Please Share! Online Word of Mouth and Charitable Crowdfunding

摘要

During the last few years, charitable crowdfunding has become an increasingly popular method of online fundraising for personal and charitable causes. Many such crowdfunding platforms encourage and facilitate the use of online word of mouth (WOM) through social networks and social media, to spread the word about the crowdfunding campaigns. While online WOM is commonly used to share information about crowdfunding campaigns, there is hitherto limited understanding as to whether or how this information sharing affect individuals' contribution behavior or the outcome of crowdfunding campaigns. In this study, using a unique dataset from 590 crowdfunding campaigns observed over 12 days, we examine to what extent, and how quickly online WOM affect the rate of contributions. In addition, we explore the effect of different phases of fundraising (over time or as they approach their target goals) and of the coverage of the campaigns in major online news websites.