The use of non-fungible tokens (NFTs) as promotional devices to build brands: An application of lovemark theory

Luxury brand managers are paying attention to utilizing non-fungible tokens (NFTs) as promotional tools, yet there has been limited study on the topic. To help address this gap, this study explores the impact of the cognitive and affective aspects of the use of NFTs as promotional devices on consumer behavior. A survey is conducted to explore aspects of NFTs that make them effective in as promotional tools. This study reveals four key attributes associated with NFT promotional efforts, namely, scarcity, authenticity, resaleability, and trendiness. Moreover, drawing on lovemark theory, the study finds a significant effect of NFTs electronic word of mouth generation and brand purchase intention. The empirical findings can aid both academics and practitioners in the management of digital marketing activities via NFTs.