Understanding consumers’ value co-creation and value co-destruction with augmented reality service marketing

Purpose Although businesses increasingly use augmented reality (AR) to enhance service experiences, the way AR service marketing inspires consumers remains underexplored. Drawing on the consumer inspiration literature, the authors examine how AR service marketing activities such as entertainment, interaction, trendiness and customization enhance consumer inspiration. In addition, the authors explore the role of consumer empowerment and skepticism as key underlying mechanisms between consumer inspiration and value co-creation (VCC) or co-destruction (VCD) intentions. Design/methodology/approach The study used a mixed method, explanatory sequential design to gain a more comprehensive understanding of their proposed theoretical framework. The quantitative survey study involved 344 AR app users, followed by a qualitative open-ended essay study with 34 AR app users. Findings Results suggest that AR service marketing activities positively influence consumer inspiration, which in turn increases consumer empowerment and reduces skepticism. The authors also found that consumer empowerment leads to VCC, while skepticism leads to VCD. These findings provide valuable insights for practitioners seeking to implement AR service marketing activities effectively to inspire consumers, foster value creation and manage value destruction. Practical implications The study highlights inspiration as a key factor in motivating consumers to co-create value, transcending typical service experiences and limitations. Empowered consumers, feeling inspired, are more inclined to contribute effectively to VCC, also fostering trust in the service provider. AR serves not just as a sales channel, but also as a tool for relationship-building and brand retention. Managers should leverage AR to elicit feelings of trendiness, customization and interaction, fostering empowerment and inspiring consumers to co-create value. Originality/value This study significantly contributes to the growing body of literature on consumer inspiration and AR service marketing. It emphasizes the need to consider external (i.e. marketing-induced) stimuli in understanding the sources and consequences of consumer inspiration through AR.