Augmented Reality in Retail and Its Impact on Sales

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

10 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)48-66
Journal / PublicationJournal of Marketing
Volume86
Issue number1
Online published16 Jun 2021
Publication statusPublished - Jan 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.

Research Area(s)

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

Citation Format(s)

Augmented Reality in Retail and Its Impact on Sales. / Tan, Yong-Chin; Chandukala, Sandeep R.; Reddy, Srinivas K.

In: Journal of Marketing, Vol. 86, No. 1, 01.2022, p. 48-66.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review