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Exploring Entrepreneurs Perception of Trust- and Legitimacy-building Towards Funders in Reward-based Crowdfunding from an entrepreneurial marketing perspective

Moll, Axel LU and Näselius, Mikael LU (2017) ENTN19 20171
Department of Business Administration
Abstract
In recent years, crowdfunding has emerged as an alternative for entrepreneurs when raising external capital for their ventures. Funders within the crowdfunding context often face information asymmetry issues since it is difficult for them to measure the venture credibility based on the information and financial history presented during a crowdfunding campaign. Therefore, it becomes important for the entrepreneurs to understand which efforts could be made in order to create and enhance trust and legitimacy towards potential funders. In our study we explore how entrepreneurs perceive the different abilities of marketing activities in order to create and enhance trust and legitimacy towards funders during a crowdfunding campaign, and what... (More)
In recent years, crowdfunding has emerged as an alternative for entrepreneurs when raising external capital for their ventures. Funders within the crowdfunding context often face information asymmetry issues since it is difficult for them to measure the venture credibility based on the information and financial history presented during a crowdfunding campaign. Therefore, it becomes important for the entrepreneurs to understand which efforts could be made in order to create and enhance trust and legitimacy towards potential funders. In our study we explore how entrepreneurs perceive the different abilities of marketing activities in order to create and enhance trust and legitimacy towards funders during a crowdfunding campaign, and what influence it has on the outcome of the campaign. We use a qualitative research approach by interviewing five different entrepreneurs who have performed successful crowdfunding initiatives. Based on our findings, we can conclude six different marketing activities, being Relationship Marketing, Communication within Communities, Co-creation, Choice & Convenience, Ambassadors, and Herding, are influential methods used by entrepreneurs to build trust and legitimacy towards funders in order to successfully receive funds. Our study contributes to the literature about crowdfunding by being the first paper exploring how marketing activities can create and enhance trust and legitimacy towards funders in order to get successfully funded. (Less)
Popular Abstract
In recent years, crowdfunding has emerged as an alternative for entrepreneurs when raising external capital for their ventures. Funders within the crowdfunding context often face information asymmetry issues since it is difficult for them to measure the venture credibility based on the information and financial history presented during a crowdfunding campaign. Therefore, it becomes important for the entrepreneurs to understand which efforts could be made in order to create and enhance trust and legitimacy towards potential funders. In our study we explore how entrepreneurs perceive the different abilities of marketing activities in order to create and enhance trust and legitimacy towards funders during a crowdfunding campaign, and what... (More)
In recent years, crowdfunding has emerged as an alternative for entrepreneurs when raising external capital for their ventures. Funders within the crowdfunding context often face information asymmetry issues since it is difficult for them to measure the venture credibility based on the information and financial history presented during a crowdfunding campaign. Therefore, it becomes important for the entrepreneurs to understand which efforts could be made in order to create and enhance trust and legitimacy towards potential funders. In our study we explore how entrepreneurs perceive the different abilities of marketing activities in order to create and enhance trust and legitimacy towards funders during a crowdfunding campaign, and what influence it has on the outcome of the campaign. We use a qualitative research approach by interviewing five different entrepreneurs who have performed successful crowdfunding initiatives. Based on our findings, we can conclude six different marketing activities, being Relationship Marketing, Communication within Communities, Co-creation, Choice & Convenience, Ambassadors, and Herding, are influential methods used by entrepreneurs to build trust and legitimacy towards funders in order to successfully receive funds. Our study contributes to the literature about crowdfunding by being the first paper exploring how marketing activities can create and enhance trust and legitimacy towards funders in order to get successfully funded. (Less)
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author
Moll, Axel LU and Näselius, Mikael LU
supervisor
organization
course
ENTN19 20171
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
8915863
date added to LUP
2017-09-12 11:48:18
date last changed
2017-09-12 11:48:18
@misc{8915863,
  abstract     = {In recent years, crowdfunding has emerged as an alternative for entrepreneurs when raising external capital for their ventures. Funders within the crowdfunding context often face information asymmetry issues since it is difficult for them to measure the venture credibility based on the information and financial history presented during a crowdfunding campaign. Therefore, it becomes important for the entrepreneurs to understand which efforts could be made in order to create and enhance trust and legitimacy towards potential funders. In our study we explore how entrepreneurs perceive the different abilities of marketing activities in order to create and enhance trust and legitimacy towards funders during a crowdfunding campaign, and what influence it has on the outcome of the campaign. We use a qualitative research approach by interviewing five different entrepreneurs who have performed successful crowdfunding initiatives. Based on our findings, we can conclude six different marketing activities, being Relationship Marketing, Communication within Communities, Co-creation, Choice & Convenience, Ambassadors, and Herding, are influential methods used by entrepreneurs to build trust and legitimacy towards funders in order to successfully receive funds. Our study contributes to the literature about crowdfunding by being the first paper exploring how marketing activities can create and enhance trust and legitimacy towards funders in order to get successfully funded.},
  author       = {Moll, Axel and Näselius, Mikael},
  language     = {eng},
  note         = {Student Paper},
  title        = {Exploring Entrepreneurs Perception of Trust- and Legitimacy-building Towards Funders in Reward-based Crowdfunding from an entrepreneurial marketing perspective},
  year         = {2017},
}