Enhancing Digital Retail Through Extended Reality: Consumer Experience and Behavioral Effects

Abstract

The rapid evolution of digital retail has intensified the need for immersive technologies that enhance consumer engagement and reduce the limitations of conventional online shopping. Extended reality (XR), encompassing virtual, augmented, and mixed reality, has emerged as a promising solution by enabling interactive, experiential, and realistic shopping environments. This study investigates the influence of extended reality on consumer experience, shopping behavior, and behavioral outcomes in digital retail contexts. A quantitative research design was adopted, and primary data were collected from 174 respondents using a structured questionnaire. The study employed exploratory factor analysis, confirmatory factor analysis, and structural equation modeling to examine the relationships among key constructs, including customer experience, customer behaviour, shopping behaviour, extended reality, and behavioural outcomes. The findings reveal that customer behaviour significantly influences both customer experience and shopping behaviour, while customer experience positively affects shopping behaviour. However, the direct effects of extended reality on behavioural outcomes were found to be insignificant, indicating that XR primarily operates through experiential and behavioural mechanisms rather than direct influence. Model fit indices confirmed the adequacy and robustness of the proposed research model. The results highlight the importance of factors such as trust, emotional connection, immersive enjoyment, and convenience in shaping consumer responses within XR-enabled retail environments. Overall, the study contributes to the growing body of literature on immersive retailing by providing empirical evidence on the pathways through which extended reality shapes consumer decision-making. The findings offer valuable insights for retailers and technology developers seeking to leverage XR strategically to enhance customer experience, foster engagement, and improve long-term consumer outcomes in digital retail environments.