Unlocking the Secret of NFTs in China: The Role of NFT Characteristics in Purchase Decision Making

Abstract

Non-fungible tokens (NFTs) are scarce digital assets, whose limited supply significantly affects consumers’ product perception and purchase behavior. Few studies have examined consumers’ cognitive evaluations and purchase intention towards NFTs in the context of Chinese luxury fashion brands. This paper aims to close this gap by investigating the impact of consumers’ cognitive perceptions (i.e., perceived scarcity, perceived uniqueness, and perceived value) and personality trait (i.e., need for uniqueness) on their purchase intention towards luxury fashion NFTs. The mediating effect of perceived value between perceived uniqueness and purchase intention was also tested. A total of 251 valid questionnaires were collected via purposive sampling and analyzed using partial least squares structural equation modeling. Drawing on the commodity theory, significant relationships were found between scarcity, need for uniqueness, the resulting cognitive factors (perceived uniqueness and perceived value) and purchase intention. Chinese consumers perceive the NFTs of luxury brands to be scarce and need uniqueness, which enhances their perception of uniqueness and consequently, their perception of value. Perceived value then positively affects purchase intention, which supports the mediating role of perceived value. This study validates the importance of scarcity for NFTs from luxury fashion brands in China, providing valuable references for luxury brand marketers and academicians.