The Legitimization Effect of Crowdfunding Success: A Consumer Perspective. (July 2023)

• Record Type: Journal Article
• Authors: Maier, Lukas; Baccarella, Christian V.; Block, Jörn H.; Wagner, Timm F.; Voigt, Kai-Ingo
• Is Part Of: Entrepreneurship theory and practice. Volume 47:Number 4(2023)
• Page Start: 1389
• Page End: 1420
• Publication Date: 2023-07
• Subjects: crowdfunding success -- legitimacy -- marketing -- consumer inference theory -- consumer perceptions -- young ventures -- field experiment; Small business -- Periodicals; New business enterprises -- Periodicals; Entrepreneurship -- Periodicals; 658.421
• DOI: 10.1177/10422587211057025
• Languages: English
• ISSNs: 1042-2587

Abstract

Based on legitimacy and consumer inference theory, we examine when, how, and why past crowdfunding success influences the perceptions and behaviors of consumers. Across five studies (four controlled experiments and one field experiment), our findings demonstrate that a young venture's past crowdfunding success enhances consumers' perceptions of its cognitive legitimacy. This "legitimization effect of crowdfunding success" leads to positive outcomes with respect to purchase intentions, brand attitudes, and consumers' willingness to recommend young ventures to others. These effects are robust across different product categories. However, our findings also reveal that these positive effects occur exclusively for young ventures, whereas they disappear or even reverse for established ones.