The Perks of Offering the Right Rewards: An Exploration of Effective Reward Strategies in Crowdfunding

Despite an increasing influence of rewards in crowdfunding, reward design, choice and planning still occur availability-based rather than grounded on solid empirical evidence. In my thesis, I intend to address this gap and contribute to a better understanding of different reward types and their role in shaping attitudes and behaviors in reward-based crowdfunding. Drawing on multiple data sources from both the field and the lab, I seek answers to two independent yet related research questions. First, I investigate the prevalence and effectiveness of different rewards strategies that managers of crowdfunding projects currently pursue. Based on a large-scale analysis of successful and unsuccessful Kickstarter projects, I classify common rewards along several dimensions, create a strategic toolbox of rewards and deliver exploratory insights into the relative effectiveness of different tools. This toolbox intends to facilitate decision-making and reward planning. Second, and based on results from the aforementioned large-scale reward analysis, I explore the role of recognition rewards in driving supporters’ crowdfunding contribution. Specifically, I distinguish between public and private recognition rewards and show that the effectiveness of public recognition depends on a supporter’s impression management motivation, while private recognition is largely unaffected by such motivation. In sum, my dissertation offers novel insights on reward-based crowdfunding, particularly from a consumer behavioral perspective. As such, it contributes to literatures in marketing and management, and presents insights that are valuable to both theory and practice.