An attractive proposition? Persuading retail consumers to prefer reward-based crowdfunding for owning upcoming technologiesBanerjee S, Bose I
Journal: Information & Management Journal
How would an ordinary technology consumer behave when given an option to choose between normal purchase and reward-based crowdfunding to own a product? Using the Elaboration Likelihood Model, this study develops a C2P (consumer to patron) Conversion Model to investigate the concurrent influence of discount, waiting time, and affective cues (invoking altruism, technophilia, and recognition) in enticing consumers to support crowdfunding. This study conducts a 2x2x2 mixed-factorial experiment (Latin Square design) on ordinary technology consumers with several controls (technological, demographic, psychographic), and uses a linear mixed model for analysis.
The results show that the positive influence of discount on consumers’ likelihood to support crowdfunding via donations and referrals was negatively moderated by the waiting time promised to receive the technology. Affective cues only helped raise the likelihood of providing referrals, and not donation. Perceived attractiveness and price of technology, along with gender and risk-taking attitude of consumers also had significant influence. Interestingly, consumers seemed to prefer delayed gratification over instant gratification in owning new technology. The findings of this interdisciplinary (IS and Entrepreneurship) study provide valuable insights for technology entrepreneurs interested in tapping potential consumers for funds. It also recommends e-commerce and crowdfunding platforms to collaborate and form symbiotic design synergies.Read more