When closer feels cheaper: how AR undermines luxury perceptions compared to 3D visualization

Purpose This article examines how augmented reality (AR) and three-dimensional (3D) visualization influence consumers’ evaluations of luxury goods. Design/methodology/approach Three experimental studies were conducted to compare AR and 3D visualization of luxury goods, focusing on their effects on consumer evaluations, psychological distance, and perceived exclusivity. Findings The study finds that AR lowers evaluations of luxury goods by shortening psychological distance and diminishing perceived exclusivity, whereas 3D visualization maintains this exclusivity and thereby supports higher evaluations. AR visualization does not have the same negative effect on ordinary products. Practical implications For luxury brands, the findings indicate that although AR reduces psychological distance, it may simultaneously diminish perceived exclusivity. Therefore, brands must strategically deploy visualization technologies to preserve their premium image. Originality/value This research provides new insights into how AR and 3D visualization specifically impact luxury goods, highlighting potential conflicts between these digital technologies and the exclusivity of luxury brands.