Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding

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

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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 publicationPACIS 2018 Proceedings
EditorsMotonari Tanabu, Dai Senoo
Number of pages8
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
Publication date2018
Article number281
Publication statusPublished - 2018
EventThe 22nd Pacific Asia Conference on Information Systems. PACIS 2018 - Yokohama Royal Park Hotel, Yokohama, Japan
Duration: 26 Jun 201830 Jun 2018
Conference number: 22
http://pacis2018.org/

Conference

ConferenceThe 22nd Pacific Asia Conference on Information Systems. PACIS 2018
Number22
LocationYokohama Royal Park Hotel
CountryJapan
CityYokohama
Period26/06/201830/06/2018
SponsorAssociation for Information Systems
Internet address

Keywords

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

Cite this

Li, Y., Fan, W., Liu, A. F., Lim, E. T. K., Liu, Y., & Tan, C-W. (2018). Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding. In M. Tanabu, & D. Senoo (Eds.), PACIS 2018 Proceedings [281] Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL).
Li, Yijing ; Fan, Wenjie ; Liu, Albert Fei ; Lim, Eric T. K. ; Liu, Yong ; Tan, Chee-Wee. / Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding. PACIS 2018 Proceedings. editor / Motonari Tanabu ; Dai Senoo. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2018.
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title = "Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding",
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.",
keywords = "Crowdfunding, Nudge theory, Campaign update, Over-nudging, Crowdfunding, Nudge theory, Campaign update, Over-nudging",
author = "Yijing Li and Wenjie Fan and Liu, {Albert Fei} and Lim, {Eric T. K.} and Yong Liu and Chee-Wee Tan",
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Li, Y, Fan, W, Liu, AF, Lim, ETK, Liu, Y & Tan, C-W 2018, Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding. in M Tanabu & D Senoo (eds), PACIS 2018 Proceedings., 281, Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Yokohama, Japan, 26/06/2018.

Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding. / Li, Yijing; Fan, Wenjie; Liu, Albert Fei; Lim, Eric T. K.; Liu, Yong; Tan, Chee-Wee.

PACIS 2018 Proceedings. ed. / Motonari Tanabu; Dai Senoo. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2018. 281.

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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AU - Tan, Chee-Wee

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N2 - 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.

AB - 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.

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Li Y, Fan W, Liu AF, Lim ETK, Liu Y, Tan C-W. Exploring the Nudging and Counter-nudging Effects of Campaign Updates in Crowdfunding. In Tanabu M, Senoo D, editors, PACIS 2018 Proceedings. Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). 2018. 281