Consumer preferences for the visual presentation of non-fungible tokens (NFTs) of luxury products: the role of perceived authenticity

Jungkeun Kim, Areum Cho, Daniel Chaein Lee, Jooyoung Park, Aekyoung Kim, Jihoon Jhang and Changju Kim

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Non-fungible tokens (NFTs) are increasingly used to safeguard luxury products from counterfeits. Despite their increasing adoption, limited research has investigated how brands should communicate the use of NFTs—a novel and complex concept for consumers to comprehend—to maximize their benefits. This research aims to examine this gap by highlighting that the ease of visualization is critical for effective communication. Study 1A demonstrated that consumers prefer a visualized NFT to a non-visualized one for authenticating a luxury product. Study 1B further demonstrated that consumers place greater trust in a visualized NFT and are willing to pay higher prices for luxury products that utilize it. Study 2 demonstrated that consumers have more favorable attitudes toward a luxury product that features an easy-to-visualize NFT than those with a difficult-to-visualize NFT and that perceived authenticity mediates this effect. Finally, Study 3 demonstrated that the positive impacts of easy-to-visualize NFT cues were more significant for luxury than non-luxury products. Subsequently, this study suggests an effective communication strategy for NFT use and provides managerial implications for luxury brands aiming to maximize the benefits of using NFTs.

Keywords: authenticity; blockchain; luxury; non-fungible tokens; visual cues; visualization (search for similar items in EconPapers)
JEL-codes: D12 L67 M31 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2025-01-31
New Economics Papers: this item is included in nep-pay
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Published in Journal of Retailing and Consumer Services, 31, January, 2025, 82. ISSN: 0969-6989

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