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Understanding backers’ funding intention in reward crowdfunding: An elaboration likelihood perspective

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  • Wang, Zhengpei
  • Yang, Xue

Abstract

Each crowdfunding project creator can create and design a webpage to show their projects on a crowdfunding platform. Backers can process this project information to decide whether to fund the project or not. However, two questions arise: Which kinds of information will affect backers' funding intentions? Do individual characteristics affect backers' funding decisions? We adopted the elaboration likelihood model as an overarching theory to explore these two questions. We tested the model with survey data collected from China. The findings illustrate that central routes (product innovativeness, perceived product quality and creator ability) and peripheral routes (webpage visual design) have positive effects on backers’ funding intentions. Product knowledge was found to have positive moderating impacts on all three central routes but a negative moderating influence on one peripheral route. Theoretical contributions and managerial implications of this study are discussed.

Suggested Citation

  • Wang, Zhengpei & Yang, Xue, 2019. "Understanding backers’ funding intention in reward crowdfunding: An elaboration likelihood perspective," Technology in Society, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:teinso:v:58:y:2019:i:c:s0160791x18302380
    DOI: 10.1016/j.techsoc.2019.101149
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    4. Rotem Shneor & Urszula Mrzygłód & Joanna Adamska-Mieruszewska & Anna Fornalska-Skurczyńska, 2022. "The role of social trust in reward crowdfunding campaigns’ design and success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1103-1118, September.
    5. Li, Liangqiang & Yang, Liang & Zhao, Meng & Liao, Miyan & Cao, Yunzhong, 2022. "Exploring the success determinants of crowdfunding for cultural and creative projects: An empirical study based on signal theory," Technology in Society, Elsevier, vol. 70(C).
    6. Wu, Wenqing & Huang, Xuan & Wu, Chia-Huei & Tsai, Sang-Bing, 2022. "Pricing strategy and performance investment decisions in competitive crowdfunding markets," Journal of Business Research, Elsevier, vol. 140(C), pages 491-497.
    7. Fengjiao Zhang & Hong Zhang & Sumeet Gupta, 2023. "Investor participation in reward-based crowdfunding: impacts of entrepreneur efforts, platform characteristics, and perceived value," Information Technology and Management, Springer, vol. 24(1), pages 19-36, March.
    8. Amina Rizwan & Faisal Mustafa, 2022. "Fintech Attaining Sustainable Development: An Investor Perspective of Crowdfunding Platforms in a Developing Country," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    9. Allison, Thomas H. & Warnick, Benjamin J. & Davis, Blakley C. & Cardon, Melissa S., 2022. "Can you hear me now? Engendering passion and preparedness perceptions with vocal expressions in crowdfunding pitches," Journal of Business Venturing, Elsevier, vol. 37(3).
    10. Rui Hou & Leiming Li & Bingquan Liu, 2020. "Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-29, August.
    11. 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.
    12. Xu, Shengshuo & Ling, Liuyi & Du, Shaofu & Liu, Lindong, 2023. "Crowdfunding or traditional mode? Strategy choices in product selling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).

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