The impact of virtual reality and augmented reality on global brand transformation: insights from immersive advertising among Nepalese adolescents

Purpose This study aims to examine the impact of augmented reality (AR) and virtual reality (VR) marketing communication on consumer engagement, perceived diagnosticity, brand attitude and purchase intention in an emerging market context. Design/methodology/approach Data were collected from 408 consumers aged 18 years and above across five cities in Nepal who were exposed to real-world AR and VR brand marketing content. The proposed relationships were tested using structural equation modelling. Findings Perceived immersion significantly enhances consumer engagement and perceived diagnosticity. Both factors positively influence brand attitude, which in turn drives purchase intention. Brand attitude emerged as the strongest direct predictor of purchase intention. The findings indicate significant consumer responses to AR/VR marketing communications, although the effects are statistically small and should be interpreted in light of the passive exposure design. Practical implications This study suggests that AR and VR can effectively enhance consumer engagement and brand attitude by providing immersive and informative product experiences. Marketers should focus on designing interactive and easy-to-use content that clearly demonstrates product benefits. Since brand attitude strongly drives purchase intention, immersive campaigns should prioritise building positive brand perceptions. The findings also indicate that AR/VR is effective even among first-time users in emerging markets like Nepal, making it a viable tool for early adoption in marketing strategies. Originality/value This study extends the immersive marketing literature by providing empirical evidence from Nepal, an under-researched emerging economy, and by examining consumer responses to marketing communications concerning immersive technologies. The findings offer insights into how perceived experiential and informational qualities of AR/VR marketing content relate to consumer responses.