The influence of augmented reality in e commerce beauty cross border context on customers behavioral outcomes in vietnam

THE INFLUENCE OF AUGMENTED REALITY IN E- COMMERCE BEAUTY CROSS-BORDER CONTEXT ON CUSTOMERS’ BEHAVIORAL OUTCOMES IN VIETNAM ABSTRACT According to current augmented reality applications’

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESSS ADMINISTRATION

NGUYEN TRAN YEN NGAN

THE INFLUENCE OF AUGMENTED REALITY IN E-COMMERCE BEAUTY CROSS-BORDER CONTEXT ON CUSTOMERS’ BEHAVIORAL OUTCOMES IN VIETNAM

UNDERGRADUATE THESIS OF

INTERNATIONAL BUSINESS

HO CHI MINH CITY, YEAR 2023

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY

FACULTY OF BUSINESSS ADMINISTRATION

ĐẠI HỌC TON DUC THANG

TON DUC THANG UNIVERSITY

NGUYEN TRAN YEN NGAN

719H0436

THE INFLUENCE OF AUGMENTED REALITY IN E-COMMERCE BEAUTY CROSS-BORDER CONTEXT ON CUSTOMERS’ BEHAVIORAL OUTCOMES

IN VIETNAM

UNDERGRADUATE THESIS OF

INTERNATIONAL BUSINESS

Advised by MBA TRAN THI VAN TRANG

HO CHI MINH CITY, YEAR 2023

ACKNOWLEDGMENT

The thesis of graduation is that it is a significant milestone in my educational journey as well as a requirement for graduate school I would not be able to tackle this paper without the support of precious people at this point in my education, where I have to complete my work by mastering the knowledge, I have studied over the past four years As a result, I would like to express my sincere thanks to everyone who took part in and supported me during the learning and research processes

First and foremost, I would like to appreciate my professional and dedicated adviser MBA Tran Thi Van Trang for her enthusiastic instruction, support, and inspiration Her teaching and sharing style inspire me to be professional and serious about the study process This topic would not have reached its objective without her unwavering support It has been a great honor and privilege for me to be supported and study at the Faculty of Business Administration - Department of International Business, from the beginning of my academic life through the process of writing my thesis I would also like to thank Ton Duc Thang University for providing such a high-quality and professional learning environment

With deepest gratitude, | would like to thank all the people involved for spending their valuable time, especially in the survey of this graduation thesis Their responses help me a lot in completing my work It is impossible to express my gratitude to all the authors whose scholarly articles I have learned from while studying and doing this study This achievement on the subject would not have been feasible without their assistance

Finally, I truly thank and appreciate all the ups and downs I've experienced and look forward to the ride ahead The thesis may have some limits, and I would appreciate any suggestions or comments for a better version

Sincerely,

Nguyen Tran Yen Ngan

This thesis was carried out at Ton Duc Thang University

Advisor: MBA Tran Thi Van Trang

This thesis is defended at the Undergraduate Thesis Examination Committee was hold

at Ton Duc Thang University on 21/03/2023

Confirmation of the Chairman of the Undergraduate Thesis Examination Committee and the Dean of the faculty after receiving the modified thesis

CHAIRMAN DEAN OF FACULTY

DECLARATION OF AUTHORSHIP

I hereby declare that this thesis was carried out by myself under the guidance and supervision of MBA Tran Thi Van Trang; and that the work and the results contained in it are original and have not been submitted anywhere for any previous purposes The data and figures presented in this thesis are for analysis, comments, and evaluations from various resources by my own work and have been duly acknowledged in the reference part

In addition, other comments, reviews and data used by other authors, and organizations have been acknowledged, and explicitly cited

I will take full responsibility for any fraud detected in my thesis Ton Duc Thang University is unrelated to any copyright infringement caused on my work (af any)

Ho Chi Minh City, 21 March 2023

Nguyen Tran Yen Ngan

THE INFLUENCE OF AUGMENTED REALITY IN E- COMMERCE BEAUTY CROSS-BORDER CONTEXT ON CUSTOMERS’ BEHAVIORAL OUTCOMES IN VIETNAM

ABSTRACT

According to current augmented reality applications’ studies, AR-based product presentations have the potential to offer exceptional shopping experiences across the customer journey Through using Stimulus-Organism-Response, Technology Acceptance Model, and Affect-as-Information Theory, this study placed affective responses, such as customers’ enjoyment and inspiration, at the center of decision making and conducted the online experiment to empirically investigate the differences

in the intensity of affective responses between AR and non-AR, the interplay between affective and cognitive responses in shaping behavioral outcomes, and the moderating role of customer-specific factors in shaping behavioral outcomes According to the findings, while affective responses directly and indirectly improve customer's behavioral outcomes, AR does not guarantee greater favorable affective responses; rather, they depend on the technical implementation of AR features and customers' AR competence, among other factors

Keywords: Augmented reality, AR-based product presentation, inspiration, enjoyment, purchase intention, word-of-mouth, affect-as-information

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LIST OF ABBREVIATIONS

$ US dollar

AAA Authentication, authorization, and accounting

AR Augmented reality

ARE Augmented reality experience

ATT Brand attitude

AVE Average Variance Extracted

CA Cronbach Alpha

CR Composite Reliability

e.g For example

EFA Exploratory Factor Analysis

PLS Partial Least Squares

SEM Structural equation modeling

SNS Social networking sites

CONTENT

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Modern society is increasingly infiltrated by parallel realities to the real one One of the more intriguing choices in recent years in this area is augmented reality, a novel technique for superimposing virtual objects (mages, texts, and sounds) on the user's actual environment (Faust et al., 2012) By the use of visual, aural, haptic, somatosensory, and olfactory modalities, AR augments the actual world with computer- generated perceptual information, creating an entirely new experience that requires less creativity than even the most vivid web-based product presentations (Roggeveen & Sethuraman, 2018) AR combines virtual elements with the real world In other words, buyers may observe how components of items fit with other environmental factors, which aids in decision-making (Dacko, 2016) As a result, utilizing AR, customers can view how things seem in real life By incorporating AR-based product presentations ito e-commerce platforms, retailers can improve consumer value and create memorable experiences across the customer journey (Lemon & Verhoef, 2016; Heller

et al., 2019) According to recent market study, the AR business will be worth $85 billion in 2025, with $11.4 billion of that amount coming from the retail sector (Singh,

2019) The idea that mobile AR applications, in particular, are growing more significant is supported by the prediction that there would be 1.9 billion active monthly users by 2022 (Tractica, 2017) According to a different industry report, from price water house coopers’ report, AR generated $33 billion in net economic benefits in

2019 Hence, augmented reality is developing into a disruptive technology that, in the years to come, will change marketing (Tan et al., 2022) Benefits are also anticipated to

reach a total of $338.1 billion by 2025 and $1.092 trillion by 2030 (PwC, 2019)

Despite the fact that the Covid-19 pandemic appeared to be over for a time, the recovery took a significant hit One of the most notable aspects of the Covid pandemic situation has been the rise in the widespread use of e-commerce, which has emerged as one of the primary methods used by consumers to access the purchase of goods and services, even among those who do not normally use these modes of acquisition (Nicewicz & Bilska, 2021) The COVID-19 pandemic has most likely resulted in a replacement phenomenon, in which more people rely on tools like Artificial Intelligence and AR to work and shop The behavioral shift required to maintain social distance will last for a very long time, if not permanently People will remain socially distant, but thanks to technology and augmented reality, they will be virtually close These platforms and technologies will enable businesses to operate and grow in the face of social distancing challenges (Mangtani, 2020)

The worldwide beauty sector, which encompasses skin care, color cosmetics, hair care, perfumes, and personal care, has been jolted by the COVID-19 problem As report from research of Gerstell (2020), First-quarter sales have been disappointing, and many stores have closed Before this crisis occurred, in-store shopping accounted for up to 85% of purchases of beauty products in most major beauty industry markets Players in the beauty industry will need to give digital channels top priority if they want to capture and convert the attention of both current and potential customers Many stores have shuttered as a result of the low first-quarter revenues Before this

crisis, up to 85% of purchases of beauty goods in the majority of the major markets for the beauty sector were made in-store If players in the beauty sector want to attract and convert the attention of both current and potential clients, they must give digital channels high priority A variety of businesses have used AR as a sales strategy, namely L'Oréal, Ray-Ban, and IKEA use virtual fitting apps In particular, customers can explore, try on, and buy various makeup products from the entire L'Oréal catalog using the "You Cam Cosmetics" app on their smart devices (Jaswal, 2022) Or makeup enthusiasts can digitally compare various beauty products with the help of artificial reality, which enables marketers to promote their goods effectively (Zak, 2020) Due to the swift growth of the e-commerce and cosmetics sectors in Vietnam, the author discovered that there is a need for more in-depth studies to understand the influence of AR on customers’ behavioral outcomes, based on previous and practical investigations, as well as the rare applications of AR studies in Vietnam Because of the mentioned practical and scientific shortcomings, the author chose to conduct the research “The influence of augmented reality in e-commerce beauty cross-border context on customers’ purchase intention in Vietnam”

1.2 The research questions

1 How do AR and non-AR impact on Affective Responses on shopping experience?

2 How do affective responses influence on behavioral outcomes through cognitive responses?

3 What solutions and recommendations are proposed for enhancing customer experience in the Vietnamese beauty industry context?

1.3 Research objectives

The study is primarily focused with the following objective:

1 Investigating the impact of the AR and non-AR-based products presentation

on customer's behavioral outcomes during e-commerce beauty shopping experience

2 Examming the relaionship between elements of affective responses, cognitive responses, and customer's behavioral outcomes with the moderating role of product knowledge and AR familiarity

3 Making suggestions to create a more comfortable shopping environment and improve the buying experience

1.4 Implications

1.4.1 Scientific contributions

The research contributes to the knowledge and model accuracy evaluation of developing nation concepts, notably in Vietnam, where this was not previously prioritized

1.4.2 Practical Contributions

The study outcomes will determine the factors that most significantly affect customer behavioral outcomes, which provides valuable information about AR-based product presentation applications And advising suggestions how effective to apply AR technology in product presentation As a result, the enterprises could establish a gratifying retail environment, improving shoppers' experiences through a dedicated, deliberately designed shopping environment, and serving aim that improve customers’ experience in the purchasing journey

1.5 Research object and scope

Time: January Ist —- March Ist 2023

Target respondents: people who have experience in beauty online shopping

1.6 Method of research

Quantitative:

In order to gather data for this study, a prepared survey was used, and a sample

of 342 Vietnamese respondents was taken into consideration The data were also examined using factor analysis and structural equation modeling Additionally, this study used Smart-PLS to evaluate the model's fit, reliability, and moderator variable impact A structural model evaluation analysis was used to assess the interrelationships between the factors influencing behavioral outcomes in order to assess the study's hypotheses

Data analysis method

CHAP 2 LITERATURE REVIEW

2.1 Theoretical framework

2.1.1 Technology Acceptance Model

Perceived usefulness

A

External Behavioural | Actual

Perceived ease of use

Figure 2 | Technology Acceptance Model (David, 1989)

Davis (1989) created the Technology Acceptance Model, one of the most significant research models in studies of the factors influencing people's willingness to use and adopt information systems and technology It is used to forecast people's intentions TAM served as the conceptual foundation for this research, which was created to investigate how acceptance of new technology relates to perceptions of usefulness and usability (Davis, 1989; Davis et al., 1992) According to TAM, which is founded on the theory of reasoned action (Ajzen & Fishbein, 1980), two factors- perceived usefulness and perceived ease of use - have an impact on a person's acceptance of technology The TAM's ability to predict technological adoption and uptake with accuracy and restraint is proven by empirical data According to the TAM,

a person's behavioral intention to engage in a specific behavior is defined by their behavioral intention to carry out a specific task The TAM asserted that by applying the model when the technology was first used, potential future applications of the technology could be predicted (Turner et al 2010)

As research of Chen et al (2011), TAM is better suited for use in online contexts due to their reasonable expense, and reliability, focusing specifically on the application

of the concepts of usefulness and ease of use to information system usage The TAM has proven to be an effective theoretical framework for deciphering and interpreting user behavior in the context of information system implementation It has been put to the test in various empirical studies, and it has been established that the model's supporting tools are of the highest caliber and yield results that are statistically trustworthy TAM was chosen for the reasons stated above to support the theoretical framework of this research

2.1.2 The Stimulus-Organism-Response Theory

dominance refers to whether a person feels powerful, in charge, and free to act in a specific scenario; pleasure refers to how glad, cheerful, and happy they feel (Donovan

& Rossiter, 1982; Mehrabian & Russell, 1974; Musgrove, 2011; Russell & Mehrabian, 1978) The SOR model, which uses online retail cues as the stimulus (S), similar to the literature on offline experience retail, has recently been used in studies to explore the ummediate and delayed impacts of experiencing online retail features on consumer behavior (Donovan and Rossiter, 1994; Kotler, 1973; Menon and Kahn, 2000; Eroglu

et al., 2001; Huang, 2012) The proposed S-O-R paradigm, according to the author, can act as a valuable theoretical lens to assess how other affective and cognitive reactions affect AR users' behavioral outcomes when they are conducting online shopping Hence, SOR theory is used to explain customer behavioral outcomes im the context of e-commerce in this study

2.1.3 Affect-as- Information Theory

The Affect-as-Information Theory, which provided the foundation for this study, explains the importance of affective states by making the case that affect is a vital source of information for judgments and decision-making (Schwarz & Clore, 2003; Schwarz, 2012; Winkielman et al., 2003) More specifically, consumers often base their evaluation or choice on how they feel about a certain feature (product, brand, or advertisement) People rely on their affect because they believe it contains useful evaluative information (Pham, 1998; Schwarz & Clore, 2007) Researchers concluded from extensive research on this phenomenon that people's choices and evaluations, and thus attitudes, change in response to changes in their current moods (Schwarz and Clore, 1983; Clore et al., 2001; Clore and Storbek, 2006) This change could be caused naturally (e.g., by weather) or induced by a variety of factors For example, watching a sad movie induces sad moods in a person, which can then be used to cancel an upcoming energetic activity Also, numerous studies have shown that consumers focus more on objective information when making decisions for themselves, depending less

on emotional input, and ignoring alternatives, whereas the opposite is true when making decisions for others (Chang & Pham, 2013; Hsee & Weber, 1997; Raghunathan

& Pham, 1999) When customers lack knowledge in the relevant field, emotional information is given more weight (Ottati & Isbell, 1996; Sedikides, 1995) Lastly, relying on emotional states can make decision-making simpler (Pham, 1998; Schwarz, 2012) Because of this, emotional information is given priority when customers are pressed for time and making decisions (Chang & Pham, 2013; Siemer & Reisenzein, 1998) Our study, which is based on the Affect as Information Theory, highlights the significance of affective responses in the context of AR and attempts to account for the critical role that affect plays in evaluating AR encounters

2.2 Key concepts

2.2.1 What is Augmented reality

The term "Augmented Reality” refers to a group of technologies that overlay digital data and visuals on the user's actual surroundings, establishing a new interface between the virtual and real worlds (Javornik, 2016b; Porter & Heppelmann, 2017; Yim et al., 2017) Previous studies claim that AR is a group of technologies that aims to combine the virtual and physical worlds Although there are numerous variations and flavors of AR, they all have the following features in common: computers, displays, tracking, and input devices (Carmigniani et al., 2011) By introducing virtual information to the user's surrounds, including any oblique views of the real-world environment, such a live video stream, AR aims to make the user's life easier The user's engagement and perception of the real environment are enhanced by AR While Virtual Reality technology completely submerges users in a synthetic world without allowing them to see the real world, AR technology alters a user's visual perception of the physical world in real time by enabling them to see the real world with virtual objects superimposed upon or composited with it (Azuma, 1997) Nowadays, stationary (store AR mirrors), portable (smartphones), or wearable (AR glasses)

devices have all been equipped with AR applications (Rauschnabel, 2018) The retail

AR industry is anticipated to develop at a 39% annual pace to reach USD 11.4 billion

by 2025 (Markets and Markets, 2019) highlighting the promise that retailers see in AR technologies (Piroth et al., 2020)

2.2.2 Perceived Enjoyment

Perceived enjoyment is defined as the extent to which utilizing a computer is thought to be enjoyable in and of itself, without regard to any potential performance consequences (Davis et al., 1992) PE discusses how joyful a topic finds the usage of modern technology and makes reference to its hedonic value It aims to identify an individual's natural motivation, which promotes the use of technology in the future (Kim and Forsythe, 2008; Pantano, 2014; Pantano and Di Pietro, 2012) For instance, the AAA advertising value model has confirmed that, in the online setting, both entertainment (affective process) and informativeness (cognitive process) lead to an improved valuation of web advertising and a more positive attitude toward it (Ducoffe, 1996)

2.2.3 Inspiration

Merriam-Webster (2012) defines inspiration as the power to influence the mind

or emotions, as well as the act of inspiring or recommending thoughts The term

"inspiration" is used by Bottger € et al (2017) to describe a construct that can promote creativity, discovery, client loyalty, and demand creation They position inspiration m the midst of pursuing a goal related to consuming and approving a marketing-generated idea Thrash & Elliot (2003, 2004) claim that inspiration is an emotion-driven construct with a frequently positive valence that pushes us to look outside of ourselves in opposition to our ingrained propensity to do so The research is inspired by insights or ideas that, as proposed by Thrash & Elliot (2003), give a task a sense of necessity and excitement However, inspiration has an external focus that challenges our beliefs and expectations about the world, what it is, and what it can be As a result, the research

11

rises above our everyday selves and overcome many real or imagined limitations (Shiota et al., 2017)

2.2.4 Brand Attitude

Mitchell & Olson (1981) defines brand attitude as an assessment of a brand's consumers Also, it was said that brand attitude is influenced by the longevity, usability, accessibility, features, performance, phrase suiting, and finish of the good or service Even when a number of significant variables are included, brand attitude still has consequences that are not reflected in measured metrics According to Priester & Petty, brand attitude's strength is its capacity to predict customer behavior that is favorable to the company, such as brand contemplation, purchasing intentions, buying behavior, and brand selection (2003) From this understanding, it can be inferred that brand attitude relates to the brand evaluation practices used by consumers of a company's goods or services Because of this, if a company's goods or services are seen favorably by customers, brand loyalty among those customers will also rise, which will be very advantageous for the company's marketing efforts

2.2.5 Purchase Intention

Purchase intention is the desire to purchase a good or service (Dodds et al., 1991) Purchase intentions from a retail outlet are influenced by a number of outside variables, such as the product, brand, retailer, and timing (Kotler, 2000) The intention

to buy goods or services from shops may be motivated by the fact that shopping is frequently a hedonistic experience (Luo et al., 2011; Babin et al., 1994) Consumers' purchase intentions develop once they judge the usefulness and worth of a good or service (Dodds et al., 1991) Purchase intentions have an impact on buying behavior in terms of the outcome, or the actual purchase (Luo et al., 2011; Morrison, 1979) 2.2.6 Word-of-mouth intention

Word-of-mouth (WOM) can convey information about a company or its products WOM can take the form of opinions about the product's performance,

perceived quality, and trustworthiness (Charlett et al., 1995) WOM referral is highly valued as a driver of new customer acquisition in an online setting (Wangenheim & Bayon, 2007) Customer value is regarded as an essential feature of firm success and a credible source of competitive advantage (Carpenter & Fairhurst, 2005) According to Bughin et al (2010), WOM accounts for 20 to 50% of all purchasing decisions and generates more than twice as many sales as sponsored advertising Every day, 2.4 billion WOM conversations occur, according to industry figures, and marketing executives continue to invest extensively in strategies for influencing WOM (Berger & Schwartz, 2011)

2.2.7 Product Knowledge

Product knowledge, according to Lin & Zhen (2005), depends on consumers’ knowledge or comprehension of the product as well as their trust in it According to Brucks (1985), product knowledge is based on customer memories or previously acquired information Product knowledge, according to this study, can be divided into three categories: product experience, subjective knowledge, and objective knowledge However, Alba & Hutchinson (1987) contend that expertise and product familiarity should be separated into two categories when defining product knowledge Product knowledge can be used to assess product value and purchase risk, and it regularly ranks among the most significant factors influencing customer purchasing decisions (Burton

et al., 2009) Based on their understanding of the product, consumers decide which products to buy A key indicator of consumers’ willingness to adopt a new product is their level of product awareness Consumers in today's dynamic market rely on their previous product knowledge to assess product qualities before making a decision when presented with a range of product information (Fu et al., 2013)

2.2.8 AR Familiarity

The term "familiarity" refers to how many times a consumer has interacted with

a given product (Alba & Hutchinson, 1987) Consumers gain knowledge about a

13

product or service through experience and know what to expect from a specific product

or service (Bonnin, 2020) Though still not have any significant papers looked into the impact of AR familiarity, several studies also have found that familiarity can help to moderate the relationship between user responses and opinions of a product or service (Bonnin, 2020) In general, these studies have focused on product familiarity and product evaluations, rather than technology familiarity and the impact of technology 2.3 Empirical Research and the research model

2.3.1 Empirical Research

2.3.1.1 Research of Kowatczuk et al., 2021

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Figure 2 3 Research model of Kowalczuk et al., 2021

In this study, the benefits of AR over online product presentations are examined The authors build a model of customer responses and evaluate how smartphone users respond to the IKEA Place app and IKEA mobile website 400 undergraduates recruited at a German university and given extra marketing course credits as an incentive to complete the study were used in a lab experiment to test the proposed

strategy According to the results, AR performs better than web-based product presentations in terms of immersion and fun but not media usefulness The results further demonstrate that behavioral responses to AR features are shaped by affective and cognitive reactions Because a convenience sample of college students was employed, the results are limited The generalizability of the results is constrained by the fact that kids are typically lured to new technologies early on (Rauschnabel, 2018), despite the fact that this young sample is presumed to be suitable for investigating AR

2.3.1.2 Research of Barta et al., 2021

la

HS

It has been demonstrated that AR enhances consumer experiences and decision-

PREPURCHASE COGNITIVE DISSONANCE

Figure 2 4 Research model of Barta et al., 2021

making This study analyzes the effects of AR on cognitive variables related to cognitive load, which have hitherto received little attention, based on a theoretical stimulus-organism-response paradigm and cognitive load theory The study is based on user experiences with augmented reality web shopping at an online cosmetics retailer with a wide range of products Two focus groups and an experiment are combined in the mixed-method study, allowing for the triangulation of results for confirmation The

15

results show that AR lowers cognitive dissonance through its impact on apparent similarity and confusion brought on by over-choice Reduced cognitive load also enhances purchasing intentions, leading to a higher willingness to pay for the product

By studying how AR affects perceived similarity, choice confusion, and prepurchase cognitive dissonance, the study advances our understanding of the advantages of AR in consumer decision-making The drawback is that, despite the virtual try-on capabilities offered by various businesses performing similarly, their unique features can affect how easily or difficultly consumers make selections There may be an impact depending on the amount of information provided, how it is displayed, and how virtual the try-on function is

2.3.1.3 Research of Zanger et al., 2022

Figure 2 5 Research model of Zanger et al., 2022

This study put emotive responses, such as customers’ inspiration and delight, at the center of decision-making by drawing on the Affect-as-Information Theory The next stage involved running two online experiments to empirically investigate the variations in affective response intensity between AR and non-AR, the interaction between affective and cognitive responses in determining behavioral outcomes, and the moderating effects of customer-specific factors (customers' AR familiarity and product knowledge on affective responses) The results demonstrate that while affective

responses, both directly and indirectly, increase purchase and word-of-mouth intentions

by influencing attitudes toward products and brands, AR does not by itself guarantee more positive affective responses; rather, they depend on the technical application of

AR features and customers’ AR expertise, among other factors Using such a sample restricts the research's application to other target demographics who may react differently, despite the fact that extremely young European customers are typically among the first to adopt new technologies Also, this study tested the focal constructs

as intents rather than actual conduct by using accurate, context-appropniate descriptions It increases internal validity, but because it is still beyond the study's purview, external validity may suffer

2.3.2 Research Model

This study contributes to supporting the Zanger et al (2022) model in the specific context of a developing country by researching the impact of AR or non-AR- based product presentation on consumers' behavioral outcomes in Vietnam The model

is proposed to define the relationship between the AR or non-AR with Affective Responses (Enjoyment, Inspiration), Cognitive responses (Brand Attitude) to Behavioral outcomes (Word-Of-Mouth, Purchase Intention) when Product knowledge and AR Familiarity acted as moderators Based on the literature review and the hypotheses developed, the research model is conceptualized as shown:

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Product 4 Inspiration kK = my Brand Attitude L

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fresh concepts and the chance to creatively modify their surroundings using virtual objects This assumption is consistent with the findings of Jessen et al (2020), who demonstrated that AR riggers are a form of creative customer engagement Furthermore, we contend that convincing representations of virtual goods in the real world can lower uncertainty and purchase risks, two potential barriers to engaging in mmaginative activities (Hilken et al., 2017) This presumption 1s in line with findings of Jessen et al (2020), which showed that AR riggers are a type of inventive consumer engagement Additionally, we argue that credible real-world representations of virtual commodities can reduce uncertainty and purchasing risks, two significant barners to engaging in imaginative activities (Hilken et al., 2017) Therefore, the author contend that AR can impact inspiration:

HI; AR-based product presentations elicit a higher level of inspiration than non-AR- based product presentations

Overall, studies have shown that higher levels of enjoyment improve two attitudes: the attitude toward the appropriate product template (Barhorst et al., 2021; Gatter et al., 2021; Holdack et al., 2020; Rauschnabel et al., 2019; Yim et al., 2017); and the attitude toward the application of the template (Kim & Forsythe, 2008; Pantano

et al., 2017; (Jessen et al., 2020) Changes in brand attitudes (Rauschnabel et al., 2019), perceptions of the template's usefulness (Holdack et al., 2020; Rese et al., 2014), and expected satisfaction with one’s own choice (Rauschnabel et al., 2019) are further factors to consider (Jessen et al., 2020) It seems that negative emotions also hinder cognitive actions Similar conclusions have been reached by Yimet al (2012), who found that stereoscopic 3-D advertising that produces more vivid images leads in greater enjoyment than does traditional 2-D television advertising Also, it was found that interactive technologies that display more realistic product representations are linked to a more satisfying affective emotional experience in the context of e-

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commerce (online shopping) IT's display of the process of putting on numerous clothes on a 3-D virtual model (i.c., an avatar), for example, when presented utilizing IIT's technological capabilities, sttmulates customers' mental play and fantasies (Kim et al., 2007) The imaginative creation processes of consumers can be enriched by a number of media aspects in a variety of ways and to varied degrees As a result, it enables customers to enjoy the adventure of learning about new, realistic-looking things without bemg in any way limited by the reality of their actual surroundings Different degrees of positive affective evaluations (1.c., enjoyment) are therefore experienced as playfulness and fun (Childers et al 2001) As a result, the following hypothesis was proposed in this study:

H2: AR-based product presentations elicit a higher level of enjoyment than non- AR-based product presentations

Personal factors, in line with the theory put forward by Béttger et al (2017), modulate the impact of certain source characteristics (in this case, AR vs non-AR) on inspiration Inspiration can be ascribed to creativity, which is a crucial precondition for creativity according to prior study (Csikszentmihalyi, 1997; Thrash et al., 2010) To put

it another way, if people are knowledgeable about a particular product category, they might be less concerned with acquiring unbiased information about the products and more likely to rely on subjective information Once more, the emotions that are stirred

up by the product and the way that it is presented are sources of information (Schwarz

& Clore, 2007) One could argue that contemplating a product's integration into one's environment fosters original thought (Thrash & Elliot, 2003) experts are more likely to analyze information differently and give more attention to their subjective feelings than novices As a result, specialists may value the interactive aspects of AR more highly than people who have less familiarity with the topic when assessing how they feel about the format of the product presentation This logic could seem to go against

evidence that supports the Affect-as-Information Hypothesis, which claims that people with less expertise place more value on emotional expression than do persons with more expertise (Ottati & Isbell, 1996; Sedikides, 1995) So we must make a distinction between product knowledge as a factor that influences how strong emotions are perceived and product expertise as a factor that lessens the importance of emotions in decision-making The author believes that users with more product knowledge will find AR-based product presentations to be even more stunning than those with less product knowledge, in terms of how user product knowledge affects the intensity of emotions — the stage at which emotions occur Product Knowledge was therefore proposed in this study as a moderating variable in the association between AR vs non-AR and Inspiration:

H3a: The more knowledgeable a user is about the product, the stronger is the effect of AR-based product presentations on their inspiration

How much users appreciate the AR application may depend on how familiar they are with augmented reality (Rauschnabel, 2021) In line with Schwarz and Clore (2007), we predict that consumers would use previous knowledge of the AR experience

as a source of information when evaluating a new AR experience Users who are familiar with augmented reality, in our opinion, will contrast their feelings about the product template with those they have had in the past Their perceptions of the product template are validated if their experiences are comparable According to studies, a format that consumers are used to is less mentally taxing (Alba & Hutchinson, 1987; Schwarz, 2012) As a result, people who are already familiar with augmented reality are probably going to appreciate it even more On the other hand, inconsistent sensations about the product template may result in less satisfaction because people

“discount” their favorable feelings Users in this situation lose some of their positive feelings for AR The Affect-as-Information Hypothesis by Schwarz and Clore (1983)

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and Schwarz reports that discounting impacts (2012) Users with AR knowledge may

be less interested in the product than nonexperts if sensations from past and present AR experiences are inconsistent (Yang et al., 2020) The author then suggested the following:

H3b: The more familiar a user is with AR, the stronger is the effect of AR-based product presentations on their enjoyment

Inspiration is a crucial framework for raising customer satisfaction and sustaining consumers’ interest in services over time (Olsson et al., 2013) In particular, enjoyment and inspiration are likely to have an impact on choices (Béttger et al., 2017) It has been found that inspiration is crucial for boosting customer satisfaction and happiness in a retail environment (Manassch et al., 2012) Thrash and Elliot (2004) conducted empirical research to examine the theory that inspiration is strongly correlated with happy feelings They concluded that inspiration is characterized by high levels of activated positive affect and categorized it as an appetitive mood with positive valence and activation Inspirational tales also contain more positive feelings than negative ones Rauschnabel et al (2019) claim that inspiration increases when clients feel emotionally fulfilled, such as when hedonic value is provided They found in their empirical investigation that the hedonic advantages offered by an AR app significantly increased the level of inspiration felt by users, and Hinsch et al (2020) replicated this conclusion In accordance with these findings, we assert that users are motivated by their happiness with a product template (both AR and non-AR based):

H4: The greater the perceived enjoyment, the higher is the level of inspiration

users experience

According to research, ad-evoked feelings have a major impact on brand attitude

in a larger marketing environment (Brown et al., 1998; Burke & Edell, 1989; Clore et

al., 2001; Fishbein & Middlestadt, 1995; Hasford et al., 2015; Pham, 2004; Pham et al.,

2013) In a similar vein, studies on AR marketing have revealed that both AR and non-

AR product displays have this effect (Smink et al., 2020) According to additional research, cognitive reactions can serve as mediators (Elder & Krishna, 2012; Pham, 1998; Schwarz & Clore, 2007) Hence, emotions may enhance the cognitive processing skills that in turn influence behavioral goals People can be motivated to see beyond the conventional boundaries of their capacities (Thrash and Elliot, 2004) Positivity toward brands among consumers benefits such brands (Rauschnabel et al., 2019) They desire

to use applications more frequently and experiment with new ideas, which might result

in a strong sense of immersion (Yim et al., 2017) The flow state can shape one's emotional reaction and behavioral objectives (Javornik, 2016) It is anticipated that inspiration helps users experience "flow" states because they are usually associated with interactivity and can boost user engagement with AR According to Rauschnabel

et al (2019), brands could benefit from higher levels of inspiration whether it comes from an AR-based or non-AR-based product presentation In this investigation, the following hypothesis was put forth as a result:

H5a: The more inspiring users perceive a product presentation to be, the more positive is their attitude toward the respective brand

A relatively new but crucial component of marketing is customer inspiration because it is thought to be a source of differentiation for organizations (Izogo and Mpinganjira, 2020) Consumer motivation, which is crucial to marketing efforts, can be sparked from the outside by marketing communications like advertising (Herhausen et al., 2019) The same reasoning leads us to believe that inspiration will have an immediate influence on behavioral intentions Inspiring people to take particular activities is a major discovery concerning inspiration (Thrash & Elliot, 2004), and as was already said, behavioral intentions are a component of the "Inspired to” dimension

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(Böttger et al., 2017) Also, inspired customers usually have a closer connection to the company, making them more willing to engage in civic activities like spreading positive word-of-mouth Moreover, a significant article showed that the motivation to disseminate WOM might result from inspiration:

H5b: The more inspiring users perceive a product presentation to be, the higher

is their WOM intention

According to the Affect-as-Information Theory, being inspired necessitates direct reactions that are not always based on concrete data but instead on the upbeat, enthusiastic state of mind of online buyers when inspired (Schwarz & Clore, 2003, 2007; Schwarz, 2012; Winkielman et al., 2003) Previous studies have demonstrated a favorable relationship between inspiration and behavioral intentions, such as willingness to pay and purchase intention (Bottger et al., 2017; Figgins et al., 2016; Nikhashemi et al., 2021; Tang & Tsang, 2020) According to Béttger et al (2017), inspiration, for instance, can raise purchase intention regardless of the product category (grocery product vs Rome holiday) Crucial showed that behavioral intentions, particularly buying intentions, are directly influenced by inspiration As a result, the following hypothesis was proposed in this study:

5c: The more inspiring users perceive a product presentation to be, the higher

is their purchase intention

It is believed that all of these positive consumer responses would influence how consumers create attitudes by encouraging the notion that a specific technology, media,

or system improves and makes buying more fun (Davis, 1989) As a result, as much earlier work has demonstrated, better buying selections will be the end result (MacInnis

& Jaworski 1989; Petty & Cacioppo, 1981) Research has revealed that adevoked emotions have a considerable impact on brand attitude in a more general marketing

setting (Brown et al., 1998; Burke & Edell, 1989; Clore et al., 2001; Fishbem &

Middlestadt, 1995; Hasford et al., 2015; Pham, 2004; Pham et al., 2013) Research on

AR marketing has similarly shown that this influence holds true for both AR-based and non-AR-based items Using the same reasoning, McLean and Wilson (2019) showed that brand attitudes are greatly impacted by how interesting AR is perceived to be We contend that brand attitude is influenced by various affective responses in addition to enjoyment utilizing the Affect-as-Information Theory Users may consider the feelings sparked by the product presentation if they are asked how they feel about a specific brand (Clore et al., 2001; Pham, 2004) Using the pertinent response, they can then determine their brand evaluation As a result, the following hypothesis was proposed in this study:

H6a: The more enjoyable users perceive a product presentation to be, the more positive is their attitude toward the respective brand

Enjoyment may have an impact on a variety of consumer behaviors A higher degree of positive affect is correlated with a higher level of shopping enjoyment propensity (Mohan et al., 2013; Saad & Metawie, 2015) The propensity to promote the shopping center to others is one of the potential future outcome variables that merits additional research and is crucial to WOM communication WOM has been discovered

as a potent "force" impacting consumer loyalty, decision-making, and the choice or alteration of products or services (Wangenheim & Bayon, 2004) Because the sender has no personal stake in promoting the good or service and presents the information in

a credible manner, WOM communication is very compelling (Mazzarol et al., 2007) According to earlier study, WOM is more influential than other kinds of communication in general and it has a bigger impact on consumers’ purchasing decisions than standard commercial communication channels like advertising (Ho & Dempsey, 2010; Bickart & Schindler, 2001; Trusov et al., 2009; Bambauer-Sachse &

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Mangold, 2011; Smith et al., 2005) Shopping satisfaction and WOM communication conveying information have a relevant correlation that has been shown, according to Mowen et al (2007) When Kim et al applied the technological acceptance model to social networking sites (SNS), they were able to determine that perceived usefulness and perceived enjoyment had an impact on SNS users' WOM intentions Hence, the following is advised:

H6b: The more enjoyable users perceive a product presentation to be, the higher is their WOM intention

In addition to being crucial in offline contexts, enjoyment is crucial in online situations as well (Blakney & Sekely 1994; Forman & Sriram 1991) (Jarvenpaa & Todd, 1997a) According to earlier studies (Dick & Basu, 1994; Prichard & Howard, 1999), enjoyment has a direct influence on online customers’ behavioral intentions Users who find instant messaging enjoyable are more likely to continue using it, according to Li et al In his study based on the integrated conceptual framework of online customer behavior, Koufaris (2002) finds that shopping delight has a substantial mmpact in predicting intention of consumers to return to a Web-based store Based on this discovery, Koufaris (2002) argues that shopping happiness may be a crucial notion

in studies on online consumer behavior Additionally, prior research has demonstrated that pleasure might indirectly affect behavioral intention through other factors The components that govern perceived ease of use are examined using Venkatesh's (2000) stabilizing and adjustment-based theoretical framework, which leads to the discovery that enjoyment strongly influences behavioral intention to use information systems via perceived ease of use In a study looking at students' acceptance of an Internet-based learning medium, Lee et al (2005) reveal that enjoyment not only directly influences behavioral intention but also indirectly influences it through attitude These pleasant feelings may be a valuable source of information if a person likes to research products

online, especially given how simple it is to access them If users are aware that their sensation of satisfaction is being spurred by the product presentation rather than by an unrelated source, they may place more importance on the information being provided

by those feelings (Avnet et al., 2012; Pham et al., 2013; Schwarz, 2012) They might therefore desire to own the things more and be more inclined to buy them as a result In the case of self-augmentation, Hilken et al (2017) showed that enjoyment affects purchasing intentions Similar to this, Yim et al (2017) research showed that consumers’ enjoyment of both AR- and non-AR-based product presentations indirectly increases their desire to buy by improving their perception of the product template H6c: The more enjoyable users perceive a product presentation to be, the higher

is their purchase intention

While examining the current relationship between brand attitude and WOM, a number of research carried out in various business sectors might be taken into account

In the restaurant business, Jalilvand et al (2016) looked into brand preference and its connections to brand equity, brand personality, and WOM In the same sector, Zhang et

al (2021) showed how brand familiarity and perceived value affect WOM Ansary and Hashim (2018) looked into the relationship between company reputation and image based on consumer perception The moderating impact of product features and WOM

on the current relationship was looked into The results showed that brand equity elements were positively impacted by brand image (brand attachment, brand awareness and brand attitude) Schoen Bachler (2004) identified a particular kind of devoted clientele that exhibits unusual faith in the brand by making price-insensitive purchases, recommending the business favorably, and even investing in it Customers that have a favorable brand perception may be more likely to buy products associated with that brand and spread the word about them Herold et al (2016) also looked into the

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relationship between WOM and customer perceptions As a result, we suggest that brand attitude affects consumer desire to buy and spread word of mouth

H7a: The more positive the users' attitude toward the respective brand, the higher is their WOM intention

Many research have discovered a strong correlation between attitude and purchasing intention Leppaniemi and Karjaluoto (2013) The attitude toward an action might predict the intention to engage in the behavior, according to Ajzen's (1985) theory of planned behavior So, the more favorable a person's attitude about a product, the higher their purchase intention According to Smith and Swinyard's (1983) theory

of attitude-behavior consistency, a direct product experience leads to a more favorable attitude and behavior consistency than an indirect product experience As a result, attitude-behavior consistency can be anticipated to be high since AR can produce telepresence, which is akin to a direct product experience (Schwartz, 2011) Ajzen (1991) asserts that attitude significantly affects behavioral intentions Yadav and Pathak (2017) discovered that conduct is favorably influenced by attitude According to Wafa

& Hashim (2016), the advantage of brand attitude is that it can anticipate consumer behavior that is profitable for the business, such as brand contemplation, purchasing intentions, buying behavior, and brand selection In this investigation, the following hypothesis was put forth as a result:

H7b: The more positive the users' attitude toward the respective brand, the higher their purchase intention