FASHION BUSINESS RESEARCH

A STUDY ON AUGMENTED REALITY IN FASHION RETAIL

Faculty: Dr. Krishna Kumar, Professor

Department of Master of Fashion Management

National Institute of Fashion Technology, Kannur.

Submitted by:
Chaturvedi T (MFM/24/728)
Neelima S (MFM/24/672)
Shreya M G (MFM/24/578)
 DECLARATION

We CHATURVEDI T, NEELIMA S, SHREYA M G

hereby declare that this research project entitled A STUDY ON
AUGMENTED REALITY IN FASHION RETAIL IN INDIA
submitted to National Institute of Fashion Technology, Kannur, is
our original work conducted under the guidance and supervision of
Dr. Krishna Kumar M, Professor of Master of Fashion Management
department.
We have acknowledged all sources of information, data,
and assistance in the project and followed the ethical guidelines
required for this research.

Date:
Place: Kannur, Kerala
Members: CHATURVEDI T
NEELIMA S
SHREYA M G

1
 ACKNOWLEDGEMENT

We would like to extend our deepest gratitude to all those

who have contributed to the successful completion of this research
project.

First and foremost, we thank our professor, Dr. Krishna

Kumar M, for his invaluable guidance, support, and encouragement
throughout the course of this project. His expertise and insights were
instrumental in shaping our work.

It is with great pleasure that we acknowledge our

gratitude to all those who helped me in the preparation of the modest
work. And also, God, the prime mover of the entire universe for his
grace and blessings in building me through this work.

Finally, we acknowledge the collaboration and hard work

of each group member. The dedication, teamwork, and commitment
shown by each one were essential in bringing this project to fruition.

Thank you all for your contributions and support.

Date: 28/11/2024
Place: Kannur, Kerela
Members: CHATURVEDI T
NEELIMA S
SHREYA M G
2
 TABLE OF CONTENTS

SI.No. CHAPTERS PAGE No.

1. INTRODUCTION 4

2. RESEATCH GAP/ PROBLEM STATEMENT 5

3. OBJECTIVES 6

4. REVIEW OF LITERATURE 7

5. THEORITICAL FRAMEWORK & HYPOTHESIS 11

6. RESEARCH METHODOLOGY 13

7. EXPECTED OUTCOMES 18

8. DATA ANALYSIS AND INTERPRETATION 20

9. RESULT 31

10. CONCLUSION 32

11. REFERENCES 33

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 1. INTRODUCTION
The retail industry is changing at furious pace with the quick evolution of digital
technologies and augmented reality (AR) as being a prospective weapon to improve customer
experiences along with sales in a competitive environment. AR (augmented reality) brings
opportunities that other so-called next-generation retail applications do not: the capability to
create interactive and immersive shopping environments that overlay digital information on
top of the real world. This thesis intends to perform a systematic literature review in order to
determine current research topics and domains, important research voids as well as design a
theoretical framework for further AR retail related work.

Advancements in AR technology has made it possible to you widely use it as a retail

application. Retailers are using AR for better product visualization, customized
recommendations, and interactive in-store experiences. Nevertheless, AR will take some time
to really take off among consumers, suggesting that there are other factors present which need
further research to understand consumer demand of the technology.

This thesis deals with a critical examination of the same literature focusing on
significant research agendas and exploring gaps in existing literature for creating a theoretical
framework between the studies to be pursued later. This article will bring synthesis of
different disciplines, e.g., marketing, management and HCI perspective which would help in
understanding the impact of AR on consumer behaviour and brand engagement along with
overall retail experience.

The drive to improve those customer experiences, engagement and visualizations of

products has helped push augmented reality (AR) into the retail limelight, catching the eyes
of retailers as well as researchers. This thesis intends to provide a systematic review of the
existing literature on AR in retail, understand its implications on customer experience,
highlight some relevant research gaps and put forward an agenda for future research. In doing
so, the study combines insights from several disciplines (e.g., marketing, management, HCI)

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 2. RESEARCH GAP/ PROBLEM STATEMENT

Consumer adoption continues to lag: Consumer AR has enormous potential, but

consumer uptake of the technology is small. Further work in understanding the drivers of
consumer adoption and overcoming barriers is definitely warranted.

Unlike HCI and VR, AR literature is very fragmented (particularly from a

consumer perspective), which does not allow for the creation of consistent research
foundations. The problem is that there is no clear, conclusive evidence of how AR actually
affects consumer behaviour and decisions.

Need for a unified framework- With research on this topic snowballing, there is no
comprehensive or integrative framework that encapsulates studies from each discipline and
outlines directions for future study. A framework like this would help the scientists and
implementers tremendously.

Beyond these discrete gaps, the text identifies specific areas for future research including:

AR implementations face an uncertain long-term future: AR has failed to prove

itself as a sustainable technology in retail contexts where consumers have been promised
integration of the digital and physical worlds.

The other previous key aspect is the efficiency that AR can bring to integrate with
another emerging technology like AI (Artificial Intelligence) and IOT (Internet of Things).

Maintaining a delicate balance with privacy: With AR collecting data and

classifying consumers, it is important to ensure everything is above board and protect users
from big-brother.

Through answering these research gaps and areas to examine, future studies can
truly shape a more complete AR retail experience developing insights for AR strategic
initiatives in the marketplace.

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 3. OBJECTIVES

1. Get to know how organizations are leveraging the capabilities of AR in the retail market by
looking at its applications across various modules.

2. Explore some of the key events that are influencing consumer adoption of AR in retail,
including; ease of use, personalization and convenience.

3. Appraise the advantages and difficulties confronted by retailers while incorporating AR

solutions.

4. Evaluate if AR Could Have a Long-Term Effect on Customer Behaviour (i.e. brand

loyalty/sales)

5. Design a retail experience using AR Deliver advice on getting AR into your customer
engagement and sales model.

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 4. REVIEW OF LITERATURE

Augmented Reality (AR) is transforming the fashion industry by integrating

technology with creativity, allowing brands to offer immersive, interactive experiences to
consumers. This literature review consolidates key findings from over 25 academic papers,
industry reports, and case studies related to the use of AR in fashion.

i. Augmented Reality and Consumer Experience in Fashion

Several studies have explored how AR enhances the consumer shopping

experience. According to Poushneh & Vasquez-Parraga (2017), AR has a positive impact on
user experience, enabling virtual try-ons, which reduce uncertainty and increase purchase
intentions. Similarly, McCormick et al. (2014) found that AR improves consumer
engagement by providing them with more information about the products in a visually
engaging manner. AR offers a personalized, on-demand experience that simulates in-store
shopping but in a virtual environment (Kim & Forsythe, 2008).

ii. AR and Brand Interaction

Research by Javornik (2016) highlights that AR enhances brand interaction by

creating a more immersive environment, where consumers can explore the products in greater
detail. The study also noted that AR in fashion allows brands to present a digital overlay of
garments, leading to higher consumer satisfaction and brand loyalty. Similarly, Pantano &
Servidio (2012) emphasize that AR applications for fashion brands can enhance emotional
connections with customers by providing more dynamic, real-time information on products.

iii. AR and Decision Making in Fashion

One of the critical areas where AR is influencing fashion is in consumer

decision-making. A study by Hilken et al. (2017) suggested that AR helps consumers make
more informed decisions by offering virtual fitting rooms and 360-degree views of garments.
This technological enhancement minimizes the gap between online and offline shopping
experiences, bridging the sensory divide in fashion retail (Bonetti, Warnaby, & Quinn, 2018).

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 iv. AR and Sustainability in Fashion

The fashion industry is notorious for its environmental impact, and AR has
been proposed as a potential solution to reduce waste in fashion production and retail.
According to Chen & Yang (2019), AR can help by allowing customers to visualize clothing
on themselves without needing to produce as many physical samples or garments. This
virtual trial can also lower the return rates, which significantly reduce carbon footprints.
Research by Zeynep & Bloom (2020) supports these findings, showing that AR reduces
material wastage by enabling digital design and prototyping.

v. AR and E-commerce in Fashion

The advent of AR in e-commerce has opened up new avenues for businesses

to engage with customers in more interactive ways. Studies like Huang & Hsu Liu (2014)
report that AR-based shopping applications increase user satisfaction by enhancing product
visualization. This research correlates with insights from Verhoef et al. (2009), which showed
that immersive AR experiences provide a competitive edge to fashion e-retailers, improving
conversion rates and customer loyalty.

vi. AR and Social Media in Fashion

AR is also being leveraged through social media platforms like Instagram

and Snapchat. According to Smith (2021), these platforms use AR to allow users to ‘try on’
clothes and accessories virtually. Research by Oh et al. (2020) found that AR filters on social
media significantly influence consumer buying behaviour, as users are more likely to share
their virtual outfits, generating organic brand exposure.

vii. Challenges and Limitations of AR in Fashion

Despite its benefits, AR faces several challenges in the fashion industry. A

study by Yim, Chu, & Sauer (2017) identifies technological barriers such as software
development costs and consumer hesitancy in adopting new technologies. Additionally, Kim

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 & Forsythe (2008) point out that although AR can enhance consumer experience, the lack of
tactile feedback remains a limitation, particularly for fashion products where the feel of fabric
and fit are critical aspects of decision-making.

viii. Augmented Reality in Retail

Overview of AR applications in retail settings, focusing on AR's capacity to

create immersive experiences (Poushneh & Vasquez-Parraga, 2017). Studies will be sourced
that discuss AR’s evolution from a conceptual tool to a practical retail solution, particularly in
fashion.

ix. AR and Consumer Behaviour

Exploration of how AR impacts consumer behaviour, with research highlighting

how virtual try-ons improve customer engagement and facilitate decision-making (Pantano et
al., 2017). Several studies will delve into how AR affects perceived risk, satisfaction, and
intention to purchase.

x. Sustainability in Fashion via AR

A growing body of work examines how AR can foster sustainable practices by

reducing waste in the fashion production cycle (Niinimäki, 2015). Key studies will explore
AR's potential to diminish the need for physical samples, thus decreasing the industry's
carbon footprint.

xi. Technological Adoption and Challenges in AR

Reviewing the barriers and challenges that limit AR adoption, including

technical limitations, consumer readiness, and brand adaptability (Javornik, 2016). Several
papers will discuss the technological constraints and user-experience design challenges that
fashion brands face.

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xii. Future of AR in Fashion

Predicting future trends in AR applications within fashion retail. Studies by

Rauschnabel et al. (2018) and others will provide insights into how fashion brands can
harness AR for long-term customer retention, brand loyalty, and omnichannel retailing
strategies.

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 5. THEORITICAL FRAMEWORK & HYPOTHESIS

Technology Acceptance Model (TAM) and Innovation Diffusion Theory

(IDT) provide a robust theoretical foundation for understanding the adoption and impact of
Augmented Reality (AR) in the fashion industry.

TAM focuses on the perceived usefulness and ease of use of technology as key
determinants of its adoption. In the context of AR, this suggests that consumers are more
likely to adopt and use AR if they perceive it as helpful in improving their shopping
experience and if they find it easy to use.

IDT explains how innovations spread through a population over time. It

considers factors such as relative advantage, compatibility, complexity, trialability, and
observability. These factors are relevant to AR adoption in fashion, as consumers are more
likely to adopt AR if they perceive it as offering a significant advantage over traditional
shopping methods, if it aligns with their existing beliefs and behaviours, if it is not too
complex to use, if they can easily try it out, and if they can see others using and benefiting
from it.

Based on these theories, the following hypotheses are proposed:

1. H1: Augmented reality has a positive impact on consumer purchasing

behaviour in the fashion industry. This hypothesis suggests that AR can
influence consumer decisions by providing a more immersive and
informative shopping experience, leading to increased confidence and
satisfaction.

2. H2: Consumers who engage with AR try-on experiences report higher

levels of satisfaction compared to those who do not. This hypothesis
suggests that AR try-on experiences can enhance consumer satisfaction by
providing a more realistic and personalized shopping experience.

3. H3: AR integration reduces the frequency of returned items in fashion

retail. This hypothesis suggests that AR can help reduce returns by

11
 providing a more accurate representation of products, reducing the
likelihood of mismatches between consumer expectations and the actual
product.

4. H4: The adoption of AR is positively correlated with a brand's

commitment to sustainability practices. This hypothesis suggests that
brands that adopt AR may also be more likely to prioritize sustainability
initiatives, as AR can enable more efficient and environmentally friendly
practices, such as reducing the need for physical samples and reducing
waste.

By testing these hypotheses, the research can provide valuable insights into the factors that
influence AR adoption in the fashion industry and its potential impact on consumer behaviour
and sustainability.

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 6. RESEARCH METHODOLOGY

This section outlines the research methodology employed to investigate the

impact of Augmented Reality (AR) in fashion. It includes the research design, sampling
design, and data collection methods that will be used to test the hypotheses developed in the
theoretical framework. Drawing on insights from relevant studies, this methodology
integrates both quantitative and qualitative approaches, ensuring a comprehensive
examination of AR’s role in fashion consumer behaviour, brand loyalty, and sustainability.

i. Research Design
The study adopts a mixed-methods approach, combining both quantitative and
qualitative data collection techniques. This allows for a robust examination of AR’s impact on
various dimensions of the fashion industry, from consumer decision-making and engagement
to technological adoption and sustainability. A mixed-method approach has been
recommended in technology adoption studies, as it enables the triangulation of data from
different sources, improving the validity of the research (Creswell & Clark, 2017). Moreover,
this approach is particularly valuable when exploring emerging technologies like AR, where
qualitative insights can complement quantitative findings (Venkatesh, Brown, & Bala, 2013).

Quantitative Research

The quantitative component will focus on understanding the attitudes, behaviours,

and perceptions of consumers who have interacted with AR applications in fashion. This will
be achieved through structured survey questionnaires distributed online, targeting a broad
demographic of consumers who engage with both online and offline fashion shopping. The
survey design will be based on validated scales from prior research on AR and consumer
behaviour (Hilken et al., 2017; Poushneh & Vasquez-Parraga, 2017).

Key constructs to be measured include:

Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) of AR applications (TAM
framework) (Davis, 1989)

Purchase Intention and Consumer Satisfaction (Kim & Forsythe, 2008)

Brand Loyalty and Engagement (Javornik, 2016)

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Sustainability Perceptions (Chen & Yang, 2019)

Responses will be collected using a 5-point Likert scale, measuring levels of agreement with
statements related to these constructs. Data will be analysed using SPSS for statistical
analysis, including regression analysis and structural equation modelling (SEM) to test
relationships between variables and validate the research hypotheses (Hair et al., 2010).

Qualitative Research

The qualitative component will involve semi-structured interviews with industry

experts, including AR developers, fashion designers, and retail professionals. Qualitative data
will provide deeper insights into the challenges, opportunities, and future potential of AR in
fashion, complementing the findings from the quantitative surveys. This method aligns with
the recommendations of Strauss and Corbin (2014), who advocate for qualitative interviews
in emerging technology studies to capture complex, contextual factors that may not be easily
quantified.

The interviews will explore themes such as:

Barriers to AR adoption in fashion retail (Yim, Chu, & Sauer, 2017)

Impact of AR on consumer-brand relationships (Pantano & Servidio, 2012)

Sustainability implications of AR in fashion production (Zeynep & Bloom, 2020)

All interviews will be transcribed and thematically analysed using NVivo software, which
allows for the organization and coding of qualitative data to identify recurring patterns and
themes (Braun & Clarke, 2006).

ii. Sampling Design

The research involves two distinct groups for sampling: consumers and industry
professionals. This combination of perspectives will offer a holistic view of AR’s impact on
both the consumer and business sides of the fashion industry.

Consumer Sampling

For the consumer sample, the target population consists of fashion-conscious

individuals aged 18-45, who shop both online and offline and are likely to be familiar with
technology-enhanced shopping experiences. This demographic is chosen based on research

14
suggesting that younger consumers are more receptive to adopting AR technologies in retail
(Javornik, 2016; McCormick et al., 2014).

Sampling Method: The study will use convenience sampling and snowball sampling
techniques. Convenience sampling will help access a large group of respondents quickly,
especially through online platforms such as social media, while snowball sampling will allow
current participants to recruit others who meet the study criteria (Bryman, 2016).

Sample Size: A minimum sample size of 500 respondents will be targeted. This is based on
Cochran’s (1977) formula for sample size determination, which ensures the data collected
will be statistically significant, particularly for the quantitative component.

Industry Expert Sampling: For industry professionals, purposive sampling will be used to
select individuals with expertise in AR technology and fashion retail. This includes AR
developers, fashion designers who have integrated AR into their collections, and retail
professionals involved in marketing or innovation roles in fashion companies.

Sampling Method: Purposive sampling allows the selection of participants who have
specific knowledge and experience relevant to the study (Palinkas et al., 2015).

Sample Size: A total of 30 semi-structured interviews will be conducted, which aligns with
recommendations for qualitative research, where a smaller, focused sample size allows for in-
depth analysis of complex issues (Guest, Bunce, & Johnson, 2006).

3 Data Collection Methods

Survey Questionnaires:

The primary tool for quantitative data collection will be an online survey distributed through
platforms such as Google Forms, Qualtrics, or SurveyMonkey. These platforms allow for
wide distribution and real-time data collection. The survey will consist of 25-30 closed-ended
questions that capture consumer perceptions of AR, its usability, and its impact on shopping
behaviour, drawing on previously validated scales (Hilken et al., 2017; Javornik, 2016).

Pilot Study: A pilot test with 50 respondents will be conducted to ensure the clarity and
reliability of the survey items (Teijlingen & Hundley, 2001). The results from the pilot will
help refine the questions and address any potential issues before full-scale distribution.

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Data Analysis: Responses will be analysed using descriptive statistics, factor analysis, and
regression analysis to test the relationships between key variables (Hair et al., 2010).

Semi-Structured Interviews:

The qualitative data will be collected through in-depth interviews with industry professionals,
focusing on the strategic, operational, and technological challenges and opportunities related
to AR in fashion. Interviews will be conducted either in-person or via video conferencing
platforms (e.g., Zoom or Microsoft Teams), recorded with consent, and transcribed verbatim.

Interview Guide: A semi-structured interview guide will be developed to cover key themes
such as AR implementation, consumer response, and future potential. This guide will allow
for flexibility in probing deeper into the responses, following the flow of conversation (Rubin
& Rubin, 2011).

Data Analysis: The qualitative data will be thematically analysed using NVivo to identify
recurring themes and insights. Thematic analysis is a method for systematically identifying,
organizing, and interpreting patterns of meaning within qualitative data (Braun & Clarke,
2006).

AR Simulations:

As part of the data collection process, a subset of participants will engage in AR simulations.
Participants will interact with AR applications, such as virtual fitting rooms or product
visualization tools, and provide feedback on their experiences.

Post-Interaction Surveys: After using the AR applications, participants will complete a brief
survey to assess their satisfaction, ease of use, and likelihood to adopt the technology in
future shopping experiences. These responses will help gauge the practical impact of AR on
consumer attitudes and behaviour (Poushneh & Vasquez-Parraga, 2017).

Ethical Considerations

This research will adhere to strict ethical standards. Participants will be informed of the
study’s purpose and will provide informed consent before participation. Anonymity and
confidentiality will be ensured, and participants will be able to withdraw from the study at

16
any time without penalty. Ethical approval will be sought from a relevant academic ethics
committee before data collection begins.

By combining quantitative surveys with qualitative interviews and AR simulations, this

research methodology provides a comprehensive approach to investigating the role of AR in
fashion. The mixed-methods design ensures that both the consumer perspective and industry
expert insights are captured, offering a thorough understanding of AR’s potential to transform
the fashion industry.

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 7. EXPECTED OUTCOMES

The research on AR in fashion is anticipated to have significant impacts on the industry:

Consumer Experience: AR will revolutionize the consumer experience by providing more

informative, immersive, and personalized shopping experiences. This will lead to increased
confidence, reduced uncertainty, and ultimately, better decision-making.

Brand Engagement and Loyalty: AR offers a unique opportunity for fashion brands to
foster deeper engagement and loyalty with their customers. By providing interactive and
entertaining experiences, AR can create a stronger emotional connection between consumers
and brands, leading to repeat purchases, positive word-of-mouth, and increased brand
advocacy.

Sustainability: AR can contribute to a more sustainable fashion industry by reducing waste

and promoting more efficient practices. By providing accurate product representations and
enabling digital garment samples, AR can help minimize returns and reduce the need for
physical prototypes, thereby reducing the environmental impact of the fashion industry.

Technological Adoption: The success of AR in fashion will depend on its adoption by

consumers. The research suggests that consumers are more likely to adopt AR if they
perceive it as useful, easy to use, and aligned with their needs. By addressing these factors,
the fashion industry can encourage broader adoption of AR technology.

Social Sharing and Consumer-Generated Marketing: AR's interactive and visually

appealing nature will encourage social sharing, creating a powerful form of consumer-
generated marketing. This can amplify brand reach, influence purchasing decisions, and drive
organic growth.

Competitive Advantage: Fashion brands that successfully integrate AR into their offerings
can gain a significant competitive advantage. By providing innovative and engaging shopping
experiences, these brands can differentiate themselves from competitors, attract tech-savvy
consumers, and enhance their brand reputation.

Future of Fashion Retail: AR is likely to become a standard feature in fashion retail,

shaping the future of omnichannel shopping. By combining the convenience of online

18
shopping with the immersive experience of brick-and-mortar stores, AR can create a more
seamless and satisfying shopping experience for consumers.

Overall, the research suggests that AR has the potential to revolutionize the fashion industry
by improving consumer experiences, enhancing brand engagement, promoting sustainability,
and driving innovation. As AR technology continues to evolve, it is expected to play an
increasingly important role in shaping the future of fashion retail.

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 8. DATA ANALYSIS AND INTERPRETATION

8.1 DEMOGRAPHIC DESCRIPTIVE

This section presents the descriptive analysis for the sample characteristics of 87
respondents.

8.1.1 Gender Wise Classification of Respondents

Table 8.1.1 Gender Wise Classification of Respondents

No. of Percentage of
S.No. Gender
Respondents Respondents
1. Male 23 26.4
2. Female 64 73.6
Total 87 100.0
Source: Primary Data

Figure 8.1.1 Gender Wise Classification of Respondents

From the Table 8.1.1, it is observed that the sample consisted of 64 (73.6%) females and 23
(26.4%) males. Therefore, most of the respondents were female.

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8.1.2 Age Range Classification of Respondents

Table 8.1.2 Age Range Classification of Respondents

No. of Percentage of
S.No. Age Range
Respondents Respondents
1. 18 – 24 66 75.9
2. 25 – 34 17 19.6
3. 35 - 44 1 1.1
4. 45 - 54 1 1.1
5. 55 and above 2 2.3
Total 87 100.00
Source: Primary Data

From the table 8.1.2, Out of 87 responses 66 (75.9%) of the respondents are from the age
group of 18 - 24. 17 (19.6%) respondents are of age group 25 – 34 and fewer respondents of
1 (1.1%) are 35- 44, 1(1.1%) respondents are 45 – 54 and 2(2.3%) respondent are of the age
group 55 and above.

Figure 8.1.2 Age Range Classification of Respondents

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8.1.3 Occupation Range Classification of Respondents

Table 8.1.3 Occupation Range Classification of Respondents

No. of Percentage of
S.No. occupation
Respondents Respondents

1. student 53 60.9

2. employed 20 23

3. Self employed 11 12.6

4. Home maker 3 3.4

Total 87 100.00
Source: Primary Data

From the table 8.1.3, Out of 87 responses 53 (60.9%) respondents are student, 20(23%)
respondents are employed, 11 (12.6%) respondents are self-employed and fewer 3(3.4%)
respondents are homemaker.

Figure 8.1.3 Area Wise Classification of Respondent.

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8.2 Simple Percentage Analysis

8.2.1 Are you familiar with AR

Table 8.2.1 Are you familiar with AR

Are you familiar No. of Percentage of

S.No
with AR Respondents Respondents
1. Yes 38 43.7
I have heard, but not
2. 37 42.5
used
3. No 12 13.8
Total 87 100.00
Source: Primary Data

It is observed from the Table 8.2.1 that 38 (43.7%) respondents are familiar with
AR, 37 (42.5%) respondents are heard of it but never used it, 12 (13.8%) respondents never
used AR.

Figure 8.2.1 Are you familiar with AR

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8.3 T- Test

One-Sample t- statistics significance test of mean was employed to test whether

the mean of all items in the factors significantly deviate from the sample mean.

8.3.1 T- Test: Consumer Attitude

Table 8.3.1 One-Sample Statistics: Consumer Attitude

N Mean Std. Deviation Std. Error Mean

Consumer 84 2.0238 .65356 .07131

Brand Interaction 84 1.9786 .60720 .06625

Decision 84 2.2500 .68767 .07503

Customer Satisfaction 84 2.1488 .73131 .07979

AR Average 84 2.1119 .68502 .07474

Table 8.3.1 One-Sample Test: Consumer Attitude

Test Value = 3

95% Confidence Interval

of the Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper

Consumer -13.690 83 .000 -.97619 -1.1180 -.8344

Brand Interaction -15.418 83 .000 -1.02143 -1.1532 -.8897

Decision -9.996 83 .000 -.75000 -.8992 -.6008

Customer
-10.668 83 .000 -.85119 -1.0099 -.6925
Satisfaction

AR Average -11.882 83 .000 -.88810 -1.0368 -.7394

Source: Primary Data

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 A one-sample t-test was conducted to examine whether the mean scores of
variables related to augmented reality (AR) in fashion retail significantly deviated
from the hypothesized value of 3. As shown in Table 5.3.1, the variable with the
highest mean value was Decision (2.2500), indicating relatively better performance in
influencing consumer decisions, while the lowest mean value was observed for Brand
Interaction (1.9786), suggesting limited brand engagement through AR. The highest
standard deviation was found in Customer Satisfaction (0.73131), reflecting greater
variability in consumer satisfaction, whereas Brand Interaction had the lowest
standard deviation (0.60720), indicating more consistent responses. The average mean
score of all variables was 2.11262, with an average standard deviation of 0.67299. The
significance test revealed that for all variables, the deviation from the hypothesized
mean was statistically significant at the 5% level (p < 0.05), with all observed means
falling below the neutral value of 3 on the 5-point scale. This suggests that the
perception of AR’s impact in fashion retail is generally unfavourable and significantly
lower than expected.

8.4 Chi – Square

8.4.1 Chi – Square Test for Comparison between Demographic Variables and
Familiarity of Augmented Reality in Fashion Frequency

Table 8.4.1 shows the Chi- Square test statistics for comparison between
demographic variables and Familiarity of Augmented Reality in Fashion frequency.

Table 8.4.1 Chi – Square Test for Comparison between Demographic Variables and
Familiarity of Augmented Reality in Fashion Frequency

Are you familiar with AR Technology

Demographics I’ve heard of

I have
it but never Not familiar Total χ²
used it
used it
Gender Male 13 6 4 23 χ²=2.725,
df:2, p>.05
Female 25 28 8 61

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 Total 38 34 12 84
18 – 24 31 27 6 64
25 - 34 6 6 4 16

35 - 44 1 0 0 1 χ²=17.485,
Age
45 - 54 0 1 0 1 df:8, p>.05
55 and
0 0 2 2
above
Total 38 34 12 84
Student 20 26 6 52
Employed 10 4 4 18
Self
7 3 1 11 χ²=7.605,
Occupation Employed
Homemake df:6, p>.05
1 1 1 3
r
Total 38 34 12 84

From the Table 8.4.1, it is inferred that the chi-square values for,

i)Gender (χ2=2.73\chi^2 = 2.73χ2=2.73, df: 2, p > .05), shows that there is no significant
association between gender and familiarity with AR technology.

ii) Age (χ2=17.49\chi^2 = 17.49χ2=17.49, df: 8, p > .05), shows that there is no significant
association between age groups and familiarity with AR technology.

iii) Occupation (χ2=7.07\chi^2 = 7.07χ2=7.07, df: 6, p > .05), shows that there is no
significant association between occupation and familiarity with AR technology.

8.4.2 Chi – Square Test for Comparison between Demographic Variables Fashion
Shopping Frequency

Table 8.4.2 shows the Chi- Square test statistics for comparison between
demographic variables and Fashion Shopping Frequency.

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Table 8.4.2 Chi – Square Test for Comparison between Demographic Variables
and Fashion Shopping Frequency

How often do you shop for fashion items χ²

Demographics Once a Once a Few times Rarely
Total
week month a Year

Male 2 13 6 2 23
χ²=1.91, df: 3,
Gender Female 9 38 12 2 61
p >.05)
Total 11 51 18 4 84

18 – 24 8 38 16 2 64

25 – 34 3 9 2 2 16

35 – 44 0 1 0 0 1 χ²=12.47, df:
Age 8, p > .05
45 - 54 0 2 0 0 1

55 and 0
0 2 0 2
above
Total 11 51 18 4 84

Student 5 28 16 3 52

Employed 3 12 2 1 18 χ²=9.06, df:

Occupation Self 0 6, p > .05
3 8 0 11
Employed
Homemake 0
0 3 0 3
r
4
Total 11 51 18 84

From the Table 8.4.2, it is inferred that the chi-square values for,

i)Gender (χ2=1.91\chi^2 = 1.91χ2=1.91, df: 3, p > .05), shows that there is no significant
association between gender and the frequency of shopping for fashion items.

ii)Age (χ2=12.47\chi^2 = 12.47χ2=12.47, df: 8, p > .05), shows that there is no significant
association between age groups and the frequency of shopping for fashion items.

iii)Occupation (χ2=9.06\chi^2 = 9.06χ2=9.06, df: 6, p > .05), shows that there is no

significant association between occupation and the frequency of shopping for fashion items.

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8.5 Analysis of Variance (ANOVA)

8.5.1 ANOVA – Gender Vs All Factors

Table 8.5.1 ANOVA – Gender Vs All Factors

Factors Sum of Mean

df F Sig. Result
Squares Square

Decision Between Not

1.147 4 .287 .595 .668
Groups significant
Within
38.103 79 .482
Groups

Total 39.250 83

Between Not
1.551 4 .388 .715 .584
Groups significant
Customer
Satisfaction Within
42.839 79 .542
Groups
Total 44.390 83
Between Not
.942 4 .235 .489 .743
Groups significant
AR adoption Within
38.006 79 .481
Groups
Total 38.948 83
Between
.531 4 .133 .349 .844
Groups
Brand
Within
Interaction 30.070 79 .381
Groups
Total 30.601 83
Consumer Between 4.212 4 1.053 2.663 .038 Not
Experience Groups significant

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 Within
31.240 79 .395
Groups
Total 35.452 83

Analysis of variance was calculated with gender as independent variable in the Table
8.5.1. As per results obtained for factors fashion decision F (4,79) = .595, p >.05,
customer satification F (4,79)= .715, p >.05, AR adoption F (4,79)= .489, p >.05, Brand
Interaction F (4,79)= .349, p >.05, Consumer Experience F (4,79)= 2.663, p <.05.
Therefore, for the behavioural, there is significant difference. Other than that, for
decision, satisfaction, adoption, interaction and experience there is no significant
difference.

8.6 Correlation Between Factors

Table 8.6 Correlation–Independent Variables and Customer Attitude

Brand Customer AR
Consumer Interaction Decision Satisfaction Average
Consumer Pearson
1 .721 .563 .648 .645
experience Correlation
.000 .000 .000 .000
Sig. (2-tailed)
84 84 84 84
N 84
Brand Pearson
.721 1 .687 .597 .731
Interaction Correlation
.000 .000 .000
Sig. (2-tailed) .000
84 84 84
N 84 84
Decision Pearson
.563 .687 1 .674 .676
Correlation
.000 .000
Sig. (2-tailed) .000 .000
84 84
N 84 84 84
Customer Pearson
.648 .597 .674 1 .783
Satisfaction Correlation
.000
Sig. (2-tailed) .000 .000 .000
84
N 84 84 84 84
AR Adoption Pearson
.645 .731 .676 .783 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000

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 N 84 84 84 84 84
Source: Primary Data
Correlation is significant at the 0.05 level (2-tailed).
Correlation is significant at the 0.01 level (2-tailed).

Table 8.6 presents correlations among fashion interest, cognitive, affective and c and
behavioural. Many significant relationships were found among these variables. The variable
Consumer experience has significant positive relationship at 1% level among Brand
Interaction (r = .268, p > .01), Decision (r = .282, p < .01), Customer Satisfaction (r = .242, p
> .01), AR Adoption (r = .164, p >.01).

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 9. RESULT

T-test: The affective variable has a greater mean and it is leaning towards the
agreeable side from neutral. There is also an equal significance, so we conclude consumer
attitude towards Augmented Reality significantly increase the purchasing behaviour.

Anova: The Anova test results indicate behaviours towards Augmented Reality vary
significantly among consumers. Since behaviours towards AR vary, targeted campaigns can be
designed to address these differences.

Correlation: The correlation analysis reveals a strong positive relationship between

consumer experience and consumer purchasing behaviour in AR. This suggests that as
consumers' interest in fashion increases, their attitudes toward AR also become more influential
in their purchasing decisions.

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 10.CONCLUSION

The analysis reveals that consumer attitudes toward augmented reality (AR) in
fashion retail are generally below neutral, indicating limited favourability and
engagement. While AR shows a moderate impact on decision-making, other aspects such
as brand interaction and customer satisfaction reflect weaker perceptions. Demographic
factors like gender, age, and occupation do not significantly influence familiarity with AR
or shopping frequency. However, the strong correlations between consumer experience
and purchasing behaviour suggest that enhancing AR experiences can positively influence
consumer attitudes and drive engagement. To maximize the potential of AR in fashion
retail, businesses should focus on improving the quality and relevance of AR interactions,
promoting its benefits to less familiar demographics, and designing targeted campaigns
that address consumer behaviour variations. This strategic approach could improve
perceptions, foster adoption, and ultimately boost customer satisfaction and purchasing
behaviour.

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