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Platform Strategy and Market Response Impact on the Success of Crowdfunding: A Chinese Case
Guo, Li,Zhou, Dongmei,Chen, Yang,Huy, Ratanak Asian Society for Innovation and Policy 2015 Asian Journal of Innovation and Policy Vol.4 No.3
Nowadays, crowdfunding presents a promising development. This research focuses on the influence of platform strategy and market response on the success of crowdfunding from the perspective of the elaboration likelihood model (ELM) theory. Detailed product specifications, crowdfunding difficulty coefficient, vivid advertising video such as introduction and music, and recommendations from relevant figures are all used to depict platform strategy. Meanwhile, we use the number of lovers, followers, comments and 1 RMB backers to measure the level of market response. And thus, we model the impact of platform strategy and market response on crowdfunding success with empirical studies based on 400 samples of observed value. We found firstly that there exist significant positive relations between the total amount of funds pledged and detailed product specification, vivid advertising video, recommendations from relevant figures and the number of 1 RMB backers. Secondly, the crowdfunding difficulty of projects affects negatively, and significantly, the total amount of funds pledged. Thirdly, the influence of the number of lovers and followers on funds pledged is not significant.
Platform Strategy and Market Response Impact on the Success of Crowdfunding: A Chinese Case
Li Guo,Dongmei Zhou,Yang Chen,Ratanak Huy 아시아기술혁신학회 2015 Asian Journal of Innovation and Policy Vol.4 No.3
Nowadays, crowdfunding presents a promising development. This research focuses on the influence of platform strategy and market response on the success of crowdfunding from the perspective of the elaboration likelihood model (ELM) theory. Detailed product specifications, crowdfunding difficulty coefficient, vivid advertising video such as introduction and music, and recommendations from relevant figures are all used to depict platform strategy. Meanwhile, we use the number of lovers, followers, comments and 1 RMB backers to measure the level of market response. And thus, we model the impact of platform strategy and market response on crowdfunding success with empirical studies based on 400 samples of observed value. We found firstly that there exist significant positive relations between the total amount of funds pledged and detailed product specification, vivid advertising video, recommendations from relevant figures and the number of 1 RMB backers. Secondly, the crowdfunding difficulty of projects affects negatively, and significantly, the total amount of funds pledged. Thirdly, the influence of the number of lovers and followers on funds pledged is not significant.