Adopting augmented reality into retailing mix strategy: Generation Z’s perspective in Egypt

Abstract Augmented reality (AR) is a great opportunity for the retail industry because it provides companies with new ways to communicate with customers, promote their products, and achieve more sales. The purpose of this research is to gain a better understanding of the benefits of including AR as part of retailers’ mix on customers’ behavioural intentions, considering the mediation effect of customer experience and the moderation effect of technology readiness. This research has been conducted among Generation Z in Egypt. Consequently, a conceptual model proposing specific connections between the research's variables has been developed and tested. The empirical part of this research relied on a single cross-sectional data collection design, with a sample of 400 respondents using a structured questionnaire. Structural equation modelling analysis was the main statistical tool for testing the hypotheses. The research findings validate the research conceptual framework, emphasizing that the inclusion of AR in the retail mix plays a crucial role in influencing customer behavioural intention. The overall findings suggest that AR enhances interaction and exerts a significant impact on consumer responses by enriching the perceived informativeness as well as fostering perceived playfulness, guaranteeing engagement, enjoyment, and a sense of fun. Also, the findings show that individuals' readiness and comfort with technology play a significant role in shaping their behavioural intentions when interacting with AR applications. From an academic perspective, this research highlights significant issues and formulates vital conclusions that address the gaps in considering AR as part of the retail mix. Furthermore, from a practical perspective, it provides a significant clue for online retailers who are operating in the Egyptian market for the importance of using AR on customer experience and indicates Generation Z's readiness to use the technology.