The effect of NFT visual quality on consumer evaluations of luxury goods in the metaverse

Abstract

Luxury brands creating non-fungible tokens (NFTs) often face technical constraints that compromise visual aesthetics, potentially conflicting with their high-end image. This study investigates how the visual quality of NFTs and the presence of price information influence consumer perceptions of luxury goods in the metaverse across three experimental studies. Study 1 compared consumer evaluations across three conditions: good-quality NFT, poor-quality NFT, and no NFT. The findings revealed that poor NFT visual quality negatively influenced evaluations of the original product, with perceived authenticity identified as the key underlying mechanism. Study 2 examined whether this negative effect could be mitigated by the presence of price information. The results showed that a poor-quality NFT accompanied by price information resulted in more favorable evaluations of the original bag, regardless of style similarity. Study 3 replicated these findings using a three-condition design (low-price NFT, high-price NFT, and no NFT), demonstrating that the mitigating role of price information. Together, these findings contribute to the emerging digital fashion literature by highlighting the importance of visual quality and price transparency in NFT-based luxury marketing strategies within the metaverse.