EWOM in reward-based crowdfunding platforms: a behavioral approach

Abstract

Electronic word of mouth (eWOM) plays a crucial role in influencingpurchasing decisions of consumers as it provides them with further assurancein situations governed by asymmetric information. In this context, investorsinteracting in reward-based crowdfunding platforms might modify theirpurchasing intentions according to recommendations of peers and experts.The objective of this paper is to analyze the power of eWOM to shapeconsumers’ initial purchasing intentions by conducting an experimentthrough Amazon Mechanical Turk (AMT). This online experimental toolallows for an instant access to a large and culturally diverse subject pool,making it easier for researchers to conduct behavioral research requiringlarge amounts of subjects. By recreating a reward-based crowdfundingwebpage and tracking how consumers’ product choice varies due torecommendations of other buyers and experts, current research confirmseWOM power in modifying purchasing decisions as well as prevalence ofother buyers’ recommendations over those of experts. Additionally, it istested AMT as a crowdsourcing platform that enables scholars to carry outonline research related to economics and social sciences.