How Augmented Reality Increases Engagement Through Its Impact on Risk and the Decision Process

Abstract

Augmented reality (AR) overcomes one of the main limitations of e-commerce, such as the prepurchase trial. The consumer can virtually see how a product is integrated into the real world through this technology. Therefore, AR may reduce the perceived risk of buying a product online. Despite existing research, the impact of AR on the consumer decision process needs to be further explored. Consequently, this research aims to understand the impact of AR on the perception of risk and the purchase decision process, considering decision comfort and decision confidence. Through a between-subjects experiment, the results show that AR reduces the risk of online shopping. However, it has no direct effect on the decision process. Reducing risk and the comfort it brings generates decision confidence and satisfaction with the shopping experience. This satisfaction will generate engagement toward the online shop platform. The research highlights the process through which AR impacts the decision-making process. The implications for AR marketing theory and managerial implications in the age of the metaverse are discussed.