When and How Much to Pledge: The Role of Reward versus Altruistic Motivations in Predicting Crowdfunding Pledges
34 Pages Posted: 12 May 2017 Last revised: 9 Jul 2018
Date Written: June 19, 2018
The authors of this research draw data from survey responses and actual transaction data to examine the effect of various motivations on funding behavior in crowdfunding platforms. They show that altruistic motivations are associated with early funding, and also larger crowdfunding especially in the early stages. On the other hand, reward motivations are associated with late funding, but larger, consistent funding amounts across different stages. They also reveal that the relationship between motivations and funding timing is stronger for female crowdfunders than male funders. These empirical findings advance our understanding of individual funders’ behavior in reward-based crowdfunding and provide new insights for research into reward-based crowdfunding as well as theories of motivation in crowd-driven markets. In addition, the findings offer implications for crowdfunding platforms and project creators in terms of attracting and persuading funders.
Keywords: altruistic motivation, reward motivation, crowdfunding, funding amount, funding timing, gender
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