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In crowdfunding we trust? Investigating crowdfunding success as a signal for enhancing trust in sustainable product features

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  • Wehnert, Peter
  • Baccarella, Christian V.
  • Beckmann, Markus

Abstract

Crowdfunding has been discussed as a tool for acquiring resources, a way of communicating information to potential investors, and a means of testing the market potential of entrepreneurial projects. Yet, little is known about how successful crowdfunding influences consumers' perceptions about a product or its features. We assume that mentioning a successful crowdfunding campaign in a product advertisement can provide valuable quality signals. Such signals are particularly relevant for sustainability-oriented products because sustainability attributes are often not directly accessible to potential consumers. Based on a 2 (crowdfunding: yes vs. no) × 3 (product category: low complexity vs. medium complexity vs. high complexity) experimental study (n = 530), we find that signaling crowdfunding success has an influence on product perceptions and on the credibility of sustainability attributes. Furthermore, we show that the effects of this signal depend on different levels of product complexity.

Suggested Citation

  • Wehnert, Peter & Baccarella, Christian V. & Beckmann, Markus, 2019. "In crowdfunding we trust? Investigating crowdfunding success as a signal for enhancing trust in sustainable product features," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 128-137.
    • Handle: RePEc:eee:tefoso:v:141:y:2019:i:c:p:128-137
    DOI: 10.1016/j.techfore.2018.06.036
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    15. Jung, Eunjun & Lee, Changjun & Hwang, Junseok, 2022. "Effective strategies to attract crowdfunding investment based on the novelty of business ideas," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
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    18. 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.
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    20. 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.
    21. Boukis, Achilleas, 2023. "Storytelling in initial coin offerings: Attracting investment or gaining referrals?," Journal of Business Research, Elsevier, vol. 160(C).
    22. Myung Ja Kim & James F. Petrick, 2021. "Roles of constraint and attachment in crowdfunder behavior for sustainable development: An extended theory of planned behavior," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 780-792, July.
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    24. Hörisch, Jacob & Tenner, Isabell, 2020. "How environmental and social orientations influence the funding success of investment-based crowdfunding: The mediating role of the number of funders and the average funding amount," Technological Forecasting and Social Change, Elsevier, vol. 161(C).

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