Promoting crowdfunding with lottery: The impact on campaign performance

Zhao Du; Kanliang Wang; Mengxiang Li

doi:10.1016/j.im.2019.04.002

Promoting crowdfunding with lottery: The impact on campaign performance

Zhao Du^*
, Kanliang Wang
, Mengxiang Li

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

23 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 language	English
Article number	103159
Journal	Information and Management
Volume	56
Issue number	8
DOIs	https://doi.org/10.1016/j.im.2019.04.002
Publication status	Published - Dec 2019

User-Defined Keywords

Cannibalization effect
Crowdfunding
Lottery option
Promotion instrument
Propensity score matching

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10.1016/j.im.2019.04.002

Cite this

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title = "Promoting crowdfunding with lottery: The impact on campaign performance",

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{\textquoteright} selection of existing types of options.",

keywords = "Cannibalization effect, Crowdfunding, Lottery option, Promotion instrument, Propensity score matching",

author = "Zhao Du and Kanliang Wang and Mengxiang Li",

note = "Funding Information: This paper is supported by the National Natural Science Foundation of China (71901030, 71331007). It is also partially supported by the General Research Fund from Research Grants Council of the Hong Kong Special Administrative Region, China (12500118).",

year = "2019",

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doi = "10.1016/j.im.2019.04.002",

language = "English",

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T2 - The impact on campaign performance

AU - Du, Zhao

AU - Wang, Kanliang

AU - Li, Mengxiang

N1 - Funding Information: This paper is supported by the National Natural Science Foundation of China (71901030, 71331007). It is also partially supported by the General Research Fund from Research Grants Council of the Hong Kong Special Administrative Region, China (12500118).

PY - 2019/12

Y1 - 2019/12

N2 - 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.

AB - 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.

KW - Cannibalization effect

KW - Crowdfunding

KW - Lottery option

KW - Promotion instrument

KW - Propensity score matching

UR - https://www.scopus.com/pages/publications/85065210989

U2 - 10.1016/j.im.2019.04.002

DO - 10.1016/j.im.2019.04.002

M3 - Journal article

AN - SCOPUS:85065210989

SN - 0378-7206

VL - 56

JO - Information and Management

JF - Information and Management

IS - 8

M1 - 103159

ER -

Promoting crowdfunding with lottery: The impact on campaign performance

Abstract

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