The value of augmented reality: exploring hedonic and utilitarian augmented reality experiences

Purpose The current study explores two distinct augmented reality (AR) experiences (hedonic and utilitarian) to determine the drivers of satisfaction and word-of-mouth (WOM). Specifically, this research investigates how different AR characteristics (person–virtual environment (VE) interaction, novelty) impact reality congruence and immersion, which ultimately lead to satisfaction and WOM. Design/methodology/approach We tested the proposed model using a US consumer sample ( N = 401) by applying partial least squares structural equation modeling (PLS-SEM) to reveal differences across the AR experiences regarding the mediating effects of immersion and reality congruence. Furthermore, we administered PLS-SEM multigroup analysis to identify differences for hedonic and utilitarian AR experiences. Findings This study provides important insights into the use of AR to create value-driven consumer experiences and outcome behaviors. Interacting with the virtual environment (VE) enhances immersion for hedonic AR experiences while it leads to higher levels of reality congruence for utilitarian AR experiences. While established relationships such as novelty to immersion continue to be significant, new constructs such as person–VE interaction and reality congruence immerge as stronger influences. Originality/value To date, most studies have implemented apps such as IKEA Place and have considered value as one comprehensive construct. However, limited research has examined differences in hedonic and utilitarian AR experiences. The current findings enhance the understanding of utilizing value-driven consumer experiences within the AR context to achieve desirable outcome behaviors.