Augmented Reality (AR) in Online Shopping and Purchase Intention: The Role of Immersion, Perceived Usefulness, and Privacy Concerns

Abstract

The high rate of development of digital technologies has revolutionized online shopping, and Augmented Reality (AR) has become a revolutionary
instrument to increase the consumer experience. In this paper, the authors explore the effects of AR on purchase intention by analyzing the
mediating effects of immersion and perceived usefulness, as well as the moderating effect of privacy concerns. The study is based on Technology
Acceptance Model (TAM), Stimulus-Organism-Response (S-O-R) Model, Flow Theory, and Privacy Calculus Theory and will use Partial Least
Squares Structural Equation Modeling (PLS-SEM) as a method to analyze primary data obtained after surveying 408 online shoppers who have
experience with AR-enabled websites. Findings show that AR is a strong predictor of immersion and perceived usefulness that completely mediate
the influence on the purchase intention. The impact of privacy issues on the relationship between AR experience and purchase intention is negative
and highlights the significance of considering privacy concerns in AR applications. The research adds to the theory synthesis of psychological and
technological approaches in e-commerce and provides practical advice to marketers and the developers of the platform that aims to maximize the
use of AR and consumer involvement.