THE EFFECT OF REWARD STRATEGIES ON THE SUCCESS OF CROWDFUNDING CAMPAIGNS

VERSCHOORE, JORGE R.; ARAÚJO, MARIANA D. M.

doi:10.1590/1678-6971/eRAMR200139

JORGE R. VERSCHOORE

Vale do Rio dos Sinos University (Unisinos), Porto Alegre, RS, Brazil.

Jorge R. Verschoore, Ph.D. from the Postgraduate Program in Administration (PPGA), Federal University of Rio Grande do Sul (UFRGS); Mariana D. M. Araújo, master from the Postgraduate Program in Administration (PPGA), Vale do Rio dos Sinos University (Unisinos). Jorge R. Verschoore is now professor at the Postgraduate Program in Administration (PPGA) of the Vale do Rio dos Sinos University (Unisinos); Mariana D. M. Araújo is now senior analyst and egress from the Vale do Rio dos Sinos University (Unisinos).

https://orcid.org/0000-0001-7588-7871

MARIANA D. M. ARAÚJO

Vale do Rio dos Sinos University (Unisinos), Porto Alegre, RS, Brazil.

Jorge R. Verschoore, Ph.D. from the Postgraduate Program in Administration (PPGA), Federal University of Rio Grande do Sul (UFRGS); Mariana D. M. Araújo, master from the Postgraduate Program in Administration (PPGA), Vale do Rio dos Sinos University (Unisinos). Jorge R. Verschoore is now professor at the Postgraduate Program in Administration (PPGA) of the Vale do Rio dos Sinos University (Unisinos); Mariana D. M. Araújo is now senior analyst and egress from the Vale do Rio dos Sinos University (Unisinos).

https://orcid.org/0000-0002-6186-4414

Jorge R. Verschoore, Ph.D. from the Postgraduate Program in Administration (PPGA), Federal University of Rio Grande do Sul (UFRGS); Mariana D. M. Araújo, master from the Postgraduate Program in Administration (PPGA), Vale do Rio dos Sinos University (Unisinos).

Jorge R. Verschoore is now professor at the Postgraduate Program in Administration (PPGA) of the Vale do Rio dos Sinos University (Unisinos); Mariana D. M. Araújo is now senior analyst and egress from the Vale do Rio dos Sinos University (Unisinos).

Correspondence concerning this article should be addressed to Jorge R. Verschoore, Avenida Nilo Peçanha, 1600, Boa Vista, Porto Alegre, Rio Grande do Sul, Brazil, CEP 90.470-280. E-mail: jorgevf@unisinos.br

	Reward	Description	Example
Main Strategies	Purchase me	Buy the product in advance for a value below the one that will be released in the market.	“Backers will receive an original photo of the exhibition printed on professional photo paper in an individual, black-coated acrylic-protected frame” (Catarse, 2017).
Main Strategies	Top it up	Rewards appear in unique packages, and as their value is changed, the reward package is retained and only new ones are added.	“Backers will receive all the previous rewards: the thank-you letter, the ‘Honorary Superator’ diploma and the official ‘Superator’ shirt” (Catarse, 2017).
Main Strategies	Collectible tokens	Symbolic physical rewards or low-value gifts in exchange for funding.	“A souvenir and a t-shirt of the cities where I’ll go on my photographic expeditions” (Catarse, 2017).
	Something special	Limited edition rewards, which remain available only during the campaign.	“1 Cryptocerveja – Handmade beer, made for the cryptorave 2016. 600 ml Bottle. Withdrawal on day: there will be no mailing. There will be no sale on the day” (Catarse, 2017).
	Pursuit of pleasure	Intangible rewards, such as meetings and meeting events.	“Right to a photoshoot each, with my new equipment” (Catarse, 2017).
Add On Strategies	Highly appreciated	Recognition which can be public or private.	“We’ll send you a thank-you letter signed by the creators of Super Cooler” (Catarse, 2017).
Add On Strategies	Let’s collaborate	The entrepreneur has the freedom to allow the crowd to contribute to public participation in the campaign or as volunteers.	“You send two suggestions of names, one for model 01 and one for model 02. For each group of ten backers, we’ll select the most creative one” (Catarse, 2017).

Reward strategy	Code
1 – Purchase me	PURCH
2 – Top it up	TOPIT
3 – Collectible tokens	COLLE
4 – Something special	SOMET
5 – Pursuit of pleasure	PURSU
6 – Highly appreciated	HIGH
7 – Let’s collaborate	LETS

	Successful campaigns rewards	Unsuccessful campaigns rewards
Total rewards	1,468	1,148
Average support	21	2
Median support	5	1
Rewards without support	217	640

	Architecture and urbanism	Science and technology	Photography	Fashion and design
Total analyzed rewards	304	609	975	726
Average support	21.2	13.8	16.8	8.9
Median support	3.0	2.0	3.0	1.0
Rewards with no support	100	185	288	282
Rows of the truth table that presented cases	7	13	10	16
Cases with absence of strategy	291	589	942	683

[1] Jorge R. Verschoore, Ph.D. from the Postgraduate Program in Administration (PPGA), Federal University of Rio Grande do Sul (UFRGS); Mariana D. M. Araújo, master from the Postgraduate Program in Administration (PPGA), Vale do Rio dos Sinos University (Unisinos).

Jorge R. Verschoore is now professor at the Postgraduate Program in Administration (PPGA) of the Vale do Rio dos Sinos University (Unisinos); Mariana D. M. Araújo is now senior analyst and egress from the Vale do Rio dos Sinos University (Unisinos).

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THE EFFECT OF REWARD STRATEGIES ON THE SUCCESS OF CROWDFUNDING CAMPAIGNS

ABSTRACT

Purpose:

Originality/value:

Design/methodology/approach:

Findings: