The role of augmented reality in redefining e-tailing: A review and research agenda

In recent decades, the retail space has witnessed seismic transformations supported by increasing digitization and booming online channels. Technology has revolutionized traditional retail practices and unraveled new possibilities for retailers to offer dynamic experiences to consumers in the online domain (Pantano, 2014, Dwivedi et al., 2019, Dwivedi et al., 2020). Notably, the global electronic or online retailing (e-tailing) space is projected to increase from USD 4.28 trillion in 2020 to USD 6.38 trillion in 2024 (Statista, 2021). However, in the context of e-tailing, the major challenges that retailers face are online shopping cart abandonment and high return rates (Dacko*, 2017, Hilken et al., 2018). Many customers resist shopping online and complain that it lacks direct contact with products, thus missing the sensory shopping cues, such as touch and feel, which aids in shopping decision making (Li et al., 2001, Jiang and Benbasat, 2004). Conversely, traditional brick-and-mortar retailing takes the lead in e-tailing because of the availability of sensory cues and direct contact with products (Peck & Shu, 2009).

The increasing use of AR in e-tailing can be traced in the latest academic works (Javornik, 2016a, Javornik, 2016b, Hilken et al., 2017, Park and Yoo, 2020, Wang et al., 2021) as well as in practitioner-oriented publications (BCG, 2018a, BCG, 2018b, Cognizant, 2019, Nasscom, 2019, Deloitte Digital & Snap Inc, 2021). The growing acknowledgment of AR can be observed from the estimated growth of AR in retail from USD 1.2 billion in 2018 at a compound annual growth rate of 38.8 % to USD 11.4 billion in 2025 (Markets & Markets, 2018).

Moreover, retailers have realized the benefits of AR substantially during the COVID-19 pandemic (Papagiannis, 2020). The pandemic has posed strict challenges for offline retailers because customers worldwide are apprehensive about shopping in-store owing to social distancing norms. Subsequently, retailers have invested in AR features in their mobile shopping applications (apps)/webstores to facilitate customers’ purchasing decisions and drive sales (CommerceNext & Exponea, 2020). The capability of AR technology to dramatically transform businesses has been realized globally (Hoyer et al., 2020, Dwivedi et al., 2020); however, existing research claims that managers still lack insights and require guidance to explore AR to its full potential (Hilken et al., 2018, Jessen et al., 2020, Hilken et al., 2020). For instance, Gartner (2017) reported that amplified consumer expectations and resistance have led to the failure of early AR technologies, such as Google Glass. Therefore, marketers must understand the critical drivers of and key barriers to consumers’ adoption of AR in e-tailing.

With this aim, we offer a hybrid review of 51 applicable studies with the drive to: 1) review the critical trends developing in the field of AR in e-tailing; 2) consolidate and summarize the crucial drivers, barriers, and consequences (DBCs) from the extant literature; 3) propose future research avenues and pose critical research questions for scholars and managers in the aspects of theory, context, characteristics, and methodology (TCCM); and 4) design a DBC framework featuring the tested and proposed variables for future research. In doing so, this review aims to close the literature gap by proposing a holistic evaluation of AR in the e-tailing landscape.

The rest of this paper is organized as follows: Section 2 discusses the study methodology. 3 Research profiling, 4 Key study variables respectively report the research profile and key study variables for AR in e-tailing. Section 5 examines the research gaps, outlines an agenda for future research, and proposes an integrated DBC framework. Finally, the study concludes with limitations and implications for scholars and practitioners.

Pragya Jayaswal is a Doctoral Scholar in Marketing area at the Department of Management Studies at Indian Institute of Technology Delhi, New Delhi, India. Her research interests are in the area of Retailing, Technology & Innovation, Consumer Psychology, and Emotion & Motivation in Consumer Decisions.

Pragya Jayaswal is a Doctoral Scholar in Marketing area at the Department of Management Studies at Indian Institute of Technology Delhi, New Delhi, India. Her research interests are in the area of Retailing, Technology & Innovation, Consumer Psychology, and Emotion & Motivation in Consumer Decisions.

Prof. Biswajita Parida is an Assistant Professor in Marketing at the Department of Management Studies at Indian Institute of Technology Delhi, New Delhi, India. Her research interests are in the area of Consumer Behavior and Advertising (Advertising scheduling and placement, Children and Advertisement, Consumer decision making under pressure of time, place, and company). Her teaching interests include Integrated Marketing Communication, Product and Brand Management, Evolution of Consumer Behavior, Marketing Management, Technology and Marketing.