Augmented reality in market research: A guide

6 min read

A thorough grasp of consumers and their constantly shifting tastes is necessary to stay ahead of the competition in today’s quickly changing business environment. For many years, market research has been an essential tool for organisations to obtain knowledge and make wise decisions. The conventional approaches to data collecting and analysis do, however, have some drawbacks. Here we have augmented reality (AR), a cutting-edge technology that has the potential to completely transform the market research industry.

With augmented reality, virtual items and information are superimposed on our physical surroundings, seamlessly fusing the digital and physical worlds. The ubiquitous use of smartphones and other AR-capable devices has made this technology more widely available than before. As a result, businesses now have the chance to use augmented reality (AR) in their market research projects to gain insightful information and improve their planning processes.

Use of augmented reality in market research:

Due to its capacity to give users rich and interactive experiences, augmented reality (AR) has grown in popularity in marketing research. AR enables the integration of digital material into the physical environment, enabling marketers to better understand consumer behaviour and gain insightful consumer data. Below mentioned are some of the points explaining how AR can be used in market research:

Product visualisation and testing: AR enables the creation of virtual product prototypes and the testing of such prototypes in the real world. Customers are now able to interact with and experience things before they are available.

Virtual Try-On: With the use of augmented reality, consumers may virtually try on items like clothing, eyewear, cosmetics, and furnishings. AR enables customers to envision how things would look or fit on them by superimposing digital representations onto real-world photographs or videos of people

Interactive marketing campaigns: By giving consumers interactive and engaging experiences, augmented reality helps improve marketing campaigns. For instance, marketers might create scavenger hunts, quizzes, or games based on augmented reality, that invites customer participation and data gathering.

Geo-Targeted AR Advertising: By providing customers with individualised and situation-specific material, AR may be included in location-based marketing tactics. For instance, when customers are close to their physical storefronts, retailers can utilise augmented reality to display promotional offers, product details, or customer reviews.

Guide on how to use augmented reality in market research for businesses:

To engage customers, collect data, and make wise decisions, businesses can use augmented reality (AR), which has the potential to be a potent tool for market research. Here is a step-by-step tutorial on how to use augmented reality for corporate market research:

·         Establish your research goals. The aims and objectives of your market research project should be made very clear. Choose the information you wish to obtain and the areas in which augmented reality can improve the study process.

·         Understanding your target audience and the market categories you wish to research can help you identify your target audience. This will assist you in adjusting your augmented reality experiences and research endeavours to certain client and demographic profiles.

·         Choose the best AR technology to use by investigating the many AR technologies that are available and pick the ones that fit your study aims

·         Create interactive, immersive AR experiences that let participants interact with your goods or services when designing AR research projects.

·         Conduct user testing to guarantee usability, functionality, and efficacy before making your AR research experiences available to a larger audience.

·         Data collection and analysis: While participating in AR research activities, gather pertinent information about user interactions, preferences, and feedback.

·         Combine augmented reality with conventional research techniques: Traditional market research techniques should be supplemented, not replaced, by augmented reality. To acquire a deeper insight into consumer behaviour, think about combining AR experiences with surveys, interviews, focus groups, or observational studies.

·         Iterate and improve: Make your products, services, and marketing tactics better by using the insights from your AR study. Utilise user input and changing market trends to continuously assess and enhance your augmented reality (AR) experiences.

·         Consider scalability and implementation: If your AR research endeavours are a success, take into account how you may grow and apply them to your company’s daily operations. Examine the potential for incorporating augmented reality into customer service, marketing initiatives, or sales procedures.

·         Keep abreast of advances in augmented reality: The field of augmented reality is quickly developing. To make sure you’re utilising the most efficient solutions for your market research activities, keep up with the most recent developments in AR technology.

Industries that should use augmented reality in market research

In many different businesses, augmented reality (AR) can be a useful tool for market research. The following organisations and sectors could gain from utilising augmented reality in their market research projects:

Retail: Retailers can acquire information on consumer behaviour, product preferences, and store layout optimisation by simulating virtual shopping experiences with augmented reality (AR). The customer’s purchasing experience can be improved by using it to provide virtual product demonstrations and enable virtual try-on.

Real estate: By superimposing virtual information over actual spaces, augmented reality (AR) can assist real estate agents and developers in showcasing homes to prospective purchasers. Virtual property tours, interior design visualisation, and the capacity to modify interiors by buyer preferences are all made possible by this technology.

Tourism and hospitality: By offering virtual tours of vacation spots, landmarks, and hotels, augmented reality (AR) can improve these sectors of the economy. It can enhance trip planning, provide immersive experiences to potential customers, and help gather information about traveller preferences.

Healthcare: AR can be applied to market research in the field of healthcare to train healthcare workers, replicate medical procedures, and get user feedback on medical equipment designs. Programmes for patient education and rehabilitation might also use it.

Manufacturing and industrial design: Virtual product testing, assembly process simulations, and feedback gathering on industrial designs can all be done with augmented reality. It can aid in streamlining production procedures, enhancing the usefulness of products, and enhancing supply chain operations.

Future and Potential of augmented reality

Augmented reality provides immersive and interactive experiences that can revolutionise consumer insights and decision-making processes, and has a bright future in market research. Here are some numbers and facts to back up this viewpoint:

Market Development: In the upcoming years, it is anticipated that the AR market would expand significantly. The size of the worldwide AR market is anticipated to reach USD 77.0 billion by 2025, increasing at a CAGR of 28.6% from 2020 to 2025, according to a report by Markets and Markets.

Improved Concept Testing: By overlaying virtual prototypes or designs in the real world, augmented reality (AR) enables researchers to test product concepts. This enables consumers to provide feedback on product attributes, aesthetics, and usability. Research by Deloitte finds that 88% of organisations employing AR in their business operations reported better efficiency and quality.

Increased Consumer Engagement: AR has the potential to significantly increase consumer participation in market research studies. Researchers can design game experiences, interactive surveys, and immersive scenarios utilising AR applications, which will boost participant interest and improve the accuracy of the data collected. A study conducted by In Context Solutions found that AR can increase customer engagement by 66%.

Real-time Data Collection: During research studies, AR can capture real-time data, giving insightful information about consumer behaviour. For instance, eye-tracking technology incorporated with AR can track user attention and gaze patterns, assisting researchers in better understanding consumer preferences and marketing tactics. According to a Perkins Coie survey, 74% of leaders in the AR/VR (Virtual Reality) industry think eye tracking will be the most influential AR/VR technology over the next five years.

Virtual Store Testing: With the aid of augmented reality (AR), researchers may construct virtual stores that participants can browse and interact with. With this strategy, it is possible to test product placements, store layouts, and analyses of shopper behaviour, which yields useful information for improving retail strategies.Virtual reality (VR) is expected to surpass USD 12 billion in the retail sector by 2027, according to a survey by Global Sector Insights, driven by consumer demand for immersive and customised shopping experiences.

Industries using Augmented reality in their market research:

In order to gather consumer information and enhance customer experiences, many firms can adopt augmented reality (AR). Companies that have employed augmented reality in their market research include the following:

IKEA has introduced the IKEA Place app, which uses augmented reality (AR) to let users place objects visually in their homes. IKEA is a well-known manufacturer of furniture. Customers can use this app to examine how IKEA products will look in their environment before deciding whether to make a purchase.

L’Oreal: The worldwide beauty firm L’Oreal developed the Makeup Genius app. Customers may realistically experiment with numerous makeup products and appearances using this app’s AR capabilities, which improves the product discovery process and yields useful market research data.

PepsiCo: The well-known food and beverage company PepsiCo used AR in its Doritos market research project. They launched an augmented reality (AR)-powered Snapchat filter that turned users’ faces into a Doritos flavour detector, enabling the company to interact with their target audience and gather feedback on potential new flavours.

Coca-Cola: The company started an augmented reality marketing campaign dubbed “Share a Coke.” Customers can activate interactive augmented reality (AR) experiences like virtual fireworks or custom greetings by using their smartphones to scan specially marked Coke cans. Coca-Cola received help from this programme in acquiring information on consumer engagement and preferences.

Volkswagen: Volkswagen created an augmented reality app called “Volkswagen MARTA” and utilised it to conduct market research. Users can explore a virtual car’s characteristics and park it wherever they like with this software. Volkswagen can better tailor its product offerings by using the app’s data to understand customer preferences.

Nestlé: Nestlé employed augmented reality to improve market research for their Nescafé brand. Customers may engage with various products and enjoy a virtual café thanks to the “Nescafé 360°” augmented reality programme that was developed by the company. Using this app, Nestlé was able to research consumer preferences and experiment with fresh concepts.


Augmented reality (AR) in market research might be quite advantageous for businesses. AR provides a distinctive and engaging technique to better the process of market research overall and collect priceless customer insights. Organisations may successfully engage their target audience, gather real-time feedback, and get a competitive edge in the market by implementing AR technology.

In general, firms may succeed in their market research endeavours by embracing the power of augmented reality. They may optimise their products and services, acquire a competitive edge, and engage customers in immersive experiences through AR. Organisations can find new chances and advance success in today’s dynamism and tech-driven market with the right strategy and implementation.

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