INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025  
Bridging Reality and Virtuality: The Role of AR/VR in Personalized  
Marketing Strategies  
Ismael, S. N.1, Ibrahim, S.N.K.A2,  
1Azman Hashim International Business School, Universiti Teknologi Malaysia  
2Department of Electronic Systems Engineering (ESE), Malaysia-Japan International Institute of  
Technology (MJIIT), Universiti Teknologi Malaysia  
DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100106  
Received: 23 November 2025; Accepted: 28 November 2025; Published: 01 December 2025  
ABSTRACT  
Augmented Reality (AR) and Virtual Reality (VR) are transforming personalized marketing by enabling  
immersive, interactive, and data-driven consumer experiences. These technologies, collectively referred to as  
Extended Reality (XR), are redefining customer engagement, brand loyalty, and purchasing behavior. AR  
enhances real-world environments by overlaying digital content, allowing for virtual product try-ons and  
interactive advertisements. Meanwhile, VR provides fully immersive experiences that strengthen emotional  
brand connections through virtual storefronts, simulations, and storytelling. This paper explores the integration  
of AR/VR in personalized marketing strategies, highlighting their applications in retail, tourism, and advertising.  
Businesses are leveraging these technologies to create tailored experiences that cater to individual consumer  
preferences, enhancing satisfaction and conversion rates. The role of artificial intelligence (AI) in optimizing  
AR/VR interactions further enhances personalization by analyzing consumer data to deliver highly customized  
content. Despite the significant advantages, challenges such as high development costs, privacy concerns, and  
hardware limitations hinder widespread adoption. However, continuous advancements in AI, data analytics, and  
user experience optimization are driving broader implementation. The findings suggest that strategic investment  
in AR/VR will be crucial for businesses aiming to maintain a competitive edge in an increasingly digital  
marketplace.  
Keywords: Augmented Reality (AR), Virtual Reality (VR), Personalized Marketing, AI-Driven Customization,  
Consumer Engagement, Data Privacy, Brand Loyalty, Business  
INTRODUCTION  
The integration of Augmented Reality (AR) and Virtual Reality (VR) technologies into marketing strategies  
represents a paradigm shift, offering unprecedented opportunities for personalized and immersive consumer  
experiences (Ekmeil et al., 2021). These technologies, collectively known as Extended Reality (XR), are rapidly  
evolving from novelty applications to essential tools for businesses seeking to enhance customer engagement,  
build brand loyalty, and drive sales in an increasingly competitive digital landscape (Alcañíz et al., 2019).  
Augmented Reality enhances the real world by overlaying digital information onto a user's perception, creating  
interactive and informative experiences that blend the physical and virtual domains (Gans & Nagaraj, 2023). In  
contrast, Virtual Reality provides a fully immersive, computer-generated environment, transporting users to  
simulated realities where they can interact with products and services in an engaging manner (Jung et al., 2019).  
The convergence of these technologies with sophisticated data analytics and artificial intelligence (AI) is paving  
the way for highly personalized marketing campaigns that cater to individual consumer preferences and needs  
Applications of AR/VR in Personalized Marketing  
The application of AR in marketing spans various sectors, with retail, tourism, and advertising emerging as key  
areas of adoption (Du et al., 2022). In retail, AR applications enable customers to virtually "try on" clothing or  
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visualize furniture in their homes before making a purchase, enhancing the shopping experience and reducing  
uncertainty associated with online transactions (Jin-feng & Dong, 2022). The tourism industry leverages AR to  
augment heritage sites, providing visitors with interactive historical information and immersive experiences that  
enrich their understanding and appreciation of cultural landmarks (Nechita & Rezeanu, 2019). Additionally, AR  
is reshaping advertising by allowing brands to create highly engaging and memorable campaigns that capture  
consumer attention and seamlessly integrate with their environment (Prodea & Constantin, 2023).  
VR, on the other hand, provides consumers with immersive brand experiences that foster stronger emotional  
connections. From virtual store walkthroughs to interactive product showcases, VR enhances the customer  
journey by allowing users to experience products and services before purchase. This technology is particularly  
impactful in the fashion and automotive industries, where lifelike simulations can significantly influence buying  
decisions (Ravindran et al., 2023).  
LITERATURE BACKGROUND  
The intersection of AI and AR/VR is revolutionizing marketing by enhancing customer experiences and  
operational efficiency (Gajjar, 2024). AI-driven personalization in AR/VR environments enables brands to tailor  
recommendations and interactions to individual preferences, fostering deeper consumer engagement (Olson &  
Levy, 2017). The rapid growth of online shopping, accelerated by the COVID-19 pandemic, has further fueled  
the adoption of these technologies as businesses seek to replicate the tactile and experiential aspects of in-store  
shopping in the digital realm (Kim & Ha, 2021).  
Personalization is key to strengthening relationships between system quality, content, and customer satisfaction.  
Augmented Reality improves consumer confidence and reduces psychological distance when making purchasing  
decisions, ultimately leading to higher conversion rates and increased brand loyalty (Pal & Ade, 2022). Table  
2.1 shows comparative table on the implication of AR/VR in their marketing strategies.  
Company  
AR/VR Implementation  
Impact on Consumer Key Takeaways  
Engagement  
Reference  
IKEA  
AR-powered 'IKEA Place' app Increased  
consumer AR enhances pre- https://www.ik  
(Global)  
allowing users to visualize confidence in purchasing purchase  
furniture in their homes decisions visualization  
ea.com  
Nike  
(Global)  
VR experiences in flagship Higher brand engagement Immersive  
stores and AR-powered and sales conversion  
sneaker try-ons  
https://www.ni  
experiences drive ke.com  
in-store traffic  
L’Oréal  
(Global)  
AR-based virtual makeup try- Boosted online shopping AR bridges the gap https://www.lo  
ons via mobile apps experience and customer between online and real.com  
satisfaction offline retail  
Coca-Cola  
(Global)  
VR storytelling campaigns Enhanced  
and AR-integrated packaging storytelling and social emotional  
media engagement  
brand VR  
builds https://www.c  
oca-cola.com  
connections with  
consumers  
BMW  
VR-based test drives and AR Increased  
customer AR/VR can reduce https://www.b  
(Global)  
car configurators  
interest and showroom reliance on physical mw.com  
visits  
inventory  
AirAsia  
(MAS)  
AR-enhanced  
travel Improved  
customer AR/VR  
enhance https://www.ai  
brand interaction rasia.com  
for travel industries  
experiences and VR flight engagement and loyalty  
simulations  
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Maxis  
(MAS)  
AR-powered  
campaigns  
digital Increased  
customer AR  
improves https://www.m  
for  
product interaction with digital product awareness axis.com.my  
visualization  
content  
in telecom industry  
Petronas  
(MAS)  
VR-based safety training and Enhanced  
AR-integrated  
brand AR/VR serve dual https://www.p  
marketing reputation and employee purposes  
for etronas.com  
and  
campaigns  
training  
marketing  
internal operations  
Table 2.1: Comparative table on the implication of AR/VR in their marketing strategies.  
Table 2.1 shows the integration of AR/VR has gained significant traction across industries, with companies  
leveraging immersive technologies to enhance consumer engagement, strengthen brand experience, and improve  
operational effectiveness. It reveals common patterns and strategic outcomes that demonstrate the growing  
importance of AR/VR in contemporary business environments. Across the retail and consumer goods sectors,  
AR/VR is primarily adopted to support product visualization and virtual try-ons, which directly influence  
purchasing confidence and reduce pre-purchase uncertainty.  
For instance, IKEA’s AR-powered “IKEA Place” enables customers to visualize furniture in their physical  
spaces, while L’Oréal’s virtual makeup try-ons facilitate more accurate and satisfying online shopping  
experiences. Similarly, BMW’s VR-supported test drives and AR-based car configurators allow consumers to  
explore vehicle features in detail without relying heavily on showroom inventory. These implementations  
indicate that AR/VR functions as a critical tool for bridging the gap between online and offline decision-making,  
thus improving sales conversion and customer satisfaction.  
In branding and marketing applications, companies increasingly utilize immersive media to enhance storytelling  
and emotional engagement. Nike and Coca-Cola employ VR experiences and AR-integrated campaigns to create  
more interactive and memorable brand interactions. Such initiatives not only increase consumer attention and  
in-store traffic but also foster deeper emotional connections that contribute to long-term loyalty. Malaysian  
telecommunications provider Maxis similarly applies AR in its digital marketing content to elevate brand  
visibility and stimulate consumer interaction with promotional materials. Beyond consumer-facing functions,  
several companies adopt VR for training, safety, and simulation purposes. AirAsia utilizes VR to simulate flight  
experiences and travel scenarios, improving customer engagement while supporting internal training modules.  
Petronas applies VR for safety training simulations, enabling employees to practice high-risk procedures within  
a controlled virtual environment. These initiatives highlight the versatility of VR in enhancing competency,  
operational readiness, and employee performance.  
A cross-industry analysis shows that AR/VR adoption consistently yields positive outcomes, including increased  
engagement, improved product understanding, enhanced purchase confidence, stronger brand affinity, and more  
effective training outcomes. While global companies often employ AR/VR for experiential retail enhancement  
and advanced marketing, Malaysian organizations demonstrate strong momentum in leveraging immersive  
technologies for training, education, and digital engagement that reflecting an expanding national interest in  
Industry 4.0 tools.  
Overall, AR/VR technologies offer substantial strategic value by transforming how consumers interact with  
products, brands, and services. The combined evidence suggests that immersive technologies are no longer  
experimental add-ons but integral components of digital transformation strategies across multiple industries.  
Companies that adopt AR/VR gain competitive advantages through enriched customer experiences, operational  
efficiencies, and stronger marketing impact, positioning themselves more effectively within increasingly digital  
consumer ecosystems.  
Challenges and Future Directions  
Despite the immense potential of AR/VR in personalized marketing, several challenges must be addressed to  
ensure widespread adoption and effectiveness. Key barriers include:  
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a) High Development Costs: The creation and deployment of AR/VR applications require significant  
investment in technology, infrastructure, and expertise, making it difficult for smaller businesses to enter  
the market.  
b) User Experience Optimization: The success of AR/VR marketing depends on delivering compelling and  
user-friendly experiences that provide real value to consumers. Poor execution can lead to frustration and  
disengagement.  
c) Data Privacy and Security Concerns: The use of AI-powered personalization raises ethical concerns about  
consumer data privacy. Businesses must implement stringent security measures to protect user information  
and maintain consumer trust.  
d) Hardware Limitations: While smartphone-based AR experiences are widely accessible, high-quality VR  
applications still require specialized headsets, which may limit mass adoption.  
Future research should explore cost-effective solutions, improved user interface designs, and best practices for  
ethical data usage to ensure that AR/VR marketing continues to evolve in a consumer-friendly manner.  
METHODOLOGY  
This study employs a systematic article review (SLR) methodology to investigate the emerging role AR/VR in  
advancing personalized marketing strategies. The SLR approach was designed to ensure methodological rigor,  
transparency, and replicability.  
To capture the breadth and depth of relevant scholarship, searches were systematically conducted across major  
academic databases, namely Scopus, Web of Science (WoS), IEEE Xplore, ScienceDirect, Emerald Insight,  
Taylor & Francis Online, and Google Scholar. These databases were selected due to their strong coverage of  
technological innovation, digital marketing, and consumer behaviour literature. The search focused on materials  
published between 2015 and 2024, reflecting the period during which AR/VR technologies matured  
technologically, became commercially viable, and were increasingly adopted in marketing practice.  
A structured set of keywords and Boolean search queries was employed to ensure precise retrieval of relevant  
literature. Core search terms included “Augmented Reality marketing,” “Virtual Reality marketing,” “AR  
personalized marketing,” “VR consumer engagement,” and “immersive digital experience.” To incorporate  
theoretical dimensions, additional keywords such as “Technology Acceptance Model (TAM),” “Unified Theory  
of Acceptance and Use of Technology (UTAUT),” and “Stimulus Organism Response (SOR) framework” were  
included. Boolean operators (e.g., AND, OR) were used to combine terms effectively, thereby capturing studies  
that examined the intersection of immersive technologies and consumer behaviour theories.  
Inclusion and exclusion criteria were clearly defined to maintain relevance and methodological consistency.  
Studies were included if they: -  
(i)  
examined AR or VR within marketing, consumer engagement, or personalized communication  
contexts;  
(ii)  
were published within the defined time frame;  
(iii)  
appeared in peer-reviewed journals, reputable conferences, or credible global industry reports (e.g.,  
Deloitte, McKinsey, PwC, Gartner); and  
(iv)  
were written in English. Studies were excluded if they focused solely on the technical development  
of AR/VR tools without connection to marketing outcomes, or if they were informal essays, blog  
posts, or non-scholarly commentaries lacking methodological rigor.  
The selection process followed a structured four-stage protocol consisting of:  
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1. Identification; Initial database searches generated an extensive pool of studies.  
2. Screening; Titles and abstracts were screened to eliminate irrelevant materials.  
3. Eligibility; Full texts were reviewed to confirm theoretical and methodological relevance.  
4. Final Inclusion; Studies meeting all criteria were retained for thematic synthesis.  
A systematic data extraction process was applied to each included study, capturing essential characteristics such  
as publication year, research design, sample population, type of AR/VR application, theoretical framework,  
marketing objectives, and key findings related to personalization and consumer responses.  
To analyse the literature, a thematic synthesis approach was utilized. First, open coding was conducted to identify  
recurring concepts related to immersive technologies, personalization mechanisms, engagement triggers, and  
behavioural responses. Next, axial coding was applied to group related concepts into broader themes, such as  
consumer decision-making, experiential value, hedonic/utilitarian perceptions, and technology adoption drivers.  
Finally, selective coding integrated these themes into a cohesive narrative supported by relevant theoretical  
constructs.  
The analysis was further strengthened through the integration of three key behavioural and technology adoption  
theories. The Technology Acceptance Model (TAM) provided insights into how perceived usefulness and ease  
of use influence consumer acceptance of AR/VR applications. The Unified Theory of Acceptance and Use of  
Technology (UTAUT) expanded this understanding by examining the roles of performance expectancy, effort  
expectancy, social influence, and facilitating conditions in shaping consumer adoption intentions. Meanwhile,  
the Stimulus Organism Response (SOR) framework offered a behavioural lens for interpreting how immersive  
AR/VR stimuli shape cognitive and emotional states, ultimately influencing behavioural responses such as  
purchase intention, engagement, satisfaction, and loyalty.  
By synthesizing empirical evidence through a structured review process and anchoring interpretations within  
these established theoretical frameworks, this methodology provides a robust foundation for understanding the  
strategic value of AR/VR in personalized marketing. The technology evolves and becomes more accessible, we  
can expect to see even more innovative applications of AR/VR in marketing, transforming the way brands  
interact with consumers and creating new opportunities for engagement and personalization.  
RESULTS  
The findings indicate that AR/VR technologies are reshaping the retail and advertising landscapes by offering  
highly personalized and interactive consumer experiences. As consumer expectations shift toward more  
immersive and immediate interactions, businesses must adapt by integrating AR/VR solutions into their  
marketing strategies. Retailers, for instance, are leveraging VR to create virtual shopping environments, allowing  
customers to explore and interact with products in ways that traditional e-commerce cannot replicate. In the  
fashion industry, virtual try-on features and immersive runway shows are revolutionizing brand engagement and  
purchase behavior.  
DISCUSSION  
AR and VR technologies provide innovative avenues for businesses to craft unique and personalized marketing  
campaigns (Alexandrova & Poddubnaya, 2023). By bridging the gap between online and in-person shopping, these  
technologies offer new opportunities for enhancing customer satisfaction and loyalty. Personalized shopping  
experiences, enabled by AI-driven AR/VR applications, have the potential to redefine consumer-brand  
relationships by offering tailored content and interactive engagements (Chhabra, 2023).  
Augmented Reality and Virtual Reality technologies present new and innovative ways for businesses to create  
unique and personalized marketing campaigns (Alexandrova & Poddubnaya, 2023). Augmented Reality enables  
new product development and success in the apparel industry. VR is able to assist with quick responses to  
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consumers to enhance the performance of the new products (Silva et al., 2018). The use of virtual store models can  
help researchers and fashion retailers to gain insight and understanding of how customers behave in the stores (Park  
et al., 2018).  
By offering immersive brand experiences, AR/VR technologies have the power to foster stronger customer  
relationships and drive brand loyalty (Chhabra, 2023). Personalized shopping experiences are set to revolutionize  
consumer behavior, driving higher conversion rates and increased customer satisfaction. As AR/VR technologies  
become more sophisticated, immersive shopping experiences have the potential to redefine customer-brand  
relationships and revolutionize online consumer loyalty.  
In addition to marketing applications, AR/VR can also provide valuable data insights. Businesses can analyze user  
interactions within virtual environments to better understand consumer preferences and optimize marketing  
strategies accordingly. However, companies must carefully consider data security, consumer privacy, and the  
potential psychological impacts of extended VR use (Alexandrova & Poddubnaya, 2023).  
CONCLUSION  
AR/VR technologies have emerged as powerful tools for creating personalized marketing experiences that can  
enhance customer engagement, drive brand loyalty, and ultimately boost sales. These technologies allow  
businesses to create immersive and interactive experiences that cater to the unique needs and preferences of  
individual customers. The implementation of virtual reality technologies requires consideration of various factors  
including data security, consumer privacy, and potential impacts on mental and physical health.  
The capacity of VR and AR technologies to provide individualized and captivating experiences will propel the  
transformation of marketing strategies, thereby enabling businesses to cultivate enduring connections with their  
target audience and attain unprecedented levels of triumph. Augmented Reality and Virtual Reality are poised to  
revolutionize how businesses connect with customers.  
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