An Empirical Investigation of Augmented Reality to Reduce Customer Perceived Risk

Abstract

Current marketing states that organisations should no longer create value by themselves and present it to the customer as a market offering as customers are demanding to create value alongside the organisation. In this paper, we empirically examine the effect of augmented reality (AR) aided co-creation on customer perceived risk. This paper conceptualises co-creation and customer perceived risk and then identifies how emerging technologies may impact it. An experiment demonstrating the power of AR was designed and followed up with a survey. The results show that AR does reduce several perceived risk dimensions. Consequently, managers and marketers should consider it when developing co-creation processes.