I have been having lots of difficulty automating the setup of a Web application and configuring IIS appropriately with the Application Pool Identity. I am doing this in a Web a
After few experiments
Here is my Answer, I hope this will helps , I've worked on IIS 8.5
$credentials = (Get-Credential -Message "Please enter the Login credentials including Domain Name").GetNetworkCredential()
$userName = $credentials.Domain + '\' + $credentials.UserName
Set-ItemProperty IIS:\AppPools\$app_pool_name -name processModel.identityType -Value SpecificUser
Set-ItemProperty IIS:\AppPools\$app_pool_name -name processModel.userName -Value $username
Set-ItemProperty IIS:\AppPools\$app_pool_name -name processModel.password -Value $credentials.Password