Effects of virtual makeups' perceived augmentation on consumers' perceived value

PurposeThe objective of this study is to examine how perceived augmentation of virtual makeup influences consumers' perceived value (utilitarian and hedonic value).Design/methodology/approachThis research conducts an empirical study, and investigates 474 respondents.FindingsThe results show that perceived augmentation positively influences utilitarian and hedonic value. The wow-effect mediates the impact of perceived augmentation on utilitarian value. Immersion mediates the impact of perceived augmentation on two types of perceived value. Perceived ease of use moderates the influence of perceived augmentation on utilitarian value. Recreational shopper does not moderate the effect of perceived augmentation on hedonic value.Practical implicationsThe study provides practical implications for beauty e-retailers.Originality/valueThis study examines the effect of perceived augmentation, supplements the literature on virtual makeup and AR technology application and enriches the literature on consumer experience of using AR technology.