Augmented reality (AR) merges virtual elements with our physical context. Although there is evidence in marketing that AR may be superior to alternative formats, there is a lack of work explaining from the ground up why this is the case. Consequently, we applied means-end chain theory to identify specific AR-features (e.g., contextualization, interactivity, portability) that drive benefits (e.g., inspiration, better decision-making, time savings, risk reduction). These benefits contribute to consumers’ goal achievement (e.g., self-confidence, self-expression, reduced purchase regret). A subsequent study organized these factors into a practical framework (SEAD and SALES). This study contributes to a better understanding of AR.