eWOM in reward-based crowdfunding platforms: a behavioral approach

Electronic word of mouth (eWOM) plays a crucial role in influencing purchasing decisions of consumers in situations governed by asymmetric information. In this context, investors in reward-based crowdfunding platforms might modify their purchasing intentions according to recommendations of peers and/or experts. The goal of this paper is to analyze the power of eWOM to shape consumers' purchasing decisions. We do so by conducting an experiment through Amazon Mechanical Turk (AMT). This online experimental tool allows for an instant access to a large and culturally diverse subject pool, facilitating behavioral research requiring large amounts of subjects. By recreating a reward-based crowdfunding webpage and tracking how consumers' choices vary due to recommendations of other buyers and experts, this research confirms eWOM power in modifying purchasing decisions, as well as the prevalence of other buyers' recommendations over those of experts. Additionally, it is tested AA/IT as a crowdsourcing platform that enables scholars to carry out online research related to economics and social sciences.