The role of augmented reality on marketing practices in the B2C sector for the German market
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Abstract 3
1. Introduction 1
2. Theoretical perspectives on the integration of AR in the marketing context 3
2.1 Methodology Literature review 4
2.2 Terminology explanation 6
2.2.1 General classifications 6
2.2.2 Extended reality concept 7
2.2.3 AR Definition 8
2.3 Environmental and technological perspective of AR adoption 9
2.3.1 Environmental Analysis 9
2.3.2 AR adoption 10
2.3.3 Technological perspectives on AR usage 15
2.3.4 Challenges for marketers with AR 17
2.4 Discussion of frameworks with use case analysis 23
2.4.1 Marketing Audit 23
2.4.2 Marketing strategy 29
2.4.3 Value creation and the value pyramid 33
2.4.4 AR Customer-Journey Map 38
2.4.5 Implementation of AR 45
2.4.6 Success measurement 49
2.5 Implementation case analysis 53
2.6 Summary and gaps in the literature 60
3. Methodology 62
3.1 Summary table with key decisions made 63
3.2 Research Design Interviews 64
3.3 Methodological Limitations & Mitigation Strategies 66
4. Results and analysis interview 67
4.1 Data analysis 68
4.2 Results 70
4.3 Conclusion 74
5 Discussion 76
5.1 Summary 76
5.2 Theoretical Implications 78
5.3 Managerial Implications 79
5.4 Decision tree 80
5.5 Limitations and future research 84
References 86
List of images 104
List of Tables 105
List of abbreviations 106
Additional in-depth information: 107
A1: Defining VR 107
A2: Types of Innovation 107
A3: Strategy by Greenley 108
A4: GE McKinsey Matrix and sources of competitive advantage 115
A5: Segmentation, Targeting, Positioning 116
A6: Customer journey explanation 118
A7: AR objectives 119
A8: Smart Framework 119
A9: Metrics for success measurement: 120
A10: Case Analysis raw data 122
A11: Interview questions 123
1. Introduction 1
2. Theoretical perspectives on the integration of AR in the marketing context 3
2.1 Methodology Literature review 4
2.2 Terminology explanation 6
2.2.1 General classifications 6
2.2.2 Extended reality concept 7
2.2.3 AR Definition 8
2.3 Environmental and technological perspective of AR adoption 9
2.3.1 Environmental Analysis 9
2.3.2 AR adoption 10
2.3.3 Technological perspectives on AR usage 15
2.3.4 Challenges for marketers with AR 17
2.4 Discussion of frameworks with use case analysis 23
2.4.1 Marketing Audit 23
2.4.2 Marketing strategy 29
2.4.3 Value creation and the value pyramid 33
2.4.4 AR Customer-Journey Map 38
2.4.5 Implementation of AR 45
2.4.6 Success measurement 49
2.5 Implementation case analysis 53
2.6 Summary and gaps in the literature 60
3. Methodology 62
3.1 Summary table with key decisions made 63
3.2 Research Design Interviews 64
3.3 Methodological Limitations & Mitigation Strategies 66
4. Results and analysis interview 67
4.1 Data analysis 68
4.2 Results 70
4.3 Conclusion 74
5 Discussion 76
5.1 Summary 76
5.2 Theoretical Implications 78
5.3 Managerial Implications 79
5.4 Decision tree 80
5.5 Limitations and future research 84
References 86
List of images 104
List of Tables 105
List of abbreviations 106
Additional in-depth information: 107
A1: Defining VR 107
A2: Types of Innovation 107
A3: Strategy by Greenley 108
A4: GE McKinsey Matrix and sources of competitive advantage 115
A5: Segmentation, Targeting, Positioning 116
A6: Customer journey explanation 118
A7: AR objectives 119
A8: Smart Framework 119
A9: Metrics for success measurement: 120
A10: Case Analysis raw data 122
A11: Interview questions 123
The corporate climate has changed dramatically in the recent years, necessitating the adoption of new models which can handle and anticipate the fast-changing world. This environment seems like it is changing from volatility, uncertainty, complexity and ambiguity (VUCA) to brittleness, anxiety, non-linearity and incomprehensibility (BANI). This switch in paradigm especially with the increased attention of AR over the last years, both from managers and scholars alike acknowledges that the business environment is becoming more fragile, with minor changes having major repercussions. This means that companies must be sensitive and adaptable to the changing environment. Various studies in the marketing discipline have tackled fragmented aspects of AR, such as its impact on sales or brands. However, yet, a holistic approach to AR remains scarce. Only a few scholars tried to examine the impact of AR regarding the company’s marketing practices which can disrupt entire industries and going to influence the marketing efforts of companies intensively (Rauschnabel, Babin, et al., 2022). The market growth for AR with a CAGR1 of 48,6% is significant for the next 6 years (Fortune Business Insights, n.d.). Nevertheless, a report from BCG (Bona et al., 2018) revealed that companies and marketers2 3 see the potential which lies in AR but most of the companies are still in the experimental stage and do not know how to effectively use this technology. Studies in Germany and America also showed that the acceptance between demographic groups is different. The highest acceptance for AR features is in the Generation Z3 and Generation Y4. These generations will soon become the major generations for which companies need to align their marketing strategy since the buying power of them is increasing with the raise in age.
1.2 Problem statement
The analysis of the current literature in AR marketing showed several undiscovered research areas. Most of the studies focus on the customer usage of AR but neglect the implications for companies and marketers, and how they will be affected by the increasing use of AR. This study aims to give a holistic insight into the literature around AR and subsequently give marketers the knowledge if AR can enhance their marketing efforts and what decisions they will face by implementing AR (Decision Tree). Therefore, this thesis aims to provide insights into how businesses can effectively incorporate AR into their marketing strategies to enhance the customer experience and achieve marketing objectives in the German market.
For answering the research question the following objectives have been set:
• To examine the impact of AR on marketing practices in the B2C sector of the German market
• To identify strategies that businesses can use to effectively leverage AR in their marketing strategies
• To identify best practices and key success factors for incorporating AR into marketing strategies
• To analyze the marketing campaigns of companies in the B2C sector in the German market that have successfully integrated AR into their marketing strategies
1.4 Scope and limitations of the study
This study focuses on the impact of AR on marketing practices in the B2C sector of the German market. The research will include a comprehensive literature review with selected case studies and the use of a qualitative research to investigate the impact of AR on marketing practices. Since the study is qualitative it will have several limitations. The limitations which are prevalent are sampling bias, generalizability, subjectivity, reliability, and validity. To mitigate the risks, the study will use a purposive sampling strategy which includes professionals with relevant experience in the field of AR and marketing in the B2C sector for the German market as well as a clear rational for the selection will be used. Since the study is of explanatory nature the study will not be able to generalize for different countries or the B2B sector since the research has been only conducted for the German B2C sector. Additionally, the use of qualitative analysis techniques such as the use of deductive coding involves a degree of subjectivity in the interpretation of results. To minimize the potential bias the process of analysis will be transparent and well-documented in the methodology chapter. The reliability and validity of the findings might be limited by the qualitative research. Therefore, the analytical techniques will be well-documented and transparent.
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1.2 Problem statement
The analysis of the current literature in AR marketing showed several undiscovered research areas. Most of the studies focus on the customer usage of AR but neglect the implications for companies and marketers, and how they will be affected by the increasing use of AR. This study aims to give a holistic insight into the literature around AR and subsequently give marketers the knowledge if AR can enhance their marketing efforts and what decisions they will face by implementing AR (Decision Tree). Therefore, this thesis aims to provide insights into how businesses can effectively incorporate AR into their marketing strategies to enhance the customer experience and achieve marketing objectives in the German market.
For answering the research question the following objectives have been set:
• To examine the impact of AR on marketing practices in the B2C sector of the German market
• To identify strategies that businesses can use to effectively leverage AR in their marketing strategies
• To identify best practices and key success factors for incorporating AR into marketing strategies
• To analyze the marketing campaigns of companies in the B2C sector in the German market that have successfully integrated AR into their marketing strategies
1.4 Scope and limitations of the study
This study focuses on the impact of AR on marketing practices in the B2C sector of the German market. The research will include a comprehensive literature review with selected case studies and the use of a qualitative research to investigate the impact of AR on marketing practices. Since the study is qualitative it will have several limitations. The limitations which are prevalent are sampling bias, generalizability, subjectivity, reliability, and validity. To mitigate the risks, the study will use a purposive sampling strategy which includes professionals with relevant experience in the field of AR and marketing in the B2C sector for the German market as well as a clear rational for the selection will be used. Since the study is of explanatory nature the study will not be able to generalize for different countries or the B2B sector since the research has been only conducted for the German B2C sector. Additionally, the use of qualitative analysis techniques such as the use of deductive coding involves a degree of subjectivity in the interpretation of results. To minimize the potential bias the process of analysis will be transparent and well-documented in the methodology chapter. The reliability and validity of the findings might be limited by the qualitative research. Therefore, the analytical techniques will be well-documented and transparent.
...
Since the research is of explanatory nature and the use of a qualitative research approach in connection with case studies and literature review, the results can only be partially extrapolated.
Firstly, the study was limited to CEOs of marketing companies in Germany who have already implemented AR marketing campaigns for the B2C sector. Future research could use a quantitative research design to increase the validity of the findings and include a larger sample size. Additionally, future research could investigate the use of AR in other sectors of the German market and other countries.
Secondly, since the introduced models like the marketing audit cube, value pyramid (Almquist et al., 2016), CJM (Rauschnabel, Babin, et al., 2022), and the developed decision tree have been only used for a limited number of case studies and cross-checks by interview participants the analysis should be expanded to see its validity on a bigger sample size. Hence the development of the decision tree was made based on the current literature and the findings of the interviews. Therefore, further research could enhance and correct the decision tree elements by insights from B2C companies directly and not solely from marketing agencies.
Thirdly, since it was visible that AR is currently mostly focused in the implementation in the tactical level and neglect the fact, that it could be also used in the strategical- and functional level, further analysis could expand the knowledge in that field.
Fourthly, it was found out, that current AR tools are mostly focused on creating better customer relationships as their goal. Since AR can be used for other goals as well it seems, that marketers currently are lagging the understanding for what AR can be used additionally. Therefore, further analysis on how to leverage the use of AR for other goals is recommended.
Fifthly, the insights from the case studies and interviews showed that the implementation of AR is mostly focused on the awareness, planning and use stage. Since AR can be used to create value for the entire CJM, scholars should try to investigate the exploration, purchase and loyalty stage of the CJM to provide marketers the knowledge on how to enhance the walk through of the CJM by using AR.
Sixthly, since the impact of AR on the ROI of companies is still a very big concern, scholars should try to investigate on how to effectively link the offline and online world together to give marketers the possibility to quantitatively justify their investments into AR.
Seventhly, the digital asset management will become soon as important as the physical asset management of companies. Therefore, it should be studied, how companies can manage their assets effective- and efficiently.
Eighthly, since AR is an emerging technology will little quantitative data available, further research could be conducted in regard to benchmarking analysis. Benchmarking could be used to compare traditional marketing efforts with the emerging technology of AR.
Lastly, AR has the potential to reduce the carbon footprint of companies by reducing the return of parcels as well as minimizing the inventory. Since there is currently no research available into the sustainability aspect of the emergence of AR it could be enhancing the literature significantly.
Firstly, the study was limited to CEOs of marketing companies in Germany who have already implemented AR marketing campaigns for the B2C sector. Future research could use a quantitative research design to increase the validity of the findings and include a larger sample size. Additionally, future research could investigate the use of AR in other sectors of the German market and other countries.
Secondly, since the introduced models like the marketing audit cube, value pyramid (Almquist et al., 2016), CJM (Rauschnabel, Babin, et al., 2022), and the developed decision tree have been only used for a limited number of case studies and cross-checks by interview participants the analysis should be expanded to see its validity on a bigger sample size. Hence the development of the decision tree was made based on the current literature and the findings of the interviews. Therefore, further research could enhance and correct the decision tree elements by insights from B2C companies directly and not solely from marketing agencies.
Thirdly, since it was visible that AR is currently mostly focused in the implementation in the tactical level and neglect the fact, that it could be also used in the strategical- and functional level, further analysis could expand the knowledge in that field.
Fourthly, it was found out, that current AR tools are mostly focused on creating better customer relationships as their goal. Since AR can be used for other goals as well it seems, that marketers currently are lagging the understanding for what AR can be used additionally. Therefore, further analysis on how to leverage the use of AR for other goals is recommended.
Fifthly, the insights from the case studies and interviews showed that the implementation of AR is mostly focused on the awareness, planning and use stage. Since AR can be used to create value for the entire CJM, scholars should try to investigate the exploration, purchase and loyalty stage of the CJM to provide marketers the knowledge on how to enhance the walk through of the CJM by using AR.
Sixthly, since the impact of AR on the ROI of companies is still a very big concern, scholars should try to investigate on how to effectively link the offline and online world together to give marketers the possibility to quantitatively justify their investments into AR.
Seventhly, the digital asset management will become soon as important as the physical asset management of companies. Therefore, it should be studied, how companies can manage their assets effective- and efficiently.
Eighthly, since AR is an emerging technology will little quantitative data available, further research could be conducted in regard to benchmarking analysis. Benchmarking could be used to compare traditional marketing efforts with the emerging technology of AR.
Lastly, AR has the potential to reduce the carbon footprint of companies by reducing the return of parcels as well as minimizing the inventory. Since there is currently no research available into the sustainability aspect of the emergence of AR it could be enhancing the literature significantly.
