Augmented Reality in Online Retail : Generational Differences Between Millennials and Generation Z Using Virtual Try-On’s

Abstract

The aim of this thesis is to examine the differences across two generational cohorts, millennials, and Generation Z, in terms of their augmented reality (AR) experience using virtual try-on’s (VTO) in online retail. Based on a quantitative study involving an online survey and experiment carried out among 198 participants, the results revealed significant differences in post-usage variables. Millennials experienced higher hedonic value and need for touch while Gen Z experienced higher utilitarian value, ease of use, attitude towards using and purchase intention. There were no statistical differences in spatial presence, psychological ownership, and awareness of privacy practices. However, the study clearly shows differences among the generations and thus contributes to the research on augmented reality and generational marketing. Considering cohort-specific differences will enable practitioners to clúster demographic groups, thus creating specific buyer personas to target more efficiently for optimised marketing strategies, and, as a bonus, to increase the environmental sustainability of online retail.