The impact of augmented reality on retail dynamics

Purpose Augmented reality (AR) is a technology that boosts or augments real-time experiences by incorporating digital information into live objects. Retailers’ application of AR has taken the entire world by storm, enriching the relationship between consumers and brands. This study explores the multifaceted usage of AR in the retail sector. Design/methodology/approach Two studies were conducted across two different time frames to understand the continued use of AR in retail dynamics. 394 respondents took part in Study One, while 368 respondents participated in Study Two. The research presented probes the moderating effect of e-word of mouth (e-WOM). The researchers also further explore the impact of AR on consumer behaviour by considering factors such as convenience, experience, curiosity, fantasy, and entertainment. Findings Based on Study One’s findings, the adoption of AR for online shopping is influenced more by fantasy and curiosity rather than entertainment. The findings of Study Two indicate that experience, convenience and social influence are key factors in driving the adoption of AR for online shopping. By exploring the relationship between these variables, we provide a comprehensive understanding of how AR impacts consumer perceptions. Originality/value This study extends gratification theory by analysing AR adoption in retail through a two-study approach, identifying key motivations and the moderating role of e-WOM. It differentiates fantasy from entertainment in AR adoption, emphasising curiosity and social influence. Our findings offer valuable insights for retailers and technologists to enhance AR-driven shopping experiences and consumer engagement.