5.2.3 compared to large and interactive screens of technologies

5.2.3 Cost and time savings

Augmented reality has been implemented
by most of the companies in e-commerce for supporting virtual prototyping that
minimize the number of physical prototype construction which is costly and
time-consuming (Hendriks, Blok, & Kahlhofen, 2015). The cost of entry
for augmented reality in e-commerce is relatively low. Retailers do not require
huge monetary investments on the technology to implement augmented reality
compared to large and interactive screens of technologies such as digital
signage and touch points in storefront windows due to augmented reality in
e-commerce can be mainly supported by a smartphone with the installed mobile
applications. These can be an incentive for both small and huge retailers with
smaller budgets who have adopted mobile technologies with augmented reality in
e-commerce without hefty price for attracting their customers driven by their
expectation to figure out entertaining elements and supporting tools that able
to enhance the quality of online shopping experience and customer satisfaction (Pantano, 2014). 

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In addition, augmented reality has been
implemented, especially in retail industries, to save a lot of costs in
expanding business to new locations without building any physical branches or
stores. Virtual stores have been set up to replace the physical stores in order
to save the cost of real-estate payment. The customers can walk through virtual
aisles, select items by tapping on the screens and adding the desire items to
the cart1.




5.2.4 Novelty to

Incorporating augmented reality is an
immediate way for retailers to stand out from the pack through the
technological innovations and developments. Those retailers that reap the
biggest benefits of augmented reality will be the ones willing to invest
resources early and fully commit to the technology in the real world. Augmented
reality in e-commerce allows the retailers to gain visibility and prestige that
can be spread through word of mouth in order to increase the sales and customer
value (Pantano, 2014).

The retailers who have adopted augmented
reality in e-commerce is able to differentiate and distinguish themselves from
the competitors by allowing the shoppers to visualize and try the items or
products in real time in their actual size and environment before making an
actual purchase. Customers are anxious for the breakthrough that will finally
remove uncertainty from the buying process such as poor photo availability. The
shoppers will conduct online shopping more if they are able to interact with
the products virtually. The retailers not only can retain their existing
customers but also can attract new customers (Pantano, 2014).


5.2.5 Product

Augmented reality in e-commerce allows
the customers to customize their products by offering a fully personalized digital
shopping experience. Augmented reality has the potential to deliver these
personalized services to the masses. The users are strongly desire for this
sort of digital customization, whether it be an app that allows them to test
out different color combinations of the products. Updated information on
consumers’ behaviors in terms of both purchases and accessed products which
able to memorize both visualized products that have purchased and also do not
purchased by the consumers can be obtained easily in specific databases
integrated with informative systems that support the access to
consumer-computer interactions. These are useful for retailers to extract
knowledge about developing customized selling strategies and advertising as
well as understanding market trends about the factors that influence consumers’
decision making process (Pantano, 2014).

Refer to http://www.cillium.com/pdf/Augmented_Reality_and_Retail_Shopping.pdf