Social Aspects and Successfully Funding a Crowd-Funding Project: The Impact of Social Information
Authors: Peggy S. C. van Teunenbroek
Recently, philanthropic crowd-funding -the raising of external funding from a large audience via social networks or social media- emerged as a new funding instrument for the Dutch cultural sector. However, such philanthropic crowdfunding in the US and the Netherlands is less successful than any other form of crowdfunding. We argue that social aspects are an important stimulus in philanthropic crowd-funding since previous research has shown that crowdfunding is stimulated by something beyond financial merits. Put simply, crowd-funding seems to be a socially motivated activity. In this paper we focus on the effect of social information, described as information about the donation behavior of previous donors. Using a classroom experiment we demonstrated a positive effect of social information on the donation behavior in crowdfunding campaigns. Our study extends previous research by showing who is affected by social information and why, and highlights how social information can be used to stimulate individuals to donate more to crowdfunding projects.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1124799Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1068
 Van Teunenbroek, P. S. C., & Borst, W. A. M. (2015). Social information as a stimulant in philanthropic crowdfunding: A systematic literature review of the effects of social information on donation behavior. Presented at the 44th Arnova Conference, Chicago, November 19-21, 2015, 1–29.
 Etter, V., Grossglauser, M., & Thiran, P. (2014). Launch hard or go home! In: Proceedings of the First ACM Conference on Online Social Networks (COSN’13). Dublin: Ireland.
 Faraj, S., & Johnson, S. L. (2011). Network Exchange Patterns in Online Communities. Organization Science, 22(6), 1464–1480.
 Koch, J.-A., & Siering, M. (2015). Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms. ECIS 2015 Proceedings, 1–15.
 Zvilichovsky, D., Inbar, Y., & Barzilay, O. (2014). Playing both sides of the market: succes and reciprocity on crowdfunding platforms. Available at SSRN 2304101.
 Xiao, S., Tan, X., Dong, M., & Qi, J. (2014). How to Design Your Project in the Online Crowdfunding Market? Evidence from Kickstarter. In: Proceedings of the Thirty Fifth International Conference on Information Systems. Auckland: Australia.
 Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16.
 Belleflamme, P., Lambert, T., & Schwienbacher, A. (2013). Crowdfunding: Tapping the Right Crowd. Journal of Business Venturing, 29(5), 585-609.
 Shang, J., & Croson, R. T. A. (2009). A Field Experiment in Charitable Contribution: The Impact of Social Information on the Voluntary Provision of Public Goods. The Economic Journal, 119, 1422–1439.
 Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Frontiers, 24(3), 499-519.
 Smith, S., Windmeijer, F., & Wright, E. (2012). The effect of social information on charitable donations : Evidence from the (running) field. University of Bristol Working Paper.
 Xu, A., Yang, X., Rao, H., Fu, W.-T., Huang, S.-W., & Bailey, B. P. (2014). Show me the money! Proceedings of the 32nd Annual ACM Conference on Human Factors in Computing Systems. Ed. by M. Jones, P. Palanque, A. Schmidt and T. Grossman.
 Mitra, T., & Gilbert, E. (2014). The language that gets people to give. Edings of the 17th ACM Conference on Computer Supported Cooperative Work & Social Computing. Ed. by S. Fussell, W. Lutters, M. R. Morris and M. Reddy. Baltimore: USA.
 Alpizar, F., Carlsson, F., & Johansson-Stenman, O. (2008b). Does context matter more for hypothetical than for actual contributions? Evidence from a natural field experiment. Experimental Economics, 11, 299–314.
 Shang, J., Croson, R. T. A., & Reed, A. (2012). “I” give, but “we” give more: The impact of identity and the mere social information effect on donation behavior. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.319.718
 Smith, S., Windmeijer, F., & Wright, E. (2014). Peer effects in charitable giving: Evidence from the (running) field. Economic Journal, 585(605), 1–19.
 Alpizar, F., Carlsson, F., & Johansson-Stenman, O. (2008a). Anonymity, reciprocity, and conformity: Evidence from voluntary contributions to a national park in Costa Rica. Journal of Public Economics, 92(5-6), 1047–1060.
 Klinowski, D. (2015). Reluctant donors and their reactions to social information. Retrieved from http://spihub.org/site/resource_files/publications/spi_wp_120_jasper.pdf
 Martin, R., & Randal, J. (2008). How is Donation Behaviour Affected by the Donations of Others? Journal of Economic Behavior & Organization, 67(1), 228–238.
 Cialdini, R. B., Reno, R. R., & Kallgren, C. A. (1990). A focus theory of normative conduct: Recycling the concept of norms to reduce littering in public places. Journal of Personality and Social Psychology, 58(6), 1015–1026.
 Agerström, J., Carlsson, R., Nicklasson, L., & Guntell, L. (2016). Using descriptive social norms to increase charitable giving : The power of local norms. Journal of Economic Psychology, 52, 147–153.
 Crutchfield, R. (1955). Conformity and character. American Psychologist, 10, 191–8.
 Reno, R. R., Cialdini, R. B., & Kallgren, C. A. (1993). The Transsituational Influence of Social Norms. Journal of Personality and Social Psychology, 64(1), 104–112.
 Festinger, L. (1954). A Theory of Social Comparison Processes. Human Relations, 7(2), 117–140.
 Bøg, M., Harmgart, H., Huck, S., & Jeffers, A. M. (2012). Fundraising on the Internet. Kyklos, 65(1), 18–30.
 Sasaki, S. (2015). Conformity in Charitable Giving : Evidence from Empirical Analysis of Japanese Online Donations, Science of Philanthropy Initiative Working Paper Series, The University of Chicago (No. 139).
 Borst, W. A. M., Moser, C., & Ferguson, J. (forthcoming). From friendfunding to crowdfunding: effects of social ties and media usage on project performance, 1–26.
 Oxford dictionary of English. (2012) (3rd ed.). Oxford: Oxford University Press.
 Stojcic, I., Kewen, L., & Xiaopeng, R. (2016). Does uncertainty avoidance keep charity away? Comparative research between charitbale behavior and 79 national cultures. Culture and Brain, 1–20. Retrieved from "http://dx.doi.org/10.1007/s40167-016-0033-8
 Vesterlund, L. (2003). The informational value of sequential fundraising. Journal of Public Economics, 87(3), 627–657.
 Peacey, M. W., & Sanders, M. (2013). Masked Heroes : endogenous anonymity in charitable giving. (No. 13/303). Department of Economics, University of Bristol, UK.
 Cialdini, R. B. (1998). Influence: The psychology of persuasion. (2nd ed.). Glenview, IL: Scott, Foresman.
 Bekkers, R. (2012). Limits of Social Influence on Giving: Who is Affected When and Why? Retrieved from http://www.bristol.ac.uk/media-library/sites/cmpo/migrated/documents/bekkers1.pdf
 Baumeister, R. F., & Leary, M. R. (1995). The need to belong: Desire for interpersonal attachments as a fundamental human motivation. Psychological Bulletin, 117(3), 497–529.
 Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being1626. American Psychologist, 55(1), 68–78.
 Gardner, W. L., Pickett, C. L., & Brewer, M. B. (2000). Social Exclusion and Selective Memory: How the Need to Belong Influences Memory for Social Events. Pers. So. Psychol. Bull, 26, 486–496.
 Twenge, J. M., Baumeister, R. F., Tice, D. M., & Stucke, T. S. (2001). If you can’t join them, beat them: effects of social exclusion on aggressive behavior. Journal of Personality and Social Psychology, 81(6), 1058–1069.
 Twenge, J. M., Catanese, K. R., & Baumeister, R. F. (2002). Social exclusion causes self-defeating behavior. Journal of Personality and Social Psychology, 83(3), 606–615.
 Hussong, A. M. (2000). Perceived Peer Context and Adolescent Adjustment. Journal of Research on Adolescence, 10(4), 391–415.
 Kipp, L. E., & Weiss, M. R. (2013). Social Influences , Psychological Need Satisfaction , and Well-Being Among Female Adolescent Gymnasts. Sport, Exercise and Performance Psychology, 2(1), 62–75.
 Mellor, D., Stokes, M., Firth, L., Hayashi, Y., & Cummins, R. (2008). Need for belonging , relationship satisfaction , loneliness , and life satisfaction. Personality and Individual Differences, 45, 213–218.
 Ainsworth, M. S. (1989). Attachments beyond infancy. American psychologist,44(4), 709.
 Perlman, D. (2004). European and Canadian studies of loneliness among seniors. Canadian Journal on Aging/La Revue Canadienne Du Vieillissement, 23(02), 181–188.
 Newcomb, M. D. (1990). Social support by many other names: Towards a unified conceptualization. Journal of Social and Personal Relationships, 7(4), 479-494.
 Lee, R. M., & Robbins, S. B. (1995). Measuring Belongingness : The Social Connectedness and the Social Assurance Scales. Journal of Counseling Psychology, 42(2), 232–241.
 De Cremer, D., & Tyler, T. R. (2005). Am I respected or not?: Inclusion and reputation as issues in group membership. Social Justice Research, 18(2), 121–153.
 Emler, N. (1990). A social psychology of reputation. European review of social psychology, 1(1), 171-193.
 Soetevent, A. R. (2005). Anonymity in giving in a natural context—a field experiment in 30 churches. Journal of Public Economics, 89(11-12), 2301–2323.
 Bekkers, R., & Wiepking, P. (2011). A Literature Review of Empirical Studies of Philanthropy: Eight Mechanisms that Drive Charitable Giving. Voluntary Sector Quarterly, 40(5), 924–973.
 Wiepking, P. (2008). For the Love of Mankind, A Sociological Study on Charitable Giving. Retrieved from PhD Dissertation Department of Philanthropic Studies, VU University Amsterdam: Amsterdam, the Netherlands.
 Barclay, P. (2004). Trustworthiness and competitive altruism can also solve the “tragedy of the commons.” Evolution and Human Behavior, 25(4), 209–220.
 Iredale, W., van Vugt, M., & Dunbar, R. I. (2008). Showing off in humans: Male generosity as a mating signal. Evolutionary Psychology, 6, 386–392.
 Tajfel, H. (1982). Social psychology of intergroup relations. Annual review of psychology, 33(1), 1-39.
 Tajfel, H., & Turner, J. C. (1979). An integrative theory of intergroup conflict.The social psychology of intergroup relations, 33(47), 74.
 Tajfel, H. (1981). Human group and social categories. Cambridge, England: Cambridge University Press.
 Tajfel, H. (1978). Differentation between social groups. London: Academic Press.
 Turner, J. C., Hogg, M. A., Oakes, P. J., Reicher, S. D., & Wetherell, M.S. (1987). Rediscovering the social group: A self-categorization theory. Oxford, England: Blackwell.
 Luthanen, R., & Crocker, J. (1992). A collective self-esteem scale: self-evaluation of one’s social identity. Personality and Social Psychology Bulletin, 18(3), 302–318.
 Leach, C. W., van Zomeren, M., Zebel, S., Vliek, M. L. W., Pennekamp, S. F., Doosje, B., Spears, R. (2008). Group-level self-definition and self-investment: A hierarchical (multicomponent) model of in-group identification. Journal of Personality and Social Psychology, 95(1), 144–165.
 Brubaker, R., & Cooper, F. (2000). Beyond “identity”. Theory and society, 29(1), 1-47.
 Postmes, T., Haslam, S. A., & Jans, L. (2012). A single-item measure of social identification: Reliability, validity, and utility. The British Journal of Social Psychology, 52(4), 597–617.
 Burisch, M. (1997). Test Length and Validity. European Journal of Personality, 11, 303–315.
 Reysen, S., Katzarska-miller, I., Nesbit, S. M., & Pierce, L. (2013). Fast track report Further validation of a single-item measure of social identi fi cation. European Journal of Social Psychology, 43, 463–470.
 Cortina, J. M. (1993). What is coefficient alpha? An examination of theory and applications. Journal of Applied Psychology, 78(1), 98–104.
 Cotton, J. W., Campbell, D. T., & Malone, R. D. (1957). The relationship between factorial composition of test items and measures of test reliability. Psychometrika, 22(4), 347–357.
 Clark, L. A., & Watson, D. (1995). Constructing Validity : Basic Issues in Objective Scale Development The Centrality of Psychological Measurement. Psychological Assessment, 7(3), 309–319.
 Croson, R., & Shang, J. (2013). Limits of the effect of social information on the voluntary provision of public goods: Evidence from field experiments. Economic Inquiry, 51(1), 473–477.