The effect of NFTs on functional and symbolic brand benefits for consumers

Witjes, Femke

The effect of NFTs on functional and symbolic brand benefits for consumers

Authors

Witjes, Femke

Issue Date

2023-06-28

Language

en

URI

https://theses.ubn.ru.nl/handle/123456789/15897

Abstract

The current study investigated the effect of NFTs on symbolic vs. functional brand benefits for consumers, when controlling for brand type (prestige vs. non-prestige) and covariates. A total of 244 Dutch participants were randomly divided into four groups as part of an online experiment, with a 2 (NFT vs. no NFT) x 2 (prestige vs. non-prestige brand type) betweensubjects design in which a manipulated advertorial was shown of a sneaker brand. The results did not support the first two hypotheses, since NFTs had no effect on the symbolic vs. functional benefits for consumers. Brand type also did not moderate this effect. However, the covariate brand attachment did appear to be the statistically significant covariate in H1 and H2. Brand attachment emerged as a substantial moderator that impacted consumers' perception of functional and symbolic values, even while the existence of NFTs may not have a direct impact on these values consumers obtain from buying a branded product. The third hypothesis was partially supported, as there was a significant main effect of brand type on symbolic value. Consumers perceived the prestige brand to have a higher symbolic value compared to the nonprestige brand. However, no main significant effect was found between NFTs and symbolic value. The possible reasons behind these results have been discussed together with how these findings can be useful for managers. This study concludes with a detailed assessment of the limitations of this research and potential directions for future research.