Why do consumers buy NFTs?: Multi-path of attitude and the bandwagon effect

Abstract

Purpose

The non-fungible token (NFT) market has been multiplying in recent years. NFTs are tokens stored on a blockchain network based on smart contract technology that can be used to represent ownership of digital assets and cannot be changed like-for-like. With NFTs, all recorded digital properties can be freely traded and stored with values, making them possible to increase content transactions' privacy and security. In addition, NFTs engender new ways to organize, consume, share and store digital content. Despite the rapid growth of the NFT market, related consumer behaviors have yet to be well-known and relevant academic research results are very scarce. This study aims to explain how NFT fits with blockchain and cryptocurrency and how consumers accept it. This paper also develops a structured causal model with multiple paths to explain the antecedents and attitude variables for NFT acceptance.

Design/methodology/approach

The data collection was conducted from 542 young consumers in Korea via an online survey. The structural equation modeling method was used to analyze the hypotheses.

Findings

Attitudes toward technology and assets positively affect NFT purchase behavioral intentions. Additionally, symbolic driver affects behavioral intention directly.

Originality/value

The results expanded the understanding of the NFT market and consumers, which are still in their early stages. They also provide valuable insights for establishing future market strategies for NFT.

Citation

Lee, W.-j. and Cha, M.-K. (2023), "Why do consumers buy NFTs?: Multi-path of attitude and the bandwagon effect", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-01-2023-0006