Get It before It’s Gone? How Limited Rewards Influence Backers’ Choices in Reward-Based Crowdfunding
Start Date
10-12-2017 12:00 AM
Description
Crowdfunding websites, such as Kickstarter and Indiegogo, allow project creators to offer rewards in limited numbers, but research has paid little attention to how these rewards influence backers’ choices and, therefore, funding success. This research-in-progress presents preliminary results from an ongoing research project that explores the usefulness of limited rewards. Grounded in scarcity research, we conducted an online experiment with 166 participants in a simple, controlled environment. Mixed-effects logistic regression analysis suggests that backers prefer limited rewards over unlimited rewards under certain conditions, even if they have to pledge more for them. Therefore, our results also suggest that if used in the right way, limited rewards may increase the chances of reaching funding targets. Our future research will explore the usefulness of limited rewards in more realistic settings.
Recommended Citation
Weinmann, Markus; Tietz, Matthias; Simons, Alexander; and vom Brocke, Jan, "Get It before It’s Gone? How Limited Rewards Influence Backers’ Choices in Reward-Based Crowdfunding" (2017). ICIS 2017 Proceedings. 18.
https://aisel.aisnet.org/icis2017/Peer-to-Peer/Presentations/18
Get It before It’s Gone? How Limited Rewards Influence Backers’ Choices in Reward-Based Crowdfunding
Crowdfunding websites, such as Kickstarter and Indiegogo, allow project creators to offer rewards in limited numbers, but research has paid little attention to how these rewards influence backers’ choices and, therefore, funding success. This research-in-progress presents preliminary results from an ongoing research project that explores the usefulness of limited rewards. Grounded in scarcity research, we conducted an online experiment with 166 participants in a simple, controlled environment. Mixed-effects logistic regression analysis suggests that backers prefer limited rewards over unlimited rewards under certain conditions, even if they have to pledge more for them. Therefore, our results also suggest that if used in the right way, limited rewards may increase the chances of reaching funding targets. Our future research will explore the usefulness of limited rewards in more realistic settings.