Introduction

More and more, the methods by which businesses function and customers interact are
being revolutionized by digital technologies. Digital technologies are being used more
frequently by companies to improve customer service and cut costs. Consumers benefit
from increased convenience and access to more shopping options because to the rise of
digital technologies. Technology has advanced rapidly in recent years, as witnessed by the
rise of self-checkout lanes and later, cashier-less stores like the Amazon Go concept. By
2023, merchants should be able to use 5G-immersive technology's communication features
to better interact with their customers and build brand loyalty. Due to rapid advances in
areas like artificial intelligence (AI), advanced robotics (AR), intelligent agents (IA), the
internet of things (IoT), virtual reality (VR), augmented reality (AR), and cross-reality (XR), it
is expected that many different types of brands will adopt the use of these and other digital
technologies and devices (XR). The relationship between businesses and customers will shift
because of all these innovations.

Augmented Reality's Impact on the Buying Process

Different touchpoints during the pre-purchase, during-purchase, and post-purchase phases

of the customer journey each contribute to the overall impression left on the customer.
Customers' preferences for either brick-and-mortar or virtual storefronts might be swayed
by a variety of factors before they make a purchase. The term "external stimulus" refers to
things like design features and technology, while "internal stimuli" refers to variables that
are unique to everyone. At the decision to buy stage, the customer has made their selection
and is committed to the transaction. It's crucial to have a firm grasp on the concept of
consumer choice because shoppers' trust in their purchases rises along with their
knowledge of a product's specifics. When a customer has input during the development
phase, they tend to feel more invested in the final product. An upbeat atmosphere inspires
more faith in the product or service among buyers. The proliferation of products made
possible by advancements in retail technology, however, can make consumers feel
overwhelmed and less confident in their purchasing decisions. This can lead to cognitive
dissonance if the buyer later realizes the product is subpar to what was promised or that
another option would have been better. The post-purchase phase is where the customer
must decide whether to lodge a complaint, which can then affect further actions like
product repurchase and word-of-mouth promotion.

Why this Study

In this research, we focus on the potential impact that AR can have on the customer
experience. As a percentage of total retail market spending, augmented reality is projected
to expand at a CAGR of 135% from 2018 to 2023. With the use of AR, stores and brands will
be able to show customers what products, add-ons, and customizations will look like
virtually before they buy them. Augmented reality (AR) has the potential to revolutionize
the retail fashion business by allowing customers to virtually attend fashion exhibitions and
catwalks. With this software, retailers may equip their fitting rooms with virtual fitting
rooms, smart mirrors, and social try-on areas, allowing customers to try on clothes without
leaving the store. Together, these resources let shoppers virtually try on garments, compare
various colors and sizes, and even post images of their favorite finds to social media. In the
global market, these tools were valued at US$2.5 billion in 2017, and it is expected that this
will increase at a compound yearly growth rate of 22.7% by 2026.

MARKET SIZE

After the epidemic, the use of cutting-edge technologies skyrocketed all throughout the
world. Indian businesses are adapting to this new normal by investing in cutting-edge
technologies like artificial intelligence (AI), big data, augmented reality (AR), and virtual
reality (VR) to boost output and efficiency. In augmented reality, a digital image is
superimposed on the user's perspective of the real world, and the experience is further
enhanced with audio and tactile cues. But virtual reality (VR) is a completely digital, 3D
setting generated by a computer. Visualization utilizing either of these tools can help break
down complex concepts. Virtual reality requires a dedicated VR headset, but augmented
reality can be enjoyed with just about any smart device and camera. According to Statista,
the global augmented reality and virtual reality market size was $28 billion in 2021 and is
expected to grow to $250 billion by 2028. The Indian market for augmented and virtual
reality (AR/VR) is projected to increase from US$0.34 billion in 2017 to US$1.83 billion in
2020, a CAGR of 75%. This growth is attributable to widespread use of AR/VR across
industries in the country.

Company Analysis & Market Share Data

The market for augmented reality is still largely uncharted, with many promising avenues
still to be investigated. For both consumer and business uses, vendors are pouring resources
into R&D to create cutting-edge augmented reality (AR) technologies that streamline
operations and improve efficiency. Companies in the tech and e-commerce industries are
increasingly interested in solutions based on augmented reality (AR) because of its potential
to provide a more immersive user experience. Using augmented reality (AR) in its mobile
app, Lens kart Solutions Pvt Ltd. Let’s customers virtually try on glasses, sunglasses, and
other products on their faces before making a purchase. Similarly, LG Corporation's
augmented reality function on its electronics website allows visitors to see how a specific
television set will look in their home on their mobile phones before making a purchasing
decision.

To keep up with the rapid pace of technological advancement and fierce market rivalry,
major players in the market are forging strategic alliances and partnerships and engaging in
mergers and acquisitions. For instance, Tencent purchased Turtle Rock Studios in December
2021. Tencent saw a lot of potential in the latter's game library and augmented reality
features. Similarly, Google Ventures saw the potential and growth capacity of Blue Vision
Labs, a U.K.-based augmented reality start-up, and invested USD 14.5 million in the
company in August 2020. WPP and Snap Inc. announced their intention to work together in
September 2021 to investigate the potential of augmented reality in creating highly
immersive user experiences. Snap's Consumer AR Global Report 2021 found that 90% of
consumers are interested in using AR for retail buying, thus the relationship has a lot of
potential.

few of the most well-known companies in the augmented reality industry:

  Microsoft
 Google LLC
 Apple, Inc.
 Sony Corporation
 Blippar Limited
 Infinity Augmented Reality Limited
 Niantic, Inc.
 Zappar Limited.
 Magic Leap, Incorporated
 Wikitude GmbH

Insights into India's Emerging Mixed-Reality Industry

This growth is predicted to continue, with the entire market size of AR/VR in India increasing
at a CAGR of 38.29% to US$ 14.07 billion by 2027 thanks to rising smartphone and internet
penetration. There were 1.2 billion mobile customers in India in 2021, with 750 million of
those people using smartphones. Companies and app developers can now offer AR-based
experiences because most young people in Tier 2 and Tier 3 cities are very computer
literate. The retail, instructional, gaming, and healthcare sectors are all major users of
augmented and virtual reality technologies. The consumer market has seen a rise in AR/VR
headset usage as the price of wearables has decreased. At the end of FY20, hardware
accounted for 71% of the total AR/VR market in India.
 Research Proposal

As a result of recent developments in Augmented Reality (AR) technology, there has been a
rise in interest in the use of these technologies in marketing strategy and activity, which we
refer to as Augmented Reality Marketing (ARM). However, managers and researchers
struggle to describe how ARM creates experiences that are meaningful to consumers in a
manner that is distinct from other marketing tactics. This is the case even though there are
growing publications on the issue. We look at the recent research that has been published on
the topic and describe ARM as a customer-facing interface for the use of digital marketing
technology in real-world environments. We pinpoint a one-of-a-kind collection of digital
affordances that ARM provides in contrast to the existing marketing strategies for
conventional media. We develop a framework of ARM experiences by drawing on the key
conceptual building blocks of situated cognition theory and with the assistance of semi-
structured interviews. This allows us to summarize current research and applications, as well
as suggest directions for future research and the future growth that augmented reality will
have.

Research Design

In general, businesses need to have the understanding that the purpose of the virtual shopping
environments that are accessible via e-commerce is not to substitute the already existing retail
channels but rather to make them more engaging and interactive for customers. When
integrating 3D visualization into online stores, however, it is important to pay attention to
whether the style of visualization being used is appropriate for the product that is going to be
exhibited. Therefore, merchants need to be aware of the characteristics and functionalities of
the things they sell, in addition to the extent to which customers may personalized those
products. As a result of the above line of reasoning, the following hypotheses have been
developed:

H1: Both an AR and VR 3D product visualization enhance consumers e-commerce

 experience in comparison to 2D product images.

H0: Augmented reality and virtual reality does not enhance the customer experience

As we have conducted a semi structured interview in which we had 10 people around

the campus and had the conversation with those people that if they know about the
augmented reality and how it has enhanced the customer experience and if they had
experienced it in one of the e commerce websites.

Methodology

A semi structured interview has been conducted amongst 10 people with whom certain
questions have been discussed and with these many findings have been concluded and also
the results were surprising that how people from the age of 21-28 are thinking about the
future of augmented reality and virtual reality. By conducting an experiment with a between-
respondent design, in which the visualization and product type were independently
controlled, we were able to observe the extent to which the visualization type affected the e-
commerce experience and the degree to which a given product's visualization influenced the
e-commerce experience overall.

A conceptual model and framework of augmented reality

Selection of Stimuli

To determine whether augmented reality had an influence on the overall quality of the e-
commerce experience, it was necessary to choose stimuli that were both effective and
relevant. To accomplish this goal, the first thing that needed to be done was to determine
whether augmented reality was integrated into the online storefronts of various businesses.
Error notifications or the non-execution of activities and therefore bad experiences may be
prevented, at least in this respect, by providing participants with shopping environments that
are as realistic as feasible and in which all interaction points of a purchase are previously
addressed. Second, to exclude any possible bias toward the online shops and gain a fully
objective evaluation of the shopped-for experiences, the emphasis has been focused only on
unbranded online retailers. This was done to remove any possibility for favoritism toward the
online businesses. Thirdly, in terms of self-visualization, Virtual Reality (VR) is not capable
of delivering a realistic self-reflection with the technological applications that are currently
available. As a result, an environmental visualization has been chosen for VR, which means
that a simulation of a brick-and-mortar store has been developed. Because there are so many
various kinds of AR goods, it was impossible to settle on a single category for their
applications. In the case of the augmented reality online shops, further care was required
since the use of this kind of three-dimensional product visualization requires the utilization of
a distinct programme. As a result, it was vital to make certain that the applications were
accessible, free of charge, and usable without the need of a login for the two operating
systems that have the highest market share: Apple and Android. After selecting several
different online shops, a comparison of the product selections offered by these various online
stores was carried out, as well as an analysis of the degree to which each of these online
shopping environments might be managed.

Sampling Frame and Sampling method

The students and young people who are interested in e-commerce websites and who fall
within the age range of 21 to 28 and belong to socioeconomic groups A and B will serve as
the sample frame for the research. The ability to work with augmented reality technology is a
necessary qualification. The city of Indore is the focus of this research project. Ten willing
participants volunteered their time for the project. A combination of random and purposeful
sampling was used in the process of selecting the samples to be taken. On the other hand, the
qualifying units of the samples were randomly divided into two separate clusters for the
treatment, and each cluster was based on the amount of interaction they had with one another.

Findings and results

Semi-structured interviews were conducted to collect information for a study examining the impact of
augmented reality on the customer experience. Due to the exploratory nature of this study, a
qualitative research strategy was selected as the method of investigation for its ability to yield in-
depth understanding. understanding of the clients' minds and feelings.  During 2011, the inductive
method, which entails watching a social occurrence and then looking for trends, became the norm.
We conducted fifteen in-depth, semi-structured interviews with consumers who have had the
following encounters: a virtual try-on environment with users who had varying levels of experience
with augmented reality technology. Researchers studying new developments have shown that even
sizable qualitative samples might yield useful results.

After discussing their general impressions of augmented reality (AR) as a virtual try-on tool,
participants were shown a specific AR technology that may be used for this purpose. The technology
is authentic augmented reality software integrated into the app of a well-known Australian online
clothing retailer.

To put it simply, it allows shoppers to virtually try on a variety of sneakers before making a purchase.

It was crucial to include a wide sample of consumers who ranged in their level of professional
expertise utilizing AR in virtual try-on environments because the study's goal was to test many ideas
(constructs and propositions). So, a purposive sampling strategy was implemented to encompass a
range of respondents' levels of familiarity with AR, from novice to intermediate.

Applicants were required to have finished at least one year of graduate school and be at least 18 years
old.

After then, participants were chosen according to their prior exposure to augmented reality.
Participants were informed that they were being recruited for a study to aid in better understanding the
shoe shopping experience from their perspective. Fifteen people, aged 23 to 51, took part in an
anonymous survey. When it became clear that no more information could be gleaned by gathering any
more data, the process of amassing such information was halted.

Findings

Seven themes emerged across three customer journey stages: pre-purchase, purchase, and post-
purchase after purchase. We describe the journey's stages below Topics.

AR and the early purchase journey

AR affects pre-purchase customer experience in four ways. First, AR technology to try products was
thought to expand the range of product, products they could try. Second, respondents thought AR
virtual try-on technology would narrow the choice based on the identified consideration. Set. Third,
using AR to test products may reduce their value brand. Each theme is detailed below.

Theme 1: Expands product consideration

AR broadened consumer considerations. Buying decision, consumers consider their perceptions and
knowledge of products, AR for virtual try-on can expand consumers' consideration set, especially for
design and style. This theme was illustrated by Vijay, who said, “I was in an AR virtual try-on
Changing from a square eyewear frame to a round one was interesting to see.

since I'd never tried it before. I tried some, styles I had not considered" (Vijay, 29, moderate). Often to
try more products. Anu notes that trying new things would encourage her things more than usual: "In
your own home you try-on stupid glasses and see what style suits your face, for fun. In-store I’d
possibly more serious. You can try them at home, looking crazy” AR virtual try-on encouraged
consumers to try products, styles, and designs. (Anu 26)

Using augmented reality in a virtual try-on environment is a common motif we see in our data,
suggesting that customers have a strong interest in this area. Augmented reality enables consumers to
explore more options and try new things, and they can do it from the convenience of their own homes
rather than stores. Having less social pressure when putting on things at home via AR was a major
selling point, therefore the differentiation between the in-store and at-home experience was crucial.

Theme 2: Limits the number of choices

On the other hand, AR was seen to help consumers narrow down their choices instead of making them
more numerous. Consumers found that AR was most helpful at the beginning of the decision-making
process, when they wanted to see as many options as possible. AR can show consumers a lot of
different options, but it can also help them by making it easier to decide what to do. When AR is used
early on in the decision-making process, it may help consumers feel surer about their product choice,
which could increase their confidence in their choice. Akshay pointed out that AR can help him
narrow down his options: "It could be a cool way to narrow down which style you want. When you
walk into a store and see all the glasses, it can be hard to decide which ones to buy. So, I think it
would be cool to know which brands and styles you like before you go shopping (Akshay, 25,
limited). Respondents often talked about how the number of choices could be cut down. AR can help
consumers choose between options, but it might be less useful in situations where there aren't as many
options to begin with, like with mainstream smartphone models. There may be a certain level of
usefulness and number of options that will make people more confident in their choices.

Theme 3 Mitigating the value of brand

When our respondents were shown AR to try on clothes virtually, they said they didn't pay much
attention to the brand. After her experience with the AR tool, when asked what shoe she had tried on,
Anu said, "What brand did I try on? I'm not sure. I didn't notice. But that didn't affect my decision at
all because when I was scrolling through the shoes, I was just looking for the ones I liked best because
I was too excited to try them on (Anu -no experience). Anu's comments show how much she is
enjoying the AR try-on experience, which is like being in a flow state. Like online shopping, using an
AR virtual try-on tool requires searching for information. This can be difficult because the complexity
of the task can make the customer feel stressed. During this flow state, the value of the brand goes
down, and the consumer loses track of time and loses track of who they are.

Divya's own experience backs up these conclusions. "I didn't even know what brand I was looking at,"
she said. I basically chose based on how the shoes looked. I liked the style of the plain white shoes... I
don't know what kind they were" (Divya, 27, limited).

Divya's comments show active participation and flow. We found that for many of the people we
talked to, using the AR tool made brand less important before they bought something. People seemed
to care more about the style of the product and whether that style could be tried on virtually. Our
respondents said the experience was exciting and that they got lost in it, which is similar to moments
of flow. For some, this made the brand less important. This could be a chance for new and up-and-
coming brands to reach new customers, but it could be hard for established brands if customers start
to look at brands they haven't heard of before.

4. Theme The role of AR in curating

Consumers tended to believe that augmented reality (AR) would be a beneficial virtual try-on tool that
could aid them in the curation of outfits, since it would enable them to visually see how items pair
together.

Respondents noted that a significant advantage of augmented reality is that it helps them to judge an
item's aesthetic appeal, as opposed to only the utilitarian benefit of 'fit' Consumers most frequently
discussed augmented reality as a means of generating value through the curation of products worn
together.

According to Romit, "when I want to buy anything to check whether it matches me, I don't know how
it fits me" (Romit 23, no experience). In terms of size and fit, online buying can bring complications
(Kim, 2016). Nevertheless, consumers respect the capability of augmented reality to provide a visual
picture of the items worn together. According to Neha, the primary advantage is that you can
determine whether it visually complements you. Therefore, I believe you care more about how the
glasses look on you than how well they fit. I believe that it is more vital to appear good when wearing
clothes.

(Radhika 24, mild).

Kasish emphasized the value of curating at the point of purchase by stating, "[It would be useful] to
check if it would look well with my clothing when I am ready to purchase it" (Kasish, 23, no
experience). This is because AR provided a less burdensome setting than one in which clients must
remove their clothing to try on different outfits. Given that consumers want to maximize their time
and minimize the work required to attain a goal, reducing the amount of effort required during the
purchasing process is crucial. Effort consists of cognitive, emotional, time, and physical components;
therefore, augmented reality technology allows buyers to view how different goods would look when
paired without having to physically try them on, which would be inefficient.

Consumers tried on a specific item to determine if it would complement an outfit, they had in mind
but could not visualize, such as Christine: "I can see how it could meet your desire if you already have
an outfit in mind." And you need shoes to complement the look. Because you don't have a pair, your
last pair died, or something along those lines. You have something specific in mind. Like, it is a visual
function. You have an outfit in mind for an event or other occasion. Then you must determine whether
it complements the outfit you have in mind at home. Therefore, AR may offer retailers options to sell
across categories.