An analysis of the impact of Augmented Reality marketing (ARM) on Maltese millennials in the context of online shopping

Abstract

Throughout the past few years, the popularity of online shopping has been fast-increasing due to the numerous benefits it offers, both to retailers and consumers. However, e-Commerce has also presented a number of disadvantages, primarily the lack of physical contact with the object one intends to purchase. This issue seems to have been mitigated by the emergence of smart technologies, one of which is Augmented Reality (AR). As a result, AR applications have been widely employed in retail contexts throughout Europe, unlike in Malta were the use of AR in retail is practically non-existent. This study sets out to analyse the impact of Augmented Reality Marketing by investigating the perception, acceptance and adoption of AR applications by Maltese Millennials when shopping online. To achieve this research objective, three research questions were developed to: (1) determine how AR applications are perceived by Millennials, (2) determine Millennials’ attitudes and (3) determine Millennials’ behavioural Intention towards AR applications. A Research Framework, based upon the Consumer Technology Acceptance model was adopted and extended through the addition of three external variables. Relationships between the constructs were explained through the definition of Hypotheses. A within-subject experiment was conducted where 60 participants were exposed to using a website and an AR application to purchase a furniture piece, online. This was followed by the completion of a Likert-scale questionnaire, consisting of a number of item scales to measure the individual constructs and an open-ended question. All Hypotheses explaining relationships between the constructs were accepted. Information Quality and Perceived Enjoyment were identified as the antecedents of Attitude, resulting in technology acceptance. Attitude and Perceived Usefulness were identified as the antecedents of Behavioural Intention, resulting in technology adoption. It was concluded that Maltese Millennials seem to have favourable perceptions, attitudes and behavioural intentions towards AR applications, satisfying all three research questions. Consequently ARM seems to have a positive impact upon Maltese Millennials. A number of recommendations are also presented to retailers wishing to embark on ARM in the future.