The Impact of Co-Creating Through AR in Retail Stores on Purchase Intentions: The Mediating Role of Customer Trust and Risk

With the broad diffusion of technology in the past few decades, there has been a shift in power from sellers to buyers. Marketers can no longer offer a product to the customer without considering their input in the development, customisation, and personalisation of the product. Innovative companies are learning how to co-create with their customers in order to understand what they want and how they want it. In this paper, the authors examine the role of augmented reality (AR) technology in co-creation and the effect it has on customer perceived risk, trust and purchase intent. A 2x2x2 factorial experimental design was used and followed up with an attitudinal survey measuring perceived risk, trust, and purchase intent. The results show that AR reduces perceived risk, increases perceived trust and purchase intent, thus providing evidence that AR may be more than just a novelty technology in today's evolving business environment.