Empathy or perceived credibility? An empirical study on individual donation behavior in charitable crowdfunding

Researchers have called for the synthesis of divergent perspectives and the development of a theoretical model that examines individuals’ donation behavior in charitable crowdfunding. To fill this research gap, the purpose of this paper is to synthesize the literature pertaining to the determinants of donation behavior in charitable crowdfunding. Then, drawing on the stimulus-organism-response framework, the authors develop and test a model that explains individuals’ intention to donate to charitable crowdfunding.,This paper follows a quantitative research approach. An online survey was distributed to collect data from individuals who had experienced charitable crowdfunding. In total, 205 valid responses were received and analyzed.,First, this study finds that individuals’ empathy and the perceived credibility of a charitable crowdfunding project are key determinants for their intention to donate in charitable crowdfunding. Second, the study finds that website quality, transaction convenience, and project content quality influence both empathy and perceived credibility in different ways. Third, it is noteworthy that initiator reputation is positively related to perceived credibility, while project popularity is positively associated with empathy.,This research advances the knowledge of individual donation behavior in charitable crowdfunding. The model can help researchers understand individuals’ philanthropic behavior by providing empirical explanations of the interplay between technological and project characteristics, emotional and cognitive states, and individuals’ donation behavior. For practitioners, the research suggests appropriate design, launch, and operation strategies to facilitate individuals’ donation behavior in charitable crowdfunding.

[1]  Steven Walczak,et al.  The relationship between website quality, trust and price premiums at online auctions , 2010, Electron. Commer. Res..

[2]  P. Leeflang,et al.  Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing , 2012 .

[3]  Jan Marco Leimeister,et al.  Is all that Glitters Gold? Exploring The Effects of Perceived Risk on Backing Behavior in Reward-based Crowdfunding , 2014, ICIS.

[4]  M. Hoffman Empathy and moral development : implications for caring and justice , 2000 .

[5]  Chung-Hsien Wu,et al.  Understanding the Drivers of Sponsors' Intentions in Online Crowdfunding: A Model Development , 2014, MoMM.

[6]  C. Batson,et al.  Distress and empathy: two qualitatively distinct vicarious emotions with different motivational consequences. , 1987, Journal of personality.

[7]  Ethan Mollick The Dynamics of Crowdfunding: An Exploratory Study , 2014 .

[8]  William T. Ross,et al.  I'm Moral, but I Won't Help You: The Distinct Roles of Empathy and Justice in Donations , 2014 .

[9]  Tao Wang,et al.  Understanding the Role of Commitments in Explaining Crowdfunding Investing Willingness: Antecedents and Consequences , 2016, PACIS.

[10]  Qun Zhao,et al.  Determinants of backers' funding intention in crowdfunding: Social exchange theory and regulatory focus , 2017, Telematics Informatics.

[11]  Yvonne Rogers,et al.  Introduction to the special issue on the theory and practice of embodied interaction in HCI and interaction design , 2013, TCHI.

[12]  Walter Wymer,et al.  Charity Appeals Using Celebrity Endorsers: Celebrity Attributes Most Predictive of Audience Donation Intentions , 2015 .

[13]  Sally Hibbert,et al.  Guilt appeals: persuasion knowledge and charitable giving , 2007 .

[14]  Juyoung Kang,et al.  Factors influencing pro-social consumer behavior through non-profit organizations , 2016, Internet Res..

[15]  Weiguo Fan,et al.  Money Talks: A Predictive Model on Crowdfunding Success Using Project Description , 2015, AMCIS.

[16]  V. Mummalaneni,et al.  An empirical investigation of Web site characteristics, consumer emotional states and on-line shopping behaviors , 2005 .

[17]  Yuxian Eugene Liang,et al.  Predicting investor funding behavior using crunchbase social network features , 2016, Internet Res..

[18]  Wen-Jang Jih,et al.  Effects of Consumer-Perceived Convenience on Shopping Intention in Mobile Commerce: An Empirical study , 2007, Int. J. E Bus. Res..

[19]  Jan Marco Leimeister,et al.  An Empirical Taxonomy of Crowdfunding Intermediaries , 2014, ICIS.

[20]  Mike Molesworth,et al.  Success in the management of crowdfunding projects in the creative industries , 2016, Internet Res..

[21]  Ronald T. Cenfetelli,et al.  Interpretation of Formative Measurement in Information Systems Research , 2009, MIS Q..

[22]  Huaping Chen,et al.  Credibility of Electronic Word-of-Mouth: Informational and Normative Determinants of On-line Consumer Recommendations , 2009, Int. J. Electron. Commer..

[23]  Eric T. G. Wang,et al.  Understanding knowledge sharing in virtual communities: An integration of social capital and social cognitive theories , 2006, Decis. Support Syst..

[24]  Philip S. Yu,et al.  Inferring the impacts of social media on crowdfunding , 2014, WSDM.

[25]  Andrew T. Stephen,et al.  Microfinance Decision Making: A Field Study of Prosocial Lending , 2010 .

[26]  Cristina Rossi Lamastra,et al.  Crowdfunding: The New Frontier for Financing Entrepreneurship? , 2012 .

[27]  Joe Phua,et al.  Following Celebrities’ Tweets About Brands: The Impact of Twitter-Based Electronic Word-of-Mouth on Consumers’ Source Credibility Perception, Buying Intention, and Social Identification With Celebrities , 2014 .

[28]  Andrea Everard,et al.  How Presentation Flaws Affect Perceived Site Quality, Trust, and Intention to Purchase from an Online Store , 2005, J. Manag. Inf. Syst..

[29]  David Beer,et al.  The social power of algorithms , 2017, The Social Power of Algorithms.

[30]  Femida Handy,et al.  Understanding online donor behavior: the role of donor characteristics, perceptions of the internet, website and program, and influence from social networks , 2012 .

[31]  Susan Ivey,et al.  Crowdfunding in libraries, archives and museums , 2016 .

[32]  Elizabeth Gerber,et al.  Crowdfunding , 2013, ACM Trans. Comput. Hum. Interact..

[33]  Bin Wang,et al.  How attachment influences users' willingness to donate to content creators in social media: A socio-technical systems perspective , 2017, Inf. Manag..

[34]  Douglas J. Sego,et al.  The role of organizational citizenship behavior in turnover : Conceptualization and preliminary tests of key hypotheses , 1998 .

[35]  K. Gerdes,et al.  Empathy, Sympathy, and Pity: 21st-Century Definitions and Implications for Practice and Research , 2011 .

[36]  Anindya Ghose,et al.  The Hidden Cost of Accommodating Crowdfunder Privacy Preferences: A Randomized Field Experiment , 2014, Manag. Sci..

[37]  Stefan Pitschner,et al.  Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns , 2014 .

[38]  Yiwen Gao,et al.  Understanding the determinants of funders' investment intentions on crowdfunding platforms: A trust-based perspective , 2016, Ind. Manag. Data Syst..

[39]  L. J. Williams,et al.  Recent Advances in Causal Modeling Methods for Organizational and Management Research , 2003 .

[40]  Lili Liu,et al.  Donation Behavior in Online Micro Charities: An Investigation of Charitable Crowdfunding Projects , 2017, HICSS.

[41]  Alexey Moisseyev,et al.  EFFECT OF SOCIAL MEDIA ON CROWDFUNDING PROJECT RESULTS , 2013 .

[42]  Rick Wash,et al.  The Value of Completing Crowdfunding Projects , 2013, ICWSM.

[43]  Qing Hu,et al.  Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management , 2007, MIS Q..

[44]  Michael Beier,et al.  Crowdfunding Success: A Perspective from Social Media and E-Commerce , 2015, ICIS.

[45]  Paul Belleflamme,et al.  Individual crowdfunding practices , 2013, Venture Capital.

[46]  Pierre Desmet,et al.  Does the crowdfunding platform matter? Risks of negative attitudes in two-sided markets , 2017 .

[47]  Patrick Shannon,et al.  Business Statistics: A Decision-Making Approach , 1981 .

[48]  Gregory M. Rose,et al.  The role of brand personality in charitable giving: An assessment and validation , 2005 .

[49]  Bernard C. Y. Tan,et al.  Effects of Interactivity on Website Involvement and Purchase Intention , 2010, J. Assoc. Inf. Syst..

[50]  Blakley C. Davis,et al.  Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance , 2017 .

[51]  Robert M. Schindler,et al.  Internet forums as influential sources of consumer information , 2001 .

[52]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[53]  Weiguo Fan,et al.  Project description and crowdfunding success: an exploratory study , 2018, Inf. Syst. Frontiers.

[54]  Daniel Schlagwein,et al.  Crowdsourcing for a better world: On the relation between IT affordances and donor motivations in charitable crowdfunding , 2016, Inf. Technol. People.

[55]  J. Hair Multivariate data analysis , 1972 .

[56]  Dan M. Marom,et al.  Are the life and death of an early-stage venture indeed in the power of the tongue? Lessons from online crowdfunding pitches , 2018, Strategic Entrepreneurship Journal.

[57]  Ya-Zheng Li,et al.  Factors impacting donors’ intention to donate to charitable crowd-funding projects in China: a UTAUT-based model , 2018 .

[58]  Izak Benbasat,et al.  Integrating Service Quality with System and Information Quality: An Empirical Test in the E-Service Context , 2013, MIS Q..

[59]  George P. Huber,et al.  A theory of the effects of advanced information technologies on organizational design, intelligence , 1990 .

[60]  J. Decety,et al.  A Social-Neuroscience Perspective on Empathy , 2006 .

[61]  Ingoo Han,et al.  The effect of negative online consumer reviews on product attitude: An information processing view , 2008, Electron. Commer. Res. Appl..

[62]  William B. Dodds,et al.  Effects of Price, Brand, and Store Information on Buyers’ Product Evaluations: , 1991 .

[63]  A. Ghose,et al.  Cultural Differences and Geography as Determinants of Online Prosocial Lending , 2014, MIS Q..

[64]  D. O’Keefe Persuasion , 1990, The Handbook of Communication Skills.

[65]  Young-Gul Kim,et al.  Identifying key factors affecting consumer purchase behavior in an online shopping context , 2003 .

[66]  Saonee Sarker,et al.  A Conceptual Framework for Understanding Crowdfunding , 2015, Commun. Assoc. Inf. Syst..

[67]  Thea van der Geest,et al.  Measuring the emotional impact of websites: a study on combining a dimensional and discrete emotion approach in measuring visual appeal of university websites , 2007, DPPI.

[68]  Yong Tan,et al.  Why Should I Donate? Examining the Effects of Reputation, Peer Influence, and Popularity on Charitable Giving Over Social Media Platforms , 2016 .

[69]  Joseph Feller,et al.  Does Heart or Head Rule Donor Behaviors in Charitable Crowdfunding Markets? , 2016, Int. J. Electron. Commer..

[70]  Avi Goldfarb,et al.  Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions , 2015, Journal of Economics & Management Strategy.

[71]  I. Sørensen Crowdsourcing and outsourcing: the impact of online funding and distribution on the documentary film industry in the UK , 2012 .

[72]  J. Mccroskey,et al.  Goodwill: A reexamination of the construct and its measurement , 1999 .

[73]  Richard T. Watson,et al.  WebQual: An Instrument for Consumer Evaluation of Web Sites , 2007, Int. J. Electron. Commer..

[74]  Elizabeth Gerber,et al.  Learning to fail: experiencing public failure online through crowdfunding , 2014, CHI.

[75]  Wynne W. Chin,et al.  A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic - Mail Emotion/Adoption Study , 2003, Inf. Syst. Res..

[76]  S. Glynn,et al.  The role of altruistic behavior, empathetic concern, and social responsibility motivation in blood donation behavior , 2007, Transfusion.

[77]  Wai-Tat Fu,et al.  The Power of Collective Endorsements: Credibility Factors in Medical Crowdfunding Campaigns , 2016, CHI.

[78]  N. Eisenberg,et al.  The relation of empathy to prosocial and related behaviors. , 1987, Psychological bulletin.

[79]  L. L. Shaw,et al.  Immorality from empathy-induced altruism: when compassion and justice conflict , 1995 .

[80]  K. Freeman,et al.  An Examination of Factors That Affect the Credibility of Online Health Information , 2004 .

[81]  Paul Belleflamme,et al.  Crowdfunding: Tapping the Right Crowd , 2013, SSRN Electronic Journal.

[82]  Hsi-Peng Lu,et al.  Persuasive messages, popularity cohesion, and message diffusion in social media marketing , 2015 .

[83]  Haichao Zheng,et al.  The role of trust management in reward-based crowdfunding , 2016, Online Inf. Rev..

[84]  Soosung Hwang,et al.  Does illiquidity matter in residential properties? , 2015 .

[85]  Barbara Poblete,et al.  Information credibility on twitter , 2011, WWW.

[86]  Audun Jøsang,et al.  A survey of trust and reputation systems for online service provision , 2007, Decis. Support Syst..

[87]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[88]  Matthew J. Salganik,et al.  Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market , 2006, Science.

[89]  Yacin Jerbi,et al.  Early exercise premium method for pricing American options under the J-model , 2016 .

[90]  George Loewenstein,et al.  Tightwads and Spendthrifts , 2007 .

[91]  Shalom Levy,et al.  Antecedents of attitudes toward eWOM communication: differences across channels , 2016, Internet Res..

[92]  Amy Voida,et al.  Legitimacy Work: Invisible Work in Philanthropic Crowdfunding , 2016, CHI.

[93]  Jian Huang,et al.  Unveiling the Patterns of Video Tweeting: A Sina Weibo-Based Measurement Study , 2013, PAM.

[94]  Grazia Cecere,et al.  Crowdfunding and social influence: an empirical investigation , 2017 .

[95]  William David Salisbury,et al.  Perceived security and World Wide Web purchase intention , 2001, Ind. Manag. Data Syst..

[96]  Matthew K. O. Lee,et al.  EC-Trust (Trust in Electronic Commerce): Exploring the Antecedent Factors , 1999 .

[97]  Joseph S. Valacich,et al.  Online Impulse Buying: Understanding the Interplay between Consumer Impulsiveness and Website Quality , 2011, J. Assoc. Inf. Syst..

[98]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[99]  Ethan Mollick,et al.  The Dynamics of Crowdfunding: Determinants of Success and Failure , 2013 .

[100]  Chau-kiu Cheung,et al.  Social-cognitive factors of donating money to charity, with special attention to an international relief organization , 2000 .

[101]  Min Teah,et al.  Moderating role of religious beliefs on attitudes towards charities and motivation to donate , 2014 .

[102]  Brandon Van Der Heide,et al.  A social network as information: The effect of system generated reports of connectedness on credibility on Twitter , 2012, Comput. Hum. Behav..

[103]  Ghazwan Hassna,et al.  Government-incentivized crowdfunding for one-belt, one-road enterprises: design and research issues , 2016 .

[104]  Donna L. Hoffman,et al.  Building consumer trust online , 1999, CACM.

[105]  Jin Yong Park,et al.  Cross‐cultural examination of the relationships among firm reputation, e‐satisfaction, e‐trust, and e‐loyalty , 2008 .

[106]  Anol Bhattacherjee,et al.  Understanding Information Systems Continuance: An Expectation-Confirmation Model , 2001, MIS Q..

[107]  In Lee,et al.  An empirical examination of factors influencing the intention to use mobile payment , 2010, Comput. Hum. Behav..

[108]  Roger Bennett,et al.  Impulsive donation decisions during online browsing of charity websites , 2009 .

[109]  Suaini Sura,et al.  Factors influencing intention to donate via social network site (SNS): From Asian's perspective , 2017, Telematics Informatics.

[110]  Jure Leskovec,et al.  Donor Retention in Online Crowdfunding Communities: A Case Study of DonorsChoose.org , 2015, WWW.

[111]  Jan Bosch,et al.  Framework integration problems, causes, solutions , 1999, CACM.

[112]  Subhajyoti Bandyopadhyay,et al.  Please Share! Online Word of Mouth and Charitable Crowdfunding , 2016, AMCIS.

[113]  Géraldine Michel,et al.  Nonprofit brand image and typicality influences on charitable giving , 2012 .

[114]  Joseph Feller,et al.  Emerging technologies and the democratisation of financial services: A metatriangulation of crowdfunding research , 2016, Inf. Organ..