Reaping Value‐Added Benefits from Crowdfunders: What Can We Learn from Relationship Marketing?

Macht, Stephanie

doi:10.1002/jsc.1988

Cited by 35 publications

(36 citation statements)

References 43 publications

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“…In this sense, crowdfunding is frequently identified as one of the most relevant modern financial innovations (Kuti and Madarász 2014). This financing method has emerged as a novel way of raising capital for entrepreneurial ventures (Macht 2014), and it frequently occurs through the internet. Crowdfunding has enabled different business types, such as agribusiness, social projects, technological innovation projects and particularly cultural production, without the pitfalls of traditional methods of financing (Braet et al 2013;Lehner 2013;Schwartz 2013;Agrawal et al 2014).…”

Section: Introductionmentioning

confidence: 99%

The impacts of fundraising periods and geographic distance on financing music production via crowdfunding in Brazil

Mendes‐Da‐Silva

Rossoni²,

Conte

et al. 2015

J Cult Econ

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We conduct an analysis of 1835 pledges to 10 music production projects hosted on the largest Brazilian crowdfunding platform, namely the Catarse Web site, and we assess the relation between the fundraising accumulation period, the donor-entrepreneur distance and the propensity of donors to back projects. Our results suggest a significantly negative association between distance and the value of capital pledged to projects, which is consistent with the notion that the entrepreneur's network of close contacts might play a central role in funding. Furthermore, our results contradict the idea that crowdfunding reduces the inhibiting effect of donor-entrepreneur distance. In addition, the results show that a long project exposure is associated with higher values of pledges. These results suggest practical implications for the study of crowdfunding as a financing platform. This

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Section: Introductionmentioning

confidence: 99%

The impacts of fundraising periods and geographic distance on financing music production via crowdfunding in Brazil

Mendes‐Da‐Silva

Rossoni²,

Conte

et al. 2015

J Cult Econ

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“…Agreements and meetings with professional associations, for example, may be useful for promoting collective intelligence. In order to do this, emphasis should be placed on relationship marketing, notably in the communication dimension (Macht, ). However, this communication should be differentiated according to the targeted public.…”

Section: Resultsmentioning

confidence: 99%

Proposed typology of different publics of Austrian crowdfunding platforms

2017

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Crowdfunding, as a social media, benefits from an audience of different types of publics which can be categorized according to relational proximity and degree of expertise. Different publics interact in the field of crowdfunding. From the perspective of strategic management, “direct expert” must be mobilized in the short term when “indirect expert” should continue to be mobilized in the long term. From a theoretical point of view, this new typology raises the question of the relevance of segmentation criteria.

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“…Nevertheless, value added only refers to the involvement in certain aspects of business, which could hardly capture the complexity of crowdfunding impact. As Macht () suggested, research on the postinvestment period should consider sociological and psychological concepts as part of crowdfunders' value added to the crowdfunding industry beyond financial input; the current study focuses on the social influence of crowdfunders, according to the literature about the herding behavior in charity. Herding describes a scenario where individuals decide to follow others and imitate group behaviors instead of making decisions based on the information they possessed, due to the perceived uncertainty and perceptions of their own ignorance (Baddeley ).…”

Section: The Outcomes Of Crowdfunder Heterogeneitymentioning

confidence: 99%

The antecedents and consequences of charitable donation heterogeneity on social media

Zhong

Lin

2017

J of Philanthropy and Mktg

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This study claims that donating is a rational behavior that balances altruism and self-interest; therefore, the frequency and magnitude of donating are picked as crucial criteria to classify different crowdfunders because both of them reflect the rationality of donating. This study identifies 6 clusters of crowdfunders and explores the antecedent variables of the typology based on self-system theory, as well as reveals the social influence of different types of crowdfunders.Data of the crowdfunders (n = 13,868) were collected from "Micro Philanthropy," a popular SNS crowdfunding platform for charity in China. Social Network Service (SNS) profile information such as network features, social interaction features, and the identity of users was found to be significantly related to the typology. Active donors and bounteous donors are more influential than other donors in absorbing the attention of SNS users and attracting new donors. | INTRODUCTIONCrowdfunding is defined as "a collective effort by people who network and pool their money together, usually via the Internet, in order to invest in and support efforts initiated by other people or organizations" (Ordanini, Miceli, Pizzetti, & Parasuraman, 2011, p. 444). In the past few years, crowdfunding has been used as a solution to the financial challenges faced by cultural organizations (Ordanini et al., 2011), journalism (Jian & Usher, 2014), business (Belleflammea, Lambert, & Schwienbacher, 2014;Stemler, 2013), and philanthropy (Saxton & Wang, 2014).Crowdfunding is new born in China and a lot of crowdfunding was done on social media such as Weibo (the most popular microblog service in China, such as Twitter). Weibo has built a block for charitable crowdfunding named as "Micro Philanthropy" on which ordinary people, NGOs, or other organizations could post queries asking for help and donation. Based on an analysis of 13,868 crowdfunders on "Micro Philanthropy," this study aims to depict a picture about the characteristics of Chinese charitable crowdfunders and suggest a model that explores both the antecedent variables that could explain the typology and the consequences caused by the heterogeneity of the crowdfunders. | THE RELATIONSHIP BETWEEN CROWDFUNDING AND CHARITYThe primary idea of crowdfunding is that small monetary donation from the crowd could finance a project that needs a large number of capital. Crowdfunding is fueled by three actors: the people or organizations that are seeking funding, the Internet users who contribute to the projects, and the Internet platform that brings the parties together to launch the idea (Ordanini et al., 2011). "Micro Philanthropy," the crowdfunding platform focused by this study, allows each user to start fundraising and provide detailed description about the people who are in need of help along with photos. Each program specifies the identity of the recruiters, the profile of the subjects that are in need of help, the target amount of fundraising, and the amount of money raised by the program. A voluntary group will take the ...

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Reaping Value‐Added Benefits from Crowdfunders: What Can We Learn from Relationship Marketing?

Abstract: Fund‐seeking entrepreneurs who are interested in reaping value‐added benefits from their crowdfunders can positively influence their funders through the use of relationship marketing and trust‐building techniques.

Cited by 35 publications

References 43 publications

The impacts of fundraising periods and geographic distance on financing music production via crowdfunding in Brazil

The impacts of fundraising periods and geographic distance on financing music production via crowdfunding in Brazil

Proposed typology of different publics of Austrian crowdfunding platforms

The antecedents and consequences of charitable donation heterogeneity on social media

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