“Decoding User Acceptance of AR in Retail: A Field Study Across Gujarat’s Metropolitan Hubs”

Abstract

Augmented Reality (AR) is one of the most important information layers of digital transformation. AR is the superimposition of digital information, audio, visual or graphic, over the physical environment using smartphones, tablets and AR glasses. The use of AR technology in retail has created engaging experiences for the consumer, including virtual product trials and interactive stores, leading to completely new ways of interacting with the brand. This study attempts to analyse the factors influencing the adoption of AR technology in the retail trade of the four major metropolitan cities of Gujarat: Ahmedabad, Surat, Vadodara and Rajkot. The study developed a model with the constructs of self-efficacy, personal innovativeness, perceived usefulness, perceived ease of use and external pressure and analysed data from 233 retail companies through Smart-PLS-3. Key statistical results reveal that customer pressure and competitive pressure Are the strongest external drivers for adopting AR. Additionally, perceived usefulness and attitude significantly positively impact adoption intentions Conversely, perceived cost serves as a significant deterrent. Notably, self-efficacy was found to be the most influential predictor of perceived ease of use. The implications of these findings suggest that while market demand and competition push retailers toward AR, high operating costs remain a primary barrier. To foster adoption, administrators and manufacturers should focus on providing financial incentives and simplifying the technical installation process to enhance user-friendliness.