Hilken et al. (2018), Making omnichannel an augmented reality: The current and future state of the art

Question 1

Introduction
Purpose:

Answer 1

• Explore augmented reality (AR) as a tool for enhancing omnichannel customer experiences.
• Bridge online and offline touchpoints to provide seamless and enriched customer journeys.

Question 2

Challenges for Firms:

Answer 2

• Disjointed online and offline experiences lead to customer dissatisfaction.
• Issues like showrooming (trying products in-store but buying online) and webrooming
  (researching online but purchasing in-store).
• Over 50% of customers believe companies underutilize AR for shopping experiences.

Question 3

Promise of AR:

Answer 3

• AR merges online and offline channels through embedded, real-time, and interactive content.
• Example applications:
• L’Oreal: Virtual makeup mirror.
• IKEA: Visualizing furniture placement in homes.
• Nike: In-store customization tools.

Question 4

Situated Cognition Theory:

Answer 4

• Suggests customer experiences are most effective when they:
• Embedded: Integrate products into real-world environments for realistic evaluation.
• Embodied: Allow physical or simulated interaction with products.
• Extended: Encourage peer collaboration and shared experiences.

Question 5

AR’s Role:

Answer 5

• Unlike VR, AR supplements reality, embedding interactive content into physical spaces.
• AR blurs online and offline boundaries, supporting seamless omnichannel behavior.

Question 6

Integrating Offline into Online:

Answer 6

• AR tools simulate in-store experiences online:
• Example: Virtual mirrors for trying on products like sunglasses, makeup, and clothing.
• Benefits: Reduces cart abandonment, product returns, and decision uncertainty.

Question 7

Integrating Online into Offline:

Answer 7

• AR enhances in-store experiences:
• Example: Walgreens’ Aisle411 app offers navigation and personalized promotions.
• Benefits: Promotes in-store loyalty and counters showrooming.

Question 8

AR-Driven Customer Journey Enhancements
Customer Journey Stages:

Answer 8

1. Needs/Wants:
   * Example: AMC Theatres’ AR-enhanced posters provide trailers and ticket information.
2. Awareness/Knowledge:
   * Example: Kapaq AR menus display 3D previews of meals.
3. Consideration:
   * Example: Sipp AR Wine Club recommends wine and food pairings.
4. Search/Learn:
   * Example: Aisle411 helps customers find and learn about in-store products.
5. Likes/Trusts:
   * Example: IKEA’s AR app visualizes furniture placement at home.
6. Value/Willingness to Pay:
   * Example: L’Oreal’s Makeup Genius app allows customers to try, share, and buy looks.
7. Consumption:
   * Example: Augmented Geo Travel provides historical facts and customer reviews on-site.
8. Engagement:
   * Example: Pokémon Go encourages team play and gamification for AR-based engagement.

Question 9

Customer Benefits:

Answer 9

• Enhanced Decision-Making:
  Embedded and interactive AR tools reduce uncertainty.
• Immersive Experiences:
  Features like 360-degree product views create spatial presence.
• Social Collaboration:
  AR allows shared and co-created experiences, enhancing engagement.

Question 10

Managerial Implications:

Answer 10

• Counteracting Channel Switching:
  AR discourages showrooming/webrooming by merging channel benefits.
• Enhanced Loyalty:
  Memorable AR experiences increase brand and store loyalty.
• Customization:
  Tools like Nike’s product configurator offer personalized solutions.

Question 11

Most effective AR implementation when retailer wants to reduce “showroom” behavior:

Answer 11

An inspire AR display that shows online reviews and lets customers virtually customise products while providing immediate purchasing options

Question 12

Current Limitations:

Answer 12

• Inadequate integration of AR features into omnichannel strategies.
• Limited understanding of customer preferences for AR (e.g., privacy concerns, visual vs. verbal
  information).