The Signal Value of Crowdfunded Products

Acar, Oguz A. ORCID: and Dahl, Darren and Fuchs, Christoph and Schreier, Martin (2021) The Signal Value of Crowdfunded Products. Journal of Marketing Research, 58 (4). pp. 644-661. ISSN 0022-2437

Available under License Creative Commons: Attribution-NonCommercial 4.0 International (CC BY-NC 4.0).

Download (390kB) | Preview


Crowdfunding has emerged as an alternative means of financing new ventures by utilizing the financial support of a large group of individual investors. This research asks a novel question: Does being crowdfunded carry any signal value for the broader market of observing consumers? Seven studies reveal a consumer preference for crowdfunded products, even after controlling for a product’s objective product characteristics. The authors identify two inferences that help explain this effect: (1) consumers perceive crowdfunded products to be of higher quality, and (2) they believe that supporting crowdfunding reduces inequality in the marketplace. The authors further document an important boundary condition of the first inference: the identified effect reverses in high-risk domains (e.g., products that involve high physical risk) due to consumer perceptions that the crowdfunding model lacks sufficient professionalism to mitigate risk. With regard to the second inference, the authors find that the positive crowdfunding effect is particularly strong among consumers who value social equality. Taken together, this work sheds new light on consumer perceptions of crowdfunding, elucidates why and when consumers prefer crowdfunded products, and offers actionable implications for managers.

Item Type: Article
Keywords: crowdfunding, consumer inferences, inequality, new products, start-ups
Divisions: Departments > Marketing
Departments > Marketing > Marketing-Management
Kompetenzzentren > Experimentalforschung
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 19 Jul 2021 12:06
Last Modified: 19 Jul 2021 12:06
Related URLs:


View Item View Item


Downloads per month over past year

View more statistics