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Adding a New
Dimension to
Advertising
The Effects of Augmented Reality on Brand Attachment
Lauren B. Grady
$90 billion in investments by 2020
AR’s various uses in advertising
Importance of brand attachment
Does AR enhance brand
attachment and how?
How I did it.
How I did it.
L’Oreal Loyals
Competitor Customers
Non-Makeup Naturals
Brand-Self Connection
Trusted Friend & Advisor
Favorability
Versatility
Brand Prominence
“It makes me more likely to buy it,
because I’ve already tried it on.
Half the time, I buy it and don’t
like how it looks. So when you try
it on first, it helps.”
- Competitor Customer
Boldness
Purchase Intent
Best Practices
Strengthening Brand-self Connection
Enhancing Brand Prominence
Boosting Purchase Intent

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OUR Presentation_Draft 1_041616

Editor's Notes

  1. Augmented reality “superimposes computer-generated images on top of a user’s perception of the real world in real time, delivers integrated visual experiences directly related to a place or object that the user views, without any delay.” These computer-generated images can be seen on tablets and smartphones in real time. This is a developing technology and researchers at Digi-Capital are estimating $90 billion in investments by 2020.   More and more, augmented reality is being used in various ways. AR can offer more information about products or experiences, like in the Van Gogh Museum in the Netherlands, where AR is used to show rough drafts of paintings or a photograph of the image Van Gogh captured in his panting. McDonald’s also used AR to promote its sustainability measures, by creating AR educational games walking through McDonald’s new sustainability practices. But what is actually effective in enhancing a brand’s image with a consumer?   This is where brand attachment comes in. Brand attachment is the emotional connection between a consumer and a product. There are three branches of brand attachment. (1) First, the brand-self connection. The brand becomes an extension of the self as an attachment-based commitment develops. You feel like you’re a part of this product. It grows as the cognitive and emotional bond between the customer’s identity and the brand increases. The product increases feelings of happiness and comfort, pride in displaying the product, and anxiety and sadness from separation.   (2) Second is brand prominence. This is how top-of-mind the brand is. The ease and frequency with which brand-related thoughts and feelings are brought to mind.   (3) The third prong is purchase intent. This includes actual purchase intent – how probable it is that you purchase the product; brand purchase share – how likely you are to buy one brand over the other in the same category (Coke v. Pepsi); and need share – how likely you are to buy one product over another, like water over soda.   AR has been measured by app downloads and how people engage with it. But, no one had measured the impacts of AR on this important dimension of brand attachment. So this is what I set out to do.
  2. I knew I wanted to study these insights through the lens of young Millennial women, like myself. Therefore, I used the branded augmented reality app, L’Oreal Makeup Genius. The app lets users scan their faces and apply various makeup looks through the AR technology, created by Image Metrics. These looks can vary from really bold red lipstick to one of the pre-made, signature looks of popular celebrities. Users can take photos of themselves in the app to share on social media. In-stores, users can scan the barcodes of L’Oreal products and apply the makeup to their faces virtually. This allows them to test out colors and looks of products before purchasing.  
  3. I conducted three focus groups of undergraduate, female-identified participants. The first were L’Oreal Loyals. These are women who currently purchase L’Oreal products. Competitor Customers purchase brands such as Almay, Maybelline, CoverGirl and other products you can buy at a Target or Walmart. Non-Makeup Naturals were the third group. These participants did not regularly wear makeup.
  4. I organized my findings along the brand attachment structure. First, how I saw the brand-self connection strengthened.   Again, the brand-self connection is the cognitive and emotional bond between the customer’s identity and the brand. The brand encapsulates a representation of their identities or it possesses an instrumental meaning towards furthering their goals, personal concerns or life projects.   To defend my research, I am going to show you images that the users drew of L’Oreal personified before using L’Oreal Makeup Genius (on the left) and an after using the app (on the right).
  5. After using L’Oreal Makeup Genius, L’Oreal Loyals described L’Oreal as a Beauty Advisor and Encouraging/Honest Friend. The Beauty Advisor established trust between the user and L’Oreal. The Honest and Encouraging Friend encouraged the L’Oreal Loyals to venture outside of their comfort zones and was honest when the looks were not flattering. This level of trust and emotional connection between L’Oreal and the user exhibits a heightened level of brand attachment among L’Oreal Loyals.
  6. L’Oreal Loyals felt that L’Oreal had invested into building a relationship with their customers. This cohort also felt that L’Oreal was more easy-going and approachable and voiced feelings of happiness and comfort which are two prongs of brand attachment. A few Competitor Customers viewed L’Oreal as more “innovative” and business savvy, which increased their favorability.
  7. L’Oreal Loyals felt this feeling of versatility, which connected to their efforts for authenticity. L’Oreal embodied a variety of looks, which connected with multiple facets of the users identities. Users appreciated the freedom to express themselves that L’Oreal afforded them.
  8. Brand Prominence, again is the ease and frequency with which brand-related thoughts and feelings are brought to mind.
  9. L’Oreal Loyals and Competitor Customers expressed higher favorability because they had exposure to a greater assortment of products and felt as if they had tried them on due to telepresence.
  10. When looking to wear a bolder look, thoughts of L’Oreal become more prominent after using L’Oreal Makeup Genius. In all groups boldness was used to describe their experience with and image of L’Oreal.
  11. Lastly, I’m going to discuss the increase in purchase intent.
  12. Many users drew images of people they aspire to and try to embody, like the young professional and Cara Delevigne, so I’m using these images as my back drop.   L’Oreal Loyals’ purchase intent increased due to their increased feelings of brand attachment. Competitor Customers varied in their purchase intent. Obstacles such as comfort with the technology and boldness of the looks stood in the way of their purchase intent. Accessibility L’Oreal Makeup Genius helped users know exactly what products they are getting and eased the path to purchase through a “one-click” method. Seeing L’Oreal as a tool to enhance their ease of purchase increased the users’ feelings of brand attachment.   Convenience and Efficiency L’Oreal Makeup Genius saved time because users no longer needed to go to the store to purchase products. Users also felt that they had already tried on the products, which made them more likely to purchase.   Low Cost The users did not know that L’Oreal’s products were inexpensive, so this new awareness of price made them more likely to purchase.   Increased Exposure and Familiarity Using L’Oreal before shopping for makeup increases brand prominence when in a purchasing setting and can lead to buying top-of-mind L’Oreal products. Awareness of the various products also increases purchase intent among L’Oreal Loyals and Competitor Customers, since they now know how the products look and how they can meet their needs.   Telepresence Increases Purchase Intent L’Oreal Loyals felt that they had already tried on the makeup and liked the look, so they felt more inclined to purchase the products. The freedom to step outside of the participant’s comfort zone to experiment with new looks made them more prone to purchase.
  13. Lastly, I’m going to summarize my research with a few best practices for branded augmented reality mobile applications.
  14. Strengthening Brand-Self Connection Allow users to personalize the augmented reality to fit their needs and form a representation of their ideal selves. Do not challenge the customer’s sense of authenticity and self-image. Authenticity is a core value of Millennials, so challenging their feeling of authenticity and not aligning with their values of authenticity can turn the user away from the brand. Emphasize the effort made on behalf of the brand to engage with the customer     Strengthening Brand Prominence Viewing a branded AR mobile app as entertainment and fun leads to an increased dissemination of the app through WOM, resulting in a higher rate of download. The fun environment makes users feel more comfortable and as a result, more relaxed around the brand and able to identify with it. Incorporate in-store interactions with the brand into in-app engagements with the content. If a user remembers that the AR app can be used in-store, positive thoughts of the brand will emerge and could lead to purchase.   Strengthening Purchase Intent for Apps with Avenue to Purchase Have a clear return policy Include a price comparison feature Make sure all products are in stock Include reviews from other AR users confirming the quality and experience with the products Standardize the purchasing process through widely adopted financial services, like PayPal or Amazon.