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Purpose

The purpose of the study is to investigate the effect of augmented reality (AR) characteristics in packaging on perceived value and consumer behavioral intentions such as purchase intention and pay more in traditional Iranian nougat GAZ packaging.

Design/methodology/approach

The statistical population was the 550 customers bought traditional Iranian nougat GAZ. Sampling method was simple random sampling. Questionnaire had been chosen for collecting data. In total, 236 customers filled in questionnaires. Research model tested by structural equation modeling method and by using SPSS and PLS software.

Findings

The finding considered the characteristics of AR packaging which include interactivity, informativeness, enjoyment and usefulness have a positive effect on the dimensions of the perceived value, hedonic and utilitarian value. In the same way hedonic and utilitarian value had positive effects on the consumer behavior, purchase intention and willingness to pay more.

Originality/value

These results help managers to use AR characteristics to improve the interaction between customers and product and sell their products.

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