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Crowdfunding technological innovations: Interaction between consumer benefits and rewards

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  • Zhang, Haisu
  • Chen, Weizhi

Abstract

This research aims to examine how consumer benefits stated in the project title and the number of rewards in the crowdfunding context interactively impact the number of backers and funding success for technological innovations. The authors collected data of 674 technological projects from kickstarter.com. Data collection was completed at two points of time, Time 1 (projects were still active) and Time 2 (funding periods were over). Findings between them were highly consistent. Two coding assignments were used. First, two independent raters assessed consumer benefits claimed in the project title; second, the research team coded the number of reward levels in each crowdfunding project and the number of rewards included in each reward level. In total, 134,492 rewards across 4509 reward levels were recorded. The authors find that the number of backers increases the likelihood of funding success. Additionally, consumer benefits increase the number of backers. The average number of rewards affects the number of backers in an inverted-U shape, and it also moderates the relationship between consumer benefits and the number of backers in an inverted-U shape.

Suggested Citation

  • Zhang, Haisu & Chen, Weizhi, 2019. "Crowdfunding technological innovations: Interaction between consumer benefits and rewards," Technovation, Elsevier, vol. 84, pages 11-20.
    • Handle: RePEc:eee:techno:v:84-85:y:2019:i::p:11-20
    DOI: 10.1016/j.technovation.2018.05.001
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    2. Saif Ullah & Yulin Zhou, 2020. "Gender, Anonymity and Team: What Determines Crowdfunding Success on Kickstarter," JRFM, MDPI, vol. 13(4), pages 1-26, April.
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    4. Kristian Roed Nielsen & Julia Katharina Binder, 2021. "I Am What I Pledge: The Importance of Value Alignment for Mobilizing Backers in Reward-Based Crowdfunding," Entrepreneurship Theory and Practice, , vol. 45(3), pages 531-561, May.
    5. Sewaid, Ahmed & Parker, Simon C. & Kaakeh, Abdulkader, 2021. "Explaining serial crowdfunders' dynamic fundraising performance," Journal of Business Venturing, Elsevier, vol. 36(4).
    6. Junge, Louise Bech & Laursen, Iben Cleveland & Nielsen, Kristian Roed, 2022. "Choosing crowdfunding: Why do entrepreneurs choose to engage in crowdfunding?," Technovation, Elsevier, vol. 111(C).
    7. Anna Prisco & Valerio Muto & Ciro Troise & Mario Tani, 2022. "How to Engage the Crowds to Create Value? Evidence from the Pathfinder Arena Case," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
    8. Xiaobei Liang & Xiaojuan Hu & Jiang Jiang, 2020. "Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication," Sustainability, MDPI, vol. 12(2), pages 1-36, January.
    9. Ozcan, Sercan & Suloglu, Metin & Sakar, C. Okan & Chatufale, Sushant, 2021. "Social media mining for ideation: Identification of sustainable solutions and opinions," Technovation, Elsevier, vol. 107(C).
    10. Christian Hopp & Stefan Rose & Jermain Kaminski, 2022. "The Pervasive Role of Campaign and Product-Related Uncertainties in Inhibiting Crowdfunding Success," JRFM, MDPI, vol. 15(8), pages 1-17, August.
    11. Nakagawa, Koichi & Kosaka, Genjiro, 2022. "What social issues do people invest in? An examination based on the empathy–altruism hypothesis of prosocial crowdfunding platforms," Technovation, Elsevier, vol. 114(C).
    12. Constantin von Selasinsky & Eva Lutz, 2021. "The Effects of Pro-Social and Pro-Environmental Orientation on Crowdfunding Performance," Sustainability, MDPI, vol. 13(11), pages 1-27, May.
    13. Steven S. Lui & Zhijing Zhu & Jinjing Liu, 2023. "Success of Crowdfunding: A Trustworthiness Perspective," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 681-706, June.
    14. Bernardino, Susana & Freitas Santos, José & Oliveira, Sílvie, 2021. "The impact of social media and e-WOM on the success of reward-based crowdfunding campaigns," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    15. Berns, John P. & Jia, Yankun & Gondo, Maria, 2022. "Crowdfunding success in sustainability-oriented projects: An exploratory examination of the crowdfunding of 3D printers," Technology in Society, Elsevier, vol. 71(C).
    16. Junjuan Du, 2022. "Project Attribute Information and Initiator’s Commitment in Crowdfunding Message Strategy: An Empirical Investigation of Financing Performance in Agri-Food Crowdfunding," Sustainability, MDPI, vol. 14(19), pages 1-18, October.

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