Harnessing the metaverse for E-commerce growth: a mediated model of extended reality, digital realm, and customer engagement

This study investigates the impact of metaverse platforms on electronic commerce (E-commerce) performance, focusing on customer engagement as a mediating factor. Given the challenge of low customer engagement in online shopping, it is crucial to examine how immersive technologies, such as the metaverse, affect e-commerce success. A structured online questionnaire was used to collect primary data from 300 active Metaverse users. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationship between the adoption of the metaverse, customer engagement, and performance in e-commerce. The findings show that the extended reality has a direct positive effect on e-commerce, whereas the digital realm has an indirect positive impact on the performance through the customer engagement. Customer engagement partially mediates this relationship, highlighting that businesses can optimize the advantages of the metaverse by promoting increased user engagement and interaction. This study theoretically advances our understanding of how immersive technologies impact the evolution of online consumer behavior and online business performance. This study guides e-commerce managers to use interactive, social, and gamified features to boost engagement and loyalty.