<p>Licensed merchandise is a key strategy for managing and leveraging one’s intellectual property (IP) assets. However, existing research offers a limited understanding of licensed merchandise in narrative entertainment, where consumer perceptions are shaped by both narrative engagement and fan identification. Therefore, this study explores how consumers in the entertainment industry perceive the value of licensed merchandise. Specifically, it examines the effect that fan identification and narrative transportation have on this value using social identity theory and the extended transportation imagery model (ETIM). Focusing on webtoons as an important entertainment IP, this study conducted an online survey and collected data from 300 webtoon readers. Partial least squares structural equation modeling (PLS-SEM) was employed to analyze the relationship between content and fan attributes on fan identification and narrative transportation. The results show that character identification, perceived setting richness, and social interaction capacity all positively relate to fan identification and narrative transportation. While fan identification has a positive relationship with perceived merchandise value, no relationship was found with narrative identification. This study offers both academic and practical contributions by extending merchandise research to narrative entertainment and advancing fandom-based merchandise planning through strategies grounded in the factors that shape perceived merchandise value.</p>