Blockchain from a new point of view: A descriptive analysis on whether the technology can create value in credence goods.

Abstract

Blockchain, a technology that has been receiving an increased amount of attention lately, has the potential for many great things in a marketing perspective. While little research has been done from such perspective, this study will help to shed some light on this new setting. Therefore, in this study, the aim is to provide an answer to whether blockchain can create value for customers within credence goods. In relation to this, blockchain and its many characteristics have been identified and analyzed, with its’ main features being transparency, traceability and tamperproof. These characteristics were used to test how blockchain as a whole has an effect on customers’ perceived value, through mediations from information asymmetry and customers’ perceived risk. The basis of this is applied to a survey, where we gathered people who purposely consume organic products in Norway. Our findings indicate that perceived risk and information asymmetry mediate the effect blockchain has on customer perceived value and establish the relationship between perceived risk and perceived value. Also, this study found indications that blockchain can be used as a means to reduce information asymmetry within credence goods, which is the root of what Akerlof (1970) formulated as the market for lemons problem. Consequently, managers could adopt this technology to increase customers’ perceived value, as this will in turn increase loyalty.