Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2022

Abstract

The rise of Augmented Reality (AR) technology presents marketers with promising opportunities to engage customers and transform their brand experience. While firms are keen to invest in AR, research documenting its tangible impact in real-world contexts is sparse. In this article, the authors outline four broad uses of the technology in retail settings. Next, they focus specifically on the use of AR to facilitate product evaluation prior to purchase, and empirically investigate its impact on sales in online retail. Using data obtained from an international cosmetics retailer, they find that AR usage on the retailer’s mobile app is associated with higher sales for brands that are less popular, products with narrower appeal, and products that are more expensive. In addition, the effect of AR is stronger for customers who are new to the online channel or product category, suggesting that the sales increase is coming from online channel adoption and category expansion. These findings provide converging evidence that AR is most effective when product-related uncertainty is high, demonstrating the technology’s potential to increase sales by reducing uncertainty and instilling purchase confidence. To encourage more impactful research in this area, the authors conclude with a research agenda for AR in marketing.

Keywords

augmented reality, online retail, mobile app, virtual product experience, product uncertainty

Discipline

Marketing | Sales and Merchandising | Technology and Innovation

Research Areas

Marketing

Publication

Journal of Marketing

Volume

86

Issue

1

First Page

48

Last Page

66

ISSN

0022-2429

Identifier

10.1177/0022242921995449

Publisher

SAGE

Embargo Period

4-22-2021

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1177/0022242921995449

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