Augmented Reality as a Tool for Customer Engagement: Impact on Brand Perception in Retail

The rapid uptake of Augmented Reality (AR) in the retail market has introduced new ways of influencing customer engagement and creating brand perception. This study investigates the effect of AR on customer engagement, brand perception, and purchasing intention in the Saudi Arabian retail market. By using a mixed-methods approach, the study combines quantitative survey results and qualitative interviews to develop a nuanced picture of the effects of AR on customer behaviour. Findings indicate AR significantly enhances customer interaction and benefits brand reputation, with AI-driven personalisation being another extension of these effects. Furthermore, perceived product value is identified as a mediator of AR experiences and purchase intention, highlighting AR's ability to generate consumer confidence and satisfaction. The study offers hints on how retailers can strategically embrace AR to design engaging, interactive, and customized shopping experiences that enhance customer relationships and drive purchasing decisions. They are included in a growing body of literature in retail digital transformation, and this highlights AR as an effective customer experience innovation tool.