Description
Reward hunting is the most recognized motivation for backers’ participation. Therefore, it’s crucial for fundraisers to understand how backers will perceive reward tiers in crowdfunding campaigns to achieve crowdfunding success. The number of options is the most widely investigated feature of reward tiers. Although existing literature provided mixed findings for its impact on crowdfunding success, none has shed light on the underlying mechanism. To fill the research vacuum, we investigate the impact of the number of options on crowdfunding success using a large-scale dataset that contains 10,621 campaigns. Moreover, we explore the underlying mechanism by analyzing the impact of the number of options on average backing position of crowdfunding campaigns. Our regression analyses provide evidence for positive impact of the number of options on average backing position and crowdfunding success. Furthermore, we offer explanations for our findings based on theories of choice overload and compromise effect.
Recommended Citation
Du, Zhao and Wang, Kanliang, "More Options Make Crowdfunding Campaigns More Successful? Investigation of the Underlying Mechanism" (2017). AMCIS 2017 Proceedings. 13.
https://aisel.aisnet.org/amcis2017/eBusiness/Presentations/13
More Options Make Crowdfunding Campaigns More Successful? Investigation of the Underlying Mechanism
Reward hunting is the most recognized motivation for backers’ participation. Therefore, it’s crucial for fundraisers to understand how backers will perceive reward tiers in crowdfunding campaigns to achieve crowdfunding success. The number of options is the most widely investigated feature of reward tiers. Although existing literature provided mixed findings for its impact on crowdfunding success, none has shed light on the underlying mechanism. To fill the research vacuum, we investigate the impact of the number of options on crowdfunding success using a large-scale dataset that contains 10,621 campaigns. Moreover, we explore the underlying mechanism by analyzing the impact of the number of options on average backing position of crowdfunding campaigns. Our regression analyses provide evidence for positive impact of the number of options on average backing position and crowdfunding success. Furthermore, we offer explanations for our findings based on theories of choice overload and compromise effect.