The Signal Value of Crowdfunded Products

@article{Acar2021TheSV,
  title={The Signal Value of Crowdfunded Products},
  author={Oguz A. Acar and Darren W. Dahl and Christoph Fuchs and Martin Schreier},
  journal={Journal of Marketing Research},
  year={2021},
  volume={58},
  pages={644 - 661}
}
Crowdfunding has emerged as an alternative means of financing new ventures by utilizing the financial support of a large group of individual investors. This research asks a novel question: Does being crowdfunded carry any signal value for the broader market of observing consumers? Seven studies reveal a consumer preference for crowdfunded products, even after controlling for a product’s objective product characteristics. The authors identify two inferences that help explain this effect: (1… 
2 Citations

Figures from this paper

A Matching Study on the Influence of Advertised Information Expression and Product Type on Consumer Purchase Intention
Due to extensive product differentiation and the personalized aesthetic needs of consumers, modern enterprises need different expressions of information to attract consumers’ interest and improve
Information effects of warehouse automation on sales in omnichannel retailing

References

SHOWING 1-10 OF 97 REFERENCES
When consumers become project backers: The psychological consequences of participation in crowdfunding
Crowdfunding involves financing new ventures by relying on a large number of individual project backers who typically receive the venture’s new product as a reward for their financial support. In
Crowdfunding: Tapping the Right Crowd
The basic idea of crowdfunding is to raise external finance from a large audience (the “crowd”), where each individual provides a very small amount, instead of soliciting a small group of
The Small Predicts Large Effect in Crowdfunding
Entrepreneurs are increasingly relying on online crowdfunding — the use of online platforms to raise money from a large number of people — to finance their ventures. This research explores the
An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets
TLDR
It is found that the duration of funding and the degree of exposure that a pitch receives over the course of the funding process, are positively associated with readership upon the story’s publication, which appears to validate the widely held belief that a key benefit of the crowdfunding model is the potential it offers for awareness and attention-building around causes and ventures.
The Value of Marketing Crowdsourced New Products as Such: Evidence from Two Randomized Field Experiments
To complement their in-house, designer-driven efforts, companies are increasingly experimenting with crowdsourcing initiatives in which they invite their user communities to generate new product
Entrepreneurial Crowdfunding without Private Claims
For a wide class of crowdfunding approaches, we argue that the reward structure (for funders) is closer to that of charitable donations to public goods than it is to traditional entrepreneurial
Crowdfunding's potential for the developing world
Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital
Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions
type="main"> We examine a crowdfunding platform that connects artists with funders. Although the Internet reduces many distance-related frictions, local and distant funders exhibit different funding
...
...