Promoting crowdfunding with lottery: The impact on campaign performance

Zhao Du*, Kanliang Wang, Mengxiang Li

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    15 Citations (Scopus)

    Abstract

    In recent years, some leading crowdfunding platforms initiated a new promotion instrument, the lottery option, to fundraisers. To gain insights into whether it is a wise decision or a harmful choice to promote crowdfunding campaigns with the lottery, we explore its impacts on crowdfunding performance using a unique dataset collected from Zhongchou.com. Based on our proposed multidimensional evaluation framework, we find that the lottery option is beneficial to the participation performance of crowdfunding campaigns. However, its impacts on the fundraising performance of crowdfunding campaigns are sophisticated. Furthermore, it has a cannibalization effect on the potential backers’ selection of existing types of options.

    Original languageEnglish
    Article number103159
    JournalInformation and Management
    Volume56
    Issue number8
    DOIs
    Publication statusPublished - Dec 2019

    Scopus Subject Areas

    • Management Information Systems
    • Information Systems
    • Information Systems and Management

    User-Defined Keywords

    • Cannibalization effect
    • Crowdfunding
    • Lottery option
    • Promotion instrument
    • Propensity score matching

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