Consumer's Perceptions and Attitudes on Augmented Reality in Online Retail - INDIRA AMARIS BAÑOS
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EXAMENSARBETE INOM INFORMATIONS- OCH KOMMUNIKATIONSTEKNIK, AVANCERAD NIVÅ, 30 HP STOCKHOLM, SVERIGE 2021 Consumer’s Perceptions and Attitudes on Augmented Reality in Online Retail. INDIRA AMARIS BAÑOS KTH SKOLAN FÖR INDUSTRIELL TEKNIK OCH MANAGEMENT
DEGREE PROJECT IN MEDIA MANAGEMENT, SECOND CYCLE, 30 CREDITS STOCKHOLM, SWEDEN 2020 Consumer’s Perceptions and Attitudes on Augmented Reality in Online Retail. INDIRA AMARIS 1
SAMMANFATTNING Denna studie diskuterar Augmented Reality (AR) som ett digitalt marknadsfö ringsverktyg inom onlinehandeln, med ett sä rskilt fokus på de uppfattningar och attityder som konsumenterna har gentemot verktyget. Projektet syftar till att ge insikter om hur man studerar AR i online-butiksmiljö er och berö r också hur olika egenskaper hos AR kan på verka konsumenternas attityder till produkter som visas eller demonstreras med AR-verktyg. Den konceptuella ramen ä r baserad på litteratur och fallstudier inom AR, konsumentupplevelse och kund- vä rdeskapande. Data fö r detta forskningsprojekt erhö lls genom fö rdjupade intervjuer med deltagare som tidigare haft erfarenheter av AR. Efter att ha analyserat och kategoriserat sina svar fö reslå r resultatet att deltagarna har en ö vergripande positiv instä llning till verktyget och att de redan ä r angelä gna om att engagera sig i tekniken. Deras svar fö reslog också att anvä ndningen av AR-verktyg i online-detaljhandeln positivt kunde på verka konsumenternas attityder till de marknadsfö rda tjä nsterna eller produkterna som visas med verktyget. Beroende på vissa faktorer kan verktyget dessutom ha en positiv effekt på inkö psbeslutet. Bland de negativa aspekterna anser deltagarna att tekniken inte Einns dä r ä nnu och må ste fö rbä ttras fö r att ge ett meningsfullt vä rde fö r dem. Andra vä rdefulla insikter frå n projektet ä r relaterade till kundresan och det vä rde verktyget ger anvä ndarna.
Consumer’s Perceptions and Attitudes on Augmented Reality in Online Retail. Indira Amaris Royal Institute of Technology School of Electrical Engineering and Computer Science Media Management +46 707578319 indiraab@kth.se ABSTRACT This study discusses Augmented Reality (AR) as a digital marketing tool in online retail, with a special 1. INTRODUCTION focus on the perceptions and attitudes which The introduction of new technologies has increased consumers hold towards the tool. The project, aims to the speed in which every stage of the value chain is give insights on how to study AR in online retail performed, from manufacturing to product search settings and also touches upon how different and from purchase to delivery. According to a forecast characteristics of augmented reality can impact the from Statista, by the end of 2020, global e-commerce consumers attitudes towards products displayed or sales will increase to about $4.2 billion to represent demonstrated with AR tools. The conceptual 16% of total retail sales, and these numbers will just framework is based on literature and case studies in continue to grow as internet usage keeps increasing1. the Pields of augmented reality, consumer experience However, the competition online is tough, and and, customer value creation. creating value is becoming an even more difPicult task for business and marketers that are looking for new The data for this research project was obtained ways to stand out from the competition. One way to through in-depth interviews with participants who succeed is to improve the overall customer have had previous experiences with Augmented experience introducing the latest digital tools to Reality. After analysing and categorising their facilitate different processes. answers, the Pindings suggest that the participants have an overall positive attitude towards the tool and Augmented reality is one of the digital trends that is that they are already keen to engage with the shaping the future and that could deliver a lot of technology. Their answers also suggested that the use value for marketing, the retail industry, and more of AR tools in online retail could positively affect the importantly for the consumers. According to consumers attitudes towards the promoted services RetailDive, the Integration of augmented reality in or products which are displayed with the tool. marketing efforts aims to build consumer Moreover, depending on certain factors, the tool relationships, boost sales, and add value to the could potentially have a positive effect on the shopper experience. purchasing decision. On the negative side, the participants consider the Augmented reality (AR) has emerged as a new technology is not there yet and needs to be improved technology available to retailers to engage with to deliver meaningful value for them. Other valuable costumers in an unique and vivid way (Javornik, Pindings of the project are related to the customer 2016; Yim, Chu, & Sauer, 2017 in McLean & Wilson, journeys and the value the tool provides to the users. 2019). Azuma (1997) explains that augmented Reality (AR) integrates computer generated objects with the real world and provides individuals with Key Words real time interactions. Given to the adoption of the ubiquitous smartphone retailers and consumers Augmented reality, Retail industry, Consumer interest in AR has grown, and many retailers are now attitudes, TAM, attitude components, Digital implementing AR features in their mobile Marketing, customer experience, costumer value. applications (Dacko, 2017). In the context of retail, 1 Meyer Susane, (2020) Evolving Ecommerce: 14 Trends Driving Online Retail In 2020, Accessed :6April, 2020. Recovered at: https:// www.bigcommerce.com/blog/ecommerce-trends/#14-ecommerce-trends-leading-the-way 2
AR involves any approach that combines computer- frameworks and theories served as a base to design generated and real world image and/or location the instrument, gather the project data and draw the information for a richer, more immersive retail conclusions. experience (Liao, 2015; Pantano, 2009). AR gives retailers another opportunity to attract and interact 2. THEORiCAL FRAMEWORK with their target audience, giving them the illusion that the Company's virtual objects and the real word Attitudes are believed to directly inPluence behavior. coincide in the same environment, this provides a This is the reason why marketers need to have a clear frame for non-traditional interactions with the perspective of consumer attitudes toward speciPic customers, delivering an entire personalised services or products before launching them to the experience to the potential user. market. In practice, the term ‘attitude’ is often used as an umbrella expression covering such concepts as While AR is in its infancy in terms of its application in preferences, feelings, emotions, beliefs, expectations, consumer markets, spending on the technology is judgments, appraisals, values, principles, opinions, expected to reach $60 billion by 2020,(Porter and and intentions (Bagozzi, 1994). Heppelmann, 2017) giving to retailers a signiPicant reason to invest in the technology. Nevertheless, Although there are different dePinitions of attitude, additional research is critical to determine if the the one fact which many of them have in common is technology adds sufPicient value to customers in that an attitude is held in reference to something or order for companies to decide whether or not to someone and that they affect the behavior of the invest in integrating AR solutions in their set of tools. individual when they come into contact and interact with that something or someone. Ajzen & Fishbein At the same time, Foruoudi et al (2017 p,272) (1977) state that attitudes are held with respect to highlights the lack of research determining how some aspect of the individual’s world, such as interactive technologies (as Augmented Reality) another person, a physical object, a behavior, or a inPluence the customer experience. Regarding this policy. Therefore, the way a person reacts to his question, Huang and Liao (2015, p. 269) stresses the surroundings is called his attitude. Baron & Byrne importance of further research that evaluates the (1984) dePine attitudes as relatively lasting clusters users’ perception of AR and the importance of of feelings, beliefs, and behavior tendencies directed understanding the elements which create value for towards speciPic persons, ideas, objects, or groups. the customer. Therefore more insights from the customer perspective are needed to understand the Another dePinition proposes that and attitude is a value that the technology is adding to their journeys. tendency to respond to some object or situation. Liao et al. (2014, p. 1432). According to (Malhotra,2005), an attitude is a summary evaluation of an object or thought. The Here is where relevance and the motivation of this object or phenomenon can be anything a person project lies. This study aims to narrow down the gap discriminates or holds in mind and may include of knowledge regarding the customers perceptions people, products, and organisations (Bohner, G. and and attitudes towards augmented reality in retail and Wanke 2002). reviews aspects that are relevant for and improved AR costumer experience. To achieve this, a literature Allport (1935) adds that an attitude is not passive, review of pertinent models has been made, choosing but rather it exerts a dynamic inPluence on behavior. the Technology Acceptance Model, as one of the He further stated that an attitude is a mental or central frameworks for the project, since this model neutral state of readiness, organized through has as objective to analyze how people adopt and experience, exerting a directive or dynamic inPluence accept a technology (Huang Liao, 2015, p 270). on the individual’s response to all objects and situations to which it is related. In the particular case However, as the main focus of the study is consumer of this project, we wanted to analyze if the subjects attitudes and perceptions, concepts from different have already formed some sort of notions after their attitude models have been reviewed as the dePinition previous experiences with Augmented Reality and if of attitude and its components, which are the they have already formed a psychological tendency affective, behavioural, and cognitive components. that is expressed by evaluating a particular entity Besides this, customer value creation and customer with some degree of favor or disfavor (Eagly & experience frameworks were also reviewed as both Chaiken 1993). are essential in the moment of designing marketing strategies, recognising new product opportunities, It is also pertinent to understand the three and enhancing service and product concept. The components that contribute to the formation of an review of these frameworks was pertinent and attitude as explained in the Model of Attitude (ABC) helpful for determining which factors are relevant for proposed by Ajzen & Fishbein, (1980). The Pirst of a product to deliver value to consumers. All these these is the affective component; this is the emotional 3
response that a subject can have towards an attitude As stated by Djamasbi et al. (2009) The perception of object, (Visal Jain, 2014) which could be, for instance, ease of use is measured by the degree to which using liking or disliking AR tools. a technology is free of effort and the perception of The second component, termed as the behavioural, is usefulness is measured by the degree to which the a verbal or non-verbal tendency by an individual, and, technology can help to improve task performance. it consists of actions or observable responses This Model ratiPies the importance of researching the (favourable/unfavourable) to do something regarding consumers attitudes towards AR - this subject will be an attitude object. Wicker (1969). In the context of explored in the section titled ‘Discussion’. the project a favorable or unfavourable tendency of the subjects to interact with an AR tool when making Further literature was reviewed to Pind a theoretical an online purchase. background about how augmented reality service could add value to consumers when buying products Lastly, the cognitive component is an evaluation of with the help of AR. For this, the customer value the object and that constitutes the subject’s opinion creation framework was very useful. According to about the object. According to Fishbein & Ajzen Woodruff (1997), customer value has long been (1975), ‘cognitive’ refers to the thoughts and beliefs recognized as a central concept in marketing and the an individual has about an object. He also states that fundamental basis for all marketing activity Holbrook a belief is information a person has about an object, (1994). It has been suggested as the purpose of this information links an object and an attribute. This organizations (Woodruff 1997) 1997), and the main is another valuable aspect to inquire about, the key to success via differential positioning Cooper attributes that subjects can attach, or link, to (2001), and a precursor to customer satisfaction and augmented reality. loyalty (Woodwall 2003). Woodruff dePines customer value as “a customer’s perceived preference for, and evaluation of, those product attributes, attribute performances, and consequences arising from use that facilitates or blocks achieving the customer’s goals and purposes in use situations” (1997, p. 141), which can be evaluated pre or post product use. His conceptualisation incorporates multiple contexts and multiple cognitive tasks as the preference for and evaluation, and multiple assessment criteria like attributes, performances, and consequences. This dePinition is well aligned with the focus of the research and we will analyze further how the attributes of the technology contribute to facilitating or blocks the customer from chivied their goal, in this case, reviewing a product with AR a product online. ABC Model of attitude applied to AR tools. Many dePinitions of Customer value have been proposed during the years, however, there is no Another model of attitude which is closely related to commonly accepted dePinition of customer value - the focus of the project is the Technology Acceptance neither a dePinitive framework nor typology of Model (TAM), proposed by Davis (1989, 1993). customer value. Nevertheless, for the sake of this According to him, TAM is an applied model of attitude project, we will use the one proposed by Smith and in which the intention to use a technology is Colgate.(2007). They present a customer-value inPluenced by the attitude towards that technology creation framework that identiPies four main and the perception of its usefulness. Attitudes, in categories of value which can be generated by turn, are inPluenced by a person’s beliefs in how companies and could be helpful to understand the useful the technology is and how easy it is to use. In value that a costumer/users can attached to an AR the context of the project, it was necessary to preview tool. these categories are: evaluate the participants beliefs towards AR tools in the e-commerce context and additionally to analyze if -Functional or instrumental value: which are the the participants previous experiences with the attributes of the product or service itself; the extent technology have already helped them to form beliefs to which a product is useful and helps to fulPill a about the attributes of the technology, thus affecting customer’s desired goal. their intentions to engage with an AR tool when the opportunity arises. 4
-Experiential/hedonic value: the extent to which a or tools add value to the customers and their product or service creates appropriate experiences, journey? feelings, and emotions for the customer. The project's sample consisted of eight people -Symbolic/expressive value: the extent to which between the ages of 24 to 30, heterogeneous in terms customers attach or associate psychological meaning of gender, Pive males and three females. All the to a product or service. participants have had previous experiences with AR, however, none of the participants have had -Cost/sacriPice value: the cost or sacriPice that would experiences with augmented reality in the context of be associated with the use of the product. retail. All of them had used AR for entertainment, for example, games, social media AR Pilters, real-time 3. SCOPE OF THE STUDY AND METHOD translations or yelp. For this reason before the interviews were conducted they were given a Research question demonstration a one minute demonstration video2 . The video explains how the AR IKEA APP works and What is the consumers overall attitude towards AR how the user can visualise objects in real time with tools to review products online? the help of AR. They were also requested to download the AR app Stylelab by Synsam, a Swedish eyewear Method company or to try the desktop virtual try of the Misterspex website3 (two off the participants tried This project has a qualitative approach and the main neither Symsam app nor the desktop try on, however goal is to obtain valuable insights about the they have use AR before in other contexts therefore consumers attitudes and perceptions of augmented they had a clear idea of the affordances of the reality in retail. The study also aims to contribute to technology). The intention of this was to give a closing the research gap regarding the use of clearer context to the participants about how the Augmented reality as a digital marketing tool for technology is used in retail, so that they could in turn retail. To provide these insights and draw some provide clear and detailed descriptions of their conclusions an instrument based on the theoretical actions, attitudes, feelings and perceptions of their framework was design. The chosen method was in- previous experience with AR; and their possibles depth interviews, therefore, after the literature experiences with an AR tool in retail. The duration of review three big areas were chosen to build and the interviews was approximately 30 minutes with instrument that could help answer the projects main each of the subjects. All the interviews were recorded question. The chosen areas were attitude and afterwards the participants answers were components, intention to use the technology and summarised as showed in Appendix 2 at the end of value added to consumers, for each theme or this document. category questions were formulated to build an interview guide presented in the Appendix 1 which 4. RESULTS AND ANALYSIS may be found in the last section of this document. The main objective of the interviews was to Pind After interviewing the participants, the data collected answers to the questions for each of the categories was analyzed and then categorized into smaller but also to serve as a conversation starter, giving themes or topics which could help to facilitate room to the interviewer to ask new questions as the answering the main questions of the project, based conversation developed. During the conversations on the theoretical framework proposed in section 2. with the participants a new important question The chosen themes were: attitude components, arouse during the conversation namely, the customer intention to use the technology, value-added to journey, therefore, this additional category was consumers, and customer journeys. added, and then literature on this Pield was also briePly reviewed and added to the study. Nevertheless, it is important to emphasize that the project sample was too small to assume that these Other relevant questions for the project were: Does conclusions represent the ones of the general the use of technologies as AR in online retail have a population in this age range. Therefore the positive effect on the consumers' attitude towards the conclusions drawn from the project are aiming to products or services promoted with the tool? Does only be insight and to serve as a starting point of augmented reality affect the decision process, when rePlection about the current state of the technology buying products online? And how do AR applications from the users perspective and connect these Pindings to the theoretical framework. 2 Demonstration video IKEA AR tool https://www.youtube.com/watch?v=UudV1VdFtuQ 3 Desktop virtual try on https://www.misterspex.se 5
Attitude components would use the tool to obtain additional information and inputs about the product, but they still would During the interview phase, the participants were need real interaction with the product. asked questions related to their previous experiences, knowledge, or information they have Intention to engage with AR tools about the technology. Questions about the perceptions and emotions towards AR tools were also Once the participants watched the demonstrative asked. Additionally, they were also asked about their video and used the ar tools (two of the participants thoughts in regards to the tool after the did not try the tool Synsam app neither the desktop demonstration video. From the participants’ answers try on, however, they did watch and agreed to it was possible to observe: understand how the tool works) They were asked if they would use AR to review products online. All the participants were capable to give an accurate description of the technology, using phrases as “a All the participants said they would try the technology that enhances reality adding digital technology to preview a variety of products online. features” or "a tool that allows you to place digital However, the majority of them thought they would objects on top of a real view of the reality” or be more willing to use the tool to preview certain "combining technology with the real world to get a products than others. For example, they would new outcome”. These descriptions are very close to appreciate it for items as furniture or home decor, 4 those proposed in the reviewed literature. The of them would also value having the tool to try on interviews were also asked to name adjectives to clothes. describe the technology, all of them attached positive adjectives to the AR tool. Therefore it could be The fact that all participants seemed open to try or suggested, that evaluation of the cognitive component use AR tools might suggest there is a readiness in the was in general positive. participant's mind to interact with the technology. This readiness could be related to the fact that all of Half of the participants considered this technology them have had previous experiences with AR that useful, the other participants, described the were somehow described as positive. This probably technology as innovative, interesting, and interactive. helped them to form a prior opinion of the When talking about the decision process, all of them technology. agreed that an augmented reality tool that assists online purchases could affect the purchase decision Value-added to the user and customer journeys positively. These questions are related to the affective component. All the participants believe there is a lot of potential for AR in retail settings. However, the majority of When the interviewees were asked if they would them think the tool does not provide signiPicant value make a purchase basing their decisions on yet. This would be discussed in the discussion information obtained with an AR overview tool, Pive section. Most of the interviewees think the value an of them said they would be willing to do it, however, AR tool would provide for retail is instrumental. The there are certain conditions for it. The conditions to participants state that these tools would be useful for Pinalise a purchase after reviewing a product with AR getting the Pirst impressions of products, get a better were related to the quality of the AR tool or app, such understanding of dimensions and textures. They a s i m a g e q u a l i t y ( p h o to re a l i s t i c e n o u gh ) , could also get additional information that cannot be synchronisation of the virtual items with the real provided by a picture or text. Some of them think AR view. could help the search process by narrowing down the number of items and discarding those products they Besides those, other conditions were mentioned but don't like. Besides, they would use it for matching the they were more related to the product as the price of products to other items they own, for inspiration, and the item, thus being easier for them to take this some of them think it could help them to avoid decision and complete the purchase if the price of the returns. product was low. The size of the product was also an important condition along with the possibility of easy The subjects were also asked if the technology could returns. With small products, they could take the in some way help them to speed up the purchasing decision only using AR, for large products they would process, only one of the respondents think AR could rather preview the product with the AR tool and then help to speed up the process and save time and visit the store to have a real view of the item. energy by doing everything from home. Other respondents thought it could save them time by The other three respondents said they will not do it helping them to avoid returns. And others think that under any circumstances because the current quality perhaps the decision process would be longer since of the tools does not seem accurate. However, they they would probably have to spend time trying out 6
different products with the tool. The majority of them photos or videos to scan dimensions or body said they were surprised by the quality of the Ikea measurements. app. This leads them to believe that the tool would be great for companies working with furniture, home According to them, this is for the speciPic case of decor or renovation. clothing websites platforms, platforms, or apps. One Concerning the experimental value, which is related of the participants comments: to the emotions and feelings the technology could arise in the participants. They described their Pirst Another interesting Pinding was related to customer experiences with AR as fun or interesting however journeys. The interviewees were asked how would they have never use the technology to buy products. their customer journey look if they wear using AR, to Later they were asked if they believe AR would affect Pind out how they use the technology would differ. In the purchase decision, Pive of them said the tool could their answer, the subjects proposed different help them to feel more certain of the attributes of the dynamics in their journeys. products and two stated that the tool could convince them about the product being the right choice for Some of them would use the AR tool in a linear them and they would probably feel more satisPied manner. During this “linear journey” the user starts with the purchase. online, reviews different products, try to understand textures, and dimension by placing the products in A participant stated “This tool would be really good to their home (in the cases of furniture, home decor, help decrease the high return rates in retail which are technology, home renovation materials) or trying the very inconvenient for the customer and a net loss for product on themselves (clothes, shoes, sunglasses or the seller” other accessories, jewelry, make up), the customer Pinds the product that better suits its needs and Other participant stated that for him the value of AR makes the purchase online. This costumer was in retail resides in its ability to give a clearer picture proposed as an option for low price items and of the product to the customers. He stated, “It is hard standard products like bookshelves, or small home to imagine the dimensions of a product if you only look decor, basic clothing items. at a picture, but AR can give you a better idea on how products would look on your body or >it at your home A participant commented: “For very expensive items, I for example”. would start of>line and then try the AR tool at home. For cheap items, I could probably start online and do On the other hand, many of the participants gave the purchase right away as long as the product is also negative comments in regards the quality of the easy to return“. service in an e-commerce setting. Their opinion was formed based on comments they have previously Some other participants proposed a “reverse heard, and after watching the example video or have journey” they talked about this journey giving as an tried the AR apps or the desktop virtual try-on example large items as furniture, Ploors, home decor. themselves. “The technology needs to improve, become They would start their journey ofPline by doing an in- more exact and easy to use. I don't know if it has to do store search, sorting out the products they don't like, with the camera or with the movement recognition and having a close examination of those products tech but something feels a bit off, for example with the they like the most, to Pinally pick a selection of Symsam app and I think it doesn’t feel too realistic for products that they would later try on at home with clothes either. It feels more realistic with furniture, for the help of AR, and check for example if the example, with the Ikea app when you are placing the dimensions are correct for their homes, check if the items, you can place them correctly and get a close colors match with other items they own and then idea of the products but it takes some skill and Pinalize the purchase online. In this case, AR technique to do it”. So for the tool to become common generates value for the consumer give assurance to among the general population the tool needs to be the customer about aspects as dimensions, making much easier to use. For products like clothes, them feel the product is adequate for them and thus watches, or accessories it does not provide enough helping to prevent a return. value for me to use this tool. However, most of them believe the technology would be Pine-tuned in the Another customer journey was proposed by the upcoming years and then would it be a substantial participants, “The circular journey”. The customer experience for the users and it also would be a great starts online, uses AR as a tool to narrow down the source of value for businesses in the retail industry. search and Pind the products she/he likes the most, makes a small selection of products she would like to Many of them agree that the tool is still not providing see in real life. The customer then visits the store and enough value for people to feel trigger to try the gets a real feeling of the product and continues to technology and to do an effort to use the technology, further narrow down the search till choosing the For instance learning skills, downloading a tool, take product of its preference, at this point the customer 7
either makes the decision and makes the purchase or be suggested that the behaviour towards the goes back to home to use again the technology to try technology would also be positive. out the product he/she liked at home. The ABC model of attitude Fishbein & Ajzen (1975) One of the participants comments about his ideal explains that any particular attitude can be based on customer journey buying with the help of AR: “I go to one component more than another. This means that the store usually for inspiration, but I would like to buy each component can also be the answer to the more online, because of convenience. Personally, the question: where does an attitude come from? So an ideal customer journey for me would be to start of>line, attitude can be formed based on a positive experience see and feel the product and pick my favourites items, or a feeling the technology arises on the use. then go home and try the product with AR mix and match them and see how they >it and then make a In the cases of the participants, it seemed their decision.” attitudes are mostly based in the affective component and cognitive components given to their previous This journey was proposed for large high price items, experiences and knowledge they have with and that are also inconvenient to return because of the about the tool. According to the ABC model, attitude weight or size. In this journey, the AR tool was mainly components help an individual to form an attitude used as a curation or Piltering tool to facilitate towards an attitude object, in this case, AR as a tool to narrowing down the search and later to get assurance overview products online when there is an intention about questions as dimensions. to buy. 5. DISCUSSION According to the participants' answers, the reasons why they believe AR would affect the decision In this section the Pindings will be connected to the process when buying online is because they would theoretical framework and some rePlections about get additional info that would clarify more their ideas the subject, in general, would be made. To start the about a product. In this way, AR tools can deliver discussion the connection or link between the valuable info that consumers cannot get only based emotional and cognitive components and attitudes on a picture or text. and behaviours would be clariPied. Beliefs are based on previous experiences, while feelings represent Additionally, the participants think the tool could how we perceive something. Our behavioural help them feel more convinced and certain that they intentions or attitudes towards an object come after are choosing the right product for them. If this is the we recognised the feelings a given attitude object case for the general population, companies that use arises on us, this emotional process can determine AR could have a competitive advantage over someone behaviour towards an object. In the case of companies that are not using the technology. During the interviewees any of them had previously use AR the interview one of the participants said they don't to make online purchases, however the majority of like or avoid buying online because they feel them have had somehow positive experiences with uncertain and do not have a clear idea of the product. AR for entertainment, the emotions they felt while using AR previously were most probably positive Intention to engage with AR tools since all of them link the technology with positive adjectives and besides they expressed their wiliness The fact that the interviewees knew about the to use AR in the future, even though acknowledging concept and know the attributes of the technology that the tool still needs to be Pine tuned. increases the possibility for them to start to interact and engage with the AR tool, according to the TAM Attitude components model. Since the technology then becomes more visible for them, it becomes easier for them to spot The Pindings suggest that the use of technologies as the tool when is available in different websites or AR in online retail could affect in a positive way the apps than for the people than don't even know the consumers' attitude towards the products or services concept of augmented reality or those who have promoted and/or displayed with the tool. The results never have an experience with the tool and don't also suggest that augmented reality could positively know how it works and how could it help them. affect the decision process when buying products online. It was also possible to observe that all participants proposed positive adjectives when describing AR. The attitude towards an attitude object (in this case The adjectives attached to it were: innovative, AR tools in websites, shopping platforms, or apps) interesting, useful, interactive. This seems to suggest inPluences how an individual acts. Since most of the that the attitude toward the technology is favorable. questions related to the cognitive and affective According to the Technology Acceptance Model, the components of attitude had positive answers, it could intention to use technology is inPluenced by the 8
attitude towards that technology and perception of the most famous examples of companies using the its usefulness. Davis (1989, 1993). Heelet et al (1979) technology are IKEA, Sephora, ASOS, Amazon. propose that an individual overall attitude is a function of beliefs about an object’s attributes and These companies use AR as a tool to facilitate a the strength of these beliefs. In this respect, he variety of customer activities as product overview, comments that the attributes ( as useful in this case) product trials, virtual try-on, information search and that consumers give to a product or service have a big acquisition, aid consumers during decision making, impact on the decision-making stage. Heller, Chylinski, Ruyter, & Keeling, (2019), but also to decrease the high return rates that are one of the The majority of the subjects won’t decide to buy a biggest downsides of online retail. Although the product online by only basing their decisions on an participants have not use the technology in a retail AR product overview. However, some of them would setting they seem to have a clear understanding of do it as long is not a large item or the price of the how the technology could add value to business and product is high. customers and which activities or tasks an AR tool could facilitate. All of the interviews stated they would appreciate having an AR product overview tool when buying One of the biggest uses the tool offers is presenting products online. The possible reason for this is that products and giving users a better understanding of they have already had positive experiences with AR, sizes and dimensions. According to Keiser and although not in a retail setting but for entertainment Garner, The companies have difPiculties in effectively purposes. They have previously used AR in games, presenting the sizes since most of the sizes are based social media Pilters, goggle translation with ar or on measurement charts or size guides of one “ideal” Smart apps where there is an integration of AR info, consumer and embodying this in a single Pit model. for example, the yelp reviewing App. Keiser & Garner (2003) in Embaye & Kostadinova. (2018). Although half of the participants of the According to the TAM model, readiness is one of the interview said they won't buy clothes using AR, they Pirst requirements for a user to engage with still acknowledge the potential of the tool on this technology. Besides, it's also an important factor that regard and think it would be a disruptive tool for the companies should have considered when planning to fashion industry in the future when the registration introduce or implement a new digital tool to facilitate problems are minor. The other half of the participants the different processes and engage with their seem positive about it and think it is one of the potential customer because without that readiness biggest benePits of the technology. One participant interaction with products or services becomes less comments “I'm excited to try AR to try products at likely. home but also the magic mirrors to try clothes in- stores instead of queuing to try on products”. The readiness to engage with the technology is a good start and an opportunity for the retailers, to As presented in the results session, one of the improve the relationship with their clients or start a participants commented about the poor image new relationship with potential costumers by quality of AR tools. What this participant is referring delivering a new interactive experience. Engaging the to it is the called registration problem of the user is vital for companies, it has become a strategic technology. Azuma (1997) commented one of the imperative for sustaining a competitive advantage. basic problems currently limiting augmented reality McLean, Wilson. (2019). The value creation applications is the registration problem. The object framework highlights the importance of involving in the real and virtual worlds must be properly consumers in speciPic interactions and/or interactive aligned concerning each other, or the illusion that the experiences to build and enhance consumer worlds coexist will be compromised. This is a relationships. Brodie, Ilic, Julic, & Hollebeek (2013) in problem that has been persistent from the beginning McLean, Wilson. (2019) of the tool, and although signiPicant improvements have been made, it still needs further revision. Value-added to the user and customer journeys Most of the participants believe the technology needs Dacko states that with the adoption of the ubiquitous to be improved to deliver signiPicant value for them, smartphone, developers, retailers, and consumers' however, they all think this would be Pixed soon and interest in augmented reality has signiPicantly grown, that the tool could deliver both experimental and as such many retailers are now implementing instrumental value for them. augmented reality features into their mobile applications (Dacko, 2017). That is why some of the According to the value creation framework reviewed big actors in the retail industry have for some years before, and Experiential value is concerned with the been taking the lead in the adoption of AR. Some of extent to which a product creates appropriate experiences, feelings, and emotions for the customer. 9
For example helping them feel more certain the that the tools enable depending on the content product is the right for them available to users in a speciPic AR layer. Nonetheless, further research in the customer experience and the An instrumental value Woodruff (1997) is concerned customer journey Pield is necessary to understand in with the extent to which a product has desired depth the different interactions that could result from characteristics or functions and is useful. (For using the technology. And also for companies to example the performance quality of the AR tool). This understand if the tool creates enough value for is also related to the Customer journeys the customers. In this way, more companies could feel the participants proposed since the paths of their incentive to invest in the tool. customer journey seemed to be somehow related to the type of value they attach to and AR tool when For companies to build a competitive advantage with buying online. AR is important to gain knowledge about the customer behavioral processes and consequently Regarding the customer journey, the theory suggests generate desired reactions on the various key that winning companies and brands owe their touchpoint throughout the customer’s decision- success not just to the quality and value of what they making process (Lemon & Verhoef, 2016, p. 69; Scott, sell, but to the superiority of the journeys they create 2017 p. 173). These different interactions that could Edelman Et Al (2015). This is a reality among be potentially be enabled with the AR tool could also different industries, where big disruptors have become a good source of data for the companies. achieved their success by offering the same products or services but improving the overall customer Future of AR experience with the help of technology. The participants commented about their opinions Edelman (2010, cited in Scott 2017, p.173- 174) has concerning the future of AR. It seems to be a general developed a new approach to the customer journey agreement among them in regards to the potential of where the classic linear path is abandoned. Scott et al. the technology, all of them see a bright future in the (2015, cited in Scott 2017, p.174) argue that this is technology and think it would start to become more due to a fact that customers are interacting with popular in the years to come. However, it seems the multiple online and ofPline channels in their shopping technology still needs to be improved to reach its full decisions. When talking with the participants about potential and deliver signiPicant value for business their customer journeys only two of them said they and consumers. Meanwhile, the majority of them would linearly do their journey. The rest of the think the tool delivers a lot of value for entertainment participants proposed different paths as propose for proposes, education, and possible for industries Edelman. where design is primordial as architecture or engineering and off-course retail, speciPically the Two participants proposed a sort of reverse journey furniture, home decor, and fashion industries. when they start ofPline and then moved online to try the AR tool and make the purchase decision. The Industry leaders are already jumping in the trend. In majority of the subjects said they would circularly do 2017 IKEA launched their AR app that since then has their journeys. To describe their journey they did not been the object of research of multiple studies, some use the world linearly, reverse, or circular, however, it of them were reviewed for the purposed of this could be concluded by looking at the steps of their project. And this year (2020) ASOS debuted its AR proposed purchasing process. Scott states that the tool to the market that can be found on its product circular process is an alternative to the traditional pages. linear approach, he states that this type of journey suits better consumers in the digital age (Scott, 2017, In a quantitative study conducted in Sweden, that p. 175). Scott (2017, p.176) describes how the included the opinion of both consumers and the retail circular journey initially starts with awareness of the industry actor, some of the retailers stated that since product or service and develops into interest, no one else from their direct competitors in Sweden consideration of the feasibilities, and continues with is using an augmented reality tool as part of their a search for information. This is what the participants product evaluation tools, this could potentially bring commented when they said they would start online the Company sustainable competitiveness and to search the product and interact for the Pirst time become market leaders. Embaye & Kostadinova. P 39, with the product, get information about it, and assess (2018). DeMers, (2016) comments that companies the qualities of the items. must invest in digitally relevant methods for advertising to maintain a competitive position in this For companies in the retail industry looking to rapidly changing digital environment. implement AR in their set of tools is important to understand how customers would be using the tool and the types of actions, perceptions, and interaction 10
Limitations of the project come bring a lot of uncertainties to retailers that not only struggle with an increased number of It is important to comment that the present project competitors but also are required to fulPill the ever- presents a lot of limitations the Pirst and the most growing demand and expectations of convenience, obvious is the size of the sample, however, many of quality, sustainable practices, high customization, and the research projects that are done from the users richer customer experiences. For the speciPic case of perspective in the Pile of AR also used similar tools the retail industry, technology has brought a lot of and also small samples, this is perhaps due to the challenges but also opportunities as the rise of limited knowledge of the population about the solutions to support companies in speeding up subject. Another disadvantage of the project was the different processes in the value chain to fulPill the lack of the perspective of experts in the area, expert growing need for immediacy. opinion would have been very pertinent and helpful at the time to build the instrument and evaluate the One of the tools or technologies that could potentially participant's answers. deliver signiPicant value to consumers and actors in the retail industry is Augmented Reality. Although AR From a measurement perspective, it was difPicult to has been around for many years, little research has conPigure an instrument that could be a relevant been conducted when it comes to the consumers' source of data when the subjects had no previous perspective. Additionally, there is still a lack of experience with AR to perform online purchases. knowledge about its applications and it is unclear to Therefore, it is probable that the accuracy of the date how and how much can this technology add participants' answers and the depth of them were value to consumers and businesses. Despite the limited to their lack of experience and knowledge growth of online retail, the sector still faces multiple about the area. Although the participants were challenges, one of the biggest ones is product provided with a demonstrative video of the evaluation. To tackle this problem different AR tools technology, the results could have been richer with are starting to be implemented for retailers. This more empirical behavioral data. Another limitation is study aimed to contribute with insights about the lack of theory on the speciPic topic of attitudes Augmented reality as a digital marketing tool in and perceptions towards technology. online retail, speciPically about the consumers' perceptions and attitudes towards AR tools. But as consumers' use of augmented reality increases, there is a growing need to understand its The main Pindings of the project suggest that the use inPluence on customer behavior, its purpose of use, of AR tools in online retail could affect positively and the experience it delivers (Javornik, 2016 in consumers' attitude towards the products or services McLean & Wilson, 2019). For sure when the tool will promoted and displayed with this tool. The results become more accessible to companies and the also suggest that augmented reality could positively technology would start to become more accessible to affect the users' decision process by providing them companies and visible to the general users more with more certainty about the products. On the quantitive research from different perspectives negative side, the participants stated, that they don't would be conducted. feel the technology is mature enough to provide signiPicant value, mainly because technical aspects as the registration problems of the technology need to 6. Conclusion improve or be Pine-tuned. For instance, the images need to be more photorealistic to be effective and Technological innovations have changed the creating the illusion that the virtual and real-world consuming and shopping patterns of society, it has coincide, or the capability of the tool to synchronize also meant a rise of competition for actors in almost accurately with the background or follow the every industry. This has pressured companies to Pind movement of the user. new ways to compete by creating products and services that are constantly more personalised, have Other valuable Pindings of the project were related to higher quality, and are produced more sustainably. In the customer journey and the proposed ways in the speciPic case of the retail industry, it has also which the participants could use the technology. made it necessary to utilise digital tools and services Some would use it in a linearly, whereas others would that increase the chances of reaching out and engage do it in a reverse or in a circular way, depending on more deeply with customers thus creating more their preferences or priorities. Further research on value for them. this area could help companies to improve the customer experience in the different touch-points The retail industry had gone through many that constitute the path to make the purchase. signiPicant changes in recent years. Among the biggest change was the shift from the in-store However, the project sample was too small to assume shopping experience to an online one. The years to that these conclusions represent the ones of the 11
general population in this age range. The Pindings of the project aim more to serve as an insight into the Davis, F. D.(1986). A Technology Acceptance Model consumer perspective and attitudes towards the for empirically testing new end-user information technology, aiming to help to close the current systems: theory and results. Doctoral dissertation. research gap concerning Augmented Reality and its Cambridge: Sloan School of Management. commercial uses. Dybdal Andersen & Schreck. (2018)Enhancing consumers' purchase intention by augmented reality: Therefore the conclusions drawn from the project are The relationship between augmented reality and aiming to only be a contribution and to serve as a Swedish millennials’ online purchase intention of starting point of rePlection about the current state of shopping goods the technology from the users’ perspective and also to contribute to the current discussion about how AR Embaye & Kostadinova. (2018) Augment App: applications or tools can continue to add value to Potential Implications on E-commerce: A Multi-Case customer journeys and improve their shopping Study on Swedish Online Fashion Retailers experience by facilitating the entire process. Hellgren. (2019). AUGMENTING THE REALITY: Can AR Technology Entice Consumer Engagement? A 2020 has been an exceptionally hard year, the Quantitative Study Covid-19 virus, put almost the entire world in isolation and left a lot of business of all sectors and Hong & Zhuqing. (2012) New Thoughts of Customer particularly retail in a very troubling position. Some Value Study experts have commented that perhaps the global pandemic could be disrupting retail by forcing them Huang, T-L., & Liao, S. (2015). A model of acceptance to Pind alternatives to engage with their clients in this of augmented reality interactive technology: the time of social isolation. Augmented reality is one of moderating role of cognitive innovativeness. Electronic Commerce Research. 15 (2), 269–295. the tools that retailers could probably start to consider the most after this year, but again more Kristensson. (2019) Future service technologies and research in regards of the value provided for the value creation technology and how it enriches the user experience needs to be conducted, but it will probably start to happen as the technology gains more visibility and popularity. McLean, Wilson. (2019). Shopping in the digital world: Examining customer engagement through augmented reality mobile applications 7. REFERENCES Scholz & Smith. (2016)Augmented Reality: Designing Immersive Experiences That Maximize Consumer Ajzen.(1991). The theory of planned behaviour. Engagement Ajzen & Fishbein. (1980). Theory of reasons action as Smith & Colgate (2007), Customer Value Creation: a applied to moral behavior - A conPirmatory analysis practical framework Arestov & Ar mströ m.(2018). Bridging the digital and Vishal Jain, (2014) 3D Model of Attitude Available at: physical worlds: The deployment of augmented h t t p s : / / w w w. re s e a rc h ga te . n e t / p u b l i c a t i o n / reality in a retail setting a case study on IKEA. 265567380_3D_Model_of_Attitude [accessed May 20 2020] Azuma, A. T. (1997). A survey on augmented reality. Presence, 6(4), 355–385. OTHER SOURCES Bank.(2018).Integrating online and ofPline worlds Dickson. (2020) Life after COVID-19: how social through mobile technology in physical stores: A distancing is disrupting retail. Accessed :16 may, quantitative study investigating the impact of 2020. Recovered at: https://360.here.com/covid-19- technology readiness on the technology acceptance impact-retail model for mobile technologies in physical retail Gaioshko, Daira. Accessed: 10 April 2020. Recovered Chen, E. (2016, January 16). How augmented reality a t : ( h t t p s : / / w w w. r e t a i l d i v e . c o m / e x / will shape the future of Ecommerce. Entrepreneur. mobilecommercedaily/10-ways-how-augmented- https://www.entrepreneur.com/article/287687. reality-can-help-retailers [Retrieved 2020, 20,04]. Meyer Susane, (2020) Evolving Ecommerce: 14 Dacko, S.(2016). Enabling smart retail settings via Trends Driving Online Retail In 2020, Accessed : m o b i l e a u g m e n te d re a l i t y s h o p p i n g a p p s . 6April, 2020. Recovered at: https:// Technological forecasting and social change, 124, www.bigcommerce.com/blog/ecommerce-trends/ 243-256. #14-ecommerce-trends-leading-the-way 12
Walk-Morris Tatiana. (2020) Accessed: 20, may 2020. Recovered at: https://www.retaildive.com/news/ asos-debuts-ar-tool-for-online-shoppers/577679/ Appendix 1. Interview Guide QUESTION THEME Theory link When you think of Augmented Reality what comes Pirst to Cognitive component Model of attitude your mind ? In which context have you used Augmented reality? Cognitive component Model of attitude How was your experience ? Affective component, Model of attitude, Customer Customer experience value framework Would you consider the tool easy or difPicult to use A f f e c t i v e c o m p o n e n t , Model of attitude, Intention to engage with AR Technology Acceptance Model If you could describe you experience with AR with one Cognitive component Model of attitude adjective which one would it be? Do you buy online? Which type of products do you tend to buy online ? After seeing the demonstration video for the Ikea AR app Costumer value Customer value framework and symsam AR app. would you value having an augmented reality product overview of the products you tent to buy? Do you think having an AR product overview can help Instrumental Value Customer value framework speed up the purchasing process? In which way do you think AR could affect the purchase E x p e r i m e n t a l v a l u e , Model of attitude, Customer decision? a f fe c t ive c o m p o n e n t , value framework , consumer experience Would you buy a product basing your decision on an AR Behavorial component, Model of attitude, Technology product averview? Intention to engage with acceptance Model the thecnology If you would use AR to make a purchase How do you think Costumer Journeys Customer value framework your costumer journey would be like from the start to the end of the process? For which type of business do you think AR technology Feedback and development Customer value framework with be the most useful? Do you think there is future for augmented reality? Feedback and development From your perspective, what needs to change or improve Feedback and development Customer value framework, for the technology to add more value to the users? Technology acceptance Model Appendix 2. Summary Participants’ answers 13
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