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Reality-enhancing technologies such as augmented reality and virtual reality are rapidly becoming a part of everyday life. Seizing this moment, we set out a research agenda for studying the psychological mechanisms underpinning consumer experiences with these new technologies, structured around four application areas:(1) delivering innovative offerings, (2) supporting sustainability and consumer wellbeing interventions, (3) balancing value cocreation and privacy concerns, and (4) achieving new modes and means of impact. For each area, we identify research directions that can guide the development and use of reality-enhancing technologies for the realization of next-generation consumer experiences. We explicitly balance potential advantages and disadvantages, thus encouraging researchers and practitioners to prioritize developing the "purpose" of these technologies, by focusing on the psychological mechanisms that underlie their use, over the technological development of their "pixels." In this way, we guide the impactful development of reality-enhancing technologies for applications with significance for consumers and firms.

PurposeRapid advancements in augmented reality (AR) technology have created new opportunities for service providers and customers to cocreate value. Using AR as a platform for generating authentic experiences, the purpose of this study is to explore the impact of authentic experiences on customers' intention to cocreate value while considering the mediating influence of perceived ethics and customer engagement on this relationship.Design/methodology/approachAn online survey was used to collect data. Participants were asked to download and try the “IKEA PLACE” AR application. The responses were used as inputs into a structural equation model.FindingsThe findings reveal that AR generates perceptions of authentic experiences but no direct relationship between authentic experiences and intention to cocreate value was found. On the other hand, the authentic experiences generated through AR increases customer perceptions of ethics and customer engagement, both of which lead to an increased intention to cocreate value.Originality/valueThe findings from this study highlight the importance of authentic experiences within the cocreation process. The results provide a unique understanding of the relationship between authentic experiences generated through AR technology on the intention to cocreate with the service provider, which is fully mediated by perceived ethics and customer engagement. The findings of this study extend the understanding of the cocreation process and the role of technology within this process.

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