Overcoming the blockchain technology credibility gap

Abstract

AbstractBlockchain technology has been designed to improve the transmission of transparent information across a variety of industries and products. Yet, consumers tend to perceive product information provided by blockchain technology (vs. humans) as less credible. As this may not apply to all consumers, it becomes critical for companies to understand how to improve blockchain perceived credibility. This work investigates how individual differences and marketing actions shape consumer responses to product information provided by blockchain technology (vs. humans). Four controlled experiments demonstrate that consumers perceive the information provided by blockchain technology (vs. humans) as having less credibility, which in turn decreases word‐of‐mouth and intention to share information about the product on social media (Study 1). This effect is stronger for consumers with lower need for cognition (Study 2a), which in turn affects willingness to buy and actual behavior (Study 2b). Providing social proof—that is, the number of satisfied customers who recommend blockchain technology—increases blockchain perceived credibility (Study 3). These insights deepen the understanding of how individual differences shape consumer's responses to product information provided by blockchain technology and offer actionable insights on how to boost technology credibility.