City Research Online

Abstract

Driven by the proliferation of augmented reality (AR) technologies, many firms are pursuing a strategy of service augmentation to enhance customers’ online service experiences. Drawing on situated cognition theory, the authors show that AR - based service augmentation enhances customer value perceptions by simultaneously providing simulated physical control and environmental embedding. The resulting authentic situated experience, manifested in a feeling of spatial presence, funct ions as a mediator and also predicts customer decision comfort. Furthermore, the effect of spatial presence on utilitarian value perceptions is greater for customers who are disposed toward verbal rather than visual information processing, and the positive effect on decision comfort is attenuated by customers’ privacy concerns.

Publication Type:	Article
Publisher Keywords:	Augmented reality, Online service experience, Service marketing strategy, Situated cognition, Spatial presence
Subjects:	B Philosophy. Psychology. Religion > BF Psychology H Social Sciences > HF Commerce Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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