Professional Documents
Culture Documents
Submitted by
Dua Shahid
DEDICATION
To my family who supports me throughout my life
And to respected Madam Tehreem Anjum who guided me a lot in conducting this study she has
been a source of inspiration throughout this journey.
ACKNOWLEDGEMENT
I am very thankful to Allah Almighty who gives me the strength and courage to complete this
study, this study was only possible because of his countless blessings. I am also very thankful to
Madam Tehreem Anjum who always guided me and supported me throughout this journey
Table of Contents
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
CHAPTER 1....................................................................................................................................6
INTRODUCTION:..........................................................................................................................6
1.1. BACKGROUND:.............................................................................................................7
1.2. RESEARCH AIM:............................................................................................................7
1.3. RESEARCH OBJECTIVES:............................................................................................8
1.4. RESEARCH QUESTIONS:.............................................................................................8
1.5. RESEARCH SIGNIFICANCE:........................................................................................8
CHAPTER 2....................................................................................................................................8
LITERATURE REVIEW................................................................................................................8
2.1. MOBILE AUGMENTED REALITY:..................................................................................9
2.2. CUSTOMER DECISION MAKING:.................................................................................10
2.3. IMPULSE BUYING BEHAVIOR:....................................................................................10
CHAPTER 3..................................................................................................................................12
METHODOLOGY:.......................................................................................................................12
3.1. RESEARCH DESIGN:.......................................................................................................12
3.2. RESEARCH APPROACH:................................................................................................12
3.3. RESEARCH METHOD:.....................................................................................................12
3.4. TYPES OF RESEARCH:...................................................................................................13
3.5. TIME HORIZON:...............................................................................................................13
3.6. PILOT TESTING:...............................................................................................................13
3.7. TOOLS FOR DATA COLLECTION:................................................................................13
CHAPTER 4..................................................................................................................................14
ANALYSIS AND DISCUSSION:................................................................................................14
4.1. DATA ANALYSIS:............................................................................................................14
4.2. GENERAL FINDINGS:.....................................................................................................14
4.3. NORMALITY:....................................................................................................................19
4.4. HISTOGRAM:....................................................................................................................19
4.4. CORRELATION:...............................................................................................................22
4.5. REGRESSION ANALYSIS:..............................................................................................25
REFERENCE:...............................................................................................................................29
CHAPTER 1
INTRODUCTION:
The world is rapidly changing into a virtual world and customers’ needs are also changing due
to augmented demand i.e. asking for more than the core product or services. Marketers are also
searching for different ideas and technologies to promote their businesses. Augmented reality is
one of the greatest human creations in terms of technology. Augmented reality is a combination
of real-world and virtual world with an accurate 3D registration of virtual and real objects. We
can use augmented reality to attract customers. Augmented reality has been developed as
collective tool in the marketing context with an increased use of smart phone devices.
Mobile augmented reality is the AR service that is designed for mobile gadgets, people could
interact with digital objects on their mobile screen, which is a combination of real environment
and virtual 3D objects. Mobile augmented reality helps individual see objects in 3D in the real
world by just pointing their devices in a particular place. It helps customer decide whether they
will like the certain thing in a particular place or not. There are so many applications you can
download on your mobile phones that will make you interact with the virtual world while living
in a real world. There are so many games that show augmented reality Pokémon GO is one of the
good examples of mobile augmented reality, users have to find Pokémon they just have to point
their devices in a particular place and they could see Pokémon and they could capture it. Here are
few examples of mobile augmented reality that will help you understands about the topic more,
IKEA was one of the first company to use AR they have an app called IKEA place that basically
allows you to place their furniture wherever you like by just pointing your mobile phone devices
in that place, it helps customer decide whether the furniture goes with the house theme or color
coordination is good or not. Another example would be Rolex they also developed an app that
allows customer to see what the different types of models will look on their wrist. Some
customers don’t like online shopping because they are not sure if the size will be right so NIKE
developed an app that solve this problem now customer has to point the phone camera on their
feet and it will determine the customers right size.
Customer satisfaction is the most important thing in a sellers mind while selling their product
and mobile augmented reality really helps with customer satisfaction as customers are fully
aware of how the product will look in their surroundings. With augmented reality retailers can
build a new way to engage with their customers that will result in customer satisfaction and
higher sales demand as customer would be eager to try a whole new experience that they haven’t
tried before.
Mobile augmented reality also allows its customers to use the product virtually before actually
buying, which gives a chance to the customer to interact with the marketer before buying the
product. Customers will enjoy to shop in your store because of a new technology this will result
in impulse buying. Augmented mobile reality has many obvious advantages that make it the
center of much technical attention. Most users already have powerful AR smartphones, so they
do not have to go out of their way to get expensive and bulky headsets. Mobile phone devices, by
their very nature, are very portable and easy to bring in almost any space.
As the AR industry continues to rise in market value, the power of augmented reality cannot be
denied. Importantly, it is clear that the influence of AR extends beyond just gaming. It has now
extends to too many different industries.
1.1. BACKGROUND:
It’s hard to believe but augmented reality tech goes back to the 60s but it wasn’t like it is now
obviously. In the 20th century L. Frank Baum the writer of the famous novel “the wizard of Oz”
describes some features of Google glass in his book. He talked about some sort of spectacles that
will allow the wearer to see the initials of others personality which will be visible on their
forehead.
Ivan Sutherland is usually known as one of the inventor of augmented reality. In 1960s he
designed a device that can show a picture in a 3D dimension it was known as the swords of
Damocles. It was quite heavy to use so a lot of people find it uncomfortable to use.
In 1980s Steve Mann developed the Eye Tap, a helmet that helps the users see the digital
information in front of the user’s eyes. This is the first ever augmented reality headset that is still
in use.
So many new discoveries and innovations were made in 2000s. In 2010 augmented reality was
first time used in an advertisement to attract customers. Big companies like Pepsi, Disney used
AR in their advertisement to attract a lot of customers. Then there were so many apps that were
the turning points for mobile augmented reality Snapchat is one of them. In 2014 app introduced
“geo filters” and in 2015 lenses appeared on user’s screen that will analyze user’s features and
bring different graphic elements. The most recent is the partnership of Snapchat and Gucci that
allows users to digitally try on shoes or watch from Gucci’s collection.
This study will focus on the impact of mobile augmented reality on consumer decision making
which will help the retailers to know about its customer’s preferences. This study will also
provide information about the relationship between mobile augmented reality and impulse
buying as it is one of the least researched phenomenon and getting insights about this would be
helpful in establishing viable brands and a good consumer market.
CHAPTER 2
LITERATURE REVIEW
According to the literature review on the previous studies it is clear that mobile augmented
reality has an impact on consumer buying behavior. In the past studies it was proven that
customer enjoys shopping more with mobile augmented reality rather than the traditional one.
According to report by CAMERA IQ which was done on about 1500 US consumers, states that
around 59% of consumer would be more likely to purchase a product from a brand that offers
AR services. In this study we will know about the impact of mobile augmented reality on
consumer decision making and impulse buying.
Recently, marketers started to be aware of the cons of mobile augmented reality also in retailing,
as a mechanism for enhancing customer’s aspects for shopping experience, increasing the
chances of buying in terms of moment of purchasing, products availability and customization.
(Pantano and Servidio, 2012; Cuomo et al., 2014; Rese et al., 2014) Companies like BMW were
one of the first companies to fascinate attention of customers with an augmented reality
advertising campaign in December 2008, started working with augmented reality and turns their
attention towards the uses of augmented reality for marketer. (Berryman and Hoy, 2012)
The lack of studies accompanying by the rapid increase of augmented reality and the increasing
value of AR market urge the need for a rapid clarification of the effect of this form of
experiential marketing. (Bulearca & Tamarjan, 2010).
Gross (2014) studies the factors that impact the online consumer decision-making model by
clarifying relevant decision-making models. The study recommends that consumers purchase
when conciliated by digital websites, a process that is affected by dynamic and information
overload built into the influential concept of consumer decision-making.
Jha (2014) recognized that the vital demonstration for customer purchase decision-making with
the theories/models of consumers’ buying behaviors are alike in their outcome; this varies on the
premise of customers’ urgencies and the intensity of wants and needs for a
selected product. However , products have their own relevance in a consumers buying decision
making process, depending on its utilities and urgencies to customers other
than diverse attention of price, quality, etc. and attitudes, perceptions and self-concepts.
Experts have been focusing on consumer impulse buying for several years, providing a long
history of definition formation. According to Rajan (2020), Liu et al. (2019), and Güler (2014),
impulse buying is linked with naïve, immature, ignorant and cognitive deficiencies. Parsad
(2020) identifies an impulse purchase pattern, as impulse buying occurs when consumer
experienced the urge to buy something immediately. However, It cannot be labeled as
incorporating an important element of pioneer hedonism, which precedes the authorization of
purchases as wishes. Similarly, Suryaningsih (2020) and Zafar et al. (2019), found that an
unexpected purchase involves an investment made for a specific reason where the decision to
buy something is not based on deep thought processes. Impulse buying can be induced by
external motives. . However, according to Addo et al. (2020), not only external motives are
involved, but also internal motives related to human emotions. Matteo et al. (2020) added that
shopping without hesitation can help people deal with low self-esteem, negative emotional states
and negative mental thinking. Stern (1962) associates impulse buying with easy shipping
because shopping involves sacrifices related to travel, time, and budget. As a result, when the
purchase action requires significant investment in these resources, careful consideration and
planning will be required. Conversely, if less effort is needed, then the chances of buying will be
greater. Due to the overcrowding of physical stores, the lack of access to the retail space and the
time-saving effect on searching for information and comparisons of products and prices found in
online shopping.
Many consumer purchases are unplanned, sudden, launched at the same time; it is associated
with a strong desire, a sense of well-being, and excitement. It is estimated that about $ 4 billion
is spent yearly in an impulse buying behavior indicating that the economic value of buying
without hesitation is well established. Impulse buying behavior initially occurs in retail stores
then the advent of the internet, and the rise E-commerce led to the emergence of impulse buying
behavior online. Researchers say an online shopping site more compatible with impulse buying
behavior than offline counterparts as the online shopping site frees consumer’s barriers such as
inadequate store facilities, limited working hours, and social pressure from employees and other
consumers. In addition, due to improved development in Web 2.0, the popularity of social media,
and the growth of social networking sites, many S-commerce forums have improved. These
forums put more emphasis in the public sector there are products or services. In contrast,
traditional E-commerce focuses on increasing efficiency with sophisticated search techniques,
one-click purchase, visual catalog driven by specification, and recommendations based on past
consumer purchasing behavior. Customers often deal with E-commerce platforms individually
and outside of other clients (Samah Abdelsalam and Naomie Salim, 2020).
CHAPTER 3
METHODOLOGY:
Research methodology is the method that identifies, select and interpret detail of a topic(Ayush
Chaudhari, 2020) Based on the literature review, a research model is put forward to know the
impact of mobile augmented reality on consumer decision making and impulse buying.
This studies borrows philosophical basis from the researchers, as theories has been used to test
the relationship between different types of variables involve in this study, which can be tested by
the viewpoint of many objectivist. The data will be collected through a questionnaire from at
least 100 respondents that have knowledge about mobile augmented reality as many customers in
Pakistan are not fully aware of this concept. This study is descriptive. Descriptive research
describes the characteristics of a sample or a population (D.N.A. (2021, May 9). Cross sectional
time horizon will be suitable for this study because of limited time and material.
In this research quantitative method will be used. Structured questionnaire will be given to
respondents that have knowledge about mobile augmented reality; data from minimum 100
respondents will be required for this study.
In this study we are going to use descriptive research because we want to understand more about
customer decision making and impulse buying and the impact of mobile augmented reality on
these variables.
CHAPTER 4
DEMOGRAPHIC TABLE:
Gender
Male 68 47.2
Female 76 51.8
Qualification
Intermediate 38 26.4
Bachelors 74 51.4
Masters 30 20.8
Diploma 2 1.4
Occupation
Student 92 63.9
Employed 32 22.2
Unemployed 8 5.6
Self employed 12 8.3
Total 144 100
The total responses received were 144, according to the above table 47.2% were males and
51.8% were females. In this study the age from 20-25 were at 70.8%, 9.7% were from the age
group of 26-30, 11.1% from the age between 31-35 and 5.6% were from the category of other.
The qualifications of the respondent were 26.4% intermediate, 51.4% were bachelors, 20.8%
were masters and about 1.4% was diploma. About 63.9% were students, 22.2% were employed,
5.6% were unemployed and about 8.3 were self-employed
From the above pie chart we can interpret the ages of the respondents, the green part shows that
the age from 20-25 were at 70.8%, 9.7% were from the age group of 26-30, 11.1% from the age
between 31-35 and 5.6% were from the category of other
The above pie chart shows that 47.2% were males and 51.8% were females. The blue part
represents the male respondent’s and green part represent female respondents
The above pie chart shows that the qualifications of the respondent were 26.4% intermediate,
51.4% were bachelors, 20.8% were masters and about 1.4% was diploma.
The total responses were 144 and about 63.9% were students, 22.2% were employed, 5.6% were
unemployed and about 8.3 were self-employed.
4.3. NORMALITY:
It is important to check the normality of data because normality of data is prerequisite for
different tests like correlation and regression. Histogram was used by researcher to ensure
normality of data.
4.4. HISTOGRAM:
Histogram is used to check the normality of data. Bell shape distribution is symmetric and it
shows that highest frequency is in center. This shows that values are distributed near mean thus
ensure normality of data. Following figure shows that histogram is not skewed but it is bell
shaped which indicates that data fulfills the assumption of normality.
The above graph shows that values are distributed near mean thus ensure normality of data. It
shows that histogram is not skewed but it is bell shaped which indicates that data fulfills the
assumption of normality.
The above graph shows that values are distributed near mean thus ensure normality of data. It
shows that histogram is not skewed but it is bell shaped which indicates that data fulfills the
assumption of normality
The above graph shows that values are distributed near mean thus ensure normality of data. It
shows that histogram is not skewed but it is bell shaped which indicates that data fulfills the
assumption of normality
4.4. CORRELATION:
In order to address the first research question correlation is used. In this step relationship of
mobile augmented reality and consumer decision making/impulse buying was found. Correlation
tells about strength of relationship among variables and also about the direction of relationship
through positive and negative signs, in correlation +1 shows strong positive relationship among
variables, -1 shows negative relationship among variables while 0 shows there is no relationship
among variables.
Pearson correlation was used as data fulfill condition of normality. Two-tailed test was used as
researcher did not know about the direction of relationship between two variables.
ASSUMPTION 1:
In order to check the relationship between these variable we considered the following hypothesis.
Ho: There is no impact of mobile augmented reality on consumer decision making.
H1: There is an impact of mobile augmented reality on consumer decision making.
Following table shows the results of correlation between the above variables:
Correlations AR CDM
Note: N= number of observations, (**) shows value is significant, *correlation will be significant
The significant value in above table is .000 which is less than 0.05 and significance value less
than 0.05 represents that there is less than 5% chance that this relationship occurred by chance.
So, in this case Ho is rejected and H1 is accepted that there is an impact of mobile augmented
reality on consumer decision making.
ASSUMPSTION 2:
In order to check the relationship between these variable we considered the following hypothesis.
Ho: There is no impact of mobile augmented reality on impulse buying.
H1: There is an impact of mobile augmented reality on impulse buying.
Following table shows the results of correlation between the above variables:
Correlations AR CDM
In the above table value of Pearson correlation is 0.679 which is slightly greater than 0.5 hence
we can say that there is a moderate relationship among augmented reality and impulsive buying.
The double steric on value predicts some significant results. It shows a positive correlation that
means there is an impact of mobile augmented reality on impulsive buying.
The significant value in above table is .000 which is less than 0.05 so we reject H0 and can say
that there is an impact of mobile augmented reality on impulsive buying behavior.
ASSUMPTION 1:
Testing the Goodness Fit: Coefficient of Multiple Regression (R) and Coefficient Determination
(R square)
R and R square are used to see the relationship between independent and dependent variables.
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .678a .460 .453 .44321
a. Predictors: (Constant), ARTOTAL
Following table shows result of analysis. According to this the R value is .678 which indicates
relationship between mobile augmented reality and customer decision making. The adjusted R
square value is .460 which means that 46% variation in consumer decision making occurred due
to mobile augmented reality.
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 11.725 1 11.725 59.689 .000b
Residual 13.750 70 .196
Total 25.475 71
a. Dependent Variable: CDMTOTAL
b. Predictors: (Constant), ARTOTAL
The above table shows result of ANOVA output that indicates if model is statistically significant
or not. According to this table, F value is 59.689 and significance is less than 0.01 so the overall
equation is statistically significant.
Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.278 .349 3.663 .000
ARTOTAL .670 .087 .678 7.726 .000
a. Dependent Variable: CDMTOTAL
The result of above table showed that coefficient value of ARTOTAL is (= 0.670,
p<0.01) have significant effect on customer decision making at significance value less
than 0.01 and have strong effect since the value is greater than 0.
Above mentioned table shows the result keeping all the independent variables as constant,
customer decision making increases by .670 units if there is 1 unit change in mobile
augmented reality.
ASSUMPTION 2:
Following assumptions were fulfilled for running regression on the data set:
Testing the Goodness Fit: Coefficient of Multiple Regression (R) and Coefficient Determination
(R square)
R and R square are used to see the relationship between independent and dependent variables.
Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .183a .034 .020 1.12322
Following table shows result of analysis. According to this the R value is .183 which indicates
relationship between mobile augmented reality and impulse buying. The adjusted R square value
is .034 which means that only 3.4% variation in impulse buying is occurred due to mobile
augmented reality.
ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 3.062 1 3.062 2.427 .124b
Residual 88.313 70 1.262
Total 91.375 71
a. Dependent Variable: IBTOTAL
b. Predictors: (Constant), ARTOTAL
The above table shows result of ANOVA output that indicates if model is statistically significant
or not. According to this table, F value is 2.427 and significance is less than 0.01 so the overall
equation is statistically significant.
Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.430 .884 1.618 .110
ARTOTAL .342 .220 .183 1.558 .124
a. Dependent Variable: IBTOTAL
The result of above table showed that coefficient value of ARTOTAL is (= 0.342 p<0.01) have
significant effect on impulse buying at significance value less than 0.01 and have strong effect
since the value is greater than 0.
Above mentioned table shows the result keeping all the independent variables as constant,
impulse buying increases by .342 units if there is 1 unit change in mobile augmented reality.
CHAPTER 5
DISCUSSION
These findings are consistent with theory and research. According to the literature review on the
previous studies it is clear that mobile augmented reality has an impact on customer decision
making and impulse buying. The term consumer behavior is defined as the behavior customers
shows in searching for a purchasing of goods and services that they will look forward and will
satisfy their needs. The study of consumer behavior concentrate on how consumers make
decisions to spend their accessible measures9 (time, money, effort) on utilization related items.
(Schhiffman & Lazar, 2007) In the past studies it was proven that customer enjoys shopping
more with mobile augmented reality rather than the traditional one. According to report by
CAMERA IQ which was done on about 1500 US consumers, states that around 59% of
consumer would be more likely to purchase a product from a brand that offers AR services.
Electronic gadgets and their apps simplify easy access to information anywhere and anytime
which increase its customers. (Wang et al, 2012) mobile augmented reality technology has been
growing the use in smart phone shopping apps to augment the customer’s mobile phone
shopping experience; resulting in impulse buying behavior After going through the findings of
this research we can say that we agree with the previous research that mobile augmented reality
has an positive impact on consumer decision making and impulse buying.. Mobile augmented
reality also allows its customers to use the product virtually before actually buying, which gives
a chance to the customer to interact with the marketer before buying the product. Customers will
enjoy to shop in your store because of a new technology this will result in impulse buying. The
results of this research are aligned with the previous study. The world is rapidly changing into a
virtual world and customers’ needs are also changing due to augmented demand i.e. asking for
more than the core product or services. We can use augmented reality to attract customers.
Augmented reality has been developed as collective tool in the marketing context with an
increased use of smart phone devices (SHA Kazmi · 2021). After going through our findings we
can say that people enjoy shopping more with mobile augmented reality rather than the
traditional in store shopping and it is also clear that mobile augmented reality has significantly
positive impact on customer decision making and impulse buying. People like using augmented
reality apps because it is a fun and useful technology. Customers virtually use the product before
actually buying the product and it is clear from the findings of our research that customers enjoys
using this technology and this also results in impulse buying. If the retailer wants to attract more
customers they should go towards mobile augmented reality as a marketing tool. Table of
correlation and regression shows the positive impact of mobile augmented reality on customer
decision making and impulse buying. Table of correlation and regression shows the positive
impact of mobile augmented reality on customer decision making and impulse buying.
CHAPTER 6
CONCLUSION
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