The perceived user value of AR in online shopping experience

Augmented reality (AR) is a technology that allows user to enrich physical environment with virtual objects. The spread of mobile devices and advances in technology have finally brought this two-decade old invention to life. It offers businesses an intriguing opportunity to create immersive and interactive experiences to their customers and develop new business models. Even though some firms have already tried to extend their business with this new technology, still there is only little knowledge of its actual value for the customer. AR applications are emerging in different fields such as medical, entertainment, design, education, commerce and advertising. This study will concentrate on AR applications in online marketing. This thesis aims to fill the existing research gap in the area of consumers' perceived value of AR through a qualitative case study of IKEA's AR application. Due to paucity of benchmarks, related research and measurable elements the long-term effects of AR as a marketing tool are still very little understood. Focus group was the method chosen for the study as AR in marketing context is still a new phenomenon. Thus, the method was an appropriate place to begin. The previous research on the field highlights the importance of hedonic aspect in the customer value. This research brings out that creating utilitarian value in the AR online marketing experience is crucial to build sustainable use in consumer behavior. This is highlighted especially in the future as the novelty effect eventually fades away and these applications become more general. The first-generation AR applications do not seem to meet the expectations of users. Implications are provided to companies and developers of these applications