Crowdfunding allows enterprises or individuals to collect funds from numerous other individuals. This study applies the anchoring effect and range theory in reward-based crowdfunding to explore how different pledge option designs affect the backers' final pledge amount. Moreover, this study examines whether showing the current average amount pledged in the fundraising process has an anchoring effect on the subsequent backers' pledge amount.
Online experiments were conducted, and data were analyzed using the Kruskal–Wallis test and Spearman rank correlation analysis.
Results show that among the three pledge option designs, employing the “bolstering range offer” has the highest backing amount. However, presenting the current average amount pledged in the fundraising process has a reversed anchoring effect on subsequent backers' pledge amount only in the case of a crowdfunding project in the physical goods category with a “point offer.”
To the best of authors’ knowledge, no reward-based crowdfunding platform has yet provided the pledge option design of a “bolstering range offer.” This study reveals that the “bolstering range offer” can significantly increase the amount pledged. This study extends the crowdfunding research area to crowdfunding success and suggests a novel way to set up pledges.
This research is supported by the Ministry of Science and Technology (MOST 106-2410-H-390-012), Taiwan. The authors thank STIMLIG™ and KIGE Studio for the permission to use the content of their crowdfunding projects in our experiments. Earlier versions of this paper were presented at the 5th Multidisciplinary International Social Networks Conference, Saint-Etienne, France, 2018 and at the 2018 International Symposium on Business and Management, Osaka, Japan, 2018.
Kuo, Y.-F., Lin, C.-H. and Hou, J.-R. (2021), "The effects of anchoring on backers' pledge in reward-based crowdfunding: evidence from Taiwanese market", Internet Research, Vol. 31 No. 2, pp. 635-653. https://doi.org/10.1108/INTR-05-2020-0260
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