Creating Psychological Ownership Through Augmented Reality

Augmented reality (AR) technologies are a disruptive innovation that is reshaping innovation strategies in luxury retail. This study developed a framework to explain how the attributes of AR technologies, namely AR quality, haptic imagery and customisation, shape consumer outcomes in luxury retail. A mixed‐methods design was employed. In Study 1, the Delphi method was used to identify the most salient AR attributes. In Study 2, 257 consumers completed an online questionnaire. Data were analysed using a combined importance‐performance map. The findings show that AR quality, haptic imagery and customisation positively affect self‐explorative engagement. In turn, self‐explorative engagement enhances psychological ownership, which drives willingness to pay a premium. Self‐brand connection also emerged as a significant moderator. This study contributes to luxury retail research by revealing how AR technologies enhance willingness to pay a premium.