Factors Affecting Augmented Reality Adoption in the Retail Industry

Abstract

Augmented reality (AR) technology is a computer-generated object that allows users to enrich the experience of products virtually with graphics, images, etc. Due to a lack of studies in developing countries like Malaysia, more studies are necessary to understand the pressing factors of diffusing AR technology for the flourishing retail industry. This research aimed to explore the factors affecting the adoption of AR technology in the retail sector through an extension of the technology acceptance model (TAM). The conceptual model was developed based on additional open-innovation-related constructs to the existing TAM constructs. To test the model, data were collected from 233 retail stores in Malaysia using a structured questionnaire survey. The PLS-based structural equation modeling technique was used to analyze the data. The empirical results confirmed that, except for external support and trading partner pressure, other factors, including perceived usefulness, attitude, competitive pressure, customer pressure, perceived cost, and technological knowledge have significant influences on the intention to use AR technology in retail stores. The attitude mediates the relationship between perceived usefulness and behavioral intention and the relationship between self-efficacy and behavioral intention. As operating cost was a critical factor, managers are advised to deliver various packages of after-sales services and free installation charges to curb expenses. This study improved TAM by offering a comprehensive model with cognitive and open innovation factors and provided suggestions for retail stores when they attempt to adopt AR technology to develop an open business model.

Extended reality technologies in small and medium-sized European industrial companies: level of awareness, diffusion and enablers of adoption

“… Yes/No Description Technology Technological install-base and network effects – Yes SMEs often work in larger networks; proliferation of XR in other companies enables the use of XR in additional business processes Balancing performance and ease of use in XR hardware Berg and Vance ( 2017 ), Jalo et al ( 2020 ), Masood and Egger ( 2020 ) No Both SMEs and large companies need to be able to choose appropriate equipment Opportunities to test XR devices and software Jalo et al ( 2020 ) Yes SMEs often do not have the slack resources to experiment with XR hardware and software, which makes ease of testing more crucial for them XR compatibility with information systems and software Jalo et al ( 2018 , 2020 ), Masood and Egger ( 2019 ) Yes SMEs will likely not start tailoring XR solutions to their IS and software Fast workflows between information systems and XR – No Efficiency of workflows important for both SMEs and large companies Organization Top management knowledge and first-hand experience with XR Alam et al ( 2021 ), Berg and Vance ( 2017 ) Chandra and Kumar ( 2018 ), Masood and Egger ( 2019 ) and Noghabaei et al ( 2020 ) No Top management support for XR adoption critical in all companies Availability of resources and personnel for XR research and development Davila Delgado et al ( …”

“…The two final articles examined XR adoption in the retail context (Chandra and Kumar 2018 ; Alam et al 2021 ). Chandra and Kumar ( 2018 ) examined the adoption of AR in e-commerce in Singapore, India, and the USA with a survey.…”

“…Their results highlighted the key roles of relative advantage, securing top management support, the readiness of customers to use AR, and a sufficient level of technological competence to implement and maintain AR in increasing organizational adoption intention. Alam et al ( 2021 ) used a survey to assess which factors influence the adoption of AR in Malaysian retail companies. They found that pressure from competitors and customers, and the managers’ technological knowledge and awareness of AR to be key drivers of AR adoption, whereas high costs relating to AR were hindering adoption.…”

Conceptual Model of Augmented Reality Mobile Application Design (ARMAD) to Enhance user Experience: An Expert Review

“…UX is crucial in technological product design because it has the ability to enhance the user's satisfaction and loyalty [17], [19]. The most crucial factor in deciding how successful a product is how widely it is accepted and adopted by its users [40]. While the user acceptance is often influenced by their user experience, therefore a user's perception and emotions of a product also rely on the quality of their interaction with the product.…”

“…As depicted in Table I, most of the existing models focused on the overall AR product development [25], [26], [53], [58], user engagement [28], AR learning [29], [55], [56], games development [27], [28], [57], and user acceptance or adoption of the MAR applications [31], [40]. However, none of these models put an emphasis on the AR design components that may elicit a positive emotional UX, thus need further research [59], [60].…”