TY - JOUR
T1 - Launching for success: The effects of psychological distance and mental simulation on funding decisions and crowdfunding performance
AU - Rose, Stefan
AU - Wentzel, Daniel
AU - Hopp, Christian
AU - Kaminski, Jermain
PY - 2020/5/13
Y1 - 2020/5/13
N2 - This research examines how potential backers form mental representations of products in reward-based crowdfunding campaigns, and how these representations affect funding decisions and campaign performance. To test our framework, we conducted four experiments and also drew on a sample of 961 Kickstarter campaigns. Our results show that two campaign characteristics – the product's development stage and the indicated time to product delivery – determine the psychological distance that supporters experience in response to a campaign, and that psychological distance, in turn, inhibits individual campaign contributions and cumulative campaign success. Furthermore, we find that encouraging supporters to imagine the benefits of product usage is an effective means to increase support for campaigns that elicit high psychological distance.
AB - This research examines how potential backers form mental representations of products in reward-based crowdfunding campaigns, and how these representations affect funding decisions and campaign performance. To test our framework, we conducted four experiments and also drew on a sample of 961 Kickstarter campaigns. Our results show that two campaign characteristics – the product's development stage and the indicated time to product delivery – determine the psychological distance that supporters experience in response to a campaign, and that psychological distance, in turn, inhibits individual campaign contributions and cumulative campaign success. Furthermore, we find that encouraging supporters to imagine the benefits of product usage is an effective means to increase support for campaigns that elicit high psychological distance.
KW - Crowdfunding
KW - New product development
KW - Entrepreneurial financing
KW - Construal level theory
KW - Psychological distance
KW - Mental simulation
U2 - 10.1016/j.jbusvent.2020.106021
DO - 10.1016/j.jbusvent.2020.106021
M3 - Article
JO - Journal of Business Venturing
JF - Journal of Business Venturing
SN - 0883-9026
M1 - 106021
ER -