AUGMENTED REALITY AND CONSUMER BEHAVIOR
   How, when and why do the processes of humanizing brand lead to consumer-brand relationships?


INTRODUCTION

Augmented reality (AR) is a technology that overlays digital content onto the real world, creating
an interactive and immersive experience for users. AR has the potential to revolutionize the way
consumers interact with brands, products, and services. By blending the physical and digital
worlds, AR can enhance consumer engagement and influence behaviour in various ways.

AR has already started to impact consumer behaviour in several ways. For example, AR can provide
consumers with a more realistic and engaging way to experience products before making a purchase
decision. This can increase consumer confidence and reduce the likelihood of returns or negative
reviews. AR can also provide valuable information and context to consumers, such as product
details, reviews, and recommendations.

In addition, AR can create a sense of novelty and excitement, which can increase consumer
engagement and brand loyalty. Brands can use AR to create unique and memorable experiences for
consumers, such as interactive games, immersive storytelling, and personalized shopping
experiences. This can help brands stand out in a crowded marketplace and create a deeper connection
with consumers.

However, there are also potential challenges associated with the use of AR in consumer behaviour.
For example, AR experiences can be complex and require technical expertise, which may limit their
accessibility to certain groups of consumers. In addition, there may be privacy concerns related to
the collection and use of consumer data in AR experiences.

Overall, the use of AR in consumer behaviour is a rapidly evolving area with significant potential
for brands to enhance consumer engagement and influence behaviour. However, it is important for
brands to carefully consider the potential benefits and challenges of using AR to ensure that it
aligns with their marketing goals and meets the needs and expectations of consumers.

How, when and why do the processes of humanizing brand lead to consumer-brand relationships?

The process of humanizing a brand involves creating a brand personality that is relatable and
appealing to consumers. This can be achieved through various means, such as creating a brand story,
using human-like language and tone, showcasing the brand's values, and creating a consistent brand
image across different touchpoints.

When done correctly, humanizing a brand can lead to stronger consumer-brand relationships. This is
because consumers are more likely to connect with brands that they perceive as relatable and
trustworthy. By humanizing a brand, companies can create an emotional connection with consumers,
which can result in increased loyalty, repeat purchases, and positive word-of-mouth.

The process of humanizing a brand should begin during the brand development stage, and should be
integrated into all aspects of the brand's marketing and communication strategies. It should also
be regularly evaluated and updated to ensure that it remains relevant and resonates with consumers.


PROBLEM STATEMENT

1.      What impact does the quality of the customer experience have on the development and
maintenance of consumer-brand relationships?

2.      How do consumer expectations and perceptions of corporate social responsibility impact
their relationship with a brand?

3.      What role does trust play in the development and maintenance of consumer-brand
relationships?

4.      How do social media and other digital platforms influence the development and maintenance
of consumer-brand relationships?


1.    The quality of the customer experience has a significant impact on the development and
maintenance of consumer-brand relationships. A positive customer experience can foster a sense of
trust and loyalty towards a brand, while a negative experience can damage the relationship and lead
to lost sales and negative word-of-mouth.

Research has shown that there are several key elements of the customer experience that are
particularly important in building strong consumer-brand relationships. These include:

Personalization: Customers expect personalized experiences that meet their individual needs and
preferences. Brands that are able to deliver customized experiences are more likely to build strong
relationships with their customers.

Communication: Clear, timely, and effective communication is critical to building trust and
maintaining strong relationships with customers. Brands that are transparent and responsive to
customer feedback are more likely to earn loyalty and repeat business.

Consistency: Customers value consistency in their interactions with a brand. Consistent experiences
across different touchpoints can create a sense of familiarity and reliability, which can lead to
increased trust and loyalty.

Emotional engagement: Brands that are able to create emotional connections with customers are more
likely to build long-term relationships. Emotional engagement can be achieved through various
means, such as storytelling, branding, and customer service.

Overall, the quality of the customer experience is a critical factor in building and maintaining
strong consumer-brand relationships. Brands that prioritize the customer experience and invest in
delivering high-quality, personalized, and emotionally engaging experiences are more likely to earn
the trust and loyalty of their customers.


2.    Consumer expectations and perceptions of corporate social responsibility (CSR) can have a
significant impact on their relationship with a brand. CSR refers to a company's efforts to operate
in an ethical and sustainable manner, taking into account the impact of its actions on the
environment, society, and stakeholders.

Research has shown that consumers are increasingly interested in CSR and expect companies to act
responsibly and address social and environmental issues. Consumers may view a brand more positively
if it demonstrates a commitment to CSR, and conversely, negative perceptions of a brand's CSR can
lead to decreased loyalty and negative word-of-mouth.

There are several ways in which consumer expectations and perceptions of CSR can impact their
relationship with a brand:

Trust and credibility: Consumers may view a brand as more trustworthy and credible if they perceive
it as socially responsible. Brands that are seen as socially responsible may be more likely to earn
consumer trust and loyalty, leading to increased sales and positive word-of-mouth.

Purchase behaviour: Consumers may choose to purchase products from socially responsible brands,
even if they are more expensive, as they feel that they are making a positive impact with their
purchase. Conversely, negative perceptions of a brand's CSR may lead to decreased purchase
behaviour and lost sales.

Brand reputation: A brand's CSR efforts can impact its reputation, with positive CSR leading to
increased positive brand associations and negative CSR leading to decreased brand reputation.

Employee engagement: A brand's CSR efforts can also impact employee engagement and motivation.
Employees who work for socially responsible brands may feel more engaged and motivated, leading to
increased productivity and job satisfaction.


3. Trust plays a critical role in the development and maintenance of consumer-brand relationships.
Consumers are more likely to purchase from and remain loyal to brands that they trust.

Here are a few ways in which trust impacts consumer-brand relationships:

Purchase behaviour: Consumers are more likely to purchase from brands that they trust. A strong
level of trust can lead to increased sales and repeat purchases, while a lack of trust can lead to
lost sales and negative word-of-mouth.

Loyalty: Trust is a key driver of consumer loyalty. Consumers who trust a brand are more likely to
remain loyal and continue purchasing from that brand, even if there are other options available.

Reputation: Trust is closely tied to a brand's reputation. A strong reputation for trustworthiness
can help a brand to stand out from competitors and attract new customers, while a negative
reputation can harm a brand's sales and growth potential.

Word-of-mouth: Consumers who trust a brand are more likely to recommend it to others, leading to
positive word-of-mouth and increased sales. On the other hand, negative experiences and a lack of
trust can lead to negative word-of-mouth, which can harm a brand's reputation and sales.

Crisis management: In the event of a crisis or negative publicity, a brand's level of trust can
play a critical role in its ability to recover. Brands that have established high levels of trust
with their customers are more likely to weather a crisis and maintain positive relationships, while
those with low levels of trust may struggle to recover.


4. Social media and other digital platforms have had a profound impact on the development and
maintenance of consumer-brand relationships. Here are a few ways in which these platforms influence
these relationships:

Increased reach: Social media and other digital platforms provide brands with an opportunity to
reach a larger audience than ever before. Brands can use these platforms to engage with consumers
on a more personal level and build relationships with them.

Direct communication: Social media and other digital platforms allow for direct communication
between brands and consumers. Brands can respond to customer inquiries, provide support, and
address concerns in real-time, which can help to build trust and loyalty.

Personalization: Digital platforms also allow for personalized interactions with consumers. Brands
can use data to tailor their messaging and offers to individual consumers, which can help to
strengthen relationships.

Influencer marketing: Social media platforms have given rise to influencer marketing, which
involves partnering with social media influencers to promote a brand or product. Influencer
marketing can be an effective way to reach new audiences and build relationships with consumers.

User-generated content: Digital platforms also allow for user-generated content, where consumers
create and share content related to a brand or product. This content can help to build a sense of
community and strengthen relationships between consumers and the brand.

Continuous engagement: Social media and other digital platforms provide brands with an opportunity
to engage with consumers on a continuous basis. Brands can use these platforms to share updates,
offer promotions, and create a dialogue with their audience, which can help to build and maintain
relationships.

OBJECTIVES

Consumer-brand relationships can have several benefits for both the consumer and the brand. Here
are a few examples:

Increased loyalty: A strong consumer-brand relationship can lead to increased consumer loyalty.
Consumers who feel a connection with a brand are more likely to continue purchasing from that
brand, even when there are other options available.

Positive word-of-mouth: Consumers who have a positive relationship with a brand are more likely to
recommend it to others. This can lead to positive word-of-mouth, which can help to attract new
customers and increase sales.

Higher revenue: Brands that are able to build strong relationships with their customers are more
likely to see higher revenue. This is because loyal customers are more likely to make repeat
purchases and spend more money over time.

Lower marketing costs: Brands that have established strong relationships with their customers may
be able to spend less on marketing and advertising. This is because they have a built-in audience
that is more likely to purchase from them.

Increased brand equity: Strong consumer-brand relationships can lead to increased brand equity.
This is because consumers are more likely to associate positive attributes with a brand that they
have a positive relationship with.

Better customer feedback: Brands that have established strong relationships with their customers
may receive better feedback from them. This can help the brand to improve its products and
services, which can lead to higher customer satisfaction.


LITERATURE REVIEW

Belk's (1988) article, "Possessions and the Extended Self," is a seminal work in the field of
consumer behavior and brand-consumer relationships. In this article, Belk argues that possessions
are not just physical objects, but also extensions of the self, with deep emotional and
psychological significance for individuals. This concept of the "extended self" has important
implications for understanding the nature of consumer-brand relationships. ^[1]

Belk's (2013) article, "Extended Self in a Digital World," builds on his earlier work on
possessions and the extended self, and explores the ways in which digital technology has
transformed the nature of consumer-brand relationships.^ [2]

Boell and Cecez-Kecmanovic's (2015) article, "On Being 'Systematic' in Literature Reviews in IS,"
provides a useful framework for conducting a systematic literature review on consumer-brand
relationships.^ [3]

Brito, Stoyanova, and Coelho's (2018) article, "Augmented Reality versus Conventional Interface: Is
There Any Difference in Effectiveness?" explores the potential of augmented reality (AR) as a tool
for building and maintaining consumer-brand relationships. ^[4]

Brengman, Willems, and Van Kerrebroeck's (2018) article, "Can't Touch This: The Impact of Augmented
Reality versus Touch and Non-Touch Interfaces on Perceived Ownership," explores the impact of AR
and touch interfaces on perceived ownership, which is an important aspect of consumer-brand
relationships. ^[5]


METHODOLOGY

Developing a methodology for studying consumer-brand relationships involves several steps:

Research question: The first step is to clearly define the research question. What aspect of
consumer-brand relationships do you want to study? Are you interested in understanding how quality
of customer experience impacts relationships, or how social media affects brand-consumer
relationships? Clarifying the research question will help guide the rest of the methodology.

Sampling: The next step is to select a sample of consumers to study. The sample should be
representative of the target population, and the size of the sample should be large enough to
generate reliable results. Sampling methods can vary depending on the research question and
available resources.

Data collection: Once the sample has been selected, data must be collected. There are various
methods for collecting data, including surveys, interviews, and focus groups. The method chosen
will depend on the research question and the type of data needed.

Data analysis: After data has been collected, it must be analysed. This involves examining the data
for patterns and trends, identifying relationships between variables, and drawing conclusions based
on the data. Various statistical methods can be used to analyse the data, depending on the type of
data and the research question.

Interpretation: The final step is to interpret the results of the analysis. What do the results
mean in terms of the research question? What implications do they have for the brand or industry
being studied? This step involves drawing conclusions and making recommendations based on the
research findings.


LIMITATIONS

Self-report bias: When relying on self-report measures such as surveys or interviews, there is a
risk of self-report bias, where participants may not provide accurate information due to social
desirability or other factors.

Small sample sizes: Small sample sizes can limit the generalizability of findings, making it
difficult to draw conclusions about the wider population.

Difficulty measuring emotions: Emotions are a key component of consumer-brand relationships, but
they can be difficult to measure objectively. Self-report measures can be subject to bias, and
physiological measures (such as heart rate or skin conductance) may not always accurately reflect
emotional responses.

Limited scope: Consumer-brand relationships are complex and multifaceted, and it may be difficult
to capture all aspects of these relationships in a single study. Researchers must carefully choose
which aspects to focus on, which can limit the scope of the study.

Difficulty establishing causality: While correlation can be established between variables, it can
be difficult to establish causality in studies of consumer-brand relationships due to the complex
nature of these relationships.

Evolving consumer behaviour: Consumer behaviour is constantly evolving, particularly with the
increasing use of technology and social media. This means that studies may quickly become outdated
and need to be updated to remain relevant.

Cultural differences: Consumer-brand relationships can vary across cultures, making it difficult to
generalize findings across different cultures or countries.


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NAME AND SURNAME OF THE STUDENT, PERSONAL NUMBER:

Kateřina Čechová, M21122

Lucie Paníčková, M21413

Barbora Šuláková, M21484

Karolína Šumská, M21485