This research is the first to examine the relationship between personality traits and mobile application (app) purchasing tendencies, specifically the tendency to pay for apps when free alternatives are available (Mobile App Payment), and the tendency to make In‐App Purchases. A hierarchical model of personality traits was tested via structural equation modeling with 257 U.S. college students who own and use mobile devices. The study provides robust evidence that bargain proneness positively influences both Mobile App Payment and In‐App Purchases, with need for arousal positively influencing Mobile App Payment. Additionally, frugality negatively influences both Mobile App Payment and In‐App Purchases. Indirect or mediated effects of extraversion and need for arousal on mobile app purchasing tendencies were also found. Finally, managerial and theoretical implications are discussed.
Purpose
Augmented reality (AR) apps offer a great opportunity for brands to provide better service to customers by creating augmented customer service. However, not every AR app is equally effective in improving customer experience. Investigation of underlying processes and brand-related outcomes of AR marketing remains scarce and it is unclear how different types of AR apps influence brand perceptions, such as brand personality. This paper aims to fill in this knowledge gap and provide practical insights on how different AR apps can improve service brand personality.
Design/methodology/approach
Using an experimental plan, the authors investigate how attitudes towards AR apps contribute to customer perceptions of brand personality (i.e. excitement, sincerity, competence and sophistication) according to two different variables, namely, the location of the AR app (location-specific vs non-location-specific) and its orientation (augmenting the product, brand or store experience). The authors also examine the effect of expected customer experience with the AR app (i.e. playfulness and pleasure) and customer technological innovativeness and shopping orientation as predictors of attitudes towards the AR app.
Findings
The findings show that non-location-specific and product-oriented AR apps (i.e. virtual try-on apps) receive more positive evaluations and lead consumers to perceive the brand as more exciting, sincere, competent and sophisticated. Moreover, the playfulness and pleasure experienced with the AR app determine consumers’ attitudes towards the app. Additionally, AR apps improve brand personality perceptions amongst more innovative and adventure-focussed shoppers.
Originality/value
The authors show that brand announcements on high-technology, customer-oriented service offerings are an effective branding tool. Thus, AR apps perceived as pleasant and playful can signal and improve brand personality.
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