Impact of Augmented Reality on Actual Purchase Behavior: The Role of Customer Brand Engagement and Purchase Intention

Abstract

The purpose of this study is to empirically investigate the impact of augmented reality on the actual purchase behavior of online consumers in Pakistan, considering the role of familiarity and the interconnected role of customer brand engagement and purchase intentions. The study used a positivist paradigm, a deductive approach, and quantitative techniques with a cross-sectional time horizon. A sample of 150 online consumers from Lahore was selected using the convenience sampling method. The study used PLS-SEM to test the proposed hypotheses using Smart PLS 3 for analysis. The results showed that augmented reality has a positive impact on customer branding. There was a statistically significant relationship between augmented reality and customer brand engagement. However, this familiarity did not dampen the relationship between augmented reality and customer brand engagement. The relationship between augmented reality and customer brand engagement was not moderated by the familiarity factor. The study offers companies a strategic opportunity to redefine themselves through technological development and address the decline in sales due to intense competition through unique affiliation with theory of planned behavior. This study provides valuable insights into the use of augmented reality to enhance brand image and influence customer purchasing behavior. It guides decision-makers to develop strategies that reflect customers and build brand loyalty in Pakistan.