Launching for success: The effects of psychological distance and mental simulation on funding decisions and crowdfunding performance

Rose, Stefan Manfred; Wentzel, Daniel; Hopp, Christian; Kaminski, Jermain (2020). Launching for success: The effects of psychological distance and mental simulation on funding decisions and crowdfunding performance Journal of Business Venturing, 36(6), p. 106021. Elsevier 10.1016/j.jbusvent.2020.106021

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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.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Business Foundations and Methods Business School > Business Foundations and Methods > Marketing Business School > Institute for Marketing & Global Management > Marketing
Name:	Rose, Stefan Manfred0000-0002-1327-0830; Wentzel, Daniel; Hopp, Christian0000-0002-4095-092X and Kaminski, Jermain
ISSN:	08839026
Publisher:	Elsevier
Language:	English
Submitter:	Christian Hopp
Date Deposited:	15 Sep 2020 16:00
Last Modified:	21 Nov 2021 01:33
Publisher DOI:	10.1016/j.jbusvent.2020.106021
Uncontrolled Keywords:	Crowdfunding New product development Entrepreneurial financing Construal level theory Psychological distance Mental simulation
ARBOR DOI:	10.24451/arbor.11975
URI:	https://arbor.bfh.ch/id/eprint/11975