Visual fidelity and price transparency in luxury-brand NFTs: Impacts on consumer authenticity perceptions and purchase intentions in metaverse retailing

As luxury brands expand into metaverse retail environments, non-fungible tokens (NFTs) have emerged as critical tools for digital brand storytelling and value creation. However, the translation of brand authenticity from physical to digital luxury goods remains poorly understood, particularly regarding how visual design fidelity and pricing strategies influence consumer perceptions and behaviors. This research addresses a fundamental tension in luxury NFT marketing: while high-fidelity digital representations may enhance perceived authenticity through detailed brand cues, they may simultaneously degrade authenticity perceptions by exposing the gap between digital simulation and physical product ownership. Drawing on signaling theory and authenticity research, this study investigates how NFT visual quality (high vs. low fidelity) and price disclosure strategies (transparent vs. absent) jointly influence consumer authenticity perceptions and purchase intentions for flagship luxury handbags in metaverse retail contexts.Three preregistered experiments (aggregate NÂ =Â 1278) employing diverse luxury brand stimuli systematically test these relationships. Study 1 establishes that high-fidelity NFT visuals paradoxically reduce perceived brand authenticity and purchase intentions compared to low-fidelity representations, despite enhanced aesthetic appeal. Study 2 reveals that transparent price information (versus no pricing) moderates this effect: when price transparency is low, the negative authenticity impact of high-fidelity NFTs diminishes, and purchase intentions rebound to levels comparable with high-fidelity designs. Study 3 employs a three-cell design (low price, high price, no price) to confirm that premium pricing serves as a compensatory signal that buffers the authenticity penalties associated with photorealistic NFT representations, while low prices amplify the negative effects of visual realism on perceived authenticity.Across all studies, mediation analyses demonstrate that perceived authenticity functions as the primary psychological pathway linking visual fidelity and price transparency to purchase intentions. Consumer familiarity with NFT technology emerges as a secondary moderator, with NFT-experienced consumers showing greater acceptance of high-fidelity digital representations. The findings extend signaling theory to digital luxury contexts by demonstrating that traditional brand signals (visual realism, price) operate differently in virtual environments where authenticity concerns are heightened. This research provides actionable strategic guidance for luxury retailers entering metaverse platforms: managers must carefully calibrate NFT visual resolution and pricing strategies to preserve brand authenticity perceptions, either investing in ultra-realistic assets paired with premium pricing or adopting stylized, lower-fidelity designs with transparent value propositions to drive conversion in digital retail environments.