A study on NFT purchasing in the context of conspicuous consumption

Purpose: NFTs, which are created by blockchain technology have become a rising value due to future vision of living in virtual worlds (Metaverse), have been discovered and utilized in marketing campaigns by digital art collectors, game companies, and luxury fashion houses. However, on the other side of coin, research on NFT buyers is limited. This study aims to explore individuals' conspicuous consumption behavior when purchasing NFTs and the changing effects according to demographic differences, with a priority on guiding industry applications and contributing to literature. Method: The study is designed as quantitative research. The conspicuous consumption scale, developed by Bennett and Kottasz (2013: 37) to research the purchase of a limited number of art pieces consisting of three dimensions and ten items, is used to measure conspicuous consumption behavior. Participants who have purchased NFTs were included in the study and data was collected through an online survey. (N=449) Results: The results of the survey show that the purchase of NFTs for uniqueness and belonging to a desired group is more common. With the expression that received the most participation, it was revealed that NFTs owned by the majority turned into objects of desire. Demographic analysis shows that the reason for purchasing NFTs for status statement is more commonly seen in men. Also, a weak but positive relationship was found between the status expression and age. In surveys conducted in different countries, it is seen that in Turkey, the reason for purchasing NFTs for status statement and belonging to a desired group is more common, supporting the impact of culture on conspicuous consumption. The last demographic variable, income, showed that participants with an income over 1000$ were more likely to purchase NFTs for status statement. Conclusion and Suggestions: The study showed that individuals purchase NFTs to prove their uniqueness to their environment or to show their suitability to a group they want to be part of. However, as income increases, NFT purchases for status expression are also increasing. Lastly, it was determined that the conspicuous consumption behaviors that Bourdieu (1996: 209) categorized as imitation and discrimination mechanisms, also found a place in NFT purchasing with different motivations, considering the expressions of conspicuous consumption that received high participation. Significant results were obtained from this study, but future research could expand by creating a control group of people who do not purchase NFTs. The bandwagon effect, personality differences in NFT purchasing or the effect of real-world benefits offered in corporate NFT campaigns on purchasing also needs to be researched. On the other hand, marketing professionals should stick to the limited supply principle in developing NFT projects in order to represent the uniqueness that is important for NFT buyers. Additionally, they should pay attention to community building and overcoming for the lack of digital social platforms where buyers can display their NFTs. Brands selling luxury consumer goods will be able to create privileged customer groups in the real world through NFTs. However, without ignoring the vision of virtual universes, priority should be given to the technological infrastructure developments of NFT goods that can be used by customers' digital twins.