The Impact of Technological Innovation of Augmented Reality on Consumers' Purchase Intention in the Online Fashion Retailing Industry

Abstract

Augmented Reality (AR) is revolutionizing various sectors, with the fashion industry at the forefront of this transformation. This study dives deep into the dynamics of AR applications in online fashion retailing, emphasizing the impact of the factors of the Innovation Diffusion Theory, including relative advantage, complexity, trialability, and compatibility on consumers’ purchase intention of a fashion retail product via an AR-enabled mobile app. Based on the Flow Theory, this research also investigates the direct and mediating influences of AR aesthetics, the wow effect, and individual attitudes on consumers’ purchase intentions. A total of 180 survey data are collected from potential users of the “Wanna Kicks app”, an AR-enabled mobile-commerce app selling brand shoes. This study found that AR aesthetics significantly shape users’ positive attitudes toward AR, while the wow effect significantly influences purchase intentions, and marginally moderates attitude-purchase intention relationships. This study also reveals that the relative advantage and trialability significantly influence consumers' attitudes toward AR apps while compatibility and complexity are found to be not insignificantly associated with consumers’ attitudes. By exploring the Innovation Diffusion Theory (IDT) and Flow Theory, integrating factors like AR aesthetics and the wow effect for customers’ purchase intention using AR, this research offers a holistic lens to understand the determinants driving consumers’ purchase intentions via AR-enabled technology in the context of the fashion retailing industry. Surprisingly, consumers' prior AR knowledge doesn't necessarily amplify the wow effect, while AR knowledge influences app aesthetics, suggesting that seasoned AR users might possess a nuanced appreciation of AR app design elements. The findings provide invaluable insights for fashion retail marketers, informing about tailored marketing and technology strategies for diverse user segments, and underscore the importance of aesthetic and user-friendly AR design for enhanced consumer engagement and purchase decisions.