Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance

This study draws upon the elaboration likelihood model of persuasion (ELM) to develop and test a model of persuasive influence in crowdfunding. To test our hypothesized relationships, we drew upon a sample of 383 ventures taken directly from Kickstarter, coupled with a decision experiment conducted...

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Bibliographic Details
Published in:Journal of business venturing 2017-11, Vol.32 (6), p.707-725
Main Authors: Allison, Thomas H., Davis, Blakley C., Webb, Justin W., Short, Jeremy C.
Format: Article
Language:English
Subjects:
Crowdfunding
Elaboration likelihood model
ELM
Funder differences
Persuasion
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Summary:This study draws upon the elaboration likelihood model of persuasion (ELM) to develop and test a model of persuasive influence in crowdfunding. To test our hypothesized relationships, we drew upon a sample of 383 ventures taken directly from Kickstarter, coupled with a decision experiment conducted in a simulated crowdfunding context. Results suggest that issue-relevant information, such as entrepreneurs' education, matters most when funders possess greater ability and motivation to make careful evaluations. In contrast, cues, such as adopting a group identity, have their strongest influence among inexperienced, first-time funders, and when requested funding amounts are smaller. •Logically persuasive messages and emotionally persuasive cues influence crowdfunding success.•Messages matter more when funders have more crowdfunding experience and are placing more money at risk.•Cues matter more when funders are less experienced, and when the amounts they are contributing are smaller.
ISSN:0883-9026
1873-2003
DOI:10.1016/j.jbusvent.2017.09.002