Engaging the customer with augmented reality and employee services to enhance equity and loyalty

PurposeThis study aims to understand customer equity and loyalty using augmented reality (AR) and employee services in a physical retail environment. The current study investigated how customers' experiences with AR-based and employee service affect their satisfaction, equity and loyalty.Design/methodology/approachA conceptual framework was developed by reviewing AR and employee services literature. The Smart PLS-SEM technique was used to test the responses of 620 Chinese respondents empirically.FindingsThe findings provided valuable insights into AR and employee services in a physical retail environment. Customers are more inclined to use AR services in the current business climate.Research limitations/implicationsThis study's sample was drawn from a single city, with a total of 620 respondents, which may not be a complete representation of China as a whole. As a result, the results may not be generalizable to a single city.Practical implicationsRetail brand managers should emphasize implementing innovative technologies in the physical retail environment to retain and attract customers. Pandemic consumers are opting for innovative technologies as part of their shopping experience due to changes in business models.Originality/valueThe researchers recognized AR and employee services as innovative domains in physical retail stores because they can increase sales, customer equity and loyalty. As a result, the framework results are precious to practitioners interested in implementing such innovative technologies for retail stores.