Exploring the nudging and counter-nudging effects of campaign updates in crowdfunding

Yijing Li, Wenjie Fan, Fei Liu, Eric T.K. Lim, Yong Liu, Chee Wee Tan

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

7 Citations (Scopus)

Abstract

Crowdfunding has emerged as a vital financing avenue for entrepreneurs to realize their ventures. With limited information availability, crowd-funders may choose to first follow the progress of interested crowdfunding campaigns, such as monitoring project updates to acquire more information for justifying investment decision, before making pledges. Although campaign updates have been touted to be a salient driver of fundraising success, the underlying mechanism for this relationship remains unclear. Subscribing to nudge theory, we strive to shed light on how update strategies, such as frequency and message length, can serve as nudges to convert project followers to actual funders. Specifically, we posit a dual-role of campaign updates whereby an over-zealous update strategy may induce a counter-nudging effect that deters prospective funders, what we labelled as 'over-nudging'. This study advances a model to account for both the nudging and counter-nudging effects of campaign updates in crowdfunding, which could yield insights for fundraisers to optimize their update strategy and in turn, get their business off the ground.

Original languageEnglish
Title of host publicationProceedings of the 22nd Pacific Asia Conference on Information Systems - Opportunities and Challenges for the Digitized Society
Subtitle of host publicationAre We Ready?, PACIS 2018
EditorsMotonari Tanabu, Dai Senoo
PublisherAssociation for Information Systems
ISBN (Electronic)9784902590838
Publication statusPublished - 2018
Externally publishedYes
Event22nd Pacific Asia Conference on Information Systems - Opportunities and Challenges for the Digitized Society: Are We Ready?, PACIS 2018 - Yokohama, Japan
Duration: 26 Jun 201830 Jun 2018

Publication series

NameProceedings of the 22nd Pacific Asia Conference on Information Systems - Opportunities and Challenges for the Digitized Society: Are We Ready?, PACIS 2018

Conference

Conference22nd Pacific Asia Conference on Information Systems - Opportunities and Challenges for the Digitized Society: Are We Ready?, PACIS 2018
Country/TerritoryJapan
CityYokohama
Period26/06/1830/06/18

Keywords

  • Campaign update
  • Crowdfunding
  • Nudge theory
  • Over-nudging

ASJC Scopus subject areas

  • Information Systems

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