Consumer's Perceptions and Attitudes on Augmented Reality in Online Retail - INDIRA AMARIS BAÑOS

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Consumer's Perceptions and Attitudes on Augmented Reality in Online Retail - INDIRA AMARIS BAÑOS
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
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                                        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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