Digital service innovation, customer engagement, and customer equity in AR marketing

ABSTRACT Service innovation with digital technology such as augmented reality allows brands to deliver additional values to customers, as interactions between brand and customer improve a brand’s performance. However, there is little research on digital service innovation and its impact on customer behavior. Thus, the authors focus on digital service innovation and aim to answer whether it plays a role in positive customer response. This study examines the relationship between digital service innovation, customer engagement, and customer equity. The findings of this study show that digital service innovation helps improve customer engagement, which also leads to customer equity. Finally, the authors discuss academic and managerial implications.