Abstract
As technology further expands, the relationship between customers and organizations becomes even more idiomatic, as witnessed by personalized recommendations on websites and applications such as Amazon, Google, and Netflix. Through a service-dominant logic lens, this paper examines the effects of perceived personalization when using augmented reality (AR) and web-based stores on customers' intentions to co-create value. We utilize an experimental design whereby participants would either use the IKEA Place AR application or visit the IKEA website. This is then followed by a survey to a) compare AR and website-based shopping attitudes, b) explore the role of personalization on intentions to co-create as well as the moderating influence of perceived value and c) investigate the mediating influence of customer perceived trust and risk on the relationship between perceived personalization and intention to co-create. Employing SEM, our findings show that perceived personalization significantly predicts value co-creation intention for website-based shopping, but not for AR-powered shopping. Additionally, the results show that trust and risk mediate the relationship between perceived personalization and intention to co-create value within the AR group with perceived value moderating the relationship between perceived personalization and risk, but not between personalization and trust. Our study is one of the first to explore the impact of personalization on intentions to co-create value and to compare perceptions of personalization between shopping through web-based stores and AR technology. Moreover, the results of this study highlight the importance of perceived risk, perceived trust, and perceived value, on customer intention to co-create. The practical implications for these findings assist managers in developing omnichannel marketing strategies while the theoretical implications contribute to the AR, technology, and co-creation literature by offering insights into the unique role of perceived personalization on AR technology and web-based store shopping via website-based retailing.