Gen Z’s Trust and Privacy Concerns in Augmented Reality Retail Experiences: A Qualitative Study

Abstract

This study investigates Generation Z's perceptions of trust and privacy in augmented reality (AR) retail experiences. It aims to uncover how privacy concerns and trust factors influence this demographic’s engagement with AR technologies in shopping contexts. Using a qualitative, inductive approach, data were gathered through semi-structured interviews with Gen Z participants based in the United Kingdom, all actively engaged with retail AR features. The research was conducted due to the increasing adoption of AR in retail settings, along with growing concerns about the invasive nature of personal data collection practices inherent in AR technologies. While Gen Z is a highly enthusiastic and digitally fluent user group for AR applications and the largest demographic using AR for shopping, a significant gap remains in understanding their specific privacy and trust issues. Findings from thematic analysis revealed four major themes: Privacy as a Pragmatic Trade-off, Resigned Acceptance, Informed but Indifferent Awareness, and Importance of Brands’ Reputation. Participants demonstrated a clear understanding of the extent of data collection, but were often willing to exchange personal information for personalized and convenient retail experiences. Although there was considerable discomfort around surveillance and the lack of transparency in privacy policies, many participants expressed a resigned acceptance of data collection as unavoidable. Others expressed informed but indifferent awareness supported by the normalization of privacy concerns and the influence of people using AR in shopping. Brand reputation emerged as a critical determinant of trust and the only factor that discourages Gen Z from using AR in retail, with participants strongly preferring established, globally recognized brands, indicating skepticism toward lesser-known entities. This research contributes valuable insights for retail businesses and policymakers, emphasizing the need for clearer, more accessible privacy communications and highlighting the crucial role of brand credibility in fostering user trust. It underscores the importance of understanding Gen Z's nuanced attitudes towards privacy and trust to design ethically sound and user-centric AR retail experiences.