AUGMENTED REALITY'S INFLUENCE ON CUSTOMER BUYING DECISION

Abstract

In today’s fast-evolving digital landscape, technology is no longer just an enabler—it is a key driver of consumer engagement and decision-making. One such breakthrough that has rapidly gained traction is Augmented Reality (AR). This research project delves into the influence of AR on consumer buying decisions, aiming to explore how this emerging technology is reshaping the retail experience and the psychology behind purchasing behaviour. As brands strive to capture customer attention in a crowded marketplace, AR has emerged as a powerful tool to offer more than just information—it provides experience. Whether it’s trying on glasses virtually through platforms like Lenskart, visualizing furniture in a home setting via IKEA Place, or experimenting with cosmetic products using Nykaa’s Virtual Try-On, AR enables consumers to interact with products in a way that mimics in-person experiences. This shift from passive viewing to active interaction forms the core of this study. The primary objective of the research is to assess how AR influences various stages of the consumer journey—specifically awareness, interest, engagement, and purchase intent. The study also examines consumer perceptions of AR, such as trust, satisfaction, and confidence in purchase decisions, while identifying potential barriers to adoption like usability and accessibility. To provide a well-rounded understanding, a mixed-method approach was adopted. The quantitative aspect involved an online survey conducted with over 100 participants who have previously engaged with AR applications in a shopping context. The qualitative element draws insights from secondary case studies involving prominent brands leveraging AR in retail. Convenience sampling was used for participant selection, and the data was analysed using tools like Microsoft Excel and SPSS for statistical relevance and clarity. The findings are both insightful and promising. Most respondents shared that AR- enhanced platforms made them feel more informed and confident while making a purchase. The ability to see a product in context or virtually try it on helped bridge the gap between online convenience and offline tangibility. Furthermore, the interactivity provided by AR increased user engagement and often tilted the scales in favour of completing a purchase. However, the study also uncovered challenges. Not all users found AR seamless— issues such as device compatibility, limited internet bandwidth, and varying levels v of digital literacy posed hurdles. Additionally, some users questioned the authenticity or accuracy of AR representations, particularly in colour matching or sizing. Despite these limitations, the study concludes that Augmented Reality holds immense potential to transform digital commerce. For businesses, the implications are clear: AR is not just a gimmick but a strategic asset. When implemented thoughtfully, it can significantly improve the customer experience, increase conversion rates, and build stronger brand engagement. In summary, this research highlights AR’s growing role in influencing how customers discover, evaluate, and ultimately buy products. It offers a blend of practical recommendations and theoretical insight, contributing to the broader understanding of how immersive technologies are shaping the future of marketing and consumer behaviour.