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

See all articles by Sunghan Ryu

Sunghan Ryu

USC-SJTU Institute of Cultural and Creative Industry, Shanghai Jiao Tong University

Jooyoung Park

Peking University - HSBC School of Business

Keongtae Kim

Decision Science and Managerial Economics, Chinese University of Hong Kong

Young-Gul Kim

Korea Advanced Institute of Science and Technology (KAIST)

Date Written: June 19, 2018

Abstract

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

Suggested Citation

Ryu, Sunghan and Park, Jooyoung and Kim, Keongtae and Kim, Young-Gul, When and How Much to Pledge: The Role of Reward versus Altruistic Motivations in Predicting Crowdfunding Pledges (June 19, 2018). Available at SSRN: https://ssrn.com/abstract=2966673 or http://dx.doi.org/10.2139/ssrn.2966673

Sunghan Ryu (Contact Author)

USC-SJTU Institute of Cultural and Creative Industry, Shanghai Jiao Tong University ( email )

Shanghai
China

Jooyoung Park

Peking University - HSBC School of Business ( email )

University Town
Shenzhen, 518055
China

Keongtae Kim

Decision Science and Managerial Economics, Chinese University of Hong Kong ( email )

12 Chak Cheung street
Shatin
Hong Kong

Young-Gul Kim

Korea Advanced Institute of Science and Technology (KAIST) ( email )

Korea, Republic of (South Korea)

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