Exploring the implications of blockchain technology for brand–consumer relationships: a future research agenda
| Published date | 19 July 2019 |
| Date | 19 July 2019 |
| DOI | https://doi.org/10.1108/JPBM-03-2018-1780 |
| Pages | 307-320 |
| Author | Achilleas Boukis |
Exploring the implications of blockchain
technology for brand–consumer
relationships: a future research agenda
Achilleas Boukis
Business and Management, University of Sussex, Brighton, UK
Abstract
Purpose –The purpose of this conceptual paper is to delve into the implications of blockchain technology adoptionfor brands and consumers.
Drawing on the existing branding literature and real-life applications of blockchain, the challenges, risks and opportunities from blockchain adoption
for four important areas of the branding literature are canvassed (i.e. brand positioning and corporate brand image, consumer–brand relationship s,
online brand communication and consumers’trust in the brand). Also, a future-oriented discussion is provided that highlights some important
avenues for researchers in the field.
Design/methodology/approach –This conceptual paper sheds light on the potential implications of blockchain technology for brand–consumer
relationships. To do so, an analytical review of the blockchain literature is conducted, the nature of blockchain technology is presented and its
unique features and functions for brand–consumer interactions are discussed.
Findings –This paper ignites an exploratory discussion around how blockchain applications and platforms can affect consumer–brand relationships,
drawing on a number of real-life examples of blockchain adoption. This discussion sheds light on how blockchain features can impact on various areas of
interest for strategic brand management, such as the adoption of digital currencies, brand storytelling, use of blockchain-enabled loyalty programmes, role
of intermediaries in online advertising, counterfeit consumption, brand transparency and trust for brands in online marketplaces, amongst others.
Originality/value –This is one of the first conceptual efforts in the branding literature that draws on the scarce existing knowledge around
blockchain adoption and discusses the potential implications of blockchain technology for brands and consumers whilst also providing directions for
future research.
Keywords Online branding, Consumer–brand relationships, Blockchain technology, Brand transparency, Consumer brand trust, Digital currencies
Paper type Conceptual paper
Introduction
The role of branding is central in delivering a firm’s promise to
consumers in a competitive global market, reassuring them of the
quality of the products purchased (Veloutsou and Moutinho,
2009). Whereas, in the past, brand managers used mass
marketing approaches to pass their brand messages on to
consumers, the rise of the internet and the proliferation of social
media has disrupted traditional brand communications and
shifted the focus and scope of brand management to online and
technology-mediated interactions (Christodoulides, 2009;Kohli
et al.,2015). In this era of digital intermediation, recurring
technological advancements (e.g. blockchain, virtual reality)
provide new opportunities for brands to foster their relationships
with consumers; however, they also create new challenges that
might result in wide repercussions, damaging customers’
experience with the brand (Scholz and Duffy, 2018).
Echoing this new reality, the branding literature increasingly
focuses on how social media can affect consumers’advocacy and
online reviews (Kohli et al.,2015;Karakaya and Ganim Barnes,
2010). Also, pertinent work examines the role of online brand
communities and consumer collectives for consumers’brand
engagement (Laroche et al.,2013;Essamri et al.,2019), the use
of interactive communication approaches (e.g. storytelling) in
building consumers’brand relationships (Pera and Viglia, 2016)
and the impact of user-generated content on consumers’
experience with the brand (Kim and Johnson, 2016;Veloutsou
and Guzman, 2017). Despite this evidence, limited work in this
stream explores how firms can integrate such emerging
technologies in their branding efforts and, more importantly, how
these technologies change consumers’experience with the brand
and create value for them (Scholz and Duffy, 2018;Gielens and
Steenkamp, 2019).
“Blockchain”constitutes one such foundational technology
that allows the use of decentralized databases and peer-to-peer
networks to store a registry of transactions cryptographically
chained together (Kokina et al.,2017). The term “blockchain”
refers to the use of a shared distributed database, which
processes any digital transactions over a network of users and
tracks the tangible or intangibleassets involved in it (Iansiti and
Thecurrentissueandfulltextarchiveofthisjournalisavailableon
Emerald Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
29/3 (2020) 307–320
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-03-2018-1780]
Received 10 March 2018
Revised 25 July 2018
26 November 2018
22 March 2019
15 June 2019
20 June 2019
Accepted 21 June 2019
307
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