The AR-Display Bias: Why Augmented Reality Increases Preferences More for Inferior Than for Superior Products

Abstract

Prominent brands increasingly offer consumers the possibility of experiencing virtual versions of their products in Augmented Reality (AR) before purchase. AR has been shown to impact consumer behavior, but how do product attributes shape that impact? Might the impact of AR displays differ with a product's objective quality level? Seven studies demonstrate AR display increases preferences for products with an objectively inferior performance (e.g., less processing power in a laptop) more than for products with superior performance. This pattern occurs as consumers evaluate inferior products more positively in AR than in traditional product displays (i.e., product pictures or 360-degree displays). We argue AR increases psychological ownership for products, which leads consumers to focus less on value-decreasing (i.e., inferior) product performance features. This decreased focus leads to an inflated perception of functional performance for inferior products-the AR-display bias. Consistent with this reasoning, the effect attenuates when consumers exhibit less psychological ownership in AR, for instance, when products are less congruent with one's self. These findings highlight the important role that product-performance information plays in shaping the impact of AR displays on consumer decision-making.

Keywords: augmented reality, psychological ownership, perceived functionality, quality differentiation, product display