Beauty Tech—Customer Experience and Loyalty of Augmented Reality- and Artificial Intelligence-Driven Cosmetics

Cosmetics companies are increasingly integrating augmented reality and artificial intelligence technologies into products and services referred to as beauty tech; consumer perceptions of these solutions, however, remain understudied. Data generated via an online survey are implemented in a stimulus–organism–response framework, deduced from the beauty tech literature. Thereupon, the study identifies how interactivity, informativeness, personalization, and service quality of digital and physical beauty tech solutions for home use affect utilitarian and hedonistic values and the perceived risk factors among consumers. Via customer satisfaction, the effect of the value perception on the purchase intention and loyalty is considered. Results hint at strong effects of characteristics of the services and applications on the utilitarian and the hedonistic dimension of customer experience, which in turn strongly influence customer satisfaction. Perceived risk factors play only a marginal role. Only regarding the tested physical product does higher service quality add to the customer experience. Customer satisfaction in turn results in positive brand perception across different stages of the customer journey and leads to a higher purchase intention, positive brand advocacy, and a higher re-purchase intention. Consequently, well-designed solutions can generate higher customer satisfaction and loyalty on multiple stages along the customer journey.