Brief Review Of Augmented Reality Science in Retail

Sector
Gautam , J Sagar, Aman Aggarwal, Mohit Malik

Bharti Vidyapeeth College Of Engineering

Corresponding author: gautamsagardelhi@gmail.com

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, functions 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.

INTRODUCTION

With the steadily increasing prevalence of online business, firms face formidable
challenges with regard to providing compelling customer experiences at the online
organizational frontline. Customer satisfaction with—and trust in—privacy
safeguards remains low, as do conversion rates (McDowell et al. 2016). Virtual
shopping cart abandonment and product return rates continue to rise, partly because
of the limited service scope of online retailers. As online shopping is considered to be
a service experience, developing an innovative, distinctive service strategy to tackle
these challenges is crucial for driving firm value. Such a strategy must acknowledge
that many online customers find it hard to visualize how products fit into their
personal environments or get a feel for a service experience. To enhance customer
affinity for online offerings and facilitate online decision making, many firms (e.g.,
IKEA, L’Oreal, De Beers, Westpac, UPS, American Apparel, Volvo, Marriott) have
adopted a strategy of service augmentation, focusing not on the core product but on
the interaction between customers and the organizational frontline . To simulate
aspects of service that normally are reserved for in-store shopping experiences, they
leverage augmented reality (AR) applications that contextualize products by
embedding virtual content into the customer’s physical environment, interactively
and in real-time .

According to Apple CEO Tim Cook, AR-based experiences allow for “a more
productive conversation” (CNBC 2016). Apple refers to AR as a core technology and
actively pursues an AR-related acquisition strategy. With AR, customers can
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dynamically engage with goods and services, for example by virtually placing an IKEA
sofa in a real-time view of their living room, changing the Dulux color of their
wallpaper, or trying on the latest style of sunglasses, clothing, or makeup in a virtual
mirror. Thus AR helps customers see how products fit them personally or in their
environments, while still maintaining the convenience of online purchasing. From a
service augmentation perspective, AR is a “smart” technology, set to enhance online
service experiences through a more intuitive, context-sensitive interface that aligns
with the ways customers naturally process information. Such an advanced frontline
interface can improve service quality and offer customers more effective, enjoyable
online shopping.

A recent industry report forecasts that investments in AR-enabled service

augmentation will exceed $2.5 billion in 2018 . However, due to inflated expectations
there are concerns about the business reality of these market projections. Customers
expect AR to deliver experiential benefits while also reducing their decision-making
uncertainty, but most extant research into AR is limited to a focus on generic
technology acceptance models (e.g., Rese et al. 2016). Furthermore, compound
annual growth rates for AR are estimated primarily using device types and industry
segmentation, rather than specific online customer needs (e.g., visualization of
offerings) and concerns (e.g., privacy). Therefore, these projections may not be a
bellwether for sustained success; firms face a clear risk of building AR solutions that
customers will not embrace. Service managers need a more in-depth understanding
of which customers are likely to engage with this new technology, what makes for a
compelling experience, and how AR can improve decision making. The paucity of
knowledge on these matters also reveals the strong managerial need to understand
how the deployment of AR can transform online shopping into a value-added service
experience. By addressing three critical issues, this article contributes to emerging
research on the methods available to enhance online service experiences.

First, we draw on situated cognition theorizing to show that customers’ information

processing is embedded in their physical environment and embodied through
physical simulations and actions. That is, situated cognition enables customers to
learn more about the value of an offering when the associated service experience
enables them to link abstract “facts” with a real-time context and physical interaction
(e.g., trying on or trying out a product). We conceptualize AR-based service
augmentation as a strategy to enhance the customer’s ability to interact with online
offerings in two interrelated ways: environmentally embedding the offering in a
personally relevant context (e.g., projecting a visualization of sunglasses on the
customer’s face or furniture items into their home) and (2) simulating physical
control over the offering (e.g., being able to perform natural movements to adjust the
sunglasses or furniture). The lack of these capabilities to personally experience an
offering traditionally has made it difficult for customers to engage in effective,
enjoyable online shopping. In line with contemporary services theorizing, we view
online shopping as a technology-based service experience and assess whether the AR-
enabled interaction effect of simulated physical control and environmental
embedding positively influences customers’ utilitarian and hedonic value perceptions
of the online service experience.

Second, we examine the influence of this interaction by conceptualizing and empirically

assessing the mediating role of spatial presence. When a customer senses spatial
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 presence, the online service experience becomes “real.” He or she neglects the
technology-mediated nature of the experienced. The strength of this feeling is jointly
determined by the possibilities for action that a technology offers and how well these
possibilities are integrated into the person’s immediate environment . The concept of
spatial presence thus captures customers’ convictions that they are experiencing an
authentic, situated experience, in which virtual content is located in their physical
reality and available for interaction. In other words, the online service experience is
enhanced and decision comfort increases when customers forget about the role of AR
and believe they are really trying on and interacting with an “actual” pair of sunglasses,
a new makeup look, or clothing from next season’s fashion line. Spatial presence sheds
light on the process through which AR-based service augmentation translates into
favorable customer evaluations of the online service experience, in terms of both
perceived value and decision comfort.

Third, we propose two important customer-related boundary conditions for deploying

AR as a service augmentation strategy: style of information processing and privacy
concerns. Previous research shows that the effectiveness of visual product
representations depends on individual preferences for visual versus verbal processing .
demonstrate for example that adding a visual representation to a verbal description of
an offering has little impact on the offering’s evaluation for visualizers, because they
rely predominantly on their own mental imagery. We anticipate that the spatial
presence offered by AR may have a stronger impact on the value perceptions of those
who are inclined to rely on semantic processing, such that AR-enabled visualizations
might complement their verbal processing style. Because AR technologies also record
personal data (e.g., facial recognition), customer concerns about privacy are another
pertinent issue . Perceptions of risk and vulnerability are associated with data privacy
and could interfere with the comforting effect of spatial presence for customer decision
making. Noting the significant differences in the degree to which customers expect
transparency and disclosure of how their data is collected and used, we assess whether
customers’ concerns about their awareness of a firm’s privacy practices attenuate the
impact of spatial presence on decision comfort.

CONCEPTUAL FRAMEWORK

Selected augmented reality (AR) literature per strategic services marketing theme

Study Context Theory AR Process Boundary Depend Key findings

and base varia variable conditions ent
method ble(s) s variable
s

Theme: Gaining customer acceptance of new service technologies

Hopp AR Novelty Novelt Attitude Technologic Attitude Novelty is

and advertising effects, y toward al self- toward negatively related
Gangad for an self- AR efficacy brand to attitude
harbatl automobile efficacy beliefs toward AR. High
a brand; beliefs technological
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Study Context Theory AR Process Boundary Depend Key findings
and base varia variable conditions ent
method ble(s) s variable
s

(2016) quasi self-efficacy

experiment individuals also
al study transfer these
negative
evaluations to the
brand.

Huang AR for Technolog Presen Ease of Cognitive Sustainab Presence predicts

and online y ce use, innovativen le technology
Liao clothing acceptanc usefulnes ess relationsh acceptance and
(2015) retail; e model s, ip experiential value
online (TAM), aesthetic behavior variables. The
experiment experienti s, service intentions effects on
al value excellenc behavioral
e, intentions vary
playfulne across levels of
ss individual
cognitive
innovativeness.

Javorni Consumer Media Intera Flow - Affective, Flow mediates

k responses characteri ctivity, cognitive, the positive effect
(2016b) to AR stics augme behaviora of augmentation
media ntatio l on consumers’
characterist n responses affective,
ics; lab cognitive and
experiment behavioral
s responses.

Rese et Consumer Technolog Inform Usefulne - Intention The TAM model

al. acceptance y ativen ss, to use predicts
(2016) of AR acceptanc ess, attitude acceptance of AR
applications e model enjoy towards applications.
; lab (TAM) ment, using
experiment ease of
s use

Rese et User Technolog Inform Usefulne - Intention The TAM model

al. acceptance y ativen ss, to use predicts
(2014) of AR acceptanc ess, attitude acceptance of AR
applications e model enjoy towards applications.
; online (TAM) ment, using Online reviews
ratings/revi ease of can be used to
ews, lab use model TAM

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Study Context Theory AR Process Boundary Depend Key findings
and base varia variable conditions ent
method ble(s) s variable
s

experiment constructs.
s

Spreer AR for book Technolog Useful - - Assessme Users assess AR-

and retailing; y ness, nt of enabled
Kallweit field study acceptanc enjoy informati information more
(2014) e model ment, on offer, positively and
(TAM) ease of informati more complete.
use on AR reuse
complete intentions are
ness, driven by
intention perceived
to reuse usefulness and
enjoyment.

Yaoyun AR Relations - - - Attitude AR print ads are

eyong hypermedia hip and toward rated more
et al. print ads, experienti the ad, positively in
(2016) online and al informati terms of
lab marketing veness, preference,
experiment , entertain informativeness,
interactiv ment, novelty, and
e irritation, effectiveness
advertisin ad value, compared to QR
g time- and traditional
effort, print ads.
novelty,
ad
effectiven
ess

Theme: Enhancing customer service experiences in a multichannel environment

Beck AR virtual Intrinsic - Perpetua - Purchase AR use increases

and fitting and l-specific intention online and offline
Crié rooms for extrinsic curiosity, purchase
(2016) on- and motivatio patronag intentions
offline n e through
retail, intention perceptual
online specific curiosity
experiment and patronage
s intentions.

Dacko Mobile AR Experient - - - Experient AR is expected to

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Study Context Theory AR Process Boundary Depend Key findings
and base varia variable conditions ent
method ble(s) s variable
s

(2016) applications ial value ial provide more

for smart shopping efficient and
retail; benefits, entertaining
survey behaviora shopping
l experiences,
intentions more complete
, information, and
perceived more decision
drawback certainty,
s resulting in
positive
behavioral
intentions.
Privacy concerns
are considered as
a drawback of AR
use.

Olsson Mobile AR User - - - - AR services are

et al. services for experienc expected to
(2013) shopping e, central provide
centers; user efficiency,
semi- requireme empowerment,
structured nts and increased
interviews awareness and
knowledge.
Emotionally, AR
services are
expected to offer
stimulating and
pleasant
experiences.

Poncin AR in Store - Store - Satisfacti AR positively

and physical atmosphe atmosph on, affects store
Mimou retail; field rics ere, patronage atmospherics,
n study perceive intention perceived value,
(2014) d value, and positive
positive emotions.
emotion Perceived value
and positive
emotions
mediate the
effect of store

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Study Context Theory AR Process Boundary Depend Key findings
and base varia variable conditions ent
method ble(s) s variable
s

atmospherics on
satisfaction,
which also
promotes
repatronage
intention.

Poushn Impact of User Intera User Trade-off Willingne AR positively

eh and AR on retail experienc ctivity experien between ss to buy, influences the
Vasquez customer e ce price and satisfactio user experience.
- experiences value, user’s n This promotes
Parraga ; lab information user satisfaction
(2017) experiment privacy and willingness
control to buy.

This Strategic Situated Simula Spatial Style of- Utilitaria The AR-enabled
study potential of cognition ted presence processing, n and interaction of
AR for theory physic awareness hedonic simulated
online al of privacy value physical control
service control practices perceptio and
experiences , ns, environmental
; lab enviro decision embedding
experiment nment comfort, positively affects
s and al WOM customer value
survey embed and perceptions of
ding purchase the online service
intentions experience.
Spatial presence
functions as a
mediator and
also predicts
decision comfort.
Customer value
perceptions and
decision comfort
translate into
positive
behavioral
intentions.
Customers’ style-
of-processing and
privacy concerns
are relevant
boundary

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Study Context Theory AR Process Boundary Depend Key findings
and base varia variable conditions ent
method ble(s) s variable
s

conditions.

Addressing these research gaps is important to differentiate the AR value creation process
from that of other interactive technologies. We draw on emerging theories of situated
cognition to explain how AR-based service augmentation aligns customer online
interactions with natural information processing to influence decision making. A situated
cognition perspective implies that information processing occurs within (i.e., is embedded
in) and actively exploits (i.e., embodies) a person’s environment, rather than taking place as
an abstract activity in the mind.

Project: “To give a virtual look of a car showroom to a consumers.”

There are lots of advance technologies are present in the world .Out of which augmented reality and
the artificial intelligence are the most advance one. This are the future of tomorrow. This are the
nonstable technology and its increase its potential day by day.

We would like to create a software through which the customers will experience the all types of cars
like Lamborghini, Jaguar, Royal Royce and many others cars with the help of new augmented reality
and machine reality. In this a persons is able to see all the specification of it, able to see all its parts
separately.

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Study 1

Vuforia
It is an augmented reality software development kit (SDK) for mobile devices that enables the
creation of augmented reality applications. It uses computer vision technology to recognize and track
planar images (Image Targets) and simple 3D objects, such as boxes, in real time. This image
registration capability enables developers to position and orient virtual objects, such as 3D models and
other media, in relation to real world images when they are viewed through the camera of a mobile
device. The virtual object then tracks the position and orientation of the image in real-time so that the
viewer's perspective on the object corresponds with the perspective on the Image Target. It thus
appears that the virtual object is a part of the real-world scene.
The Vuforia SDK supports a variety of 2D and 3D target types including ‘markerless’ Image Targets,
3D Multi-Target configurations, and a form of addressable Fiducial Marker, known as a VuMark.
Additional features of the SDK include localized Occlusion Detection using ‘Virtual Buttons’, runtime
image target selection, and the ability to create and reconfigure target sets programmatically
at runtime.
Vuforia provides Application Programming Interfaces (API) in C++, Java, Objective-C++ (a
language utilizing a combination of C++ and Objective-C syntax), and the .NET languages through an
extension to the Unity game engine. In this way, the SDK supports both native development for iOS
and Android while it also enables the development of AR applications in Unity that are easily portable
to both platforms. AR applications developed using Vuforia are therefore compatible with a broad
range of mobile devices including the iPhone, iPad, and Android phones and tablets running Android
OS version 2.2 or greater and an ARMv6 or 7 processor with FPU (Floating Point Unit) processing
capabilities. Vuforia has been acquired by PTC Inc. in November 2015.

Study 2
Visual Studio
Microsoft Visual Studio is an integrated development environment (IDE) from Microsoft. It is used to
develop computer programs, as well as websites, web apps, web services and mobile apps. Visual
Studio uses Microsoft software development platforms such as Windows API, Windows
Forms, Windows Presentation Foundation, Windows Store and Microsoft Silverlight. It can produce
both native code and managed code.
Visual Studio includes a code editor supporting IntelliSense (the code completion component) as well
as code refactoring. The integrated debugger works both as a source-level debugger and a machine-
level debugger. Other built-in tools include a code profiler, forms designer for
building GUI applications, web designer, class designer, and database schema designer. It accepts
plug-ins that enhance the functionality at almost every level—including adding support for source
control systems (like Subversion and Git) and adding new toolsets like editors and visual designers
for domain-specific languages or toolsets for other aspects of the software development
lifecycle (like the Team Foundation Server client: Team Explorer).
Visual Studio supports 36 different programming languages and allows the code editor and debugger
to support (to varying degrees) nearly any programming language, provided a language-specific
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service exists. Built-in languages include C, C++, C++/CLI, Visual Basic .NET, C# , JavaScript, Type
Script, XML, XSLT, HTML, and CSS. Support for other languages such as Python. Ruby, Node.js,
and M among others is available via plug-ins. Java (and J#) were supported in the past.
The most basic edition of Visual Studio, the Community edition, is available free of charge. The slogan
for Visual Studio Community edition is "Free, fully-featured IDE for students, open-source and
individual developers". The currently supported Visual Studio version is 2019.

Study 3

Wit.ai
Wit.ai is a NLP engine owned by Facebook that makes it easy for developers to build bots,
applications and devices that you can talk or text to.
Wit.ai is a cloud service API for speech recognition and natural language processing, for use with bots,
applications and devices.
Wit.ai can help you

 Understand Natural Language: parse a message (Voice or Text) into structured data
 Converse: predict the next action your bot should do (Bot Engine)

C#
C# number sign is a general-purpose, multi-paradigm programming language encompassing strong
typing, lexically scoped, imperative, declarative, functional, generic, object-oriented. It was developed
around 2000 by Microsoft as part of its .NET initiative, and later approved as an international
standard by Ecma (ECMA-334) and ISO (ISO/IEC 23270:2018).Mono is the name of the free and
open-source project to develop a compiler and runtime for the language. C# is one of the programming
languages designed for the Common Language Infrastructure (CLI).
C# was designed by Anders Hejlsberg, and its development team is currently led by Mads Torgersen.
The most recent version is 7.3, which was released in 2018 alongside Visual Studio 2017 version
15.7.2. As of August 2019, version 8.0 of the language is in preview, and is supported within Visual
Studio 2019.

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Study 4

DESIGN AND IMPLEMENTATION (Version 1.0)

Fig 1 : Theme look

Fig 2: AI testing opening driver door

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 Fig 3: Complete Testing of AI

Fig 4 : Cars changing effect

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 Implications for theory
We contribute to contemporary knowledge on services marketing strategies in three related ways. First, as
research interest in technology-empowered frontlines increases we advance a situated cognition
perspective on the design of the interfaces through which customers interact with firms. By framing
customers’ cognition as an inseparable coupling of environmental stimuli (i.e., embedding) and physical
interaction (i.e., embodiment), we conceive of how value is co-created by the customer and the online
service environment. Crucially, AR-based service augmentation integrates the touch-and-feel sensory
richness of the physical world with the online marketplace. It thus results in a highly context-sensitive
interface that aligns with customers’ natural processing of information and offers them effective, enjoyable
online service experiences. Accordingly, we contribute to understanding customer empowerment in
services experiences, and particularly how emerging smart technologies, such as AR, empower customers
through frontline interactions that co-create value.

Second, we establish spatial presence in online service experiences as the mediating mechanism by which
AR simulates aspects of service that are traditionally reserved for in-store experiences. We therefore
contribute to a growing research stream emphasizing that frontline technologies (ranging from AR to
service robots) should be assessed in light of the feelings of presence they elicit within a service experience
. Though we do not find strong support for an alternative mediation by psychological ownership, our
findings may point to a more intricate process underlying customers’ hedonic value perceptions. It seems
that when simulated physical control is complemented with the means to environmentally embed,
customers not only derive enjoyment from an authentic situated experience, but also from a sense of
ownership of the examined offering. More research is thus needed to identify when the enjoyment benefits
of AR-based service augmentation stem from an enhanced service experience and when they are due to
customer attachment to a specific offering.

Third, by investigating customer heterogeneity in the context of emerging frontline technologies, we learn
why spatial presence created through AR-based service augmentation increases value perceptions and
decision comfort for some customers more than others. Previous research indicates that the effectiveness
of visual product representations depends on individual preferences for visual versus verbal information
processing . Consistent with this finding, our results indicate that verbalizers derive more utilitarian value
from spatial presence than visualizers. Accordingly, AR may provide enjoyment benefits to a broad
customer audience; however, it would increase the effectiveness of online service experiences more for
customers less prone to use visualization skills. In particular, visualizers may rely more on their own
mental imagery and thus derive less utilitarian value from AR-based service augmentation. Services
research increasingly emphasizes collecting and leveraging customer data to enhance service effectiveness;
our results reveal an important boundary condition for theory on technology-empowered frontline
interactions. In particular, we demonstrate that for customers with relatively strong concerns about being
adequately aware of a firm’s privacy practices, the effect of spatial presence on decision comfort becomes
attenuated.

CONCLUSION

The targets planned for the various phases of the project have been successfully achieved. The
application has been successfully tried and tested with the defined test cases for satisfactory results. The
project had been divided into different phases and the phases were successfully implemented and
integrated to work properly all together. This application works well for real life practical use.

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