Value Creation in AR-mediated Experiences: An Empirical Study of Mobile Augmented Reality in Retailing

Elisa Madeleine Mailänder

Student thesis: Master thesis


By putting virtual products in the hand of consumers, augmented reality (AR) creates interesting opportunities for consumers to co-construct product and service experiences on demand in a specific context of time and space. While past research has studied consumers’ adoption of AR, little is known about how value is created in AR-mediated online service experiences from a consumer perspective. This thesis qualitatively addresses this research gap using a combination of participant observation and interviews to uncover how value is created and understood by users of shopping-oriented AR mobile applications from a service-dominant perspective. An empirical study was conducted examining two AR mobile applications, IKEA Place and Sephora Virtual Artist, with some of Generation Y as the sample. The results indicate that value can be simultaneously co-created and co-destroyed in consumers’ interactions with the branded AR application. As a medium, AR is well-suited for creating engaging consumer-provider interactions and supporting consumers’ information-processing by embedding information into their personally-relevant surroundings. Conversely, a lack of perceived realism and control over the service experience as a consequence of registration errors or faulty augmentation were triggers of value co-destruction. The findings further support the idea that value is contextually and individually determined and results from consumers’ accumulated experiences of functional and emotional service outcomes during usage. Consequently, firms cannot deliver valuable experiences to passive consumers but can only facilitate consumers’ co-creation of such value by providing resources in the form of service.

EducationsMSc in International Marketing and Management, (Graduate Programme) Final Thesis
Publication date2020
Number of pages233
SupervisorsMaximilian Schellmann