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Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance

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  • Allison, Thomas H.
  • Davis, Blakley C.
  • Webb, Justin W.
  • Short, Jeremy C.

Abstract

This study draws upon the elaboration likelihood model of persuasion (ELM) to develop and test a model of persuasive influence in crowdfunding. To test our hypothesized relationships, we drew upon a sample of 383 ventures taken directly from Kickstarter, coupled with a decision experiment conducted in a simulated crowdfunding context. Results suggest that issue-relevant information, such as entrepreneurs' education, matters most when funders possess greater ability and motivation to make careful evaluations. In contrast, cues, such as adopting a group identity, have their strongest influence among inexperienced, first-time funders, and when requested funding amounts are smaller.

Suggested Citation

  • Allison, Thomas H. & Davis, Blakley C. & Webb, Justin W. & Short, Jeremy C., 2017. "Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance," Journal of Business Venturing, Elsevier, vol. 32(6), pages 707-725.
    • Handle: RePEc:eee:jbvent:v:32:y:2017:i:6:p:707-725
    DOI: 10.1016/j.jbusvent.2017.09.002
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