Augmented reality (AR) technologies enhance the physical world by integrating computer-generated visual and auditory information in real time, enabling interactive experiences that are seamlessly embedded into reality. By combining physical and digital components, companies can create so-called phygital experiences that bridge the gap between brick-and-mortar and digital retail. In practice, this enables the delivery of personalized, context-specific information directly at the point of sale, thereby influencing consumer behavior.

One promising application is the context-aware use of AI-based assistants, which can be embodied as virtual avatars in augmented reality. This embodiment enables additional forms of communication, including body language, nonverbal cues, and proxemics, which may enhance perceived social presence, user engagement, and trust in purchasing decisions.

The EPIC research project investigates how augmenting physical shopping environments with rational or emotional information, as well as embodying an AI assistant in augmented reality, influences consumer decision-making and perceptions of the shopping experience. The project aims to develop a comprehensive understanding of the value that augmented reality can create in brick-and-mortar retail and how these technologies can support and transform consumers’ information acquisition and decision-making processes.

The EPIC project is a collaboration between the University of Bamberg, the Nuremberg Institute for Market Decisions (NIM), and the Karlsruhe Decision & Design Lab (KD2Lab) at the Karlsruhe Institute of Technology (KIT).