Crowd Wisdom in Fundraising: A Cognitive Decision-Making Approach
College
College of Business (Strome)
Department
Management
Graduate Level
Doctoral
Graduate Program/Concentration
Strategic Management
Presentation Type
Poster Presentation
Abstract
The purpose of this research is to study the cognitive dimensions of crowd wisdom in the context of crowdfunding backers' decision. Based on Attention-Based View of the Firm, this study explores how cognitive biases shape funding decisions, specifically in the collective decision-making environments like crowdfunding. Additionally, it explores the campaign attributes, such as project descriptions, creator reputation, and potential risks in such uncertain environments. This study integrates findings from various fields such as neuroscience, neuromarketing, and decision-making research to examine cognitive processes during fundraising campaigns. It also reviews research on crowd wisdom to evaluate how collective intelligence shapes fundraising outcomes. Additionally, it synthesizes studies using different neurophysiological techniques, such as eye-tracking, EEG, and fMRI, to explore cognitive biases, risk perception, and attention allocation in funding decisions. In this study, we explore how cognitive biases shape the extent to which crowd wisdom transforms into funding decisions. Attention, influenced by factors such as visual attraction, campaign storytelling, and social consensus, plays a crucial role in shaping funding choices. When biases are minimal, crowd wisdom enables rational and informed investment choices. Backers often rely on cognitive heuristics like anchoring bias and bandwagon effects to navigate decision uncertainty. Additionally, social interactions between backers and founders reinforce decision confidence, thereby increasing funding likelihood. While this study provides a comprehensive review of cognitive decision-making factors in crowdfunding, several limitations and future research perspectives should be acknowledged. Most contemporary research rely on self-reported data and experimental environments, which may not fully evaluate comprehensive decision-making complexities. Future research should explore mixed method approaches, such as neurophysiological data (e.g., EEG, fMRI), real-time behavioral tracking, and large-scale crowdfunding datasets, to provide a more comprehensive understanding of cognitive decision-making and crowd wisdom during fundraising campaigns.
Keywords
Cognitive Science, Neuromarketing, Eye Tracking, Electroencephalography (EEG), Attention-Based View (ABV), Crowd Wisdom, Fundraising
Crowd Wisdom in Fundraising: A Cognitive Decision-Making Approach
The purpose of this research is to study the cognitive dimensions of crowd wisdom in the context of crowdfunding backers' decision. Based on Attention-Based View of the Firm, this study explores how cognitive biases shape funding decisions, specifically in the collective decision-making environments like crowdfunding. Additionally, it explores the campaign attributes, such as project descriptions, creator reputation, and potential risks in such uncertain environments. This study integrates findings from various fields such as neuroscience, neuromarketing, and decision-making research to examine cognitive processes during fundraising campaigns. It also reviews research on crowd wisdom to evaluate how collective intelligence shapes fundraising outcomes. Additionally, it synthesizes studies using different neurophysiological techniques, such as eye-tracking, EEG, and fMRI, to explore cognitive biases, risk perception, and attention allocation in funding decisions. In this study, we explore how cognitive biases shape the extent to which crowd wisdom transforms into funding decisions. Attention, influenced by factors such as visual attraction, campaign storytelling, and social consensus, plays a crucial role in shaping funding choices. When biases are minimal, crowd wisdom enables rational and informed investment choices. Backers often rely on cognitive heuristics like anchoring bias and bandwagon effects to navigate decision uncertainty. Additionally, social interactions between backers and founders reinforce decision confidence, thereby increasing funding likelihood. While this study provides a comprehensive review of cognitive decision-making factors in crowdfunding, several limitations and future research perspectives should be acknowledged. Most contemporary research rely on self-reported data and experimental environments, which may not fully evaluate comprehensive decision-making complexities. Future research should explore mixed method approaches, such as neurophysiological data (e.g., EEG, fMRI), real-time behavioral tracking, and large-scale crowdfunding datasets, to provide a more comprehensive understanding of cognitive decision-making and crowd wisdom during fundraising campaigns.