Merchandising/Marketing/Retailing: Branding

Consumer Responses to NFT (Non-Fungible Token) Fashion Promotional Bundles

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Abstract

This study aimed to explore consumer responses to freebie promotional bundles involving Non-Fungible Tokens (NFTs) in the fashion industry. The study investigated how the positioning of NFTs as either a focal or freebie product in promotional bundles influences consumers' perceptions of conspicuous value, perceived risk, and purchase intentions according to the brand type (Luxury vs. Non-luxury). The research finds that for non-luxury brands, conspicuous value is higher when NFTs are offered as freebies, while for luxury brands, conspicuous value remains consistent regardless of the bundle type. However, luxury brands face higher perceived risk when NFTs are the focal product. The study concludes that non-luxury brands should use NFTs as freebies to enhance conspicuous value, whereas luxury brands need to carefully consider consumer risk perceptions in their NFT promotions. These insights provide valuable guidance for developing effective NFT promotional strategies in the fashion industry.

Keywords: Non-Fungible Token, Promotional bundle, Conspicuous value, Perceived risk

How to Cite:

Kim, S., Youn, S. & Lee, J., (2024) “Consumer Responses to NFT (Non-Fungible Token) Fashion Promotional Bundles”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17457