019), Poncin and Mimoun
(2014), Olsson et al. (2013), Chylinski et al. (2020), Jessen
et al. (2020), Heller et al. (2019, 2021), Hilken et al. (2017),
Chen et al. (2022), Alimamy and Gnoth (2022), Erdmann
et al. (2023), Lao et al. (2021), Tom Dieck and Han (2022),
Jain et al. (2023), Gallarza and S�anchez-Fern�andez (2023)
Exploring the utilization of AR through the lens Kim et al. (2017), Rese et al. (2014), Huang and Liao (2015),
of technology acceptance models Holdack et al. (2022), Rese et al. (2017), Pantano and
Servidio (2012), Su et al. (2022), Ib�a~nez-S�anchez et al.
(2022), Soon et al. (2023), Iskender et al. (2022), Fan et al.
(2022), de Amorim et al. (2022), McLean et al. (2022)
Exploring the impact of AR design elements on Chylinski et al. (2020), Huang and Hsu Liu (2014), Sauer
sustainable consumer behavior et al. (2017), Shin and Jeong (2021), Park and Yoo (2020),
Poushneh and Vasquez-Parraga (2017), Heller et al. (2021),
Yang et al. (2020), Javornik (2016), Yim and Park (2019),
Ambika et al. (2023), Rejeb et al. (2023), Panhale et al.
(2023), Wang et al. (2023)
Source(s): Authors’ own work

shown a delicate interplay between PEOU and PE, with smooth navigation experiences
leading to heightened PE (Pantano and Servidio, 2012).
The versatility of TAM in the context of AR has been demonstrated across various aspects
of consumer behavior. It has proven valuable in comprehending acceptability, potential use
(Perannagari and Chakrabarti, 2020; Plotkina and Saurel, 2019; Rese et al., 2017), continued
usage patterns (Huang and Liao, 2015), and even the integration of cutting-edge AR
technology such as smart glasses (Holdack et al., 2022). However, as AR in retail gains
popularity, there’s a growing need to delve deeper into its impact on consumer behavior
beyond mere acceptance (Li et al., 2020). Uncovering the nuances of this relationship is crucial
for harnessing the full potential of AR in retail.
Recent research has shifted focus towards the experiential aspect of AR, exploring how its
features can enhance shopping enjoyment, increase customer engagement, and foster stronger
customer-brand relationships. Researchers have expanded TAM by integrating factors such as
playfulness, interactivity, augmentation quality, and personalization to offer more precise
adoption parameters. To gain a deeper understanding of AR’s impact on consumer behavior,
some studies have employed the Stimulus-Organism-Response (S-O-R) model of Mehrabian
and Russell. This attention to AR’s impact on experience has opened up new avenues for
understanding its effect on consumer behavior.

4.2 Exploring the impact of AR design elements on consumer behavior

A retrospective examination of the evolution of AR experiences can be observed through
Table 4. Previous studies have delved into the depths of AR, uncovering valuable insights (e.g.
Hilken et al., 2017; Poushneh and Vasquez-Parraga, 2017).
Exploring the impact of AR mobile apps on consumer motivation is a central theme in the
research field. Studies such as Poushneh (2018), Hilken et al. (2017), Beck and Cri�e (2018),
and Yim et al. (2017) focus on consumers’ immediate reactions to AR content. However, these
studies often lack a comprehensive approach and merely showcase specific aspects of the
consumer experience. A more in-depth understanding of the impact of AR features from a
Human-Computer Interaction (HCI) perspective, as highlighted by Erra et al. (2018), is
JSMA Table 4. Evolution of augmented reality experiences in previous studies

Studied issues Authors

Implementation of augmented reality in various industries, such as retail, Poushneh (2018), Carmigniani
and the impact of partnerships and collaborations on the overall user et al. (2011)
experience; as well as concerns surrounding privacy and the effectiveness of
AR technology
Multidimensional nature of user expectations for AR experience design Olsson et al. (2013)
solutions are shaped by various aspects of the technology
Personalized experiences shared through AR on social media platforms can Huang and Hsu Liu (2014)
foster a sense of playfulness among users
Designing AR user experiences should be guided by understanding Scholz and Smith (2016)
customers’ perspectives and their experiences with the technology
Effects of AR on user experience and its influence on consumer satisfaction Poushneh and Vasquez Parraga
and purchasing decisions (2017)
The ability for AR to meet user needs and the level of control and protection Poushneh (2018)
of personal information play a significant role in shaping user attitudes
towards the overall experience of AR
Utilization of AR technology can enhance the user experience by facilitating Fan et al. (2020)
the gathering and understanding of information
Source(s): Authors’ own work

essential for improved interface design and ultimately shaping consumer behavior. Research
by McLean and Wilson (2019), Olsson et al. (2013), Jessen et al. (2020), and Scholz and Smith
(2016) underscores the importance of this approach.
4.2.1 AR characteristics. The convergence of interactive augmented reality interfaces, user
convenience, customized experiences, and a steadfast focus on human-centeredness forms a
crucial intersection that has the potential to redefine the user experience. This synergy between
technology and design principles centered on human needs lays the foundation for an
exceptional journey. Through captivating immersive interfaces, personalization that caters to
individual preferences and an unwavering commitment to user-centeredness that prioritizes
simplicity, the future of user experience emerges as a testament to the synergy between
technological progress and human creativity. Research exploring the intricacies of augmented
reality in the retail sector, with key attributes such as interactivity and immersion at the
forefront (Javornik, 2016; Yim et al., 2017), paves the way for an era in which consumers make
sustainable choices in the ever-evolving digital landscape (see Table 5).
The interaction between the user and the AR environment is a crucial aspect of the shopping
experience. By allowing for an immersive and captivating interaction, AR can evoke positive
emotions, such as excitement and playfulness, that enhance the overall experience (Yim and
Park, 2019). Meanwhile, the use of augmentation technology can create a sense of wonder and

Table 5. Characteristics of augmented reality in retail studies

AR
characteristics Authors

Interactivity Parise et al. (2016), Yim and Park (2019), Poushneh (2018), Yim et al. (2017), Park and
Yoo (2020)
Immersion Javornik (2016), Huang and Liao (2015, 2017)
Personalization Chopra (2019), Parise et al. (2016)
Augmentation Watson et al. (2018)
Vividness Yim et al. (2017)
Source(s): Authors’ own work
bring new perspectives, adding to the excitement and enriching the experience (Poushneh and Journal of Strategy
Vasquez-Parraga, 2017; Erra et al., 2018; Javornik, 2016). These combined elements can lead and Management
to a heightened sense of experiential value, making the shopping experience more memorable
and enjoyable.

4.3 Theory of value and AR shopping encounter

With the advent of AR technology, immersive experiences have become a reality for
consumers in various industries. From embedded to embodied, shared to adaptive, the
possibilities of AR experiences are endless and have been the subject of much research in
recent years. Studies have revealed that AR can significantly enhance customer satisfaction,
leading to more meaningful engagement and facilitating the decision-making process (Parise
et al., 2016; Chylinski et al., 2020; Huang and Liao, 2015; Jessen et al., 2020; Heller
et al., 2021).
In this critical analysis, we delve into Table 6, which outlines the impact of AR on customer
satisfaction and engagement. We examine key dimensions such as cognitive and emotional fit,
flow, immersion, spatial presence, hedonic value, learning information, satisfaction, and
utilitarian value. Additionally, we explore crucial elements that shape the customer
experience, including privacy concerns, information processing, AR usage in different
settings, product category, narcissism, anthropomorphism, and body image perception.
Cognitive and Emotional Fit:
Parise et al. (2016) emphasize the potential of AR to provide personalized experiences by
catering to individual cognitive and emotional needs. The emotional and cognitive stimuli
offered by AR technology enhance the overall shopping experience, aligning with individual
preferences and information requirements. However, challenges may arise in aligning AR
capabilities with diverse consumer profiles, necessitating further research on tailoring AR
experiences to a broader audience.
Flow and Immersion:
The seamless transition between touchpoints facilitated by AR, as highlighted by Parise et al.
(2016), enhances the flow of customer interactions. Moreover, AR’s potential to revolutionize
user experiences through full immersion, as indicated by Yim et al. (2017), introduces a new
dimension to engagement. Despite these positive findings, there is a need for a nuanced
understanding of the optimal balance between continuity and novelty in AR-enhanced
interactions.
Spatial Presence and Information Processing:
Spatial presence, as explored by Hilken et al. (2017) and Smink et al. (2020), becomes a
pivotal factor in shaping consumer expectations for the utility value of AR. Understanding
how individual preferences for information processing impact AR evaluations is crucial, as
highlighted by Hilken et al. (2017) and Fan et al. (2020). Recognizing the diversity in
information processing preferences can guide the design and implementation of AR
experiences that resonate with a broader audience.
Hedonic and Utilitarian Value:
The literature consistently underscores the importance of hedonic value in influencing
consumer attitudes and reactions toward AR experiences. A multitude of studies (Yim et al.,
2017; Poncin and Minmoun, 2014; Rauschnabel et al., 2019; Dacko, 2017) emphasize the
enjoyable aspect of AR shopping, making it a pleasurable activity for consumers.
Simultaneously, utilitarian benefits, as discussed by Olsson et al. (2013), Yim et al. (2017),
and Romano et al. (2021), play a significant role in shaping consumer behavior. Striking the
JSMA Table 6. Impact of augmented reality on customer satisfaction and engagement

Customer experience Authors Findings

Cognitive and Parise et al. (2016) Personalized experiences tailored to individual

emotional fit shoppers’ needs and information requirements are
made possible through the emotional and
cognitive stimuli provided by AR technology
Flow Parise et al. (2016) AR can enhance the continuity and seamless
transition of interactions between various
touchpoints for customers
Immersion Parise et al. (2016), Yim et al. AR has the potential to revolutionize the user
(2017) experience by providing a fully immersive
experience
Spatial presence Hilken et al. (2017), Smink The way in which information is processed can
et al. (2020) play a role in shaping consumers’ expectations for
the utility value of AR. For those who primarily
process information through auditory means, the
enhancement of spatial presence offered by AR
may hold particularly strong appeal
Hedonic value Yim et al. (2017), Poncin and The enjoyment factor of AR (hedonic value) can
Minmoun (2014), Rauschnabel greatly influence a consumer’s attitude and
et al. (2019), Dacko (2017), reaction towards their experience, with many
Rese et al. (2014), Romano finding AR shopping to be a pleasurable activity
et al. (2021), Hilken et al.
(2017), Holdack et al. (2022),
Arghashi and Yuksel (2022),
Trivedi et al. (2022), de
Amorim et al. (2022), Plotkina
et al. (2022), Hsu et al. (2024)
Learning information Parise et al. (2016), Dacko AR simplifies the process of acquiring product
(2017) knowledge, allowing users to easily access
information. Additionally, it offers a convenient
way for users to gather feedback and references
from friends and family through its data collection
capabilities
Satisfaction Jessen et al. (2020), Poncin and Enhancing Customer Delight through the
Mimoun (2014), Yim and Park Inclusion of AR in the Shopping Realm:
(2019), Dacko (2017), Parise Transforming Perception of Products, Igniting
et al. (2016), Vaidyanathan and Purchase Confidence, and Nurturing Loyalty
Henningsson (2023), Soon
et al. (2023)
Utilitarian value Olsson et al. (2013), Dacko The utilitarian benefits of AR play a significant
(2017), Yim et al. (2017), role in shaping consumer behavior, particularly
Rauschnabel et al. (2019), when paired with an enjoyable and engaging
Romano et al. (2021), Poncin experience
and Mimoun (2014), Vieira
et al. (2022), Erdmann et al.
(2023)
Crucial elements that shape the customer experience
Privacy concerns Olsson et al. (2013), Dacko AR experiences may be hindered by concerns
(2017), Hilken et al. (2017), over personal data security, as users may be
Rauschnabel et al. (2019), hesitant to share information without assurance of
Poushneh (2018), de Ruyter proper protection. This lack of control over their
et al. (2020) data could negatively impact users’ satisfaction
with the AR experience. Advertisers must also
navigate these privacy concerns when creating
contextually relevant AR campaigns

(continued )
Table 6. Continued Journal of Strategy
and Management
Customer experience Authors Findings

Information processing Hilken et al. (2017), Fan et al. Individual preferences for how information is
(2020) processed can impact one’s perception of an AR
experience, leading to varying evaluations among
consumers
Use of AR in public vs Rauschnabel et al. (2018), AR usage in different settings can create distinct
private settings Carrozzi et al. (2019), Scholz user experiences, with variations seen in the
and Duffy (2018) environments of the home compared to the
physical store
Product category Yim et al. (2017) Participants reported a greater level of success
when utilizing AR for sunglasses as opposed to
watches, as they were able to physically see
themselves wearing the AR sunglasses as if they
were looking in a mirror. On the other hand, the act
of holding their wrist up to a webcam for the watch
caused discomfort
Narcissism Beck and Cri�e (2018) An individual’s level of self-obsession can
amplify the impact of AR on their perceived
connection to a brand and likelihood to make a
purchase
Anthropomorphism Van Esch et al. (2019) The human-like attributes attributed to AR
technology had a significant impact on various
aspects of the AR experience, with the exception
of discomfort
Body image perception Yim and Park (2019) Individuals with negative body image tend to hold
a more positive view of virtual try-on experiences
enabled by AR technology
Source(s): Authors’ own work

right balance between hedonic and utilitarian aspects is crucial for designing AR applications
that cater to both emotional enjoyment and practical utility.
Learning Information and Satisfaction:
AR simplifies the process of acquiring product knowledge, enabling easy access to
information (Parise et al., 2016; Dacko, 2017). Furthermore, AR facilitates the collection of
feedback and references, enhancing the learning aspect of the customer experience.
Satisfaction, explored by various authors (Jessen et al., 2020; Poncin and Mimoun, 2014;
Vaidyanathan and Henningsson, 2023), is a multifaceted outcome of AR implementation,
transforming perceptions, igniting purchase confidence, and nurturing loyalty. However, the
depth and sustainability of this satisfaction warrant further investigation, considering evolving
consumer expectations and technological advancements.
Crucial Elements Shaping Customer Experience:
Privacy concerns emerge as a critical challenge in the AR landscape (Olsson et al., 2013;
Dacko, 2017; Poushneh, 2018). Users may hesitate to share information without assurances of
data security, potentially impacting their satisfaction with AR experiences. Striking a delicate
balance between personalized experiences and data privacy is imperative. Additionally,
understanding how information processing preferences and AR usage in different settings
influence user experiences is essential for optimizing AR applications across diverse contexts.
Product category considerations, as highlighted by Yim et al. (2017), underscore the need
for tailoring AR experiences based on the nature of the product. Acknowledging the influence
of narcissism, anthropomorphism, and body image perception on the AR experience adds
JSMA layers of complexity to user interactions. These psychological factors amplify the need for a
nuanced approach in designing AR applications that consider individual differences.
Furthermore, the domain of augmented reality (AR) presents an alluring gateway for
retailers, providing a distinctive opportunity to engage consumers and enhance their decision-
making process. Within this dynamic landscape, AR seamlessly integrates hedonic and
utilitarian value, offering consumers immersive experiences that foster positive behavioral
intentions. However, achieving a seamless and user-friendly AR encounter can prove to be a
formidable challenge for retailers. As noted by Scholz and Duffy (2018), the occasional
disparity between the real and augmented worlds in AR shopping can diminish the overall
value of the experience.
To overcome these challenges, retailers must bridge the gap between the tangible and
augmented realms, creating an intuitive and coherent experience that delivers genuine value.
Recent studies have highlighted the growing significance of contingency factors, such as
individual traits and situational contexts, in shaping AR experiences (Dacko, 2017; Romano
et al., 2021; Smink et al., 2020). By comprehending these challenges and their impact on the
consumer experience, retailers can design AR interactions that are both practical and
enjoyable. This, in turn, enhances the consumer’s journey, facilitating informed purchasing
decisions and nurturing positive behavioral intentions, aligning with the theme of human-
centricity and resilience in the ever-evolving digital age.
4.3.1 Exploring the impact of AR design elements on consumer behavior. Table 7
illuminates the ground-breaking potential of AR to reshape the shopping landscape for both
consumers and retailers. Its power to streamline decision-making and trigger positive
behavioral inclinations makes it a game-changer, elevating the overall shopping experience to
new heights. Yet, despite its vast potential, the implementation of AR technology in the retail
sector has been met with a sluggish response from consumers.
The literature on the potential of augmented reality (AR) to reshape the shopping landscape
highlights several promising aspects along with associated issues and challenges. AR’s
positive influence on customer behavioral intentions, including involvement, loyalty, purchase
intention, repeat visits, and word-of-mouth recommendations, underscores its potential for
creating engaging and satisfying shopping experiences (Parise et al., 2016; Jessen et al., 2020;
Dacko, 2017; Hilken et al., 2017; Poncin and Mimoun, 2014). However, sustaining customer
involvement and loyalty over time poses a challenge, necessitating further research into
strategies that foster long-term engagement with AR applications. Moreover, translating
heightened customer interest into tangible increases in purchase intentions demands a nuanced
understanding of the correlation between AR interactions and actual buying behavior (Hilken
et al., 2017; Dacko, 2017; Yim et al., 2017; Parise et al., 2016). The literature hints at the
positive impact of AR on repeat visits, but addressing potential barriers to sustained
engagement and exploring how AR contributes to increased efficiency in the shopping process
requires a holistic understanding of consumer behavior (Dacko, 2017; Poncin and
Mimoun, 2014).
In terms of decision-making, the literature suggests that AR enhances ease, buying
assurance, and overall buyer contentment (Hilken et al., 2017, 2020; Dacko, 2017; Jessen
et al., 2020). However, the critical reflection prompts consideration of the delicate balance
needed to avoid overwhelming users with information, ensuring that AR facilitates decision-
making without creating information overload or misinterpretation. Additionally, the literature
identifies the positive impact of AR on reducing perceived uncertainty in purchasing decisions
(Rauschnabel et al., 2018; Yaoyuneyong et al., 2014). Nonetheless, further research is needed
to explore the specific mechanisms through which AR achieves this reduction in uncertainty
and how to optimize its role in mitigating perceived risks effectively.
The discussion on behavioral outcomes also touches upon the potential of AR to foster
word-of-mouth recommendations. While the literature recognizes this potential,
understanding the specific factors driving positive word-of-mouth in the context of AR
interactions is crucial for the development of effective marketing strategies (Hilken et al.,
Table 7. Potential of augmented reality to reshape the shopping landscape Journal of Strategy
and Management
Experience Consequences Authors Findings

Behavioural Involvement Parise et al. (2016), Jessen AR fosters customer engagement and
intentions et al. (2020) satisfaction by creating a shared
interest in the brand
Loyalty Dacko (2017) AR can enhance the shopping
experience by providing a fun and
engaging way for customers to interact
with products, leading to increased
satisfaction and then, loyalty
Purchase Intention Hilken et al. (2017), Dacko The use of AR technology in shopping
(2017), Yim et al. (2017), can lead to a heightened sense of value
Parise et al. (2016) for the customer, resulting in positive
behavioral responses. This can be
attributed to the immersive nature of
AR, which facilitates the customer’s
ability to learn and make purchasing
decisions
Repeat visit Dacko (2017), Poncin and The use of AR technology in shopping
Mimoun (2014) improves the overall customer
experience by providing an immersive
and interactive way to interact with
products. This leads to increased
efficiency and the potential to drive
repeat visits to the store or website
Word-of-mouth Hilken et al. (2017), Heller The use of AR technology in shopping
et al. (2019), Dacko (2017) can lead to increased customer
involvement and more favorable word-
of-mouth recommendations
Decision Decision-making Hilken et al. (2017) The integration of AR technology
making ease enhances the overall shopping
experience by providing a heightened
sense of realism and immersion,
leading to an increase in value
perceptions and a greater sense of
comfort in the decision-making
process
Buying assurance Dacko (2017), Hilken et al. AR enhances the shopping experience
(2020) by providing users with access to more
detailed product information, a wider
selection, increased trust in their
purchasing decisions, the ability to
preview products before buying, and
more personalized options.
Additionally, the use of social AR
allows for a collaborative decision-
making process
Buyer’s Dacko (2017), Jessen et al. AR can lead to an increase in customer
contentment (2020) satisfaction through greater purchasing
satisfaction, such as increased
likelihood of sales, positive word-of-
mouth, in-store visits and overall
customer satisfaction
Perception of Rauschnabel et al. (2018), AR can decrease perceived risk by
reduced Yaoyuneyong et al. (2014) providing more in-depth product
uncertainty information, leading to greater
satisfaction in the purchasing process
Source(s): Authors’ own work
JSMA 2017; Heller et al., 2019; Dacko, 2017). This involves identifying elements within AR
applications that significantly contribute to positive customer experiences and subsequently
influence their willingness to recommend products or brands.
Addressing the identified issues and challenges requires a multifaceted approach. Firstly,
research should focus on the long-term sustainability of AR-induced customer involvement
and loyalty by investigating evolving consumer expectations and preferences (Parise et al.,
2016; Jessen et al., 2020). Secondly, bridging the gap between AR interactions and actual
purchase behavior necessitates comprehensive studies that explore the journey from interest to
conversion (Hilken et al., 2017; Dacko, 2017; Yim et al., 2017; Parise et al., 2016). Thirdly,
optimizing AR applications for increased efficiency and repeat visits requires a thorough
understanding of potential obstacles to sustained engagement and strategies to overcome them
(Dacko, 2017; Poncin and Mimoun, 2014).
Moreover, finding the right balance in decision-making support involves refining design
principles to ensure that AR enhances, rather than hinders, the decision-making process.
Mitigating information overload and ensuring buying assurance demand careful curation of
information within AR applications, considering user preferences and cognitive load (Hilken
et al., 2017, 2020; Dacko, 2017).
While the benefits of AR are well-documented, there is a lack of research on the potential
negative effects, such as post-purchase cognitive dissonance, media irritation, technological
limitations, and privacy concerns. These factors must be considered and addressed for AR to
fully reach its potential in the retail industry.
PK
Write this in paragraphs “Future research should explore: 1. Post-purchase cognitive
dissonance: Investigating how AR-enhanced expectations align with actual product
experiences and developing strategies to minimize potential discrepancies. 2. Media
irritation: Examining the threshold at which AR interactions become overwhelming or
intrusive, and designing user-friendly interfaces that mitigate such negative experiences. 3.
Technological limitations: Assessing the impact of hardware constraints, such as device
compatibility and processing power, on the AR experience and developing solutions to ensure
wider accessibility. 4. Privacy concerns: Delving deeper into user apprehensions regarding
data collection and usage in AR applications, and developing transparent, user-centric data
protection measures. 5. Long-term effects on consumer behavior: Conducting longitudinal
studies to understand how prolonged AR usage influences shopping habits, decision-making
processes, and brand perceptions. 6. Cross-cultural implications: Exploring how cultural
differences affect AR adoption, usage patterns, and effectiveness in diverse global markets. 7.
Integration with other emerging technologies: Investigating the synergies between AR and
other technologies such as artificial intelligence, blockchain, or Internet of Things (IoT) to
create more powerful and seamless retail experiences. By addressing these areas, future
research can provide a more comprehensive understanding of AR’s role in retail, including
both its potential benefits and challenges. This holistic approach will enable retailers to
develop more effective AR strategies that truly enhance the customer experience while
mitigating potential drawbacks. In conclusion, the findings of this study underscore the
transformative potential of AR in reshaping the retail landscape. The technology’s ability to
enhance customer engagement, streamline decision-making processes, and foster positive
behavioral intentions presents significant opportunities for retailers. However, the slow
adoption rate and the identified challenges highlight the need for a more nuanced and
comprehensive approach to AR implementation. The integration of AR in retail must be
guided by a deep understanding of consumer behavior, psychological factors, and
technological constraints. By addressing the identified challenges and exploring the
untapped areas of research, retailers can harness the full potential of AR to create
immersive, personalized, and value-driven shopping experiences. This approach aligns with
the overarching theme of human-centricity and resilience in the digital age, ensuring that
technological advancements serve to enhance, rather than complicate, the consumer journey.
As the retail industry continues to evolve, AR stands at the forefront of innovation, offering a Journal of Strategy
bridge between the physical and digital realms of shopping. By continuing to investigate, and Management
refine, and optimize AR applications, retailers can not only meet but exceed consumer
expectations, fostering loyalty, driving sales, and ultimately redefining the future of retail in an
increasingly digital world”.
Future research in the field of Augmented Reality (AR) in retail should explore several
critical areas to address existing gaps and potential challenges. One key area is post-purchase
cognitive dissonance, where researchers should investigate how AR-enhanced expectations
align with actual product experiences and develop strategies to minimize potential
discrepancies. Another crucial aspect is media irritation, which requires examining the
threshold at which AR interactions become overwhelming or intrusive, and designing user-
friendly interfaces to mitigate such negative experiences. Technological limitations present
another significant challenge. Future studies should assess the impact of hardware constraints,
such as device compatibility and processing power, on the AR experience and develop
solutions to ensure wider accessibility. Privacy concerns also warrant deeper investigation,
focusing on user apprehensions regarding data collection and usage in AR applications, and
developing transparent, user-centric data protection measures. Long-term effects on consumer
behavior represent an important area for longitudinal studies. These should aim to understand
how prolonged AR usage influences shopping habits, decision-making processes, and brand
perceptions. Cross-cultural implications of AR in retail also merit exploration, examining how
cultural differences affect AR adoption, usage patterns, and effectiveness in diverse global
markets. Additionally, research should investigate the synergies between AR and other
emerging technologies such as artificial intelligence, blockchain, or Internet of Things (IoT) to
create more powerful and seamless retail experiences.
By addressing these areas, future research can provide a more comprehensive
understanding of AR’s role in retail, including both its potential benefits and challenges.
This holistic approach will enable retailers to develop more effective AR strategies that truly
enhance the customer experience while mitigating potential drawbacks.

5. Constructing a theoretical framework

The S-O-R model, a framework for analyzing the effect of augmented reality (AR) on the retail
customer experience, was first proposed by Mehrabian and Russell in 1974. While the
Technology Acceptance Model (TAM), introduced by Davis in 1989, has been widely utilized
in past studies, further investigation is needed to examine the influence of AR on both
cognitive and emotional states and shopping behavior as AR becomes more widespread.
Recent studies by Rauschnabel et al. (2019), McLean and Wilson (2019), Park and Yoo
(2020), Baytar et al. (2020), and Fan et al. (2020) have emphasized the impact of AR features
on consumer behavior. Notably, Baytar et al. (2020) and Watson et al. (2018) have suggested
that the S-O-R model provides a suitable framework for understanding how AR attributes
shape behavioral intentions.
The S-O-R model, based on the pioneering work of Mehrabian and Russell, offers a
comprehensive perspective on the evolving relationship between AR and the retail customer
experience. It has been applied in numerous studies investigating the complex interaction
between AR and consumer behavior (Parise et al., 2016; Baytar et al., 2020; Poncin and
Mimoun, 2014; Watson et al., 2018) and has been incorporated into reviews of immersive
technologies (Suh and Prophet, 2018). The unique characteristics of AR serve as stimuli that
create immersive sensory experiences and shape mental imagery (Heller et al., 2019). These
stimuli then generate internal states that, according to Mehrabian and Russell’s model,
subsequently influence responses.
Therefore, the S-O-R model is a suitable tool for investigating the profound impact of AR
on the retail customer experience. This research utilizes the S-O-R framework to demonstrate
JSMA the potential of AR in enhancing the retail customer experience, providing valuable insights
for future research endeavors (see Figure 4).
In the realm of literature, Augmented Reality (AR) is portrayed as a critical design element
that sets the tone for a comprehensive conceptual framework. This framework, as established
by Watson et al. (2018), begins with AR features as the inciting trigger. The design elements in
AR serve as environmental stimuli, playing a decisive role in shaping the manner and extent to
which users interact with technology (Williams et al., 2015). AR’s unique qualities and
functionalities set it apart, making it both captivating and unparalleled to users. The seamless
integration of AR into the physical environment creates an experience that is both immersive
and engaging, with the potential to positively impact consumer’s hedonic values (Rauschnabel
et al., 2019). The interactivity and vividness of AR are two exclusive attributes that contribute
to its ability to create memorable experiences. These characteristics have been shown to
enhance consumer satisfaction, as reported by McLean and Wilson (2019) and Yim et al.
(2017). In conclusion, Augmented Reality (AR) is an essential design element in the realm of
technology that has the potential to create memorable experiences for users. Its unique
characteristics, interactivity, and vividness make AR an unparalleled tool for enhancing
consumer satisfaction.
The framework put forth by Javornik (2016) highlights the intricate relationship between
interactivity and the creation of user experience. It is through the medium of interactivity that
individuals are able to be fully absorbed in a state of flow, leading to a heightened sense of
engagement and enjoyment. The occurrence of this phenomenon stems from the link between

Figure 4. Conceptual framework based on S-O-R that exploring the AR in retail environments
flow and value-based themes and the cognitive reactions (O) connected to tech use. This is Journal of Strategy
explained by the S-O-R model, an acronym for Stimulus-Organism-Response, further and Management
underscores this idea by illustrating how external stimuli, such as the features of a technology,
can shape the internal states of the user and, in turn, impact their decision-making and
behavior. In essence, the framework highlights the crucial role that interactivity plays in
shaping the overall experience of the user, and how it can be leveraged to drive more favorable
outcomes.
The use of Augmented Reality (AR) technology has been shown to impact consumers on
both cognitive and emotional levels. As demonstrated by Parise et al. (2016), AR influences
both cognitive and emotional/affective states of consumers. Further, AR has been shown to
affect consumers’ experiential values, encompassing both hedonic and utilitarian aspects
(Dacko, 2017; Yim et al., 2017; Rauschnabel et al., 2019; Poncin and Mimoun, 2014; Hilken
et al., 2017; Rese et al., 2014; Olsson et al., 2013; Romano et al., 2021).
According to Perannagari and Chakrabarti (2020), there are moderators that link affective
and behavioral responses in AR experiences. The current framework acknowledges the
influence of various factors, including consumer traits (such as body image perception, Yim
and Park (2019) and narcissism, Beck and Cri�e (2018), information processing styles (Fan
et al., 2020; Hilken et al., 2017)), privacy concerns (Rauschnabel et al., 2018; Olsson et al.,
2013; Hilken et al., 2017; de Ruyter et al., 2020; Dacko, 2017), and situational context (Scholz
and Duffy, 2018; Carrozzi et al., 2019; Rauschnabel et al., 2018), on the outcome of cognitive
processing. These moderating variables can greatly impact the internal processing and
behavioral outcomes of AR experiences.
The S-O-R (Stimulus-Organism-Response) model outlines the relationship between a
stimulus and a consumer’s behavioral response. In the context of Augmented Reality (AR),
this model highlights how AR technology can directly impact consumers’ internal states,
leading to changes in their decision-making and resulting behaviors. One of the key factors
influenced by AR is consumers’ level of purchase confidence. Research by Dacko (2017)
has shown that AR can increase consumers’ confidence in purchasing products, leading to
higher levels of engagement and more favorable outcomes for businesses. Another impact
of AR is a reduced perception of risk among consumers. Studies by Rauschnabel et al.
(2018) and Yaoyuneyong et al. (2014) have found that AR can help to mitigate the risks
associated with purchasing products, leading to increased trust and a more positive
consumer experience.
AR can also influence consumers’ behavioral intentions, including their purchase
intention. Research by Yim et al. (2017), Hilken et al. (2017), Parise et al. (2016), Dacko
(2017) have shown that AR can increase consumers’ intent to purchase products, leading
to higher conversion rates and increased sales for businesses. The impact of AR extends
even further, affecting consumers’ word-of-mouth recommendations and their
perceptions of the brand or mobile app. According to studies by Hilken et al. (2017),
Heller et al. (2019), and Dacko (2017), AR can positively impact consumers’ likelihood
of recommending products to others, leading to increased exposure and growth for
businesses. In addition, research by Scholz and Duffy (2018) and Yim et al. (2017) has
found that AR can enhance consumers’ perceptions of the brand or mobile app, leading to
increased loyalty and advocacy.
Overall, the S-O-R model highlights the powerful impact that AR can have on consumers’
behaviors, decision-making, and perceptions. By leveraging AR technology, businesses can
create more engaging and positive experiences for consumers, leading to increased sales and
growth. In conclusion, the final consumer behavioral response is a crucial aspect of the S-O-R
model, and AR has a significant impact on this outcome. Through its effects on consumers’
internal states, AR influences decision-making and behavioral intentions, ultimately shaping
consumer behavior.
JSMA 6. Future steps: research, theory, and practical applications
6.1 General directions
In light of the findings of this study, there are several avenues for future research that can be
pursued to further expand upon the current understanding of the topic at hand. One potential
direction for future research could involve conducting a more in-depth examination of the
moderating variables identified in this study, such as consumer traits and situational contexts,
to better understand how they influence the relationship between AR and consumer behavior.
Additionally, it would be valuable to conduct longitudinal studies to investigate the long-term
effects of AR on consumer behavior.
Another promising avenue for future research would be to explore the potential
applications of AR in different industries and contexts. One potential avenue for
exploration is the utilization of augmented reality (AR) in various industries. Studying the
integration of AR into the retail sector could reveal new methods for elevating customer
engagement, providing a differentiated and immersive shopping experience. Meanwhile, the
application of AR in education and corporate training programs could lead to a more effective
and engaging learning process, allowing individuals to visualize and interact with complex
concepts in a hands-on manner. The examination of these scenarios can provide a wealth of
insights into how AR can be leveraged to bring about innovation and improvement in various
domains.
Furthermore, there is a need to conduct more cross-cultural research on AR, as the impact
of AR may vary depending on cultural differences. This would help to better understand how
the effects of AR are shaped by cultural context and provide insight into how to tailor AR
experiences for different cultural groups.
In light of the theme of human-centricity, resilience, and sustainability in the age of digital
transformation, the implications of this study underscore the substantial influence of
Augmented Reality (AR) on consumer behavior and decision-making. These insights hold
significance for both theory and practice, urging practitioners across industries to carefully
evaluate the advantages and constraints of integrating AR into their offerings and marketing
approaches. Furthermore, the study’s findings provide valuable guidance for the design and
development of AR experiences, emphasizing the crucial role of interactivity, vividness, and
other design elements in fostering favorable consumer responses. By considering these
implications, businesses can align with the evolving digital landscape and foster more
meaningful and sustainable consumer interactions.
Overall, this study provides a valuable starting point for further research on the impact of
AR on consumer behavior. Future research in this area has the potential to provide insights that
can inform the design and implementation of AR experiences in a variety of contexts, and
ultimately lead to more effective and engaging AR applications.

6.2 Directions for multiple stakeholders

The study that has been conducted provides valuable insights into a specific research area;
however, there are several areas for future research that would benefit multiple stakeholders.
Firstly, it would be valuable to conduct further research to investigate the generalizability of
the findings across different industries or contexts. This would enable practitioners to
understand the potential impact of the research in other settings and allow for a more
comprehensive understanding of the phenomenon under investigation.
Secondly, further research could explore the mechanisms underlying the findings. For
example, further research could investigate the specific cognitive and emotional processes that
lead to the observed outcomes. This would allow for a more detailed understanding of the
underlying mechanisms, which would be beneficial for practitioners in the development of
interventions or strategies.
Thirdly, it would be beneficial for future research to investigate the long-term effects of the
phenomenon. For example, a longitudinal study would provide insights into the sustainability
of the effects over time, which would be important for practitioners in the development of Journal of Strategy
long-term strategies. and Management
Fourthly, practitioners could benefit from future research that focuses on the practical
application of the findings. For example, research could investigate the effectiveness of
different interventions or strategies that are based on the findings in real-world settings. This
would enable practitioners to make informed decisions about the implementation of
interventions or strategies in their organizations.
Lastly, future research could also explore the potential unintended consequences of the
phenomenon, which would be important for practitioners to consider when implementing
interventions or strategies in their organizations.
Overall, future research in this area could provide valuable insights for multiple
stakeholders, including researchers, practitioners, and policymakers, by investigating the
generalizability of the findings, mechanisms underlying the findings, long-term effects,
practical application, and potential unintended consequences of the phenomenon.

6.3 Practical applications

The findings of this study resonate not only with the theme of humancentricity but also
intersect significantly with the imperative of sustainability within the context of Industry 5.0.
Augmented Reality’s ability to provide immersive and personalized experiences aligns with
the drive towards sustainable consumption by fostering more informed and conscious choices.
By facilitating detailed product visualization, AR can potentially contribute to reduced product
returns and, subsequently, a decrease in carbon footprint associated with reverse logistics.
Furthermore, the integration of AR in retail holds promise for optimizing supply chain
operations and resource utilization, thereby advancing sustainable practices.
6.3.1 For retailers. For retailers, the practical implications of this study extend beyond a
cursory overview. The findings offer a deeper understanding of the nuanced impact of
augmented reality (AR) on business operations and customer experience. This knowledge
becomes a strategic asset, empowering retailers to make informed decisions about
incorporating AR technology into their sales and marketing strategies. Retailers can
leverage the insights generated by this study to tailor AR implementations that genuinely
enhance the customer experience, fostering increased engagement and, consequently, driving
sales. For example, the study’s findings on the impact of AR on spatial presence and
information processing can guide retailers in designing AR experiences that effectively
showcase products in a virtual space, enhancing the customer’s ability to make informed
decisions.
Moreover, the analysis of hedonic and utilitarian values associated with AR experiences
provides retailers with a framework to balance fun and functionality in their AR applications.
This balance is crucial for creating engaging experiences that not only entertain customers but
also facilitate practical decision-making. The study, when analyzed in detail, becomes a
roadmap for retailers to navigate the integration of AR into their operations with precision. It
highlights potential challenges, such as privacy concerns and the need for seamless integration
across different touchpoints, allowing retailers to proactively address these issues in their AR
implementation strategies.
6.3.2 For AR service providers. AR technology providers stand to gain strategic insights
from this study, insights that go beyond a mere acknowledgment of high demand. A detailed
analysis of the areas where AR products and services are in high demand provides actionable
intelligence for necessary improvements and strategic alignment with the needs of retailers.
For instance, the study’s findings on the importance of interactivity and immersion in AR
experiences can guide AR service providers in refining their technologies to enhance these
aspects. The identified challenges, such as potential information overload or the need for
personalization, offer clear directions for innovation and improvement in AR solutions. This
emphasizes the importance of understanding the nuanced needs and desires of retailers,
JSMA positioning AR technology providers not just as suppliers but as strategic partners. By
comprehending the complexities of consumer behavior in AR-enhanced retail environments,
technology providers can develop more sophisticated and effective solutions. The detailed
insights derived from this study equip AR technology providers to proactively meet market
demands, enhancing their chances of success in a competitive landscape. For example, the
findings on privacy concerns and data security can inform the development of more robust and
user-centric data protection measures in AR applications.
6.3.3 For customers. Customers, when provided with a detailed understanding of the
benefits of augmented reality (AR) technology, can make more informed decisions about its
integration into their shopping experiences. This section emphasizes not just the enhancement
of the shopping process but delves into how AR can make the experience more enjoyable and
interactive. By breaking down the nuances of AR technology, customers gain insights into how
it aligns with their shopping habits and preferences. For instance, the study’s findings on the
impact of AR on decision-making ease and buying assurance can help customers understand
how AR can aid them in making more confident purchase decisions. The analysis of hedonic
and utilitarian values in AR experiences can help customers appreciate both the fun and
practical aspects of using AR in shopping. Understanding these aspects can lead to more
engaged and satisfying shopping experiences. A detailed analysis empowers customers to
embrace the use of AR technology in their future purchases with a deeper understanding of its
impact on their overall shopping journey. It also equips them with the knowledge to provide
valuable feedback to retailers and AR providers, contributing to the ongoing improvement of
AR applications in retail.
6.3.4 For researchers. The results of this study, when critically examined, serve as a robust
foundation for further research in the field of augmented reality and its impact on the retail
industry. Rather than merely acknowledging its potential, this section provides a detailed
analysis of how the findings can offer valuable insights and information for researchers. The
nuanced understanding gained from this study becomes a guide for researchers looking to
expand their knowledge in this area and explore new avenues for research. For instance, the
identified gaps in understanding long-term effects of AR on consumer behavior open up
opportunities for longitudinal studies. The complexities revealed in the interplay between AR
characteristics and consumer responses provide fertile ground for more focused, in-depth
investigations.
The detailed exploration of the impact of AR on the retail industry equips researchers to
navigate the complexities, identifying areas that require further investigation with precision.
For example, the findings on the influence of individual traits like narcissism or body image
perception on AR experiences suggest potential areas for interdisciplinary research,
combining insights from psychology, marketing, and human-computer interaction. The
results, when analyzed in detail, serve not only as a conclusion to this study but also as a
catalyst for future research initiatives. They provide a comprehensive overview of the current
state of AR in retail, highlighting both the advancements made and the challenges that remain
to be addressed. This comprehensive perspective enables researchers to position their future
studies within the broader context of the field, ensuring that their work contributes
meaningfully to the evolving understanding of AR in retail.

7. Conclusion
This study offers a comprehensive exploration of the complex relationship between
Augmented Reality (AR) and consumer behavior, specifically focusing on decision-making
processes. The developed conceptual framework unveils how the distinctive characteristics of
AR impact consumers’ decision-making and behavior, aligning seamlessly with the concept of
human centricity. The study underscores the pivotal role of AR’s interactivity and vividness in
crafting immersive experiences that positively influence consumers’ hedonic values.
 Our findings reveal that AR’s ability to provide interactive and vivid experiences Journal of Strategy
significantly enhances consumer engagement and satisfaction. For instance, virtual try-on and Management
features in retail applications allow consumers to visualize products in real-time, leading to
more confident purchasing decisions. This aligns with the human-centric approach by
tailoring the shopping experience to individual needs and preferences. Moreover, the research
delves into the complexities of AR, unraveling key moderators that shape the internal
processing of AR experiences. These moderators, spanning factors such as body image
perception, levels of narcissism, information processing style, privacy concerns, and
situational context, offer nuanced insights. Understanding the influence of these moderators
holds significance for both researchers and practitioners in the AR industry, providing
actionable guidance for the design and implementation of impactful AR technologies that can
maximize their effects on consumer behavior. For example, our research indicates that
individuals with higher levels of narcissism may be more receptive to AR features that allow
for personalization and self-expression. This insight could guide marketers in developing AR
applications that cater to different personality types, thereby enhancing user engagement and
satisfaction. Similarly, the study’s findings on privacy concerns highlight the need for
transparent data practices in AR applications, emphasizing the importance of building trust
with consumers in the digital age.
The study also sheds light on the role of situational context in AR experiences. We found
that the effectiveness of AR applications can vary depending on whether they are used in
public or private settings. This insight is particularly valuable for retailers developing
omnichannel strategies, as it suggests the need for adaptable AR solutions that can provide
value across different shopping environments. To chart a course for future investigations,
the study recommends exploring the impact of AR across diverse industries beyond retail,
extending into realms like healthcare and education, thereby embracing the broader concept
of human centricity. For instance, in healthcare, AR could be used to enhance patient
education and improve treatment adherence. In education, AR applications could create
immersive learning experiences, catering to different learning styles and improving
engagement. Additionally, there is a call for research to delve into the long-term effects of
AR usage on consumer behavior and decision-making, offering valuable insights into
sustained impacts. Longitudinal studies could reveal how repeated exposure to AR
experiences shapes consumer expectations and behaviors over time. This understanding is
crucial for businesses looking to integrate AR as a long-term strategy rather than a short-
term novelty.
Further exploration into the interplay between consumer traits and situational contexts as
moderators of AR’s influence on consumer behavior is also identified as an avenue for future
research. This could involve investigating how cultural differences affect AR adoption and
effectiveness, or how varying levels of technological proficiency impact user experiences with
AR applications. The study’s findings also point to the need for more research on the potential
drawbacks or unintended consequences of widespread AR adoption. For example, future
studies could explore whether heavy reliance on AR for decision-making might lead to
decreased ability to make choices without technological assistance, or whether it might
exacerbate issues related to body image or materialism.

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Further reading
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Corresponding author
Praveen Kumar Pandey can be contacted at: praveen.pandey2022@gmail.com

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