THE EFFECT OF MOBILE AR APPS ON PURCHASE INTENTIONS OF RETAIL CONSUMERS: A STUDY ON THE MEDIATING ROLE OF PERCEIVED RISK

Purpose - The objective of this study is to identify the factors which contribute to the effectiveness of Augmented Reality (AR) apps on generating favorable consumer responses and to investigate the mediating role of perceived risk on this effect in the retailing context. Methodology - A field study is conducted with 144 participants who plan to buy a sports shoe product. Subjects are introduced an AR app to test the sports shoes in digital format in their physical home environment and then they are asked to fill-out the questionnaire measuring the effect of using AR in their shopping experience and purchase intentions. Findings- The results of the study confirmed the positive and significant influence of AR app features including perceived augmentation, utilitarian, and hedonic benefits on decision comfort level of customers. In turn, the decision comfort is found to be positively influencing the purchase intention. The perceived risk related to the product is found to have a mediating effect on the impact of decision comfort on purchase intention. Conclusion- The study reports a positive impact of AR app experience on retail purchases. In the light of the findings, some academic and managerial implications are provided.

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