Application of the 4Es in Online Crowdfunding Platforms: A Comparative Perspective of Germany and China

Abstract

As a dynamic way to raise funds for professional and private projects in recent years, crowdfunding has made tremendous progress, especially through online platforms. However, research on this subject is still young, leaving room for different perspectives. We therefore approach the marketing mix adaptability of online crowdfunding platforms and its impact on campaign efficiency and company strategy in two major economies: Germany and China. With the help of case examples based on secondary data, we performed an in-depth analysis of the 4E marketing mix benefits on crowdfunding, highlighting best practice approaches. We critically discuss the 4Es marketing mix approach, focusing on experience, value exchange, and marketing scales, and clarify the compatibility between crowdfunding and 4Es to better understand how these theories are applied to crowdfunding activities. As a result, the suitability of the 4E marketing mix adapted to crowdfunding needs is shown. From a market-oriented perspective, managers of crowdfunding platforms, as well as project owners from Germany and China, will be better able to attract their target audience by applying the 4E adaptation provided.

Entrepreneurial Leadership and Sustainable Development—A Systematic Literature Review

“…Based on that, a second level of article filtration started with the aim to highlight the main patterns in the literature and the research trends. Entrepreneurship is a concept that is viewed as the driving force behind financial development, revenues, work, and social government aid in recent years [18].…”

Monetary Incentivization of Crowds by Platforms

“…The goals of crowdsourcing can vary from idea generation to support for product development, while the general goal of crowdfunding is primarily seen as a financial benefit for the project. Besides that, an additional benefit for project organizers can be identified in the marketing effect of the campaigns, namely shaping the public image of the campaign object by communicating proactively about the campaign as well as the goal of the campaign (Friedman 2013;Konhäusner et al 2021). The negative connotation of crowdfunding, which companies using crowdfunding often encounter, namely that one of the reasons why they are using crowdfunding could be that no bank, financial institution or investor is willing to give them money, can be countered with the positive, long-term effects delivered on the marketing side (Sayedi and Baghaie 2017;Pedregosa et al 2020).…”

Crowdfunding for Independent Print Media: E-Commerce, Marketing, and Business Development

“…Observed from another perspective, crowdfunding is already applied by banks when they distribute the savings from the depositors to the borrowers needing money, claiming an interest for the service [68]. The rise of crowdfunding in the age of digitization is driven by platforms that act as infomediaries and directly connect the supporter and the campaign runner [29,[69][70][71].…”

“…Crowdfunding has gained traction, visibility, and acceptance as an alternative means of financing for startups, as well as for small-and medium-sized companies [27][28][29]. Apart from the gathering of monetary funds, marketing effects can also be observed [30][31][32].…”