An Empirical Examination of the Peer Influence on Crowdfunding Markets

Yuho CHUNG, Yiwei LI, Jian-min JIA

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review


Crowdfunding has recently emerged as a novel way for people to collect monetary donation from large numbers of internet users. Since 2009, the volume of crowdfunding has increased exponentially, reaching 16.2 billion in 2014. A growing number of literature starts to investigate social influence in crowdfunding that occurs when former backers, who make contribution to fund a project at an earlier stage of fund-raising period, make influences of the contribution decision of latter backers.

Crowdfunding can be classified into four categories, namely, lending-based, equity-based, reward-based, and donation-based. The primary goal of lending-based and equity-based crowdfunding is to raise capital and borrow money from a number of investors or lenders in exchange for interest payment or equity share of a company. In contrast, reward-based crowdfunding or donation-based crowdfunding requires a project initiator to create a project, which raise fund to develop a new product (e.g., private good) or enhance the public interest (e.g., public good). In this study, we focus on the two most popular crowdfunding type: reward-based and donation-based crowdfunding projects. In reward-based crowdfunding, backers (or contributors) give a small amount of money in return for a reward such as a copy of creative work or pre-sell products. In donation-based crowdfunding, backers donate to projects for gratitude and the pleasure of giving and expect no compensation in exchange
Original languageEnglish
Title of host publication2016 Global Marketing Confernece at Hong Kong Proceedings
PublisherGlobal Alliance of Marketing and Management Associations
Publication statusPublished - Jul 2016

Publication series

NameGlobal Marketing Conference Proceeding
ISSN (Electronic)1976-8699


  • crowdfunding
  • peer impact
  • herding
  • social influence

Cite this