Factors Influencing Consumer Loyalty in Augmented Reality Beauty Apps: Sephora Virtual Artist Empirical Study

With increase in usage of online mobile shopping apps, app developers and marketers are seeking innovative options to provide consumers with unique shopping experiences. In recent times, Virtual try-on feature in augmented reality apps have gained popularity. This study extends the electronic service quality model (ES-QUAL) with Hedonic Motivation and Perceived Value and seeks to explain the factors influencing consumer loyalty intentions in AR beauty apps. Sephora is a leading brand in the cosmetic industry and Virtual Artist is its augmented reality try-on feature. An online survey was conducted with 251 university students. PLS-SEM analysis results suggest that Hedonic Motivation and Efficiency significantly impact loyalty intentions, while Perceived value, Perceived Privacy Risks, System Availability and Fulfilment were not significant. This study contributes to the existing literature in the domain of consumers loyalty intentions and AR apps. Retail practitioners can use the results to boost consumer loyalty and predict purchase intention.