Retail value creation through augmented reality: The role of task-technology fit, consumer knowledge, and personality

As a consumer service that complements their retail strategy, many retailers use augmented reality (AR) apps to allow consumers to evaluate their products and virtually place them in their surroundings (e.g., home). While previous research highlights the effects of AR apps on various consumer perceptions and behaviors, this research is original in examining the effect of AR app design on consumer perceptions of product value as a novel outcome, the underlying mediation mechanism, and the variation of this mechanism by consumer characteristics. Hypotheses are developed based on task-technology fit theory and tested using regression on AR app user data from Indonesia. The results show that AR app performance (i.e., technology performance) has a positive effect on perceived product value (i.e., consumer performance in the product evaluation task of identifying its value). This effect is mediated by the perceived fit between the AR app and the product evaluation task (i.e., task-technology fit). It is weaker for consumers with more knowledge about AR apps (i.e., technology knowledge) and a conscientious personality, and stronger for consumers with more e-commerce knowledge (i.e., task knowledge) and an open personality. Other personality dimensions have no moderating effects. This research extends task-technology fit theory by demonstrating its applicability to the novel context of AR apps and identifying new boundary conditions. It informs marketing practitioners on how to increase the perceived value of their products across different consumer segments. • Augmented reality (AR) performance affects consumers’ perceptions of product value. • The fit between the AR app and the product evaluation task mediates this effect. • The effect is stronger for more open and less conscientious consumers. • It is stronger for consumers with more e-commerce knowledge and less AR knowledge. • The study extends task-technology fit theory (new context and boundary conditions).