Is this real? Cocreation of value through authentic experiential augmented reality: the mediating effect of perceived ethics and customer engagement

Abstract

PurposeRapid advancements in augmented reality (AR) technology have created new opportunities for service providers and customers to cocreate value. Using AR as a platform for generating authentic experiences, the purpose of this study is to explore the impact of authentic experiences on customers' intention to cocreate value while considering the mediating influence of perceived ethics and customer engagement on this relationship.Design/methodology/approachAn online survey was used to collect data. Participants were asked to download and try the “IKEA PLACE” AR application. The responses were used as inputs into a structural equation model.FindingsThe findings reveal that AR generates perceptions of authentic experiences but no direct relationship between authentic experiences and intention to cocreate value was found. On the other hand, the authentic experiences generated through AR increases customer perceptions of ethics and customer engagement, both of which lead to an increased intention to cocreate value.Originality/valueThe findings from this study highlight the importance of authentic experiences within the cocreation process. The results provide a unique understanding of the relationship between authentic experiences generated through AR technology on the intention to cocreate with the service provider, which is fully mediated by perceived ethics and customer engagement. The findings of this study extend the understanding of the cocreation process and the role of technology within this process.

How to strategically choose or combine augmented and virtual reality for improved online experiential retailing

“…In line with current research, we contend that AR is inherently suited for offering customers an authentic, vicarious examination of products online (Alimamy & Nadeem, 2021). Although AR supports various content formats (including visual cues, information layers, or face filters), most retail applications enable customers to interact with 3D product holograms within their immediate surroundings (Carrozzi et al, 2019)—which is forecasted to become the predominant mode of shopping online in the future (Deloitte, 2020).…”

The Role of e-WOM towards Value Co-Creation on Sharing Economy Platform in Indonesia

“…This research confirmed that the stronger indicator for electronic word of mouth (e-WOM) happened when someone have good perceptions about ethical of using ride sharing application. Besides that, the research strengthens the finding by [2], [18], [20], in which an individual's relationship with ethical perceptions is significant in explaining value co-creation in using ride sharing application.…”

“…Study on ethical perceptions as mediator between e-WOM and value co-creation is still very limited. Until now, ethical perceptions had been used as a mediator in study on relationship between consumer participation and value cocreation [2], relationship between social support and value co-creation [19] and relationship between authentic support and value co-creation [20]. In this study, we will show the influence of e-WOM on value co-creation with ethical perceptions as mediator.…”

Disrupting marketing realities: A research agenda for investigating the psychological mechanisms of next‐generation experiences with reality‐enhancing technologies

“…Facilitating the cocreation of product and service experiences is a marketing priority, and reality‐enhancing technologies can support firms and consumers in this process by suggesting and transforming digital content against real or virtual world backgrounds (Alimamy & Nadeem, 2021; Boyd & Koles, 2019). For example, many garden design firms use AR apps (e.g., AR Landscaper, YARD) that allow consumers to interactively cocreate the design of their backyard.…”

“…At the same time, social media platforms utilize the technologies to facilitate communication between firms, consumers, and other consumers (e.g., Snapchat AR lenses). This offers new ways of cocreating value (Alimamy & Nadeem, 2021), while amplifying privacy concerns (Cowan et al, 2021). Furthermore, reality-enhancing technologies present unique opportunities as research tools that offer new insights into consumer behavior across marketing contexts (e.g., simulating new products in VR; Harz et al, 2021).…”