Factors Affecting Customer Experience in Immersive Marketing

Low, Roey (2026) Factors Affecting Customer Experience in Immersive Marketing. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

Text 26 Low Roey.pdf Restricted to Registered users only Download (9MB)

Abstract

With the rapid advancement of digital technologies, immersive marketing technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and interactive digital environments have significantly transformed how organisations engage with consumers by creating interactive, personalised, and multisensory brand experiences. Businesses in Malaysia are increasingly adopting immersive marketing strategies to enhance customer engagement and competitiveness within the digital economy. Although immersive marketing is widely recognised for its ability to improve customer experience, emerging evidence indicates that these technologies may also generate negative psychological effects such as confusion, frustration, cognitive strain, and disengagement. However, existing studies have largely focused on the positive outcomes of immersive marketing, while limited research has examined the negative psychological mechanisms influencing customer experience within immersive environments, particularly in the Malaysian context. Therefore, this study aims to investigate the factors affecting customer experience in immersive marketing by integrating Technostress Theory and Cognitive Load Theory. Specifically, this research examines the direct and indirect relationships among techno-complexity, techno-overload, techno-invasion, cognitive overload, AI literacy, and customer experience. To achieve the research objectives, data were collected from 517 Malaysian consumers through an online self-administered questionnaire survey. The collected data were further analysed using IBM SPSS and SmartPLS PLS-SEM software. The results show that 3 out of 11 relationships are statistically supported. The findings of this study are expected to provide both theoretical and practical contributions by extending Technostress Theory and Cognitive Load Theory into the immersive marketing context from a consumer perspective. Furthermore, this study offers valuable insights for marketers and organisations in designing immersive marketing experiences that minimise cognitive strain and enhance customer experience. Finally, this research concludes by highlighting the study limitations and providing recommendations for future research regarding the negative psychological mechanisms underlying immersive marketing environments.