Signals that matter : exploring the interplay of displayed passion and product usefulness in reward-based crowdfunding decisions

Hafeez, Saima (author), Drnovšek, Mateja (author)

This study investigates how displayed passion in reward-based crowdfunding video pitches influences backers’ funding decisions. Specifically, we conceptualize and empirically test both the direct and indirect effects of passion, with product usefulness acting as a mediating factor. Using data from 363 experienced crowdfunding backers, our analysis supports our predictions that while passion serves as a strong signal to attract interest, perceived product usefulness plays a critical role in shaping the final funding decision. By doing so, we contribute to the crowdfunding literature by highlighting the importance of signaling and framing in backer decision-making. Our findings show that entrepreneurs can enhance engagement and increase funding success by delivering emotionally expressive pitches that strategically emphasize product value. This study advances the understanding of how emotional cues and message framing influence crowdfunding outcomes and offers actionable insights for campaign creators.

• Language: English
• Keywords: enterprises, investments, decision making, reward-based crowdfunding, passion display, product usefulness, signaling theory, framing theory
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2025
• Number of pages: Str. 159-180
• Numbering: Vol. 32, no. 2/3
• PID: 20.500.12556/RUL-176681
• UDC: 658
• ISSN on article: 1321-5906
• DOI: 10.1080/13215906.2025.2548796
• COBISS.SI-ID: 245983491
• Publication date in RUL: 08.12.2025

Record is a part of a journal

• Title: Small enterprise research
• Publisher: Taylor & Francis
• ISSN: 1321-5906
• COBISS.SI-ID: 521629977

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Keywords: podjetje, investicije, odločanje