Background of the study:
Augmented reality (AR) has emerged as a transformative technology in retail, significantly enhancing product visualization by overlaying digital information onto the physical environment. In Lagos, Nigeria, electronics retailers are increasingly adopting AR to bridge the gap between online product information and tangible customer experience. This study explores how AR applications allow customers to visualize products in a realistic setting before making purchase decisions, thereby reducing uncertainties and boosting customer confidence (Adebayo, 2023). Retailers employ AR to offer interactive demonstrations, detailed product features, and contextual usage scenarios, which are critical in a competitive market where digital and physical shopping experiences converge (Okoro, 2024). Additionally, the integration of AR supports personalized marketing strategies and facilitates informed decision-making by consumers. The technology’s ability to simulate realistic product behavior and aesthetics is reshaping traditional retail paradigms, driving customer engagement and sales performance (Williams, 2023). However, challenges such as high implementation costs, technological barriers, and customer adaptation remain pertinent. This research intends to critically analyze the benefits and limitations of AR in product visualization, particularly focusing on an electronics retailer in Lagos, and to determine the impact on consumer satisfaction and retailer performance. By considering industry trends and emerging consumer behaviors, the study aims to provide comprehensive insights into AR’s role in modern retailing, thereby offering practical recommendations for stakeholders (Chukwu, 2025).
Statement of the problem:
Despite the rapid adoption of augmented reality in retail, many electronics retailers in Lagos encounter obstacles that hinder its full potential. A primary issue is the significant financial investment required for AR technology development and integration, which often limits its scalability for smaller businesses (Adebayo, 2023). Additionally, there is a notable gap in customer familiarity and trust towards virtual product experiences, leading to skepticism about its effectiveness. Retailers also struggle with technological infrastructure and staff training, which impedes smooth operational deployment. Consequently, while AR has the potential to enhance product visualization and drive sales, its practical implementation faces critical challenges related to cost, consumer perception, and technical support. These issues necessitate a detailed investigation to understand how AR can be optimized within the competitive retail environment of Lagos (Okoro, 2024).
Objectives of the study:
To evaluate the effectiveness of AR in enhancing product visualization.
To identify the challenges encountered during AR implementation.
To propose strategies to improve AR adoption in electronics retail.
Research questions:
How does AR influence customer decision-making in electronics retail?
What are the primary challenges in implementing AR in Lagos retail outlets?
How can retailers optimize AR to improve customer satisfaction?
Significance of the study:
This study is significant as it provides empirical insights into the benefits and challenges of augmented reality in retail settings. By examining AR’s impact on consumer behavior and retailer performance, the findings will guide electronics retailers in Lagos toward strategic investments. The study also contributes to academic literature by exploring AR’s role in bridging digital and physical shopping experiences, offering recommendations that are vital for stakeholders aiming to enhance customer engagement and operational efficiency (Williams, 2023).
Scope and limitations of the study:
The study is limited to exploring the application of augmented reality in product visualization within an electronics retail context in Lagos, Nigeria. It does not extend to other retail sectors or geographic regions.
Definitions of terms:
Augmented Reality (AR): Technology that overlays digital content on the physical world.
Product Visualization: The process of presenting products in a simulated real-world context.
Customer Engagement: Interaction and involvement of consumers with a brand’s products or services.
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