The impact of the reward scheme design on crowdfunding performance

In reward-based crowdfunding, drawing on the consumption value theory, the reward information provided by founders can help backers evaluate the value of products, which may affect their willingness to invest in the crowdfunding project. This paper investigates the impact of the reward scheme design on crowdfunding performance from three aspects of price, quantity, and time. Results show that the number of reward tiers and price discounts are positively related to crowdfunding performance; while the reward execution period has a negative effect. Moreover, the price of reward tiers and number available in limited rewards may have an inverted U-shaped relationship with crowdfunding performance; the percentage of limited rewards has a positive impact on crowdfunding performance. The funding goal moderates the influence of the number of reward tiers, the percentage of limited rewards and the number available in limited rewards on crowdfunding performance. Additionally, we further analyze the impact of the reward scheme on number of backers and funding money. The impact of backers' altruism on crowdfunding performance is examined. Our findings have important implications for founders to prepare and implement crowdfunding projects.