Author(s): Phuthong, T.
Technological advancements and the widespread use of digital technologies are reshaping retail businesses and the shopping experience. Augmented reality (AR) is digital technology used to create a new retail concept in which a shop’s physical and digital components coexist. This study investigated a customer engagement model in the context of online retail business that utilizes AR-based applications. A questionnaire was administered to a sample of 400 customers who have used AR in online shopping. Descriptive data were analyzed using frequency and percentage distributions. Partial least squares regression was also used to analyze structural equation models. The findings indicated that digital service experience impacted customer engagement through hedonic and utilitarian values due to perceived ease of use, social influence, and personal innovativeness, all of which were causative variables. Additionally, the findings showed that perceived risk did not affect the hedonic and utilitarian values, and personal inventiveness did not affect utilitarian value. This research demonstrates the critical importance of understanding the variables influencing customer engagement with online retailers using AR-based applications. The research suggests the use of AR-based applications to online retail entrepreneurs to increase customer engagement.