Decoding Generation Z's habits: the augmented reality shift from gimmick to utility in omni-digital shopping

Date07 August 2024
Pages119-135
DOIhttps://doi.org/10.1108/JPBM-12-2023-4879
Published date07 August 2024
AuthorClaudio Schapsis,Larry Chiagouris,Nikki Wingate
Decoding Generation Zs habits: the augmented
reality shift from gimmick to utility in
omni-digital shopping
Claudio Schapsis
Jack Welch College of Business and Technology, Sacred Heart University, Fairf‌ield, Connecticut, USA
Larry Chiagouris
Lubin School of Business, Pace University, New York, New York, USA, and
Nikki Wingate
Jack Welch College of Business and Technology, Sacred Heart University, Fairf‌ield, Connecticut, USA
Abstract
Purpose Building on technology acceptance and learning transfer theories, this study aims to evaluatethe integration of mobile augmented
reality (MAR) in omnichannel retailing touchpoints for Generation Z (or Gen Z)s apparel shopping, assessing how habitual augmented reality (AR)
use in nonretailing contexts impacts Gen Zs motivations, acceptance and use of MAR shopping apps.
Design/methodology/approach A total of 562 participants downloaded a footwear MAR app and completed a survey. Data were analyzed using
conf‌irmatory factor analysis and multivariate regression to explore moderated mediation effects.
Findings The study reveals a paradigm shift: Gen Zs habitual use of AR in social media (e.g. Snapchat and TikTokface f‌ilters) signif‌icantly
inf‌luences their intent to use MAR in shopping, overshadowing hedonic motivations. This marks a transition from AR as a gimmick to a practical
utility in omnichannel touchpoints, with performance expectancy emerging as a critical mediator in adopting MAR for utilitarian purposes.
Research limitations/implications This study highlights how Gen Z consumerstech habits inf‌luence their pragmatic view of MAR, urging re-
exploration of the main constructs of the Unif‌ied Theory of Acceptance and Use of Technology 2 (UTAUT2) model.
Practical implications Findings suggest Gen Z values practicality over fun in MAR shopping apps, guidingmarketers to emphasize tangible
benef‌its for this demographic.
Originality/value This research underscores the evolving perception of AR in retail among mobile natives, highlighting the shift from novelty to
habitual utility. It offers strategic insights for integrating AR into omnichannel strategies, catering to the utilitarian expectations of Gen Z in the
digital retail landscape.
Keywords Habit, Augmented reality, Omni-digital touchpoints, Generation Z, UTAUT2, Learning transfer
Paper type Research paper
Introduction
Jos
e Neves, the CEO of Farfetch, a luxury retailer, argued that
the new retail era is one anchored in augmented retail,a
blend of the digital and physical allowing a shopper to shift
seamlessly between the two realms(Patton, 2017, para. 8).
This concept of augmented retailis particularly pertinent as
we navigate the complexities of integrating omni-digital
technologies into the customer journey. Augmented reality
(AR) may impact fashion retailing by enabling a unique user
experience and making the omnichannel experience more
seamless (Boardman et al.,2020;Voicu et al., 2023), allowing
customers to virtually come into contact with the product
without visiting brick-and-mortar stores (Riar et al., 2021,
2023). AR is becoming one of the emerging trends in mobile
marketing (Ameen et al., 2021), radically transforming the
customer experience (Hoyer et al.,2020;Marto et al.,2023;
Narang and Shankar, 2019) and subsequent brand
relationships and customer engagement (Huang and Liao,
2015).
Smart technologies, in addition to AR, permeate the retail
space and provide retailers with unique ways to connect with
customers (Kim et al., 2017,2023;Kim and Forsythe, 2008;
Roggeveen et al., 2021). The COVID-19 pandemic closures
increased peoples dependence on smartphones (Anand et al.,
2021) and, consequently, accelerated the incorporation of
cutting-edge technologies in retail, particularly in fashion
(Marto et al.,2023;Silva and Bonetti, 2021). This shift was
largely fueled by developments in AI, machine learning,virtual
reality, big data and mobile apps, enhancing customer-facing
services and backend operations (Grewal et al., 2021a).
The current issue and full text archiveof this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
34/1 (2025) 119135
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-12-2023-4879]
Received 13 December 2023
Revised 2 April 2024
30 May 2024
Accepted 19 June 2024
119
However, while these technologies mayoffer opportunities to
brands and retailers, they also pose signif‌icant challenges
(Grewal et al., 2021b),as some customers still doubt their value
(de Ruyter et al.,2020).
Understanding how consumers accept or will incorporate
AR technology as part of their shopping habits, as well as
studying the effects of AR f‌luency on consumer behavior, may
assist marketers in capturing new prospects and discovering
different channels to connect, interactand exchange value with
their customers (Hilken et al., 2022). In the wake of this
technological evolution, exploring how these advancements
can be strategically leveraged to augment a brands retailing
efforts is imperative.This exploration is not just about adopting
technology for its own sake, but understanding its role in
enhancing customer interaction engagement, driving sales and
developing strongbrand loyalty.
AR effectiveness resides in improving the customer
experience by providing a vivid experience while m-shopping,
reducing mobile usersuncertainty while shopping online,
lessening the perceived risk, overcoming the intangible nature
of the medium and increasing their self-conf‌idence in
purchasing apparel items online (Hilken et al., 2018,2022;
Mishra et al.,2021;Sihi, 2018;Tan et al., 2021).Incorporating
AR in online shopping, thus, positively affects consumers
attitudes toward the products and purchase intention
(Brengman et al., 2019), supports the development of
exploratory behavior (Beck and Cri
e, 2018), increases
consumersdisposition to buy a product even at higher prices
(Caboni and Hagberg, 2019) by reducing uncertainty,
empowers consumers to make better-informed choices when
making purchases online (Kowalczuk et al., 2021), and boosts
conversion rates(Dacko, 2017).
Successful AR Marketingdepends on understanding the user
experience and unique characteristics within the AR customer
journey (Rauschnabel et al., 2022). What has not yet been
explored in depth is the view of AR technology use as a
consumer habit. Consideringconsumer habits as an antecedent
to acceptance and use of technology advances the literature on
the Unif‌ied Theory of Acceptance and Use of Technology
[UTAUT (Venkatesh et al., 2003)] and its variations
[UTAUT2 (Venkatesh et al.,2012)], as more consumers are
becoming f‌luent with the notion of using the AR technology
within the customer experience.
Generation Z (Gen Z) is the most notable generational
cohort prof‌icient with AR technology(Ameen et al.,2023;Tlili
et al.,2022). Def‌ined as individuals born between 1997 and
2012 (Dimock, 2019), the oldest members of Gen Z in the
USA started middle school approximately the same time the
iPhone was launched, and YouTube and Amazon Prime were
merely two years old. The f‌irst Gen Z members are now young
adults, becoming an integral part of the universe of shoppers,
especially online, and prof‌icient with newtechnologies. Extant
research indicates the importanceof understanding how Gen Z
consumers f‌it into the digitally-drivenrelationship with retailers
(Agrawal, 2022;Cavalinhos et al.,2023) as they seem to
behave differently as consumers and aremore focused on
innovation(Priporaset al., 2017, p. 374). Analyzing how Gen
Z uses those innovations is crucial, as it may determine how
brands should integrate the latest technologies into the
customer journey and brand experience (Ameen et al.,2021;
Mason et al., 2022;Tianet al.,2023).
How effective and inf‌luential is the preexistinghabit of using
AR? Specif‌ically, we can explore the usage of AR technologyas
a habit among particular generations of consumers, given
generational differences in mobile device usage (Cavalinhos
et al.,2023) and digital prof‌iciency with social media (Tian
et al.,2023). While both Gen Y and Gen Z are considered
digital natives, studies found notable differences in their digital
behaviors and characteristics,underscoring the dynamic nature
of how these generations interact with technology (Hamdi
et al., 2022). Consequently, we ask how Gen Z, also known as
mobile natives(Roth-Cohen et al.,2022), reacts to such
conceptualization, compared to their older digital natives
counterpart, Gen Y. These are the focal questions the current
research aims to address.
To that end, this study delves into the intersection of
innovative technology and consumer behavior, specif‌ically
examining how the seamless integration of AR into the retail
landscape can transform how brands engage with the mobile-
native Gen Z demographic. Our focus on AR stems from its
ability to superimpose virtual depictions of actual products
onto actual world visuals, enablingreal-time product-customer
interactions in a digital environment. AR bridges the gap
between digital and physical realms and uniquely showcases
actual productswithin a digital space.
Through this lens, we unveil actionable insights that will
empower brand managers to effectively tailor their strategies,
ensuring that these technological integrations resonate with
Gen Zs unique preferences,drives and habits, fostering a more
dynamic, immersive and satisfying shopping experience. This
exploration adds to an understanding of the mutual
relationship between cutting-edge technology and consumer
engagement, setting a new benchmark for omni-digital retail
strategies in the ever-evolvingfashion landscape.
Conceptual framework and hypotheses
development
Brands are increasingly adopting mobile augmented reality
(MAR) to enhance their interaction with customers by
integrating AR features into their mobile apps (McLean and
Wilson, 2019), aiming to elevate brand-customer engagement
and create innovative shopping experiences (Qin et al.,2021).
Hence, this research focuses on MAR acceptance and its
consequences on the behavioral intentions and brand
experience of digitalnatives.
Technology acceptance modelshave been rigorously applied
in examining the adoption of consumer-facing technologies
across various domains, such as social media platforms,
electronic banking,smart technologies, e-commerce and online
services, underscoring their critical role in understanding user
engagement and acceptance patterns (Marikyan et al.,2023).
Specif‌ically, the Unif‌ied Theory of Acceptance and Use of
Technology 2 (UTAUT2) (Venkatesh et al., 2012) has
emerged as a prevalent framework, offering comprehensive
insights into the factors inf‌luencing consumer technology
adoption (Tamilmani et al.,2020). The adoption and
ref‌inement of UTAUT2 continue to evolve, marked by the
introduction of novel constructs and moderators to address
Decoding Generation Zs habits
Claudio Schapsis, Larry Chiagouris and Nikki Wingate
Journal of Product & Brand Management
Volume 34 · Number 1 · 2025 · 119135
120

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