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This study aims to find the impact of performance expectancy, perceived enjoyment, and desired enhancement of reality on customer engagement using Uses and Gratification theory. The study also examines the impact of customer engagement on psychological ownership and behavioral intentions. Data was collected from Millennials and Generation Z. A total of 372 responses were collected and analyzed through partial least square structural equation modeling. The study found that performance expectancy, perceived enjoyment, and desired enhancement of reality have a positive impact on customer engagement. The study also confirmed that customer engagement has a significant impact on psychological ownership and behavioral intention. To the best of our knowledge, this study makes a novel contribution to measure the impact of desired enhancement of reality, a sensual gratification on customer engagement in the context of Augmented Reality (AR) mobile applications. Additionally, this study extends prior research by integrating the Uses and Gratifications (U&G) theory with the concept of psychological ownership to predict behavioral intentions.
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