The impact of identity based congruence effects in reward-based crowdfunding

Reward-based crowdfunding is a rapidly growing phenomenon wherein entrepreneurial individuals seek funding for the realization of new products by directly addressing the prospective consumers of these very products. In this research, we investigate the influence of campaign founders’ self-portrayal on potential supporters’ willingness to pre-purchase products that are proposed via reward-based crowdfunding. Our experimental approach demonstrates that the conveyed social identity of the entrepreneur may serve as a basis for naïve theories about the prospects that the entrepreneur will actually realize the product as promised. When the conveyed social identity is in congruence with the proposed outcome of a reward-based crowdfunding campaign, potential supporters indicate higher levels of trust and in turn increased willingness to support a reward-based crowdfunding campaign. These findings have implications for researchers and project founders alike.