The impact of luxury brands’ NFT fashion on brand attitude and electronic word-of-mouth

Abstract

Luxury fashion brands are among the first movers in metaverse-based non-fungible tokens (NFTs). As luxury fashion brands aim to appeal to younger audiences, NFTs present an enticing marketing approach. Despite the growing interest in NFTs among fashion brands and consumers, no research has examined the core characteristics of NFTs and their impact on advertising outcomes in the luxury context. This research adopts a mixed-methods approach to provide foundational insights on luxury fashion NFTs. Qualitative research (i.e., case study, in-depth interviews) identifies five key NFT characteristics. Quantitative research (a survey of 300 consumers) shows how these characteristics influence brand attitudes and other downstream advertising metrics. This research contributes to advertising scholarship by (a) devising a conceptual framework for NFTs in the luxury fashion context, (b) delineating characteristics most relevant to three different game types, providing advertisers with specific direction, and (c) examining the meanings of authenticity for NFTs in the context.