Impact of Augmented Reality Characteristics on Retail Brand Equity

Abstract

With the rise of 5G and mobile shopping, the failure to physically experience products has led to high return rates and negative word-of-mouth for retailers. As a result, many Chinese retailers have been offering augmented reality services to customers to improve their shopping experience. This study aims to investigate the mechanism of augmented reality (AR) characteristics on retail brand equity in the context of retailing. Accordingly, the authors construct a conceptual framework in which AR characteristics affect brand associations and retail brand equity. The empirical tests using the structural equation model method also support the research hypotheses. The results reveal that two AR characteristics-environment embedding (EE) and simulated physical control (SPC)-can positively affect retail brand equity through brand associations. Furthermore, product involvement moderates the effect of EE and SPC on brand associations positively. The findings expand brand equity theory in the field of augmented reality marketing.