Understanding how augmented reality's immersive experience and privacy concerns impact consumer responses: a cognitive perspective

Augmented reality (AR) has emerged as a promising tool for its capacity to enable spatial presence, the sense that virtual products exist in the real world and can be interacted with. However, previous inconsistent results about the outcomes of spatial presence highlight the need to better understand the components of the learning experience in AR. Additionally, the effect of users' privacy concerns and how it influences consumers' learning in AR is largely underexplored. Thus, this study examines the impact of spatial presence and cognitive involvement on consumers' confidence and attitudes toward products. Across two branded AR-based virtual try-on apps, findings reveal that spatial presence and cognitive involvement enhance consumers' attitudes toward products, but only cognitive involvement increases attitude certainty. Meanwhile, privacy concerns degrade the effect of cognitive involvement on attitude certainty and purchase intentions. These findings contribute to the cognitive theory of multimedia learning (CTML) and privacy calculus theory, offering a nuanced perspective on how consumers process AR experiences. From a managerial standpoint, this study provides actionable insights for marketers on enhancing spatial presence while mitigating privacy-related cognitive load, ultimately optimizing AR's effectiveness in driving positive consumer responses.<p></p>