Beauty virtual try-on: how augmented reality increases purchase intention through its impact on customer experience

Abstract

In the era where the beauty industry has undergone a significant transformation, online shopping progressively replaced conventional and physical stores to become the primary method of purchase for customers. From there on, thanks to technical breakthroughs, Augmented Reality (AR) has evolved rapidly in the past decade, no longer being an unreachable technology but rather one that is simple to use on practically any device. Recently, beauty businesses are experimenting with innovative approaches to respond to customer demands by utilizing forms of AR solutions online, with an effort to promote brand awareness and consumer interest in the brands. During which, virtual try-on technology emerges and appeals shoppers with the function of creating their own virtual

models based on individual measurements. Drawing upon the Stimulus-Organism- Response framework, this study proposes a research model that can explain the chain of

effects from the AR experiential attributes (i.e., AR interactivity, AR vividness and AR reality congruence) through customer experience (i.e., perceived personalization, perceived enjoyment and self variety-seeking) towards serial paths of purchase intention of beauty products from customer perspective in a beauty context. The study also examines the moderating role of users’ information privacy control on the relationship between customer experience (i.e., perceived personalization, perceived enjoyment and self variety-seeking) and purchase intention of beauty products through the usage of AR beauty try-on applications. Results based on a sample of 300 customers show that the AR attributes positively affect customer experience in using AR beauty try-on applications, in turn enhancing purchase intention of the beauty products illustrated in the apps. The results further demonstrate that the effect of perceived enjoyment on purchase intention is positively moderated by user’s information privacy control. However, the relationships between two factors in customer experience (i.e., perceived personalization and self variety-seeking) and purchase intention are lowered to insignificance in the presence of context.