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Making The World A Better Place: How Crowdfunding Increases Consumer Demand For Social-Good Products, Bonnie Simpson, Martin Schreier, Sally Bitterl, Katherine White

Management and Organizational Studies Publications

Crowdfunding has emerged as an alternative means of financing new ventures wherein a large number of individuals collectively back a project. This research specifically looks at reward based crowdfunding, where those who take part in the crowdfunding process receive the new product for which funding is sought in return for their financial support. This work illustrates that consumers make fundamentally different decisions when considering contributing their money to crowdfund versus purchase a product. Six studies demonstrate that compared to a traditional purchase, crowdfunding more strongly activates an interdependent mindset and, as a result, increases consumer demand for social-good products (i.e., …