The impact of augmented reality experiential marketing on brand equity and buying intention

Abstract

Developments in online retailing are putting pressure on companies to keep up with rapidly changing market environments and growing customer expectations. A way to cope with these challenges is to transform the online shopping experience by augmented reality (AR). AR is an emerging interactive technology that supplements the real-world environment with virtual objects. Retailers increasingly use AR as an experiential marketing tool to create additional value for their customers through experiences. This paper examines the effect of AR experiential marketing (AREM) on brand equity — assessed through the dimensions brand awareness, brand associations, perceived quality and brand loyalty — as well as on consumers’ buying intention. Furthermore, the level of involvement is investigated as a moderator affecting the relationship between AREM and brand equity, as it has been found to influence the consumers’ shopping experience in earlier studies. A survey was carried out under controlled framework conditions, and 100 valid questionnaires on test persons’ experiences were obtained. The data were investigated by principal component and multiple regression analyses. Findings indicate that AREM positively affects brand equity through the dimensions brand awareness, brand associations and brand loyalty. Moreover, through increased perceived quality, AREM has a greater impact on brand equity under high involvement than under low involvement. The results further suggest that brand equity stimulates buying intention via increased brand awareness and brand loyalty. In addition, AREM also has a direct positive impact on buying intentions.