What decides my purchase of non‐fungible tokens?

Abstract

Abstract This pioneering study wishes to advance our knowledge regarding consumers' motivating, inhibiting, and trust factors influencing their purchase of non‐fungible tokens (NFTs). Employing an extended valence framework (EVF), the authors investigate the role of the marketplace trust, marketplace reputation, and perceived regulatory support in addition to the benefits and risks of the new NFT technology; in eliciting a purchase intention for NFTs. A survey of 358 NFT enthusiasts is conducted to empirically test the EVF using the structural equation modeling (SEM) technique (study 1). Further, an experimental inquiry using a 3 × 3 between‐subjects design (study 2) is performed on actual NFT consumers to investigate the relative effectiveness of the focused benefits (value appreciation vs. exclusivity vs. enjoyment) and the brand extension (original product vs. near‐extension product vs. far‐extension product) in leading to positive outcomes like purchase intention and the price willing to pay for the NFTs. In addition to suggesting a comprehensive and useful framework for examining the psychological determinants of an individual's purchase intention for NFTs (study 1), the study 2 outcomes contribute significantly to future scholars and marketers by guiding them in designing effective benefits message appeals to the buyers in promoting their NFTs for original as well as brand extension products. The results recommend that NFT marketers focus on the exclusivity benefits of the NFTs for higher willingness to pay among the users while signaling value appreciation benefits shall evoke the highest purchase intention among the three benefit message appeals.