Loyalty platforms are designed to increase customer loyalty and thus increase consumers’ attraction to purchase. Although successful in increasing brand reach and sales, these platforms fail to meet their primary objective due to a lack of incentives and encouragement for customers to return. Along with the problem in originating sales, they bring excessive costs to brands due to the maintenance and infrastructure required to make the systems feasible. In that sense, recent blockchain technology can help to overcome some of these problems, providing capabilities such as smart contracts, which have the potential to reinvent the way loyalty systems work and solve current problems. Although blockchain is a relatively new technology, some brands are already investigating its usefulness and rebuilding their loyalty systems. However, these platforms are independent and linked directly to a brand. Thus, there is a need for a generic platform capable of creating and managing different loyalty programs, regardless of the size of the business. This paper explores the shortcomings of current loyalty programs identified through the literature review, and proposes a loyalty management system with blockchain integration that allows any retailer to create and manage their loyalty programs and have customers interact directly with multiple programs in a single application.
E-commerce platforms enable companies of all sizes to sell their items and promote their brand to a broader audience. The e-commerce sector is continually developing, as new technology and methods of purchasing and selling services and items are developed. The traditional e-commerce system is plagued with problems, such as payment disputes, chargebacks, fraud, and a lack of transparency; however, blockchain can transform e-commerce by making transactions more efficient and safer. Blockchain can be used to build a decentralized network that allows people to securely store and share digital assets. This would enable buyers to access product details such as the product’s origin and source, as well as reduce the risk of fraud. Although the application of blockchain in e-commerce remains in its early stages, this review paper examines research on blockchain-based e-commerce, focusing on applicability and problems in the context of the available literature from 2017 through 2022.
This study aims to design and implement an online blockchain-based and real-time parcel monitoring and tracking system for cross-border runners and the customer via an online platform, during and post the COVID-19 pandemic. A blockchain is a distributed ledger system that serves as a transparent, understandable, and trustworthy store of data and analysis on the platform for participants to engage with each other. The result of proposing a blockchain-based tracking system is promising. The result and UAT show positive feedback on the use and features of the blockchain-based tracking system. As the world reacted to the pandemic, many organizations provided monitoring with their deliveries, which is a terrific method for businesses to prevent losing valuable customers. According to the findings of the study, organizations prefer to have blockchain-based tracking systems.
Claudia Cozzio, Giampaolo Viglia, Linda Lemarié, Stefania Cerutti
The traceability of what we eat is a lingering issue. Blockchain enables transparency across the value chain as it tracks a product’s origin, location, and history. In this work we adopt a mix-method approach - experiment plus qualitative evidence - to understand why consumers consider the traceability offered by blockchain important and what are the barriers that suppliers face when considering blockchain adoption. Our findings show that, when the food is local, blockchain increases consumers’ trust and, in turn, attitudes and behaviors toward the sharing experience. On the supply side, we find that, while operators see key benefits in blockchain adoption – including enhanced trust, they are still hesitant in using the technology because of a greater need for intra-organizational support and a concern in data sharing. By looking at both consumers and suppliers, we offer a complete picture on the integration of blockchain technology in the food supply chain.
Sebastian Schauman, Sharon K. Greene, Oskar Korkman
The global fashion industry is a trillion US dollar market and one of the most wasteful industries in the world. Digital fashion has the potential to decouple some crucial aspects of the fashion industry from their material requirements. Combined with the growing interest around the metaverse, non-fungible tokens, the rapid evolution of AR and VR technology, and the growing presence of major fashion brands in gaming, an understanding of the commercial feasibility of digital fashion is becoming increasingly relevant. In this article, we explore the commercial feasibility of digital fashion and expose a strategically significant alignment of digital substitutes with four emerging consumer expectations, i.e., excitement, utility, relatability, and circularity. Our research shows that these expectations are contingent on consumers’ increasingly sufficiency-oriented mindset and the modes of consumption this mindset generates. By developing what we call a ‘sufficiency-model’, this article provides companies with the heuristic tools necessary to gain future-looking and practical insight that helps them navigate this dematerialization of consumption and to identify long-term market opportunities within this area. Specifically, we offer eight implications that are designed to help companies take their first steps into this emerging space.
Open access
Consumer Retail Behavior Studies
Consumer Behavior in Brand Consumption and Identification
Nejc Rožman, Marko Corn, Gašper Škulj, Tomaž Berlec · 6 authors
This study investigates the effects of blockchain technology scalability limitations on the performance of Blockchain-Based Shared Manufacturing (BBSM), an innovative smart-manufacturing paradigm aimed at enhancing the utilization of global manufacturing resources via peer-to-peer (P2P) collaboration of self-organized manufacturing assets. Despite the prevalence of research highlighting blockchain technology’s scalability limitations as the main barrier for adoption, few studies have explored their effects on the operation of blockchain-based systems. The primary goal of the presented research work is to explore the implications of blockchain technology scalability limitations on the BBSM system’s performance and user behavior. To obtain realistic behavior, an experiment is conducted using an online game played by human participants. Analysis of the players’ strategy is used for implementation of a multi-agent simulation model, which is then employed to assess the influence of varying blockchain network configurations on the BBSM concept’s performance. Preliminary experimental findings reveal that a congested blockchain network leads to increased transaction costs and reduced service prices, consequently devaluing the manufacturing role in the BBSM system and causing underutilization of existing maximum production capacities. Moreover, allocating funds to financial activities rather than manufacturing activities yields superior outcomes for system users. Simulation results indicate that the BBSM system’s response to alterations in blockchain network throughput is contingent upon the production function. The findings of this study reveal that the scalability limitations of blockchain technology impair the performance of the BBSM system and affect user behavior in the system, underscoring the necessity for future research to concentrate on incorporating scalable solutions within blockchain-based manufacturing systems.
Blockchain-enabled advances (BEAs) are state-of-the-art innovations based on blockchain technology. Recent years have witnessed the proliferation of the four BEAs: smart contracts, cryptocurrencies, play-to-earn games, and non-fungible tokens. These BEAs have implications for the marketing field as they affect consumers and brands. We propose a novel theoretical framework that articulates how the principles that underpin BEAs can impact consumers and then explains how brands can use BEAs to innovate their products and services. The core principles of blockchain technology, as well as enhanced digital connectivity, imply that consumers can become more in control of their data and privacy rights, responsible for their choices, and digitally connected. To cater to consumers, brands can use BEAs to roll out technology-focused service innovations, customer-focused service innovations, and product innovations. Based on this perspective, we then advance ten future research questions. This article aims to advance the nascent field of blockchain in marketing.
Ulpan Tokkozhina, Bruno Mataloto, Ana Martins, João C. Ferreira
With the worldwide pandemic outbreak, the style of restaurant food consumption underwent a major shift towards online delivery services. This poses an urgent need in trust between main stakeholders of the process: requiring restaurants to correspond to the quality declared, providing high quality and safe to consume meals, and obliging delivery entities to deliver food carefully, scrupulously following the delivery conditions. In this research, we explore a novelty approach that combines IoT, Blockchain technology, and city LoRa network to create a new trusted, decentralized approach for food distribution process in the context of a Smart City. This approach allows controlling the food delivery process using sensors data to control live location, temperature, vibrations, and shakings during the transportation process. We also suggest a fresh perspective on a rating system of delivery entities, where reputation points will be provided both from the side of the restaurant and the final consumer. This will create more trust towards the delivery entity since information will be tamper-proof and immutable due to the nature of Blockchain. This novel system proposal allows rethinking the online food delivery process in the context of Smart City, using the city's LoRa LPWAN radio frequency technology and Blockchain decentralized solution.
Blockchain technology is predicted to become a powerful driver of marketing transformation. At present, most envisioned use cases are in an early stage with an uncertain industrial impact and an immature theoretical integration in academic research. To help close this research gap, we investigate how blockchain-based loyalty programs transform B2C relations through innovative customer services that bear important properties of a sharing economy. Specifically, we identify-five potential advantages of blockchain-based programs over traditional loyalty programs pertaining to usage, accrual, relevance, expiration, and transferability. We then apply expectancy theory to assess consumers’ perceptions in two empirical studies, both of which reveal an overall preference for blockchain-based loyalty programs over traditional models: an analysis of 5,059 Twitter tweets detects more positive feedback for the blockchain-based program, and a survey of 206 consumers reveals a significantly more positive attitude toward the blockchain-based loyalty program with respect to accrual, relevance, expiration, and transferability.
The main aim of this article is to present and analyse changes in the global luxury goods market in the 21st century, with particular emphasis on the effects of the supply shock caused by the COVID-19 pandemic. In the part devoted to the period before the pandemic, the following market trends will be described: the democratisation of luxury, brand consolidation process, the emergence of Generation Alpha, the evolution of masstige goods relied on fast-fashion processes, "Chinese bulimia", market ”retailization” processes, the growing importance of mono-brand stores, rejection of online sales by European brands, e-commerce development, and growing environmental awareness. The article’s part, dedicated to the period of the pandemic and the changes immediately after it, presents trends such as the emergence of non-fungible tokens (NFTs) and gaming goods (metaverse gaming), the rebirth of the vintage market and secondhand stores, an increase in sales of casual goods, new multi-brand sales platforms, and the growing importance of local markets. The article is based on literature query and comparative analysis of industry reports prepared by Deloitte, Bain Company, and Luxe Digital.
Open access
Consumer Behavior in Brand Consumption and Identification
Excellent jujube supply-chain management is of great significance to the development of the Xinjiang jujube industry. However, traditional jujube supply-chain management is faced with the dilemmas of opaque connection of transaction flow and capital flow information, unreliable product traceability information, and jujube farmers' lack of bargaining power. In this research, we propose a jujube supply-chain-management framework based on blockchain. Hyperledger fabric is the distributed solution platform of this research. The current blockchain-based traceability framework for agri-food emphasizes the construction process and ignores the performance and characteristics of the framework. This research optimizes the blockchain-network-topology architecture and storage cost of writing data. This not only solves the traceability of jujube, but also fills the gap in previous research on the traceability framework. Moreover, transactions are innovatively divided into common transactions and private transactions. Private transactions have enhanced the bargaining power of jujube farmers. Through the analysis of benchmark tests, the effectiveness and feasibility of the framework are verified.
Cryptocurrency is gaining worldwide recognition. This research examines the psychological determining factors of consumers’ cryptocurrency adoption behavior based on the theory of planned behavior. 452 samples are collected from U.S consumers and the data are analyzed by PLS-SEM. The findings reveal that consumer innovativeness has positive influences on the attitude and perceived behavioral control for cryptocurrency and in turn affects the intention to use cryptocurrency. Subjective norm is a significant predictor of cryptocurrency intention and the LOHAS lifestyle moderates the influence of attitude on the intention. This research offers theoretical and practical implications for the cryptocurrency market.
Lukas Mastilak, Robert Suchy, Kristián Košťál, Ivan Kotuliak
This paper addresses the issue of sustainability in retail sales, where the composition of the products themselves, their production and packaging process, and their transport to the point of sale play an important role. We propose a solution to apply a unified system of environmental product rating in different retail chains where trust is ensured through a distributed ledger. The system allows fair and transparent rewards for customers who purchase eco-friendly products while also maintaining their privacy. The prototype of the decentralized application for the uniform loyalty system based on the Algorand blockchain has shown promising results in terms of throughput and cost efficiency. We believe that the prototype has the potential to revolutionize loyalty systems and promote sustainable practices. This study provides key insights into how to interconnect retailers and customers into a uniform reward program, how to motivate customers to purchase sustainable and eco-friendly goods, and how retailers can manage the amount of reward for the given Eco-score categories.
Nowadays, the discovery of new technologies is more intense than ever before. Terms such as Blockchain technology or Smart Contracts are becoming more and more familiar. Thanks to the decentralized system and the distribution of immutable records of transactions among all network participants, Blockchain finds application in almost any field, whether industry or society. Supply chain is one such area. In this paper, a theoretical model of supply chain based on Blockchain is presented. The participants of the presented model are the manufacturer with suppliers, the carrier, the retailer, and the final consumer. The model describes the process from the production of components to the sale of the final product to the final consumer. By implementing RFID and IoT, the participants can track the goods in real time. The end consumer enters the chain by scanning the QR code of the product. Contractual relationships are stored in the Blockchain in the form of Smart Contracts, which automatically execute the action based on the agreed terms. In addition, the paper describes selected Blockchain platforms that are used in the real world. Finally, we also present tools for simulating and testing Blockchain in a local network.
Purpose – In previous works we discussed the contribution of digital tourism not only to the improvement of the reputation of a Country (i.e. Sentiment Analysis) but also of the possibility to create opportunities for a new kind of online tourism. In recent times, with the development of the so-called Metaverse, also influenced by the pandemic emergency, Countries’ digital efforts in creating tourism opportunities gave new perspectives related to the possibility to capitalize on digital content, transforming them – jointly with physical tourism experiences – into possible further incomes and means to increase a Countries’ reputation. Specifically, in this context, we considered the enabling technology represented by Non-Fungible Tokens (NFTs), an innovative application of blockchains creating a unique opportunity in several sectors, including tourism. This work aims to explore possible applications of NFTs in tourism, analyzing the experiences currently in place. Methodology – Due to the innovative topic and the very few experiences in NFTs applications in tourism, this paper represents a preliminary review of current projects implementing the use of NFTs, so that the applied methodology consists mainly in qualitative analysis and discussion about the possible development of this technology in tourism. To this purpose, we introduced some applications currently in place, such as those of travel agencies like Travala, of some airlines (Air Europa, Emirates), Cruises companies (Norwegian Cruise Line), of the Economic Development Ministry of Slovenia (project “I Feel Nft”, presented at Expo Dubai 2020, representing the first of this kind in the world). The paper explores possible implications and further development of these initiatives, designing possible metrics to measure their success, paving the way for future quantitative analysis once data about the introduced case-studies is available. Findings – Through the discussion of the cases found, it appears that the main benefits of digitisation through NFTs consist in promoting and presenting major tourist destinations, exhibitions, works of art and companies’ products in the form of tokens, digital content and souvenirs for visitors. However, some of the analysed cases also suggest possible applications for actual commerce in the tourism sector, including ticketing services and hotel bookings. Other possible applications can be hypothesised with regard to the certified training of staff working in the hospitality sector. Originality of the research – The paper is highly innovative and currently unique in that the adoption of NFTs in tourism is recent and still open to proposals for implementation. The contribution is therefore very important, both in terms of operational proposals (applications, guidelines and good practices) and in terms of defining metrics for measuring the effectiveness of NFTs in the tourism economy.
Abstract Non-fungible tokens (NFTs) have witnessed unprecedented dynamism over the recent years with only few luxury brands experimenting with the technology albeit the very personal characteristics of NFT ownership. Little is known about how luxury brands use NFTs to develop their brand image and what opportunities luxury brands anticipate from NFTs as a new technology, digital product category or customer relationship channel. The present research note offers an applied research design to tackle these questions and systematically understand the potential of NFTs for personal luxury brands at large.
Open access
Consumer Behavior in Brand Consumption and Identification
Paul Griffiths, Carlos J. Costa, Nuno Fernandes Crespo
Non-fungible tokens (NFTs) represent a multibillion-dollar global market. While considerable speculation exists about the future utility of NFTs, there has been limited research into the consumer behaviors of market participants. This research paper examines the motivations of NFT buyers through the lens of self-determination theory. Using a sample of 482 participants, the authors tested a conceptual framework to better understand both NFT buyers’ intrinsic and extrinsic motivations. This study expands the literature on NFTs in three different ways: i) it is the first study, as far as we know, to focus exclusively on NFT buyers and their motivations in purchasing NFTs; ii) it explores a variety of potential motivations theorized in the literature; and iii) it tests the expected future value of NFTs as both a motivation and as a moderator for NFT buyers. The authors determined that intrinsic motivation had the most substantial effect on purchase intention, and the expectations of NFTs’ future value positively moderated the effect of amotivation on purchase intention. In contrast, high expectations of future value moderated the effect of external regulation on purchase intention. The results suggest that NFT buyers are not as impacted by potential social or monetary gain as often characterized in the academic literature but behave more like traditional buyers of luxury goods.
Open access
2 source records
Consumer Behavior in Brand Consumption and Identification
Abstract Over the last half-century, consumer research has often depicted scarcity as a dominant factor increasing price. But should we assume that scarcity’s upward pressure on price remains intact, in a world where novel forms of digital products proliferate? In this article, we propose that blockchain-encrypted digital goods, in particular, non-fungible tokens (NFTs), offer good reason to revisit this assumption. In this context, we argue and find that social value can outweigh intrinsic value as a determinant of willingness-to-pay. As a result, when scarcity threatens access to high levels of social value, its effect on price can be negative rather than positive—an inversion of a pattern typically observed for offline collectibles. Secondary data taken from the NFT platform Opensea and a set of experimental studies support this social value-based lens. Given these findings, we propose a research agenda to ground future work in this area. We also suggest that NFTs offer a laboratory in which past theories related to social value, scarcity, and price can be reconsidered and future theories developed, hopefully allowing consumer researchers to lead knowledge development in these domains over the next 50 years.
Blockchain technology has gained increasing popularity among the business community due to its numerous advantages for business such as decentralization, immutability, and transparency. Specifically, with a reliable transaction system, blockchain technology has developed information sharing and supply chain management in the textile industry. Although there is a growing number of research publications in the field of blockchain technology applications, there is a lack of systematic knowledge of the current literature regarding how blockchain technology is effectively applied to the textile industry, increasing the possibility of getting irrelevant, biased, or unclear information. Thus, the purpose of this study is to analyze, identify, and classify the existing literature to provide a comprehensive overview of the state of the art on using blockchain technology in the main activities of textile industry enterprises such as production and marketing. The researchers looked for publications and expert opinions articulating different applications of blockchain technology in marketing and production activities of the textile industry based on the analysis of academic databases selected and stakeholder interviews. The results highlighted that the most common categories of using blockchain technology in the textile industry are information sharing and supply chain traceability to integrate with the production and marketing activities of textile companies. The scientific contributions of this systematic mapping study are expected to be the classified portfolio of key publications and content taxonomy that demonstrates the state of the art in the whole research field. Finally, we concluded the paper with practical and theoretical implications and developed a future research agenda on closing the potential gap between blockchain-enhanced production and marketing activities of textile companies.
The rapid growth in the number of cryptocurrency investors is a phenomenon that occurs during a pandemic.Investing in the capital market and cryptocurrency sectors has become a new lifestyle among young people in Indonesia.The majority are beginner investors or just joining the investment for the first time.They are chasing high profits from this newborn trading trend.A vast increase in the number of investors emerged in Indonesia.The high gain achieved from trading cryptocurrencies appeals to novice investors.Many young people are starting to invest in cryptocurrencies.The phenomenon is using funds for investment, even from borrowed money or debt.This study tries to develop a model regarding what factors influence behavioral intention to invest in cryptocurrencies.Factors that affect awareness, belief and attitude toward cryptocurrencies are assumed to influence.The study then examines whether attitudes toward cryptocurrencies mediate behavioral intentions to invest.The population in this study is students who know about cryptocurrencies.The sample in this study was 100 students in Yogyakarta.The method used is Structural Equation Modeling (SEM) analysis based on variance, i.e., Partial Least Square (PLS).The attitude variable partially mediates the behavioral intention to invest in cryptocurrencies based on the study results.
Digitalization began to find a place in every industry faster than expected with COVID-19. Although terms such as Blockchain, NFT, Web 3.0, and Metaverse, which entered our lives with digitalization, are still very new, they will create a paradigm shift from standard business models. Blockchain technologies, especially NFTs, are creating a new opportunity for brands and creative industries as the frontrunner of digitalization with the innovative approach that is driven by scarcity, a new medium to connect with fans, and decentralized distribution power. This paper aims examine the effects of perceived value -with its predecessors scarcity, ownership & uniqueness- and trust in blockchain on the purchase intention of NFTs, considering the technology adoption. In this regard, data was collected via questionnaire from NFT owners with different nations in Discord channels using convenience sampling technique. SEM was performed as statistical analysis, and the results indicated technology adoption is a significant variable on trust in blockchain, which has a direct effect on purchase intention. On the hand, even though scarcity and ownership were positively associated with perceived value, this construct had no statistically significant effect on purchase intention.
Purpose This study explores the influence of the following factors on consumer adoption of blockchain food traceability (BFT): innovation-adoption characteristics, segmentation, expertise in food traceability, expertise in blockchain technology, food categorical preferences and perceived important features of BFT. Design/methodology/approach The data was collected via an online questionnaire with 1,401 participants in New Zealand. Exploratory factor analysis, structural equation modelling and segmentation analysis were undertaken. Findings Consumer adoption of blockchain food traceability was significantly influenced by two innovation-adoption characteristics – perceived incentives and perceived complexity, as well as their expertise in food traceability. Two consumer segments were identified: Conservatives (48%) and Pioneers (52%). Significant differences were found between these two segments in terms of gender, age, education, occupation, residential area and ethnicity. Consumers are more willing to use BFT for purchasing fresh, imported, staple and normal foods than for processed, domestic and upscale foods. Their perceived important specific features of BFT are product origin, food safety information, quality control, food safety information, hygienic condition and scarcity management. Originality/value This study contributes knowledge to address the current knowledge gap regarding consumer adoption of blockchain food traceability by using a large sample set. It is also the first study to recognise consumer segments for BFT; to provide information about consumers' important socio-demographic characteristics, food categorical preferences and perceived important features towards BFT; and to explore the influences of consumers' innovation-adoption characteristics, expertise in food traceability and expertise in blockchain technology on their adoption of blockchain food traceability.