BlueSky Thinking Summary

In a study, Srinivas K.

Reddy, along with colleagues Sandeep R.

Chandukala and Yong-Chin Tan, evaluated the impact of AR on consumer behavior using data from an international cosmetics retailer.

Equipping the retailer's mobile app with AR technology resulted in a 20% increase in time spent browsing, nearly a 30% extension in product views, and an almost 20% higher purchase rate compared to non-AR users.

Significantly, AR usage drove the purchasing of unpopular brands, high-priced items, and narrow-appeal products, especially in new app users.

It thus indicates that AR reduces consumer ambiguity by letting users visualize the results of products, hence making a more adventurous buying decision.

Precisely, the study brings out the possibility of AR enhancing online shopping experiences mostly for risk-averse consumers and unknown brands, hence establishing retail dynamics through exploration and increasing sale diversity.