The impact of augmented reality on consumer behavior: a focus on value development, leading to brand engagement and purchase intention

Purpose This study investigates the impact of augmented reality (AR) on consumers’ shopping process, focusing on value creation, brand engagement and purchasing intents. Design/methodology/approach This quantitative deductive study analyzed 393 questionnaires through non-probability sampling. A cross-sectional timeframe was applied; data collection took place in May 2023 to provide a snapshot of Egyptian consumers’ responses to AR. Once the needed data were collected, statistical analyses were conducted through the statistical package for social science (SPSS). Findings This study shows that in the shopping process, AR vividness, interactivity and informativeness lead consumers to develop utilitarian values toward the technology, and AR interactivity generates hedonic values towards the technology. When consumers sense the hedonic and utilitarian values, it impacts consumers purchase intention. Hedonic value in AR leads to consumers’ brand content consumption and creation; utilitarian value in AR leads to consumers’ brand content consumption, contribution and creation. Practical implications AR developers, brand managers and marketers may use this study to understand the current AR landscape and consumer responses toward AR (value development, purchase intention and brand engagement). With these insights, they can make better strategic decisions that include AR usage in brand marketing tactics. Originality/value This study develops conclusions to grasp more clearly and in-depth why and how AR impacts consumers’ shopping process. This study addresses various literature gaps, enhancing the understanding of AR: the salient AR attributes that offer consumers hedonic and utilitarian values and how AR influences consumer behavior, specifically when it comes to the development of brand engagement and purchase intents.