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Predictions of Crowdfunding Campaign Success: The Influence of First Impressions on Accuracy and Positivity

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  • Etienne Schraven

    (Department of Management and Organization, School of Business and Economics, Vrije Universiteit Amsterdam, 1081 HV Amsterdam, The Netherlands)

  • Elco van Burg

    (Department of Management and Organization, School of Business and Economics, Vrije Universiteit Amsterdam, 1081 HV Amsterdam, The Netherlands)

  • Marco van Gelderen

    (Department of Management and Organization, School of Business and Economics, Vrije Universiteit Amsterdam, 1081 HV Amsterdam, The Netherlands)

  • Enno Masurel

    (Department of Management and Organization, School of Business and Economics, Vrije Universiteit Amsterdam, 1081 HV Amsterdam, The Netherlands)

Abstract

Crowdfunding has quickly gained popularity in recent years, providing an additional way for entrepreneurial individuals and organizations (creators) to attract funds for their projects. Scholars have been interested in predicting the success of crowdfunding campaigns, by relating campaign characteristics to the actual success of these campaigns. We take one step back by studying the cognitive processes of the crowd. This paper uses an experimental approach to establish whether participants’ predictions on the success of crowdfunding campaigns based on first impressions are as positive and as accurate as those derived from more thorough analyses. We employ a two-study replication design, in which individuals estimate the success of crowdfunding campaigns in two conditions: with limited time and with unlimited time. The results show that prediction accuracy in both conditions is equal, yet shorter time availability results in assessments that are more negative. We discuss implications for creators and for funders.

Suggested Citation

  • Etienne Schraven & Elco van Burg & Marco van Gelderen & Enno Masurel, 2020. "Predictions of Crowdfunding Campaign Success: The Influence of First Impressions on Accuracy and Positivity," JRFM, MDPI, vol. 13(12), pages 1-16, December.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:12:p:331-:d:466024
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    References listed on IDEAS

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    Cited by:

    1. Agnieszka Szewczyk & Zbigniew Stempnakowski, 2021. "Social Energy as the Driving Force behind Crowdfunding—Analysis and Classification of Selected Attributes," Energies, MDPI, vol. 14(19), pages 1-32, September.
    2. Lingfei Deng & Qiang Ye & DaPeng Xu & Wenjun Sun & Guangxin Jiang, 2022. "A literature review and integrated framework for the determinants of crowdfunding success," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-70, December.

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