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Augmented Reality

How it influences customer experience

Written by Y. Högnäs, M. Lendahl

Paper category

Master Thesis

Subject

Business Administration>General

Year

2018

Abstract

Master Thesis: The concept of experience entered the field of marketing and consumption with Holbrook and Hirschman's 1982 article (Carú and Cova, 2003). More than thirty years later, the concept has become an understanding of consumer behavior (Addis and Holbrook, 2001), our economy (Pine and Gilmore, 2011; Gupta and Vajic, 2000), and the field of marketing (Schmitt, 1999; LaSalle And Britton, 2002). By providing customers with unique experiences, companies have the potential to increase the value of their products or services (Schmitt, 1999; Gentile, Spiller, and Noci, 2007). As a result, contributors to this topic have flourished (Novak, Hoffman and Yung, 2000; Addis and Holbrook, 2001; Berry and Carbone, 2002; Carú and Cova, 2003; Gentile, Spiller and Noci, 2007; Meyer and Schwager, 2007; Verhoef et al., 2009; Ross et al., 2012). In addition to these contributors, there are a large number of definitions of customer experience concepts (see Table 1). According to Carú and Cova (2003), there is no uniform definition of customer experience. Researchers in the field of consumer behavior view experience as personal and emotional things created by interacting with stimuli (such as products or services) (Holbrook and Hirschman, 1982; Addis and Holbrook, 2001). In marketing (Schmitt, 1999; LaSalle and Britton, 2003) and economics (Pine and Gilmore, 2011; Gupta and Vajic, 2000), experience is mainly added to the fourth category of goods, products, or services. Berry, Carbone, and Haeckel (2002) pointed out that companies are responsible for the experience, so they should coordinate all the "cues" that customers find when interacting with the company to provide a satisfactory experience. This stems from the same definition as customer experience, which is interaction with the company (LaSalle and Britton, 2002; Gentile, Spiller, and Noci, 2007). Consistent with this, Meyer and Schwager (2007) defined customer experience as "[...] the customer's internal and subjective response to any direct or indirect contact with the company" (page 118). Direct contact occurs during the purchase process, usually initiated by the customer. Indirect contact involves unplanned contact with a company's product or service representative, such as word of mouth, criticism, advertising, etc. (Meyer and Schwager, 2007). Another common theme in customer experience is what value a company can bring to its users and what specific characteristics customers search for when making a purchase (Childers, Carr, Peck, and Carson, 2001). As mentioned above, customer experience stems from a series of interactions between the customer and the company, and the value that the customer derives from the interaction (Addis and Holbrook, 2001). According to this definition, there are two differences in consumption value: utilitarian value (functional value) and hedonic value (experience value). According to Gentile, Spiller, and Noci (2007), products can be divided into three categories: hedonic products, utilitarian products, and balanced products. There is a balance between the two values. Consistent with this, Holbrook and Hirschman (1982) believe that customers are either “problem solvers” and therefore only seek practical products, or they are mainly concerned about the pleasure and enjoyment of hedonic products. These two values, utility and enjoyment, will not appear in our conceptual model, but we will consider them throughout the research because they are a core component of the customer experience. Interaction technology is defined as a two-way flow of information through the interface between users and technology (Varadarajan et al., 2010). According to Javornik (2016a), interactive technology is a general term for different forms of computer intermediaries and digital environments. One of the most representative media characteristics of interactive technology is interactivity. The term interactivity has been extensively studied. However, there is no uniform definition (van Noort, Voorveld and van Reijmersdal, 2012; Javornik, 2016a). However, it is often referred to as "[...] the degree to which two or more communicating parties can influence each other in the communication medium and messages and the degree to which this influence is synchronized" (Liu and Shrum, 2002) Augmented reality (AR) is considered an interactive technology (Javornik, 2016a). Current AR applications are interactive by definition; however, they provide more functionality in terms of machine interactivity (that is, allowing users to access different content), rather than allowing communication with other people (Javornik, 2016a). In marketing theory, interactivity describes the functional characteristics of technologies that allow objective and error-free measurement (Hoffman and Novak, 1996; Lister et al., 2008), so it provides powerful conceptual tools that can help understand customer The reaction technology of his experience (Sundar, 2009; Pagani and Mirabello, 2011). One of the most proven effects of interactivity is mobility (Chang and Wang, 2008; Hoffman and Novak, 2009; van Noort, Voorveld, van Reijmersdal, 2012), which refers to consumers’ immersion in the process of participation. A highly absorbing state and interactive technology. Previous research on virtual reality found that enjoyment and hedonic values ​​have a strong influence on consumer behavior, while utilitarianism does not have the same influence (Kim and Forsythe, 2008; Chan and Li, 2010; Huang and Hsu Liu, 2014) . In addition, research also shows that virtual reality is more correlated with emotional commitment than cognitive commitment (Huang, 2012), and the same is true for customers who interact with websites (van Noort, Voorveld, and van Reijmersdal, 2012). Kim and Forsythe (2008) research on AR technology further shows that users do not believe in the accuracy of measurement when trying virtual clothing. Therefore, trust in AR technology in terms of measurement and color accuracy may be a key factor in creating the best customer experience. In addition, Javornik (2016a) called for more research in this field to understand whether emotional commitment and hedonic value are more relevant than cognitive commitment and the pursuit of utilitarian value. In summary, we assume that customers perform cognitive and emotional processing of incoming sensory information from augmented reality applications. These two mental states of customers have many preconditions that affect them. In addition, previous studies have shown that customer experience in interactive technology can lead to product purchase intentions (Chang and Wang, 2008; Rose et al., 2012; van Noort, Voorveld, and van Reijmersdal, 2012), so it is a customer The ideal result of the experience. Read Less