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New Report Suggest AR is Changing the Retail Experience

Shopping has changed dramatically over the last few decades, traditional brick and mortar stores have seen consumers head online as they want more choice and competitive prices. Now a report from Cass Business School examining how augmented reality (AR) is challenging the status quo has been released.

The report was carried out by research team formed of, Ko de Ruyter (Cass Business School), Tim Hilken, Dominik Mahr (Maastricht University) and Jonas Heller, Mathew Chylinski (UNSW Business School).

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The findings included: the implementation of AR into retail systems can change consumer dynamics and shape the customer service experience; AR enhances offline experience within retail settings and the technology also has the potential to reduce the influence of packaging design and shelf positioning.

De Ruyter who’s Professor of Marketing at Cass said: “Companies such as IKEA, LOreal, and BMW have already added AR applications to their frontline service delivery. What our research shows is that AR is enhancing online and offline service experiences. The real-time and interactive blend of virtual and physical information results in a compelling experience of presence, where virtual objects become part of the physical world.”

“For example, the app Vivino, let’s you choose the perfect wine for any occasion,  The user simple holds up their phone and Vivino projects information about each bottle of wine, based on its fit with certain foods, acidity level and reviews by other wine consumers. You become an instant wine ‘expert’ thanks to the power of AR!,” says De Ruyter.

“Augmented reality has the potential to disrupt existing marketing practice. Embracing such consumer empowerment, organisation can gain the opportunity to enhance the service experience and enable personalisation in traditional brick and mortar retail settings.”

As more companies start to utilise AR within the retail sector VRFocus will report back with the latest advancements.