2.1 Understanding Augmented Reality Technology

2.1 Understanding Augmented Reality Technology

The concept of Augmented Reality (AR) is an application where real-life environments are Increased through computer-generated images within a smartphone screen. Cameras and sensors are incorporated to add such virtual sign in real time all in the presence of the environment. While on the other hand; Virtual reality fully absorbs the users into a parallel world and lets him/her deal with virtual characteristics while not having any interaction with to real world. AR is also on the rise with more focus on smartphone models which has made its application more diverse. According to emarketer (2023), over ninety-nine million people in the United States were using augmented reality daily by the last year of the period under analysis, 2022. Specifically, cameras quantify the world and provide avisualization of that world on a screen with added icons (Itoh et al. , 2021). However, there are some challenges that are likely to be encountered when implementing AR which include; screen fatigue, latency, and precision. For instance, passthrough technology permits users to see the holographic digital information overlaid on the physical world as if they are looking through a glass with a projector depicting on the glass (Whitfield, 2023).

2.2 AR in US Retail

Today AR is gradually being applied in the US used in the retail sector to improve shopping experiences. AR affords numerous opportunities to for consumers to engage and interact with the brand throughout the purchasing process and enhance customer satisfaction and brand allegiance. There are four main uses of AR in retail: communicators as information givers, information processors, problem-solvers and persuasion tools in the purchase process and facilitating the post purchase phase. For example, the retail giant Walmart partnering with an entertainment firm such as DC comics applies AR to capture consumer interest and steer them towards the physical stores as highlighted by Tan et al. (2021). Toyota has applied AR to inform consumers about car features while buying cars, and Walgreens has applied its AR apps to teach users on how to use their apps in real life. AR also assists the consumer in decision-making concerning a product through providing the consumer with the ability to see how items would be like in their homes, this includes apps such as the IKEA furniture placement app and Sephora makeup apps (IKEA, 2022). To the same effect, AR also helps in the utilization of products by offering unique use options such as that of LEGOs interactive play sets and Hyundais car usage apps.

2.3 AR in the Post-Pandemic Era

When using online shopping apps, safety and hygiene are important when physical shops are open. Companies such as Sephora and Ulta Beauty have recently confined the actual trial of cosmetics through physically applying the products on the skin as customers opt for augmented reality trials. How their innovations were affected by COVID-19: Ultas GLAMlab AR tool utilize increased beyond fifty million foundation shades virtually tried out as Covid-19 campaigned (Victorian, 2020). Sources such as Shopify revealed that items featuring AR content enjoy a 94% higher buy rate. Some of the Retailers such as the Kohls has innately applied AR for digital shopping such as Kohls AR Virtual Reality Closet, where a customer can interchange items and purchase via Snapchat (Lee 2020). These applications are also strengthening Levis AR retail plan with applications such as, Squad, that enables Friends shopping over the internet.

2.4 Impact of AR on Consumer Behavior

Several theories including the uses and gratifications theory, Hoyers Technology Adoption Model explain why consumers use AR for online purchasing. Conversely, there are several benefits of AR in shopping that one can consider For example, while shopping online may come with certain risks, with the help of AR, it is easier to order, for instance, furniture or designer products. Nike Fit, an example of a successful AR app by Nike enables customers to find appropriate shoe sizes, thereby lowering the rate of returns while raising customer satisfaction (Alvarez, n.d.). By using augmented reality, consumers get to experiment with the product even before they make their purchase, hence having high self-esteem in their purchasing decision. For example, Farfetch the company that specialises in selling luxury brands developed an AR app with Snapchat to try on clothes by putting the smartphone in front of a camera. Similarly, Eyerim adapted AR filter while trying on glasses located on the site of the enterprise. Compared to traditional shopping, AR shopping enhances the consumer engagement and experience so that it also has a positive impact on behavioral intentions (Sozer, 2021).

2.5 Challenges of AR in Shopping

AR in consumer interactions needs the consumers camera and at time geo-location information which is a privacy/Security issue. In case of an instance where an AR app has been compromised, the hackers can be in a position to see via the camera feed and also geo-location information. Most of the smartphones today are capable of sustaining AR, though low lighting performance may be a problem (Kushnarevych & Kollrov, 2023). Moreover, some face-related AR filters may pose privacy concerns and can even pass various types of mental health issues or incorrect aesthetic norms (Rejeb et al. , 2021). Even though, there is research around the ethical issues of some brands and social networks, there is a lack of research on ethical issues revolving around AR.

References

Tan, Y.-C., Chandukala, S. R., & Reddy, S. K. (2021). Augmented Reality in Retail and Its Impact on Sales. Journal of Marketing, 86(1). sagepub. https://doi.org/10.1177/0022242921995449Whitfield, B. (2023). What Is Augmented Reality? How Does AR Work? | Built In. Builtin.com. https://builtin.com/machine-learning/augmented-realityItoh, Y., Langlotz, T., Sutton, J., & Plopski, A. (2021). Towards Indistinguishable Augmented Reality. ACM Computing Surveys, 54(6), 136. https://doi.org/10.1145/3453157Victorian, B. (2020, August 19). TRIED IT: Ulta Beautys GLAMlab Virtual Makeup Try-On. HelloBeautiful - Fashion, Beauty, Lifestyle and Hair Care for Black Women. https://hellobeautiful.com/3183005/tried-it-ulta-glamlab-virtual-makeup-try-on/Lee, A. (2020, September 3). Levis Reshapes B-t-s Strategy With Group Video, Augmented Reality. WWD. https://wwd.com/feature/emb-1am-pt-9-3-levis-reshapes-bts-strategy-with-group-video-augmented-reality-1234573697/Alvarez, E. (2019, May 9). Nike uses AR to help you find the right fit for your sneakers. Engadget. https://www.engadget.com/2019-05-09-nike-fit-augmented-reality-right-fit-size-shoes.htmlRejeb, A., Rejeb, K., & Treiblmaier, H. (2021). How augmented reality impacts retail marketing: a state-of-the-art review from a consumer perspective. Journal of Strategic Marketing, 31(3), 131. https://doi.org/10.1080/0965254x.2021.1972439Kushnarevych, A., & Kollrov, D. (2023). AR and VR as a Shaping Trend in Consumer Behaviour. European Conference on Innovation and Entrepreneurship, 18(1), 501508. https://doi.org/10.34190/ecie.18.1.1460IKEA. (2022, July 5). IKEA launches new AI-powered, digital experience. Www.ikea.com. https://www.ikea.com/us/en/newsroom/corporate-news/ikea-launches-new-ai-powered-digital-experience-empowering-customers-to-create-lifelike-room-designs-pub58c94890

Chapter 3: Methodology3.1 Aims and ObjectiveAim

This research aims to investigate and understand the influence of augmented reality (AR) on the shopping experience within the US retail industry while as well determining the factors influencing the adoption of augmented reality (AR) within the retail industry.

Objectives

To evaluate the effect of AR on sales for all brand popularity levels.

To examine how AR affects sales for various client categories.

To determine the factors Influencing the Retail Industry Adoption of Augmented Reality

To analyse the process and benefits of AR-enabled creative customer engagement

3.2 Research PhilosophyOn the basis of the pragmatic research approach, it is possible to apply in one study a number of research methods and strategies. Besides, practical research studies that are inclined by a pragmatic approach can encompass the use of action, subjectivist, and quantitative strategies. It can be argued that the applied research approach is suitable for the present investigation on the effects of augmented reality (AR) on the purchasing process in the United States retail industry given the discussed issue of investigation and research objectives. Concerning the execution of research and the search for the answers to the study questions, pragmatism recognizes the object as complex and allows for the integration of various perspectives and methods. In that respect, it emerges important to comprehend how exactly augmented reality (AR) technology influences several phases of buying process such as revenue generation, consumers behaviour, and ethical dilemmas. Understanding of phenomena calls for comprehensive methods which are hardly possible to assess when employing a single study method and in such a situation, the pragmatics research approach is useful. Nevertheless, positivism and interpretivism can be quite complementary if needed to find the optimal solution and adapt the method.

3.3 Research approachThe inductive approach is the process of making generalisations from particular examples or observations. With the use of the approach outlined, the researchers become capable of assessing how AR (augmented reality) affects sales in a number of areas, including client classifications, cost points, product ratings, along with popularity of brands. This is capable of helping the process of collecting data from a range of different sorts of authentic sources that includes databases, business articles and scholarly articles to investigate the trends, themes, alongside connections. "Searching for trends from observation and the creation of explanations - theories - for these trends using several hypotheses" is the main concept behind inductive research (Dudovskiy, 2021). Inductive investigations do not start with a specific set of ideology rather once the research process get started, in that scenario, the researcher become free to change the investigative approached as per the need to change the course of the investigation.

3.4 Data Collection ProcessRelevant journal articles are essential to conduct secondary research to deal with the impact linked to augmented reality (AR) that indicates about the buying experience with US retailer industry. Secondary data is data which has not been gathered directly from the person conducting the study but has instead been gathered, analysed, and released by another party. Data from sources including government publications, scholarly journals, consumer study reports, and additional already-existing databases can be included in this. In order to perform the task, the secondary data collection technique has been utilised to collect the data from authentic sources like journals newspaper articles and different statistical websites. The following databases and search terms were used:

Information Bases:

PubMed

IEEE Xplore

ScienceDirect

Web of Science

Scopus

Google Scholar

Springer

Keywords

Augmented Reality

AR Technology

Retail Industry

Shopping Experience

Consumer Behavior

Sales Impact

Customer Engagement

Satisfaction

Loyalty

Purchase Decision

Post-Purchase Experience

Table 1: Keywords and Information Bases of Search

The development of the search string is required in the next step. These are the search terms in that regard. This has helped in the process of finding the most relevant journal to perform the research based on the need.

("Augmented Reality" OR "AR Technology") AND ("Retail Industry" OR "Shopping Experience") AND ("Consumer Behavior" OR "Sales Impact") AND ("Customer Engagement" OR "Satisfaction" OR "Loyalty" OR "Purchase Decision" OR "Post-Purchase Experience")

("Virtual Try-On" OR "AR Applications" OR "AR Technology") AND ("Consumer Behavior" OR "Purchase Decision") AND ("Retail Sector" OR "Online Shopping" OR "E-commerce") AND ("Product Visualization" OR "Interactive Experience" OR "Brand Engagement")

Once the search process has identified all the research journals there is a need to the identification of the most relevant journal that can help in the process of excluding the irrelevant ones.

Search Criteria Inclusion Exclusion

Publication Type Peer-reviewed journals, academic conference proceedings Non-peer-reviewed sources, grey literature

Research Focus Influence of augmented reality (AR) on shopping experience in US retail Studies unrelated to AR impact on shopping experience, studies outside the US retail industry context

Study Variables Consumer behaviour, sales impact, customer engagement, satisfaction, loyalty Studies solely focused on AR technology without consumer behaviour implications

Language English Non-English

Timeframe After 2018 Before 2018

Table 1: Inclusion and Exclusion Criteria

3.5 Method of AnalysisIn order to make inferences about a certain occurrence, this technique combines data from other investigations. A more thorough grasp of a given subject can be obtained by synthesising the findings of earlier studies through the use of meta-analysis. In that aspect, this is notable that the researcher is responsible for performing a detailed analysis by forming relevant themes spending on the research objectives and further performing the analysis to conclude with a more in-depth analysis in detail (Hassan, 2022). Data need to be verifiable, trustworthy, and transferable. Transferability, which measures how comparable two settings are, can only be ascertained when a situation is given a vivid, in-depth description. Applying referential adequacy is one method to assess transferability. The second half of the information should be archived until the first half has been examined to ensure referential adequacy. Next, the analysis of the second half of the data is done in light of the first half. Dependability is the method by which investigators clearly explain how they arrived at their conclusions (Scharp & Sanders, 2019). Peer debriefing might be used to achieve this. Overall the approach becomes useful in analyzing in an in-depth manner the analysis has helped to conclude the following sections.

3.6 Limitation of the DataYou see, the information gathered from specific research or some publications could not be applied to the entire spectrum of retailing industry or people in general. This might slightly limit the scope of generalization of the results, for instance in situations where the research focused on specific markets or geographical areas that were not incorporated in the preliminary studies. The studies might be biased since research could have been funded by individuals who stood to gain from the results. The identified studies and advancements were collected only during and after 2018, so there are certain works or achievements that might have been missed. This may limit how comprehensive the investigation is since the retail market evolves fast due to advancing technologies and customers behaviour.

3.7 Ethical ConsiderationThis part is responsible for understanding the ethical context associated with the analysis. this is notable that during the analysis all the necessary aspects related to the ethical behaviour of data collection have been followed depending on the need of the project to complete the overall research.

References

Dudovskiy, J. (2021). Inductive Approach (Inductive Reasoning). Business Research Methodology. https://research-methodology.net/research-methodology/research-approach/inductive-approach-2/Hassan, M. (2022, September 2). Secondary Data - Methods and Types. Research Method. https://researchmethod.net/secondary-data/Scharp, K. M., & Sanders, M. L. (2019). What is a theme? Teaching thematic analysis in qualitative communication research methods. Communication Teacher, 33(2), 117121. https://doi.org/10.1080/17404622.2018.1536794

Chapter 1: Introduction1.1 Research BackgroundThis chapter is responsible for setting the dissertation rationale to move further in the research process and determining the relevance of conducting this research. In that aspect, this section of the research is responsible for providing a brief background analysis followed by a discussion of the rationale and understanding of the research's significance. The concept linked to e-commerce and online promotions in the retail industry is a concept that is rapidly getting changed with the advancement of AI technology.

Augmented Reality termed as AR is an advanced technology that is capable of overlaying physical components in the digital world to enhance the traditional retailing concept (Kumar, 2021). AR has pushed through traditional barriers by merging virtual and real-world aspects effortlessly which is further giving users formerly uncommon options to engage with companies and goods (Park & Yoo, 2020). It is nonetheless unclear whether AR influences actual product sales.

AR could reduce uncertainty regarding how products fit and increase sales by helping clients so that can visualise the products in their preferred environment of usage. However, Hilken et al. (2019) mentioned if AR become capable of creating the impression that things would not fit well, it might potentially demoralise individuals from making a purchase. The effect of augmented reality (AR) on sales could also get reduced as the technology is not become capable of communicating experiential qualities of the products that become crucial to take decisions regarding purchase decisions. Although most businesses are aware of the exciting prospects that augmented reality (AR) provides, a major deterrent to adopting the technology has been identified as the lack of clarity regarding its impact (Pettersen & sheim, 2022).

There is a demand to feed greater knowledge of the number of commercial customers in fashion who use this type of technology and their perceptions of its potential in the years to come. Researchers claim that there is little research on augmented reality smartphone applications and how they affect retail customer behaviour in industries such as beauty and fashion (Kazmi et al., 2021).

1.2 Research RationaleWhat is the issue?

The effects vary while performing AR for different kind of goods or with regard to some specific customer segments. Simply, it would make marketing supervisors more capable of judging whether one should use AR technology for increasing sales if only they were more informed regarding how the use of the technology affects their business prospects. If, then, the decrease in uncertainty as a result of AR has an impact on sales, this might be subject to variables associated with the consumer characteristics and the specifics of the products that causes the uncertainty among the customers when making their purchase such as their familiarity with the store or category.

Why is the issue now?

It is evident from this research that the use of AR in e-commerce is extremely beneficial, but a more coherent assessment is needed. This includes studying how AR plays a role in the entire process of shopping commencing with the stage of familiarity with the product and involvement that happens post purchase and how it relates to another aspect including customer preferences and the levels of technology readiness. There is the risk of augment reality (AR) in commerces possible future being marred by a gap between envisioned and real-life applications and effects. The increasing adoption of augmentation reality applications in almost all the retail industries calls for attention to this issue (Vaidyanathan & Henningsson, 2022). Currently, retailers have started incorporating AR in their marketing and selling tactics at a broader level but still, there is ambiguity regarding the CAE (Customer Acquisition Effect) of AR on customers along with the figure of sale and overall performance of the organization.

What is the research shedding light upon?

AR is one of the most interesting innovations that can take significant positions to solve such difficulties in the consumers field of view in the retail field. Pantano et al. (2017) noted that it can be used of a number of precisely defined applications that range from highly instrumental to highly realistic augmented reality (AR) including wearable, mobile, and fixed applications such as those involving wearables like Microsoft HoloLens, applications based on mobile devices, and stationary applications. Since such concerns seek to indicate that augmented reality (AR) may reduce customer engagement, distort buying decisions, satisfaction and loyalty within the US retail industry this study aims at addressing these concerns by considering the accurate impact of augmented reality on customer buying decisions.

1.3 Research SignificanceAR is revolutionizing online shopping by inclining customers to shop and add more appeal to the brands. Companies which intend to adopt AR to support sales need to keep several points in mind: As a tool that supports and facilitates various aspects in an organization, the management of AR should involve the coordination of the all the functions it performs, The potential of AR lies in customers requirements thus requires a lot of analysis (Ylilehto et al. , 2021). This paper targets to establish the effects of AR on the interaction, satisfaction, brand-fidelity, and prospect purchasing behaviour of customer in the retail sector in the U. S.

The proposed research is aimed at identifying those aspects that are influenced by AR, including customers decision making of which product to buy or which brand to purchase from or even the level of satisfaction and willingness to stick to a particular brand. It aims at establishing the extent to which consulting AR for shopping can bring a considerable shift that may influence consumers to depend on whatever they can touch. AR helps in improving the confidence of the end consumers, the extent of brand recognition and the probability of a repeated purchase. It also looks at the psychological consequences of AR shopping among the shoppers, something other works do not explore.

References:Kumar, H. (2021). Augmented reality in online retailing: a systematic review and research agenda. International Journal of Retail & Distribution Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/ijrdm-06-2021-0287Hilken, T., Keeling, D. I., de Ruyter, K., Mahr, D., & Chylinski, M. (2019). Seeing eye to eye: social augmented reality and shared decision making in the marketplace. Journal of the Academy of Marketing Science, 48(2). https://doi.org/10.1007/s11747-019-00688-0Park, M., & Yoo, J. (2020). Effects of perceived interactivity of augmented reality on consumer responses: A mental imagery perspective. Journal of Retailing and Consumer Services, 52, 101912. https://doi.org/10.1016/j.jretconser.2019.101912Pettersen, M. W., & sheim, H. B. (2022). Is Augmented Reality the future of business?

Vaidyanathan, N., & Henningsson, S. (2022). Designing augmented reality services for enhanced customer experiences in retail. Journal of Service Management. https://doi.org/10.1108/josm-01-2022-0004Pantano, E., Rese, A., & Baier, D. (2017). Enhancing the online decision-making process by using augmented reality: A two country comparison of youth markets. Journal of Retailing and Consumer Services, 38(1), 8195. https://doi.org/10.1016/j.jretconser.2017.05.011Ylilehto, M., Komulainen, H., & Ulkuniemi, P. (2021). The critical factors shaping customer shopping experiences with innovative technologies. Baltic Journal of Management, 16(5), 661680. https://doi.org/10.1108/bjm-02-2021-0049

INFLUENCE OF AUGMENTED REALITY (AR) ON THE SHOPPING EXPERIENCE IN THE US RETAIL INDUSTRY

STUDENT NAME:

STUDENT ID:

Table of Contents

TOC h u z t "Heading 1,1,Heading 2,2,Heading 3,3,"Chapter 1: Introduction PAGEREF _Toc166887072 h 41.1 Research Background PAGEREF _Toc166887073 h 41.2 Research Rationale PAGEREF _Toc166887074 h 51.3 Research Significance PAGEREF _Toc166887075 h 71.4 Dissertation structure PAGEREF _Toc166887076 h 7Chapter 2: Literature Review PAGEREF _Toc166887077 h 92.1 Understanding Augmented Reality Technology PAGEREF _Toc166887078 h 92.2 AR in retail Considering US context PAGEREF _Toc166887079 h 92.3 AR in post Pandemic Era PAGEREF _Toc166887080 h 112.4 Impact of AR on Consumer Behavior PAGEREF _Toc166887081 h 122.5 Challenges of augmented reality in shopping PAGEREF _Toc166887082 h 14Chapter 3: Methodology PAGEREF _Toc166887083 h 163.1 Aims and Objective PAGEREF _Toc166887084 h 163.2 Research Philosophy PAGEREF _Toc166887085 h 163.3 Research approach PAGEREF _Toc166887086 h 173.4 Data Collection Process PAGEREF _Toc166887087 h 183.5 Method of Analysis PAGEREF _Toc166887088 h 203.6 Limitation of the Data PAGEREF _Toc166887089 h 203.7 Ethical Consideration PAGEREF _Toc166887090 h 21Chapter 4: Results, Analysis, and Discussion of Findings PAGEREF _Toc166887091 h 224.1 AR has a great effect on sales for all brand popularity levels PAGEREF _Toc166887092 h 224.2 Several factors can affect customer behaviours while using AR PAGEREF _Toc166887093 h 234.3 AR is enhancing the retail industry by putting great impact on various client categories PAGEREF _Toc166887094 h 244.4 AR is capable of enabling creative customer engagement PAGEREF _Toc166887095 h 264.5 Augmented reality is impactful on enhancing consumer loyalty and intent to purchase PAGEREF _Toc166887096 h 27Chapter 5: Conclusion PAGEREF _Toc166887097 h 285.1 Linking to Objectives PAGEREF _Toc166887098 h 285.2 Recommendation PAGEREF _Toc166887099 h 305.3 Future work PAGEREF _Toc166887100 h 31References PAGEREF _Toc166887101 h 33

Chapter 1: Introduction

1.1 Research BackgroundThis chapter is responsible for setting the dissertation rationale to move further in the research process and determining the relevance of conducting this research. In that aspect, this section of the research is responsible for providing a brief background analysis followed by a discussion of the rationale and understanding of the research's significance. The concept linked to e-commerce and online promotions in the retail industry is a concept that is rapidly getting changed with the advancement of AI technology.

Augmented Reality termed as AR is an advanced technology that is capable of overlaying physical components in the digital world to enhance the traditional retailing concept (Kumar, 2021). AR has pushed through traditional barriers by merging virtual and real-world aspects effortlessly which is further giving users formerly uncommon options to engage with companies and goods (Park & Yoo, 2020). It is nonetheless unclear whether AR influences actual product sales.

AR could reduce uncertainty regarding how products fit and increase sales by helping clients so that can visualise the products in their preferred environment of usage. However, Hilken et al. (2019) mentioned if AR become capable of creating the impression that things would not fit well, it might potentially demoralise individuals from making a purchase. The effect of augmented reality (AR) on sales could also get reduced as the technology is not become capable of communicating experiential qualities of the products that become crucial to take decisions regarding purchase decisions. Although most businesses are aware of the exciting prospects that augmented reality (AR) provides, a major deterrent to adopting the technology has been identified as the lack of clarity regarding its impact (Pettersen & sheim, 2022).

There is a demand to feed greater knowledge of the number of commercial customers in fashion who use this type of technology and their perceptions of its potential in the years to come. Researchers claim that there is little research on augmented reality smartphone applications and how they affect retail customer behaviour in industries such as beauty and fashion (Kazmi et al., 2021).

Emerging technologies, which are still comparatively fresh and whose benefits and drawbacks are not well understood are causing global events to change quickly. While customers are presented with more options, technical advancements have also improved the online buying experience. Consumers as well as marketers are becoming more and more interested in AR applications because of their distinctive qualities, which include rich content, high-resolution displays, fast reaction instances, and ease of access. These applications are still seen as being in their early stages, though. Consequently, further study is required to fully understand how these applications affect users. The purpose of this study is to comprehend the useful, user-focused features of augmented reality fashion applications.

1.2 Research RationaleWhat is the issue?

AR's impacts change for various items or customer groups. Marketing supervisors would find themselves better equipped to decide whether to implement AR technology if they had a deeper awareness of how it impacts sales. If AR reduces uncertainty and boosts sales, then its effect could be influenced by consumer and product attributes that affect consumers' uncertainty while making purchases, such as customers' acquaintance with the retail outlet or grouping. This will also help in brand acceptance and product attractiveness. In that aspect, the lack of in-depth research is creating a significant issue for the companies regarding the understanding of the potential deployment of this technology in their business.

Why is the issue now?

Although preliminary research indicates the effectiveness of AR in e-commerce, a more complete in-depth assessment is required. This involves investigating how augmented reality (AR) influences the whole shopping experience, from the first stage of product discovery to the involvement that occurs after buying the item, as well as how it connects with other elements including customer preferences and technology preparedness. The gap underlying the possible future of augmented reality (AR) in commerce and its real-world implementation and impact has to be addressed promptly. The widespread use of augmented reality applications across many retail industries highlights how urgent this problem is (Vaidyanathan & Henningsson, 2022). Although retailers are using augmented reality (AR) in their marketing and sales strategies on a larger scale, there is still a lack of clarity on the real impact AR will have on customer behaviour, sales figures, and overall company outcomes.

What is the research shedding light upon?

Augmented reality (AR) represents one of the most exciting developments with huge potential in retail to tackle such difficulties in the consumer's field of vision. Pantano et al. (2017) mentioned it may be used for a variety of purposes, from extremely practical applications to incredibly lifelike experiences of augmented reality (AR) technologies such as wearables (like the Microsoft HoloLens), mobile (apps), and stationary. By examining the precise effects of augmented reality (AR) on customer engagement, buying decision-making, satisfaction and loyalty within the US retail industry; this study seeks to allay these worries. Through an analysis of these aspects, the research aims to offer factual data and perspectives that may educate merchants and scholars alike on the advantages and difficulties of using augmented reality technology in retail settings. In the end, this study aims to further our understanding of how augmented reality will influence retail purchasing experiences in the future.

1.3 Research SignificanceAR is impacting online retail to enhance the loyalty of brands among customers by providing heightened shopping experiences. In that aspect, understanding consumer behaviour regarding the usage of AR is an intriguing field of study and demands in-depth research so that companies become knowledgeable about the deployment of this technology considering fast growth and growing retailer acceptance (Ylilehto et al., 2021). The present study focuses on how AR affects customer engagement, happiness, loyalty, and purchasing-making decisions in the US retail sector to close this gap.

The investigation explores how augmented reality (AR) affects several customer behaviour factors, such as purchase decisions, satisfaction, and post-purchase loyalty. In that aspect, this is essential to understand the trend linked to consumers' purchasing behaviour to determine whether that is capable of being significantly influenced by their buying encounters using AR. The trust they have in making purchases can be increased since they can see and engage with products virtually. Additionally, brand connection and repeat business are fostered by augmented reality experiences. The research's subjective phase explores the cognitive and psychological dimensions of consumers' experiences with augmented reality purchasing.

1.4 Dissertation structure As per the need of the project, the researcher is responsible for following a specific structure to perform the analysis. In that aspect, the introduction section performs background analysis and rationale development while the literature review section analyses the research paper to understand the current trend of AR. The further methodology section describes the research methodology while as well developing the research objectives based on the research gaps. The research findings section will analyse the different aspects of the research while understanding the growing importance of this technology. The conclusion section is responsible for providing the recommendations and further scope of enhancing the research.

Chapter 2: Literature Review

2.1 Understanding Augmented Reality TechnologyBy superimposing virtual features over a live view, augmented reality (AR) technology is capable of improving real-world surroundings. Input devices like cameras and sensors are accountable for getting utilised to add virtual items based on their real-time scanning of the surrounding environment and this helps in the process of enabling this. Virtual Reality (VR) immerses users completely in a digital world; in contrast, Augmented Reality (AR) enables users to interact with virtual features while maintaining a connection to the real world. AR experiences become more accessible and adaptable when accessed through portable devices such as smartphones. Because of this, AR is becoming more and more popular quickly. By 2022, estimates place the number of regular users in the US at close to 100 million (emarketer, 2023). The world is measured by cameras before being reflected to the individual viewing it on a screen via digital augmented reality devices (Itoh et al., 2021). There are other problems with this digital development, such as fatigue from the screen, latency, and fidelity. With passthrough technology, the individual using it sees electronic overlays overlaid on top of the real environment. Consider a mirror-based projection system, for instance, in which the user can peer through glass and digital data has been superimposed by a well-placed projector that reflects light off the glass (Whitfield, 2023).

2.2 AR in retail Considering US contextAugmented reality (AR) technology is being used more often in the US retail industry to improve the shopping experience at different points in the consumer journey. In the context of US retail, augmented reality applications provide a range of chances for consumer participation and interaction during the whole purchasing process. Augmented reality (AR) enhances the retail experience by promoting consumer happiness and loyalty through a range of applications, including education, entertainment, and post-purchase interactions. Four primary use cases for augmented reality (AR) can be mentioned and they are providing instruction, entertaining, supporting product assessment, and improving post-purchase consuming experiences. Such applications provide a variety of chances for participation and interaction and are intentionally matched with various phases of the client experience. Initially as seen by partnerships between retailers like Walmart and entertainment giants like DC Comics and Marvel, augmented reality (AR) acts as a way of entertaining customers by offering immersive and fascinating experiences that not only build interest in the brand but also generate foot traffic to actual locations (Tan et al., 2021). Customers can enjoy a virtual tour of the expansive roasting plant at Starbucks Reserve Roastery in Shanghai by using augmented reality.

Secondly, automakers like Toyota and Hyundai and navigation apps from Walgreens and Lowe's are some examples where the companies are using augmented reality (AR) for educating consumers by providing details in dynamic and visually compelling formats to improve their comprehension of the product's characteristics and values (Marr, 2023). According to Pearson (2024), in-store navigation applications from Lowe's and Walgreens employ augmented reality (AR) to direct users towards item placements and alert them to any particular offers that might become available. Thirdly, augmented reality (AR) makes it easier for consumers to evaluate items by letting them see them in actual settings, which increases their trust in their purchasing choices. Prominent instances comprise the furniture visualisation tool from IKEA and the virtual try-on applications offered by cosmetic firms like Sephora and L'Oral (IKEA, 2022).

Using augmented reality (AR), Uniqlo and Topshop provide a simpler way for customers to try on various ensembles in-store. Last but not least, augmented reality (AR) improves post-purchase encounters by presenting fresh perspectives on items and extra information while in use. LEGO's interactive playsets and instructional applications from businesses like Hyundai and McDonald's are prime examples of this, enhancing client experiences even after the transaction. The Hidden Side kits from LEGO are made specifically to be used with the corresponding augmented reality app. McDonald's employed augmented reality (AR) to allow consumers to learn where the ingredients in the meals they bought came from. Nearly half of American customers as of 2020 stated that their devices had never utilised augmented reality when buying a product and that they had no intention of doing so. Merely 2% of participants said that they frequently utilised these services (Statista, 2023).

2.3 AR in post Pandemic Era

Safety and cleanliness are of the utmost importance as many offline shops are already reopening. Beauty stores like Sephora and Ulta forbid consumers from personally testing cosmetic items on their bodies in reaction to the epidemic. Instead, retailers are using augmented reality (AR) to let shoppers virtually try hundreds of cosmetic items before making a purchase. The use of Ulta's augmented aesthetic tool, GLAMlab, has increased significantly since the epidemic (Victorian, 2020). Over fifty million foundation hues have already been electronically swatched using the mobile application since COVID-19, and participation has grown seven-fold. In fact, according to newly disclosed statistics from online shopping startup Shopify, encounters with items that had augmented reality material had a 94% greater rate of purchase than those that did not. With digital retail locations, retailers are starting to rethink the digital purchasing experience through the use of augmented reality technologies. Kohl's, a retailer, teamed up with Snapchat in May to launch Kohl's AR Virtual reality Closet. Customers may enter an augmented reality (AR) dressing room, combine and contrast products, and complete their purchases with no need for having to leave the app (or their house) by using a mobile device and the Snapchat app. As per the view of Lee (2020), a company called Levi's is using technological resources like Squad, a web-based co-watching programme that allows friends to purchase together, to enhance its augmented reality retail approach. To replicate some of the social interactions that individuals were missing and yearning for throughout the pandemic, an application was released in April. A gamified communal encounter is probably what augmented shopping will look like in the future. Burberry and Snapchat already collaborated on an augmented reality game for within-the-store use and can be seen this idea being expanded to include virtual closets and online storefronts where consumers can engage, explore, and purchase alongside friends (Papagiannis, 2020).

2.4 Impact of AR on Consumer BehaviorMany academics have put out many theories and models, including the uses and gratifications theory, situated cognition theory, AR theory, and technological adoption model, to explain why customers utilise various augmented reality applications for online shopping. These frameworks and models can provide customers with a thorough understanding of their desires and views (Davis & Aslam, 2024). Virtual reality (AR) purchasing offers an interesting and engaging approach to looking at things. This interaction might lessen the sense of danger associated with internet shopping, especially for furniture and designer goods. Though some individuals might have a choice of AR-capable devices, it's essential to take the accessibility of AR technology for all customers into account (Javornik et al., 2016). AR filters are additionally useful when purchasing to assist consumers with potential decision-making issues. For instance, everyone is aware of how difficult it can be to select the right size of trainers. When purchasing a novel item, users cannot predict for definite if the shoes will fit properly because various manufacturers have different measurements. To address this issue, Nike introduced Nike Fit in 2019, an augmented reality application that allowed users to measure their feet and determine their Nike shoe size (Alvarez, 2019). Consequently, there have been fewer returns, and the general performance of Nike footwear has increased. From what can be identified with sufficient imagination and funding, such extremely customised and beneficial AR additions are also possible.

In association with Snapchat, the upscale clothing company Farfetch created the first. The consumer only needed to remain in front of the camera and declare loudly what kind of clothing they would want to put on. That was the premise behind the whole procedure. Following that, the programme would go through the brand's portfolio for appropriate outcomes and apply them straight to the subject's physique. Consumers could have purchased things straight from the selection of filters and uploaded pictures of their bodies wearing them. The second sample was manufactured in Slovakia under the Eyerim brand. On their web page, they included an augmented reality filter in place of social media. Users were able to test on eyeglasses with the augmented reality filter the business produced since they specialise in providing glasses. The device was dubbed the "Magic Mirror," and it was operated by simply unfolding the pair of glasses of your choice, pressing a button, and a filtered screen would emerge. As everything takes place directly on the business' website, there are no obstacles to buying after experimenting. Additionally, clientele no longer musters up multiple carts of merchandise to sample numerous items at once by visiting a catalogue.

Because AR apps allow users to virtually try on products, e-commerce will benefit and there will be more opportunities to engage with the product by testing features like texture, look, fit, and sound. When virtual knowledge is added to an online purchasing opportunity, it may make people feel more competent and empowered. Similarly, online product testing boosts consumers' sense of control over their buying experiences and deepens their development of vivid mental images. Furthermore, augmented reality (AR) can provide a multitude of informative resources that improve one understanding of the context around them. Sozer (2021) examined how interaction affects the user experience, happiness, and buy intent by using a research approach in which the amount of interaction offered by the AR application was the variable that was altered. The study's findings supported the beneficial effects of augmentation and interaction on user experience, which is found to have a significant impact on consumer satisfaction and purchase intention. The impact of perceived enhancement on individuals' cognitive, emotional, and behavioural reactions was examined. Through the process of mediation, the author verified the beneficial effects of interaction and perceived augmentation.

2.5 Challenges of augmented reality in shoppingAccessibility to both the consumer's camera as well as, frequently, the location, are prerequisites to utilise augmented reality. These raise questions regarding the confidentiality of users and the security of their personal information. Whenever an augmented reality application has a compromise or data theft, it might imply that attackers gained access to both the actual camera video and the location from where it was shot, in addition to the identity of the user. Even while the majority of smartphones on the market nowadays can easily handle AR filters or enhancements, things might not always work as planned in worse light conditions, like the twilight (Kushnarevych & Kollrov, 2023). Not all cameras are capable of handling the conditions, locating the item, and delivering a suitable augmented reality immersion in a dark area. But considering how rapidly technology and mobile phones are developingmany low-cost phones can already do the majority of VR-related tasksthis obstacle will probably be resolved on its own in the next few years.

Since several AR filters shoot images at the faces of individuals, confidentiality is a major concern for those who use the method of communication. Furthermore, a lot of those filters are intended to enhance a person's appearance in some way, which might result in distorted reality, irrational expectations, or even problems with mental health (Rejeb et al., 2021). Although there have been studies on ethical concerns related to certain brands or networking sites, our team was unable to locate anything on the use of augmented reality, which is undoubtedly an intriguing subject for more investigation.

Chapter 3: Methodology3.1 Aims and ObjectiveAim

This research aims to investigate and understand the influence of augmented reality (AR) on the shopping experience within the US retail industry while as well determining the factors influencing the adoption of augmented reality (AR) within the retail industry.

Objectives

To evaluate the effect of AR on sales for all brand popularity levels.

To examine how AR affects sales for various client categories.

To determine the factors Influencing the Retail Industry Adoption of Augmented Reality

To analyse the process and benefits of AR-enabled creative customer engagement

3.2 Research PhilosophyMultiple research methodologies and tactics can be successfully integrated within a single study using the pragmatic research approach. Additionally, studies that adhere to a pragmatic method of study can incorporate the use of a variety of research techniques, including action, subjective, and quantitative techniques. A pragmatic methodology seems appropriate for the present investigation on the impact of augmented reality (AR) on the purchasing process in the United States retail sector, considering the scope of the investigation's issue and the stated aims. To perform research and find the answers to the research objectives, pragmatism acknowledges the multifaceted nature of the subject matter and permits the blending of many viewpoints and approaches. In that aspect, it becomes essential to understand how augmented reality (AR) technology affects multiple aspects of the purchasing process like revenue growth, customer behaviour, and moral quandaries. A thorough comprehension of phenomena is difficult to investigate with the use of a single study technique and in that scenario, the pragmatics research approach comes in handy. When necessary, positivism and interpretivism can be combined to adopt an adaptable approach.

3.3 Research approachThe inductive approach is the process of making generalisations from particular examples or observations. With the use of the approach outlined, the researchers become capable of assessing how AR (augmented reality) affects sales in a number of areas, including client classifications, cost points, product ratings, along with popularity of brands. This is capable of helping the process of collecting data from a range of different sorts of authentic sources that includes databases, business articles and scholarly articles to investigate the trends, themes, alongside connections. "Searching for trends from observation and the creation of explanations - theories - for these trends using several hypotheses" is the main concept behind inductive research (Dudovskiy, 2021). Inductive investigations do not start with a specific set of ideology rather once the research process get started, in that scenario, the researcher become free to change the investigative approached as per the need to change the course of the investigation.

3.4 Data Collection ProcessRelevant journal articles are essential to conduct secondary research to deal with the impact linked to augmented reality (AR) that indicates about the buying experience with US retailer industry. Secondary data is data which has not been gathered directly from the person conducting the study but has instead been gathered, analysed, and released by another party. Data from sources including government publications, scholarly journals, consumer study reports, and additional already-existing databases can be included in this. In order to perform the task, the secondary data collection technique has been utilised to collect the data from authentic sources like journals newspaper articles and different statistical websites. The following databases and search terms were used:

Information Bases:

PubMed

IEEE XploreScienceDirectWeb of Science

Scopus

Google Scholar

Springer

Keywords

Augmented Reality

AR Technology

Retail Industry

Shopping Experience

Consumer BehaviorSales Impact

Customer Engagement

Satisfaction

Loyalty

Purchase Decision

Post-Purchase Experience

Table 1: Keywords and Information Bases of Search

The development of the search string is required in the next step. These are the search terms in that regard. This has helped in the process of finding the most relevant journal to perform the research based on the need.

("Augmented Reality" OR "AR Technology") AND ("Retail Industry" OR "Shopping Experience") AND ("Consumer Behavior" OR "Sales Impact") AND ("Customer Engagement" OR "Satisfaction" OR "Loyalty" OR "Purchase Decision" OR "Post-Purchase Experience")

("Virtual Try-On" OR "AR Applications" OR "AR Technology") AND ("Consumer Behavior" OR "Purchase Decision") AND ("Retail Sector" OR "Online Shopping" OR "E-commerce") AND ("Product Visualization" OR "Interactive Experience" OR "Brand Engagement")

Once the search process has identified all the research journals there is a need to the identification of the most relevant journal that can help in the process of excluding the irrelevant ones.

Search Criteria Inclusion Exclusion

Publication Type Peer-reviewed journals, academic conference proceedings Non-peer-reviewed sources, grey literature

Research Focus Influence of augmented reality (AR) on shopping experience in US retail Studies unrelated to AR impact on shopping experience, studies outside the US retail industry context

Study Variables Consumer behaviour, sales impact, customer engagement, satisfaction, loyalty Studies solely focused on AR technology without consumer behaviour implications

Language English Non-English

Timeframe After 2018 Before 2018

Table 1: Inclusion and Exclusion Criteria

3.5 Method of AnalysisIn order to make inferences about a certain occurrence, this technique combines data from other investigations. A more thorough grasp of a given subject can be obtained by synthesising the findings of earlier studies through the use of meta-analysis. In that aspect, this is notable that the researcher is responsible for performing a detailed analysis by forming relevant themes spending on the research objectives and further performing the analysis to conclude with a more in-depth analysis in detail (Hassan, 2022). Data need to be verifiable, trustworthy, and transferable. Transferability, which measures how comparable two settings are, can only be ascertained when a situation is given a vivid, in-depth description. Applying referential adequacy is one method to assess transferability. The second half of the information should be archived until the first half has been examined to ensure referential adequacy. Next, the analysis of the second half of the data is done in light of the first half. Dependability is the method by which investigators clearly explain how they arrived at their conclusions (Scharp & Sanders, 2019). Peer debriefing might be used to achieve this. Overall the approach becomes useful in analyzing in an in-depth manner the analysis has helped to conclude the following sections.

3.6 Limitation of the DataThe information gathered from certain research or publications could not be considered universally applicable to the retail sector or people in general. This may restrict the extent to which the results can be applied, especially if the research has concentrated on certain markets and geographical areas that were not taken into consideration in the initial investigations. Findings may be skewed because research might have been supported by groups with a stake in its findings. The data-gathering period (after 2018) was unable to include some relevant studies or advancements that took place before this time. This could restrict how thorough the investigation is, especially given how quickly technology and customer behaviour are changing in the retail industry.

3.7 Ethical ConsiderationThis part is responsible for understanding the ethical context associated with the analysis. this is notable that during the analysis all the necessary aspects related to the ethical behaviour of data collection have been followed depending on the need of the project to complete the overall research.

Chapter 4: Results, Analysis, and Discussion of Findings4.1 AR has a great effect on sales for all brand popularity levelsProduct attributes include branding recognition, commercial attractiveness, and ratings that can have an impact on the degree of uncertainty felt while making a purchasing choice. The willingness of consumers to shell out money for the product could be affected as well by the degree of uncertainty. Consequently, there may be variations in the correlation between AR usage and sales depending on these product attributes. Customers' needs for reducing ambiguity about product fit before making a purchase also differ.

Researchers have suggested consumer behaviour depends significantly on brand indicators once additional data is readily accessible to help them make decisions. Therefore, the greater accessibility of data is beneficial to less well-known firms. Similarly, augmented reality (AR) could reduce the complexity of making purchases via the Internet by providing clients with visual information to aid in determining item fit. As a result, AR could decrease consumers' dependence on brand indications and unintentionally enhance their choice of less well-known companies.

Products that belong to the same class or business can additionally possess varying degrees of attraction based on how effectively their innate qualities match the tastes of consumers as a whole. Items that are appealing to a wide audience are more inclined to meet the demands of the average customer since they respond to a large audience. On the contrary, since goods with a limited attractiveness cater to a limited market, there is a bigger chance that their offerings might not meet the needs of the average customer, which increases the ambiguity around product fit.

Through virtual experiences, buyers may evaluate the benefits of products and determine their suitability for their needs; this might reduce the influence of internet reviews when making judgements about what to buy. Because of this, if customers can use augmented reality (AR) to sample things, they could be more willing to buy them even when their ratings are lower. AR helps consumers determine if things fit their requirements and tastes by enabling product assessment before a purchase. As a result, buyers could feel significantly at ease and less apprehensive about spending more money on pricey goods.

4.2 Several factors can affect customer behaviours while using ARThe perceived creativity concept was employed by several researchers to analyse the widespread use of Internet and mobile banking. The perceived usefulness and convenience of using are also significantly positively impacted by personal innovativeness. Customers believe that augmented reality is the newest technology that they could quickly embrace and use. Therefore, it makes sense to look at individual inventiveness as a factor in behavioural intention. When consumers recognise that there are no problems in using the technology, they perceive it to be straightforward to use (Alam et al., 2021). Thus, the equipment is routinely used by the users.

According to earlier research, the perceived simplicity of use significantly increases intent to use, either directly or indirectly. When technology is simple to use, people will embrace it; when it is difficult, people are less likely to intend to utilise it. User happiness is significantly and substantially impacted by an AR-enriched experience for users. User Readiness to Buy is the propensity of customers to make targeted purchases of goods in the years to come and can act as a predictor of actual purchasing behaviour.

The influence of an AR-enriched UX extends to the factor. Augmented Reality (AR) technologies are accountable for including virtual image technology that is capable of purchasing the product (Poushneh & Vasquez-Parraga, 2017). Virtual items and the knowledge they provide can boost users' pleasure and imaginings and consequently enhance the willingness of users to purchase is positively and considerably impacted by an AR-enriched user experience.

The Theory of Planned Behaviour (TPB) offers an extensive framework for comprehending the behaviours of customers (Brookes, 2023). The idea of intentions, which operate as a prelude to real behaviour, is fundamental to TPB. Customers' intent to use augmented reality (AR) features during their shopping might provide important information about how likely they are to interact. Consumers' intents and actions about the use of augmented reality technology may be influenced by the views of their peers, influencers or retailers.

4.3 AR is enhancing the retail industry by putting great impact on various client categories

In addition to the channel experience, buyers' degree of uncertainty regarding the product's suitability also depends on their knowledge of the good or service category. Consumers who have become acquainted with a particular category of goods might use their past encounters as a basis of knowledge when making decisions about that product. They could thus depend less on augmented reality while making purchases. On the other hand, consumers who are not familiar with a product category might not know what their preferences are, nor do they have the category knowledge required to assess product qualities. This will make it harder for these consumers to determine if the features of a good align with their tastes, which will increase the ambiguity surrounding product fit.

Consumers can additionally associate favourable images of themselves with AR technology when they see how its visually appealing aspects might be utilised to project an upbeat representation of themselves onto members of social groups (Rauschnabel et al., 2017). People who are supposed to prioritise social justice, helping others, and their well-being place a higher significance on aesthetic appeal than on instinctive reasoning.

According to Wang et al. (2022), one of the best ways to foster trust is through the visual design elements of merchants' websites. The way websites and applications are visually designed conveys trust, and this is reflected in the primary life value that self-transcendent-oriented customers adhere to. Value orientation is the representation of one's desired objectives, which might vary in significance and guiding principles in one's life. Values are complex criteria that people use to assess and criticise both other people and themselves.

Personality is influenced by society and shapes behaviour when it becomes prominent, unlike personality, which is a reflection of an individual's fundamental proclivities. Due to the strong desire for consistency, customers frequently act under their values, which means that these values represent their true requirements. Data indicates that clients who are adaptable and value playfulness find AR technology to be appealing. Additionally, research shows that customers who prioritise self-transcendence only recognise the aesthetic benefit of augmented reality. On the other hand, people who are focused on improving themselves find value in both communal and practical aspects.

The typical shopping procedure in a physical business is for consumers to arrive, peruse, choose items while having a snack, and then pay at the register before departing. Consumers have to enter their data via an application for smartphones beforehand before visiting a self-sufficient store to be recognised and allowed in (Chen & Shang, 2021). The use of computer vision is used to record, recognise, monitor, and analyse customer behaviour while they are in-store.

When buying inside a store, the typical procedures are to check in, browse the merchandise, pick it up, make a decision and check out. The majority of augmented reality apps currently require users to utilise their mobile, handheld electronics. Nevertheless is possible to claim that the company's possibilities and possibilities to feed value creation are going to keep increasing with the latest developments regarding the field of practical augmented reality devices, and specifically Augmented Reality Google Glasses (Huang, 2019). When it comes to position-based augmented reality, several applications connect the technology with GPS systems, geographical information methods, and smartphones with location sensors.

4.4 AR is capable of enabling creative customer engagementThe circumstances whereby innovation appears in consumer contexts are categorised by recent assessments of studies on creativity (Mehta & Dahl, 2019). These studies provide an overview of a variety of interrelated contextual, motivational, emotional, and mental states that support creativity. When combined, these behaviours show an elevated degree of customer engagement, which the majority of recent research on marketing defines as a consumer's voluntarily and intrinsically driven investments of resources into a particular interaction with a business. However, it also notes that these resources are multifaceted, encompassing affective and cognitive resources like expertise, patience, and energy as well as sentiments.

When AR is used to enhance consumer creativity, some features of the technology are included in the creative process. According to Jessen et al. (2020), the goal of most current augmented reality apps is to encourage user involvement. This may be achieved, for instance, by creating enjoyable, engaging, and entertaining experiences that allow users to test out alternative purchasing options in a variety of scenarios. Therefore, in keeping with the idea of creative customer engagement, it can be anticipated that AR facilitates a process that starts with a customer's increased participation in a task made possible by AR and then flows into a higher level of creativity in terms of coming across new and beneficial consumption opportunities. This suggests a step-by-step mediating procedure wherein consumer involvement precedes customer creativity, which in turn contributes to the client's perception of the advantages of the innovative activity.

As per the view of Vaidyanathan and Henningsson (2022), businesses conform to the consumer's viewpoint while exploring the boundaries of technological feasibility. From the standpoint of the client, technological capabilities are subjective. In this case, design thinking places a strong emphasis on rapid prototype development to gather user feedback.

4.5 Augmented reality is impactful on enhancing consumer loyalty and intent to purchaseCustomers who are more satisfied to remain devoted are responsible for getting more inclined to become a loyal member of the company while as well as spending more time in the company website or application for gaining from using augmented reality (AR) apps in their marketing campaigns. Businesses are liable for looking un the process of deploying augmented reality (AR) applications find that early adopters of the latest innovations can act in terms of a good target audience since they are more likely to explore novel uses.

Therefore, businesses may obtain a major competitive advantage by integrating augmented reality (AR) apps into their marketing campaigns to effectively engage consumers who are tech-savvy and cultivate their loyalty. Applications for augmented reality provide customers' product experiences with a new depth. This helps companies and advertising managers have more choices in how they connect with customers. It has been demonstrated that one of the primary factors motivating customers to make additional purchases from identical websites is their overall satisfaction. Additionally, it is one of the key elements in fostering customer loyalty for mobile services. Satisfaction with clients boosts revenue and visits from customers.

Retailers are using augmented reality (AR) apps to assist customers in enjoying their shopping and gaining insight more into the products. With AR apps, customers have complete control over the items they interact with, choosing what to touch and in what order. The low level of engagement found in conventional marketing campaigns is eliminated in this scenario. The perceived cognitive risk brought on by the fear of not recognising items and their combinations is lessened with AR. Additionally, Bonetti et al. (2018) identified that product information obtained through virtual engagement before an online purchase might closely mirror that obtained through an in-person examination of the object, therefore triggering mental images.

This analysis revealed significant customer responses that are influencing the adoption and use of AR and VR technologies. As a result, there are pertinent management implications that can be drawn. This is particularly so given that customers' approval and utilisation of novel technologies are not always correlated with merchants' embrace of innovative solutions and technical advancements.

Chapter 5: Conclusion5.1 Linking to ObjectivesThis part is responsible for performing a linkage between the finding sand and the overall research process. In the methodology section considering the current trend and problem statements, the result section has demonstrated a thematic analysis to narrow down the research objectives and reach a conclusion. In that aspect, there is a need for the proper linkage between the objectives and the research inferences.

As per the research objective evaluating the effect of AR on sales for all brand popularity levels has been essential. As per the findings, it has been determined that AR is capable of enhancing the brand value of an organisation. As per the findings, product attributes like brand recognition, attractiveness and ratings impact the client's uncertainty and willingness to purchase. AR is capable of reducing purchase complexity by providing visual information by providing benefits to lesser-known brands, In that aspect, I have identified that products with broader appeal meet average consumer needs while on the other hand products with specific niches face higher fit uncertainty. AR is capable of allowing virtual products to face higher fit while on the other hand reducing the reliance on online reviews and increasing the willingness to buy lower-rated or expensive items.

The second objective is responsible for the assessment of how AR affects sales for various client categories. As per the findings, AR is responsible for perceiving simplicity while enhancing user attention and satisfaction. An enriched experience is capable of significantly enhancing user retention and sales value. I have identified the linkage with the Theory of planned behaviour that is appropriate in this context, illustrating that consumer behaviour can influence peers and other influencers to gain a significant revenue stream.

As per the third objective, I have identified that certain factors are responsible for influencing the Retail Industry's adoption of augmented reality. various factors are associated with behavioural intention: usage inspiration, flow notion, worth, media features, augmentation excellence, and psychological factors. Ambient insertion, replicated bodily control, mental comprehension, cognitive load, commodity mental state, and object kind were among the adoption characteristics that were looked at as moderators. I have identified the fact that previous studies in other sectors have not shown any evidence of the role that cognitive characteristics like self-worth along with individual innovativeness play in establishing attitudes towards the usage of augmented reality.

The fourth objective is accountable for analysing the process and benefits of AR-enabled creative customer engagement. Creativity in the retail sector in the context of consumer engagement is accountable for involving effective as well as cognitive resources like patience energy and expertise to foster user engagement through interactive experience. I have identified that applications for augmented reality provide customers' product experiences with a new depth. This helps companies and advertising managers have more choices in how they connect with customers.

5.2 RecommendationBefore anything else, marketers must identify their intended audience and strategies for reaching them, particularly choosing the marketing effort's objectives. The next thing to do is find out the features and applications the augmented reality application could provide. Subsequently, companies have to integrate AR apps into the real world and social media. Since those who are early adopters of emerging technologies are more likely to test novel applications, they might be a good target market for companies looking to employ augmented reality (AR) applications (ERU et al., 2022). Therefore, businesses can gain an important edge over their competitors by integrating augmented reality (AR) applications into their marketing campaigns to effectively engage tech-savvy consumers and cultivate their loyalty.

AR apps improve users' understanding of products and make purchasing easier and more enjoyable. Thus, companies can gain from augmented reality applications, particularly if they desire to engage with customers more. To properly use AR apps, firms should also categorise customers based on how they have embraced innovations and target the appropriate audience with the appropriate message. This can be recommended that retail managers should take into account the variables influencing the adoption of such innovative technology, as merchants strive to create open innovation-based business models by integrating AR technology into their retail operations (Alam et al., 2021). Retail managers should take into account TAM structures and other significant open innovation aspects when implementing the most recent data technology, as this study's organisational context suggests they may have an impact on augmented reality adoption in stores.

5.3 Future workAR-enabled virtual shoes and clothes, or "digital skins," have grown so lifelike that they are now appealing as items in and of themselves rather of just helping consumers choose between tangible and intangible goods. Future studies should investigate how customers feel towards apparel intended for online use (such as social media and virtual worlds) and see if the absence of physical ownership offers a practical substitute for rapid fashion. The convergence of game and fashion offers a unique study setting, since high-end companies create creative "digital skins" for their avatars in games, and the watching component of esports also gives a background. In the future, there is a need for detailed research on this to enhance the overall process with ease.

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