Rebranded Reality: How AR Brand Experience impacts Brand Equity

Augmented Reality (AR) enables a new approach to simulate the dematerialized aspects of brand experience and reach audiences in a novel and exciting way. This study aims to provide a better understanding of how brand experience and brand equity are established through consumers' AR experiences, facilitated by flow. Moreover, the study aims to examine AR effectiveness in supporting long-term branding strategies. To achieve this objective, 174 participants were exposed to an AR experience and accessed an online survey. The empirical data is processed and verified by partial least squares-structural equation modelling (PLS - SEM). The results of this study show that augmented reality attributes novelty, and interactivity positively affects flow. However, only when novelty affects flow, it becomes a serial mediator on brand experience and further on brand equity. More specifically, novelty through flow affects all factors of brand experience. Through sensory brand experience, flow affects all factors of brand equity, while through behavioural brand experience, it affects overall brand equity. The findings of this study add support to comprehensive theoretical knowledge of the concept of AR branding and provide a framework for effective integration of AR technology into brand strategy.