Blockchain as a resource for building trust in pre-owned goods’ marketing: a case of automobile industry in an emerging economy

Abstract

Blockchain technology (BCT) has caught tremendous attention from businesses. In the present study, the authors propose that if BCT is used to track a product’s life cycle, that is, when it was manufactured, purchased, and used by the first and subsequent owners, the information asymmetry present in the pre-owned automobile market can be significantly reduced. The study uses a qualitative procedure to explore the challenges which buyers, sellers and intermediaries face while buying and selling pre-owned automobiles, specifically in emerging economies. Theoretical constructs of the resource-based view and the trust-based marketing theory are used to explore the extent to which BCT can influence customer purchase intention and the marketing performance of firms dealing in pre-owned automobile products in emerging economies. We collected data by conducting eight focus group discussions with generation Y and Z individuals who had experience of buying or selling pre-owned automobiles. We also conducted five personal interviews with managers of pre-owned automobile online/omnichannel retailers to understand the industry’s point of view. Three themes emerged during the study: ‘current challenges in pre-owned automobile transactions,’ ‘scope of blockchain in pre-owned automobile transactions,’ and ‘concerns regarding blockchain adoption in pre-owned automobile transactions.’ We present our findings based on these three themes. Further, we propose a conceptual model and provide theoretical and managerial implications for the pre-owned automobile industry.