Consumers’ Cognitive Processing of Blockchain Adoption

Abstract

This chapter advances the understanding of innovation in marketing by examining consumer adoption of blockchain technology. Using Behavioral Reasoning Theory (BRT) as a framework, this chapter explores the psychological processes driving the adoption of radical innovations. Modeling results using the PROCESS methodology reveal that coping and attitude constructs mediate the relationship between trust in technology (in general) and blockchain adoption intention. By comparison, prior knowledge of blockchain directly influences the intention to adopt it. These findings yield novel theoretical insight into two distinct cognitive processing mechanisms through which consumers evaluate this innovative technology—heuristic processing based on overall technology trust perceptions and systematic processing drawing on blockchain-specific knowledge. While blockchain technology offers the potential to increase trust and transparency in commercial transactions, widespread consumer adoption remains elusive. Many consumers hesitate to embrace blockchain, highlighting the need for a deeper insight into the psychological processes that drive the adoption process of such radical innovations. This chapter addresses this need by explaining how consumers cognitively process the adoption of radical innovations. The results suggest that marketing managers pursuing successful blockchain products should work on improving trust in technology and educating consumers about blockchain. Understanding consumer cognitive processes offers the potential to enhance adoption and market success.