Value-based adoption of augmented reality: A study on the influence on online purchase intention in retail

The increasing use of digital technology-based retail services provides new opportunities for digital marketing. In this paper, we investigate how augmented reality (AR) technology can be leveraged as part of the firm's strategy. We explore the online purchase intention through AR smart glasses (ARSG), considering consumers' value assessment through a cost-benefit analysis and the influence of technical, experiential and social AR value drivers. We develop an augmented value-based adoption model addressing four main objectives: (1) Evaluate the effect of the perceived value of ARSG, (2) Evaluate the effect of immersion (experiential dimension), (3) Evaluate the effect of AR devices and technical complexity (technical dimension) and (4) Evaluate the importance of subjective norms (social dimension) on the online purchase intention through AR technology. Based on an ESIC Tech Lab experiment with two types of ARSG from market leaders and AR retail apps, the study uses survey data from 253 participants. The results suggest that the technical dimension has an ambiguous effect, with tech-complexity enhancing directly the perceived value of ARSG for online purchase while reducing the net value of consumers' economic cost-benefit analysis. We find strong evidence that the experiential and social AR dimensions (in the form of immersion and subjective norm) have a significant positive influence on consumers' purchase intention online, which are better predictors than the pure economic cost-benefit assessment (through usefulness and difficulty). Furthermore, the technical innovativeness of consumers is found to increase directly the online purchase intention through ARSG.