IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v34y2024i1d10.1007_s12525-024-00722-2.html
   My bibliography  Save this article

Unveiling the aesthetic “wow factor”: The role of aesthetic incongruity and image quality in NFT art valuation with computer vision

Author

Listed:
  • Chong Guan

    (SUSS Academy, Singapore University of Social Sciences)

  • Ding Ding

    (Singapore University of Social Sciences)

  • Jing Ren

    (Singapore University of Social Sciences)

  • Jiancang Guo

    (Netvirta Singapore Pte. Ltd.)

Abstract

This study investigates the intricate interplay between visual (in)congruity and visual quality within the context of Non-Fungible Tokens (NFTs). Drawing upon foundational theories on mental schema, and uniqueness in extended self-representation, we develop a comprehensive theoretical framework that illuminates the influence of visual cues on consumer psychology and market dynamics in the burgeoning NFT art ecosystem. Leveraging a dataset comprising 2895 images from NFT art collections, we employ computer vision to discern patterns and extract visual features underpinning transaction pricing dynamics. Subsequently, we analyze the interaction effect between visual (in)congruity and visual quality on NFT art valuation. Aesthetic incongruity has been shown to contribute to the enhancement of prices, but this effect is contingent on the perceived aesthetic quality being high. Our study underscores the transformative potential of visual (in)congruity in shaping consumer perceptions and market dynamics within the NFT ecosystem. By elucidating the interplay between visual aesthetics and valuation mechanisms, we offer valuable insights pertaining to the creation, valuation, and investment of NFTs. This enriches scholarly discourse and informs practical strategies for market participants and stakeholders navigating the dynamic landscape.

Suggested Citation

  • Chong Guan & Ding Ding & Jing Ren & Jiancang Guo, 2024. "Unveiling the aesthetic “wow factor”: The role of aesthetic incongruity and image quality in NFT art valuation with computer vision," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-16, December.
    • Handle: RePEc:spr:elmark:v:34:y:2024:i:1:d:10.1007_s12525-024-00722-2
    DOI: 10.1007/s12525-024-00722-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-024-00722-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-024-00722-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Horky, Florian & Rachel, Carolina & Fidrmuc, Jarko, 2022. "Price determinants of non-fungible tokens in the digital art market," Finance Research Letters, Elsevier, vol. 48(C).
    2. Belk, Russell W, 1988. "Possessions and the Extended Self," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 139-168, September.
    3. Dowling, Michael, 2022. "Fertile LAND: Pricing non-fungible tokens," Finance Research Letters, Elsevier, vol. 44(C).
    4. Veryzer, Robert W, Jr & Hutchinson, J Wesley, 1998. "The Influence of Unity and Prototypicality on Aesthetic Responses to New Product Designs," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 374-394, March.
    5. Amin Mekacher & Alberto Bracci & Matthieu Nadini & Mauro Martino & Laura Alessandretti & Luca Maria Aiello & Andrea Baronchelli, 2022. "Heterogeneous rarity patterns drive price dynamics in NFT collections," Papers 2204.10243, arXiv.org, revised Aug 2022.
    6. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    7. Zhang, Z. John, 2023. "Cryptopricing: Whence comes the value for cryptocurrencies and NFTs?," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 22-29.
    8. An, Jaehyung & Mikhaylov, Alexey & Chang, Tsangyao, 2024. "Relationship between the popularity of a platform and the price of NFT assets," Finance Research Letters, Elsevier, vol. 61(C).
    9. Chong Guan & Ding Ding & Jiancang Guo & Yun Teng, 2023. "An ecosystem approach to Web3.0: a systematic review and research agenda," Journal of Electronic Business & Digital Economics, Emerald Group Publishing Limited, vol. 2(1), pages 139-156, July.
    10. Belk, Russell & Humayun, Mariam & Brouard, Myriam, 2022. "Money, possessions, and ownership in the Metaverse: NFTs, cryptocurrencies, Web3 and Wild Markets," Journal of Business Research, Elsevier, vol. 153(C), pages 198-205.
    11. Bao, Te & Ma, Mengzhong & Wen, Yonggang, 2023. "Herding in the non-fungible token (NFT) market," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    12. Richins, Marsha L, 1994. "Special Possessions and the Expression of Material Values," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 522-533, December.
    13. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    14. Guan, Chong & Lam, Shun Yin, 2019. "Product Rating Statistics as Consumer Search Aids," Journal of Interactive Marketing, Elsevier, vol. 48(C), pages 51-70.
    15. Rainer Alt, 2022. "Electronic Markets on platform culture," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1019-1031, September.
    16. Matthieu Nadini & Laura Alessandretti & Flavio Di Giacinto & Mauro Martino & Luca Maria Aiello & Andrea Baronchelli, 2021. "Mapping the NFT revolution: market trends, trade networks and visual features," Papers 2106.00647, arXiv.org, revised Sep 2021.
    17. Yu Chen, 2009. "Possession and Access: Consumer Desires and Value Perceptions Regarding Contemporary Art Collection and Exhibit Visits," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(6), pages 925-940, April.
    18. Jan Schwiderowski & Asger Balle Pedersen & Jonas Kasper Jensen & Roman Beck, 2023. "Value creation and capture in decentralized finance markets: Non-fungible tokens as a class of digital assets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-16, December.
    19. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. "Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 185-193, September.
    20. C. Caldara & Aradhna Krishna & Ryan S. Elder, 2010. "Feminine to smell but masculine to touch ? Multisensory congruence and its effect on the aesthetic experience," Post-Print halshs-00528786, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Kuo Chuen Lee & Chong Guan & Yinghui Yu & Qinxu Ding, 2024. "A Comprehensive Review of Generative AI in Finance," FinTech, MDPI, vol. 3(3), pages 1-19, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Choi, Jaeseo, 2024. "A Study on the Applicability of NFT in the Entertainment Industry: Application of the Means-end Chain analysis and Laddering," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302456, International Telecommunications Society (ITS).
    2. Niklas Konstantin Klein & Fritz Lattermann & Dirk Schiereck, 2023. "Investment in non-fungible tokens (NFTs): the return of Ethereum secondary market NFT sales," Journal of Asset Management, Palgrave Macmillan, vol. 24(4), pages 241-254, July.
    3. Proelss, Juliane & Sévigny, Stéphane & Schweizer, Denis, 2023. "GameFi: The perfect symbiosis of blockchain, tokens, DeFi, and NFTs?," International Review of Financial Analysis, Elsevier, vol. 90(C).
    4. Zhang, Xu & Naeem, Muhammad Abubakr & Du, Yuting & Rauf, Abdul, 2024. "Examining the bidirectional ripple effects in the NFT markets: Risky center or hedging center?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    5. Mingxuan He, 2023. "Deep Learning for Dynamic NFT Valuation," Papers 2312.05346, arXiv.org.
    6. Loussaïef, Leïla & Ulrich, Isabelle & Damay, Coralie, 2019. "How does access to luxury fashion challenge self-identity? Exploring women's practices of joint and non-ownership," Journal of Business Research, Elsevier, vol. 102(C), pages 263-272.
    7. Essig, Elena, 2024. "What do you own if you have nothing? Psychological ownership in the context of institutional minimalism in the armed forces," Journal of Business Research, Elsevier, vol. 183(C).
    8. Giovanna Magnani & Beatrice Re, 2020. "Lived experiences about car sharing in young adults: Emerging paradoxes," Italian Journal of Marketing, Springer, vol. 2020(2), pages 207-229, September.
    9. Shaorong Ji & Pang-Soong Lin, 2022. "Aesthetics of Sustainability: Research on the Design Strategies for Emotionally Durable Visual Communication Design," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    10. Umar, Zaghum & Usman, Muhammad & Choi, Sun-Yong & Rice, John, 2023. "Diversification benefits of NFTs for conventional asset investors: Evidence from CoVaR with higher moments and optimal hedge ratios," Research in International Business and Finance, Elsevier, vol. 65(C).
    11. Zhang, Luyao & Sun, Yutong & Quan, Yutong & Cao, Jiaxun & Tong, Xin, 2023. "On the Mechanics of NFT Valuation: AI Ethics and Social Media," OSF Preprints qwpdx, Center for Open Science.
    12. Giovanna Magnani & Beatrice Re, 0. "Lived experiences about car sharing in young adults: Emerging paradoxes," Italian Journal of Marketing, Springer, vol. 0, pages 1-23.
    13. Fridgen, Gilbert & Kräussl, Roman & Papageorgiou, Orestis & Tugnetti, Alessandro, 2023. "The fundamental value of art NFTs," CFS Working Paper Series 709, Center for Financial Studies (CFS).
    14. Ahn, Suhyoung & Ellie Jin, Byoungho & Seo, Hyesim, 2024. "Why do people interact and buy in the Metaverse? Self-Expansion perspectives and the impact of hedonic adaptation," Journal of Business Research, Elsevier, vol. 175(C).
    15. Joy, Annamma & Wang, Jeff Jianfeng & Chan, Tsang-Sing & Sherry, John F. & Cui, Geng, 2014. "M(Art)Worlds: Consumer Perceptions of How Luxury Brand Stores Become Art Institutions," Journal of Retailing, Elsevier, vol. 90(3), pages 347-364.
    16. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    17. Theodore Panagiotidis & Georgios Papapanagiotou, 2024. "A note on the determinants of NFTs returns," Working Paper series 24-07, Rimini Centre for Economic Analysis.
    18. Liselot Hudders & Mario Pandelaere, 2012. "The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(3), pages 411-437, June.
    19. Carol L. Esmark & Stephanie M. Noble, 2018. "Retail space invaders: when employees’ invasion of customer space increases purchase intentions," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 477-496, May.
    20. Mauro Capestro & Greta Chiavegato, 2023. "Il consumo dei beni di lusso nel contesto della sharing economy: un caso di studio italiano," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2023(1), pages 53-70.

    More about this item

    Keywords

    NFT art; Aesthetic incongruity; Image quality; Computer vision; Digital aesthetics; NFT valuation;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:34:y:2024:i:1:d:10.1007_s12525-024-00722-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.