Does Augmented Reality Apps Trigger Loyalty Toward the Brand? A Myth or Reality: The Case of UK and UAE Consumers

ABSTRACT With the growing integration of digital innovations in retail, a critical challenge persists: how can augmented reality (AR) applications be utilized to entice the intended target markets to engage and remain loyal? To this end, this study aims to bridge this gap by analyzing the effects of AR‐based apps on consumers' brand loyalty in the beauty goods sector with specific reference to the UK and the UAE. Using the S‐O‐R framework as the theoretical framework of the research, the study examines the influence of experiential values such as playfulness and aesthetics in brand loyalty mediated by customer satisfaction. The results from a questionnaire completed by 550 female AR Mobile App users were examined by testing nine hypotheses. Emphasizing the research findings, it can be further determined that while evaluating the experiential value, there appears to be a significant emphasis on brand loyalty. However, aesthetic value has had minimal influence on consumers within the UAE. Also, AR psychological engagement could have been higher and interacted with satisfaction and brand loyalty in the two regions. Thus, this research extends the understanding of AR research by examining the implications for consumer behavior in the region and providing practical recommendations for managers who want to use AR apps to improve brand loyalty.