Open access peer-reviewed chapter

Augmented Reality as an Emerging Technology to Promote Products and Services

Written By

Alex Pacheco, Kevin Sánchez, Rosario Pariona, Nestor Cuba and Bertha Larico

Submitted: July 27th, 2021 Reviewed: August 20th, 2021 Published: March 16th, 2022

DOI: 10.5772/intechopen.100030

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Abstract

Augmented reality is a technology that provides more interactive advertising, where you can manipulate and be part of it with greater clarity and empathy as possible. In times of the digital era, companies in the retail sector face a new consumer profile, more digital, more aware and more informed, so companies are in constant competition to impress their customers. That is why this research seeks to describe the importance of augmented reality to promote products and services as an innovative alternative that captures attention and influences the customer’s purchase decision. The research is of an experimental, quantitative and quasi-experimental design with a non-probabilistic sample whose evaluation instrument was a self-elaborated questionnaire that was applied to 60 randomly chosen Marketing managers from the retail sector. Obtaining as a result that augmented reality improves the level of engagement with the brand, generates greater added value and improves the level of innovation in advertising campaigns. What contributes to generate a different and innovative experience to advertise products and services through an emotional connection with people through mobile devices.

Keywords

  • augmented reality
  • benefits
  • promote
  • products
  • services
  • emergent technology

1. Introduction

Augmented reality is an emerging technology that allows improving the sale of products and services through the use of applications on mobile devices [1], highlighting the ease, usefulness and compatibility of use [2]. It helps to position itself in the minds of consumers, generating a differentiating factor with greater acceptance over competitors [3]. Likewise, Pizarro et al. [4] and Ore et al. [5] defines augmented reality as the technology that combines virtual information with a real scenario. Furthermore Schmalstieg and Höllerer [6] indicates that augmented reality meets three characteristics: a) combine real and virtual elements; b) interactivity in real time and c) alignment in 3D, helping to immerse the user in a computer-generated world, allowing an experience free of restrictions [6].

The advertising used in traditional channels has little impact, therefore, advertising campaigns with emotional content are developed, such as the case of school dropouts, which manages to sensitize users. Therefore Bassat [7] defines traditional advertising as the art of convincing consumers by visualizing the benefits of the product or service. However, at present it is difficult to convince the user through traditional means, which is why Alexander [8] indicates that digital advertising transfers traditional advertising to a digital world through social networks, websites, streaming and mobile applications, to which Cardona [9] recommends using the A / B test, which consists of developing two versions of a product to measure which one works better. On the other hand Pizarro et al. [4] presents advertising with augmented reality in the form of three-dimensional images, offering the consumer an experience that builds loyalty and generates a lot of expectation in the audience. Companies face a generation of customers who use information to purchase a product, which according to Godas [10] and Castilla et al. [11] are means that satisfy consumer needs and stimulate demand; and on the other hand, the services that according to Morales [12] and Chamilco et al. [13] is a process that consists of interaction activities between a good and the client. In this way, Bajaña et al. [14] indicates that companies should invest in advertising with augmented reality based on innovation. However, the target audience wants to interact with the product from a virtual environment to bring a personalized experience from home [15]. For this reason Pizarro et al. [4] proposes to use C ++ that allows the development of applications with three-dimensional animations and that works on mobile devices. Thus, augmented reality helps promote products and services in an innovative way, generating positive experiences through images on real environments, it also promotes electronic commerce by highlighting their characteristics [16].

In Spain, Moral et al. [17] carried out an investigation on new digital advertising strategies for young people such as advergaming that causes an emotional and affective immersion in the game, tabvertising that disseminates personalized and interactive advertising content specifically on tablets and smartphones and ARvertising where consumers interact with the product and personalize content from playful experiences with 3D resources, stating that advertising campaigns use augmented reality to increase sales in companies, allowing the user to experience the product through a virtual projection from mobile devices. Also in Ecuador, Bajaña et al. [14] investigated augmented reality in advertising, prospective for the Ecuadorian market that indicates taking advantage of the resources of the digital age without neglecting advertising content so that users experience a social connection with the brand, indicating that this technology is a trend with a future projection. In addition, it is revolutionizing and diversifying businesses, demonstrating the technological advance in first world countries. In Peru, Córdova and Jurado [18] in their research on augmented reality as an innovation in advertising media, they affirm that there was a greater acceptance of multimedia content, generating that 55.23% of the public recommend the use of augmented reality in the advertising because it helps interaction with images and videos.

In Spain, since 2007 little written advertising has been carried out due to the closure of 40% of existing newsstands due to the digital transformation and change in user habits; The custom of obtaining information through the internet has developed with the word “free” in mind [19]. In Mexico, fast food companies launched the “McBurritos” campaign, generating a negative impact on users for not respecting the country’s traditional recipes. Advertising campaigns must be carried out under a user approach, that is, they must emotionally identify with the target audience. In Peru, clothing and accessories stores launched the #ModoCama campaign, causing discomfort in users because they describe an Afro-descendant person as messy and dirty. Whenever there is an advertisement, it must respect ethnicities, religions, races and sex [20].

Currently in the Peruvian market, companies seek to increase sales of products and services, they need to position themselves in the minds of consumers. They use advertising through traditional and digital channels, but do not have the desired impact to achieve an emotional connection with customers. The advertising campaigns present a moral and ethical content that manages to raise awareness about the issue at hand, but fails to persuade the customer to purchase the product or service. There is a new generation of consumers who use more information and want to interact with the product without physically having it to make a purchase decision. This type of consumer seeks to get closer to the product to verify its effectiveness and quality. In this sense, augmented reality and marketing are valuable allies for the growth of the brand. Therefore, the objective of this research is to describe the importance of augmented reality to promote products and services as an innovative alternative that captures attention and influences the customer’s purchase decision, helping to generate a different and innovative experience to advertise products. and services through an emotional connection with people through mobile devices. This research describes the importance of augmented reality to achieve interaction with the consumer, personalize content, enjoy a new experience and stand out from the competition.

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2. Method

The method used in the present investigation is of an experimental, quantitative and quasi-experimental design. The sample consisted of 60 Marketing managers from the retail sector, the technique used was the survey and as an instrument the questionnaire about the independent variable augmented reality with its dimensions of engagement, innovation and expectations of use with a total of 15 questions and the dependent variable promotion of products and services with the dimension level of innovation. The Likert scale was used as a data collection instrument, which was validated by the judgment of experts with a reliable questionnaire and Cronbach’s alpha coefficient of 0.966.

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3. Results

The questionnaire was applied to a total of 60 managers from the Marketing area, chosen for convenience. Based on the results, the following is presented:

Table 1, shows the results about the engagement dimension of the augmented reality independent variable, 20.00% indicate that the level of engagement is regular, 41.67% affirm that it is very good, 30.00% state that it is good and 8.33% considers it bad.

LevelsFrequencyPercentage
Deficient00%
Bad58.33%
Regular1220.00%
Good1830.00%
Very good2541.67%
Total60100%

Table 1.

Level of engagement generated by augmented reality.

Source: Own Elaboration.

Table 2, shows the results about the innovation level dimension of the augmented reality independent variable, 28.33% indicate that the level of innovation is regular, 33.33% consider it good and 38.33% affirm that it is very good.

LevelsFrequencyPercentage
Deficient00%
Bad00%
Regular1728.33%
Good2033.33%
Very good2338.33%
Total60100%

Table 2.

Level of innovation that augmented reality provides to the promotion of products and services.

Source: Own Elaboration.

Table 3, shows the results about the expectation dimension of use of the same variable, 31.67% indicate that they personalize the brand or product, 28.33% consider that they make better use of technology, 23.33% affirm that it is innovative In the market, 10.00% consider that it offers a dynamic presentation of the product and 6.67% affirm that it generates interaction of the clients with the product.

LevelsFrequencyPercentage
They personalize the brand or product1931.67%
Better use of technology1728.33%
Innovative in the market1423.33%
Dynamic product presentation610.00%
Customer interaction with the product46.67%
Total60100%

Table 3.

Expectations for the use of augmented reality.

Source: Own Elaboration.

Table 4, shows the results about the dimension level of innovation of the advertising campaigns of the dependent variable promotion of products and services, 15% indicates that the level of innovation of the campaigns is deficient, 36.67% indicates that the level innovation is bad, 10.00% consider it fair, 18.33% think it is good and 20.00% say it is very good.

LevelsFrequencyPercentage
Deficient915.00%
Bad2236.67%
Regular610.00%
Good1118.33%
Very good1220.00%
Total60100%

Table 4.

The level of innovation of the campaigns to promote products and services of your company.

Source: Own Elaboration.

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4. Proposal

Based on the results of the questionnaire, Figure 1 shows the following model that proposes the importance of using augmented reality as an emerging technology to promote products and services, which help to evaluate the real state of traditional marketing campaigns and then apply the model and obtain results ideal, helping to generate a different and innovative experience to advertise products and services through an emotional connection with people through mobile devices.

Figure 1.

Model on the importance of using augmented reality as an emerging technology to promote products and services. Source: Own elaboration.

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5. Discussion

In Table 1, augmented reality generates a good level of engagement. Companies should not only use influencers or landing pages to capture the user’s attention but also create an interactive experience that contacts and engages with them, such as augmented reality technology. Which agrees with Dwivedi et al. [21] who affirm that the design of the customer experience (CX) through emerging technologies such as augmented and virtual reality, voice-activated assistants and wearable technologies allow cultivating favorable customer engagement behaviors and improve consumer welfare. Bolton et al. [22] asserts that customers expect a fluid, integrative and holistic experience that is complemented with digital channels and people either by phone or in person, improving the overall customer experience.

In Table 2, the innovation generated by these types of experiences generates added value and a new reason for customers to try and adopt the company’s new products. For Carlson et al. [23] digital and social media technologies that are integrated into people’s daily lives provide new opportunities to interact and collaborate with brands in the innovation process. In this way, the innovation that augmented reality transmits is related to the audiovisual media that allows promoting products and services [24].

Table 3, indicates that augmented reality is an efficient means to market products or services. Which agrees with Hinsch et al. [25] that states that companies improve the perception of their products through augmented reality as a key ingredient in the communication of a certain brand. To improve the user experience, Han et al. [26] affirms that augmented reality applications are used in various industries to convey product characteristics and improve the way consumers think, feel and react about the decision of purchase. On the other hand, an analysis of the Company Ericsson [27] concluded that advertising with augmented reality could be a danger to improve the sales of products since the ads could be used as free versions of the products or services.

Table 4, shows that augmented reality is a technological innovation in digital marketing campaigns that develops more relevant and meaningful shopping experiences for consumers. Felix et al. [28] and Kamboj et al. [29] assert that digital channels are platforms that allow innovative marketing practices through social networks. On the other hand Muninger et al. [30] affirms that there is little guidance to promote the strategic use of social networks in innovation processes. While Leminen et al. [31] highlights machine learning and the internet of things as a perspective to improve the level of innovation of the Business-to-Business (B2B) business model.

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6. Conclusions

With the huge number of users with mobile devices on the market, it is essential to use augmented reality to improve emotional connection or commitment, attract new customers and retain existing ones. This technology captures reality from different perspectives by superimposing virtual images on the reality that is seen from a certain mobile and supported by other technologies such as the Global Positioning System (GPS) help users to live unique experiences to interact with the brand through the information or entertainment.

Augmented reality is a technology that creates unparalleled, innovative and exciting experiences that contributes to closer ties between consumers and the brand. In addition to this, augmented reality filters in social networks and multiplayer gamification apps save time, travel costs and advertising thanks to the scalability and availability of the experience.

Companies use augmented reality as advertising and marketing tools to get the attention of consumers. In this way it is used in packaging, where the packaging of a product is used to display information. In events and activations, where positioning and good perception of the product are generated. In the catalog of products and services, where the products are brought closer to the user.

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Acknowledgments

Special thanks to the National University of Cañete, the Research Group on Entrepreneurship and Innovation C@ñeteLab, its great professors, valuable students and collaborators for carrying out this scientific research throughout these years of study.

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Conflict of interest

“The authors declare no conflict of interest.”

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Written By

Alex Pacheco, Kevin Sánchez, Rosario Pariona, Nestor Cuba and Bertha Larico

Submitted: July 27th, 2021 Reviewed: August 20th, 2021 Published: March 16th, 2022