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Give to crowdfunding campaigns enjoy vicarious biz success – study

People who give to campaigns get a vicarious sense of success. When a campaign succeeds, contributors feel they are part of something bigger than themselves and gain a sense of ownership of the product.

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Why would someone decide to give their money to help a stranger bring a creative project to life?

Recent research has found that backers of crowdfunding projects participate, in part, because of a sense of indirect success and the feeling that they are contributing to something bigger.

Crowdfunding — raising money for a new venture by collecting small amounts from many people — is most often done online, and messaging on the most popular sites reinforces the perception of a more democratic market.

But the reality is a bit more complicated, the researchers said, because backers tend to come from similar groups of people and give to certain categories of projects.

“They tend to give money to projects they find cool,” said Andre Maciel, assistant professor of marketing at the University of Nebraska–Lincoln. “That limits the democratizing potential of crowdfunding… In the aggregate, there’s this effect that specific project categories tend to be more funded than others.”

Maciel and his co-author, Michelle Weinberger of Northwestern University, wanted to examine why ordinary people would give interest-free money to businesses and to understand the culture of crowdfunding.

Unlike traditional investing, people giving to crowdfunding campaigns do not have any legal guarantee that the money — usually less than $50 — will be used as promised. And they usually get no return on their investment beyond something like a mug or T-shirt.

“People could essentially run with their money, and nothing would happen to them,” Maciel said. “Maybe their reputation would get bruised, but there’s no legal contract there. So we started wondering: What’s the social contract that binds all those different parties together?”

The researchers made a distinction between reward-based crowdfunding and charity donation, with their study looking at projects such as a music album, cookbook or toy, rather than the type that would help pay for medical bills. Maciel said it’s an important phenomenon to understand because it’s a relatively new funding model for businesses, and one that is rapidly growing in scale.

“In 15 years, we’re talking about 200,000 new innovations coming to the market only through Kickstarter,” he said. “If you look at all the platforms together, it might be more than half a million.”

Maciel and his Weinberger interviewed a sample of all involved stakeholders: platform representatives, producers and consumers. They then analyzed the platforms’ websites and their messaging on what crowdfunding is. The duo also visited the offices of a leading crowdfunding platform. Finally, they became backers themselves, giving to eight campaigns from a variety of categories on two platforms.

The researchers found that crowdfunding platforms create a narrative of a more democratic process, enabling people to decide which products enter the market. Platform websites do this in part through language, such as referring to a “project” instead of a “business” or to a “pledge” instead of a “payment.” The websites also employ idealistic messaging about a higher purpose and collective action.

The study concluded that people who give to campaigns get a vicarious sense of success. When a campaign succeeds, contributors feel they are part of something bigger than themselves and gain a sense of ownership of the product, the researchers said.

“You’re not going through the pains of developing an idea, the emotional costs,” Maciel said. “And yet, even though they give, usually, small amounts of money, many consumers feel thrilled when a project comes to life.”

Backers also reported they liked getting behind-the-scenes information and some insider knowledge about the process, including explanations about delays in the project and information about how producers are tackling hurdles.

The study additionally found that a negative experience with a crowdfunding campaign doesn’t necessarily deter people from backing others in the future. Consumers view projects individually and don’t assume that a delayed or unsuccessful campaign will translate to others. If this happens repeatedly, however, they might be more likely to stop giving.

The team also determined that the campaigns attract a certain kind of consumer, meaning the model often falls short of its promise of a more democratic market. The researchers discovered that backers tend to be people who work in creative fields, such as web designers, fashion designers and writers, and that they give to projects that match individual interests rather than ones that address collective societal needs. The result is that campaigns in areas such as music, film, publishing and gaming are more likely to succeed.

“Crowdfunding does expand access to the market, but it’s just not as democratic as it seems,” Maciel said. “It is democratic because people get to choose, but it’s not egalitarian.”

Having focused on the relationship between platform and consumers, the team intends to shift next to the relationship between platforms and producers. Maciel and Weinberger will look at what keeps producers from misusing funds and the benefits of choosing crowdfunding over a loan or other source of funds.

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Structure of online reviews shapes their helpfulness

Reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective.

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A study of nearly 200,000 Amazon reviews shows that the usefulness of online product reviews depends not only on what is said, but on how the information is structured.

The researchers, from the Universities of Cambridge and Queensland, studied Amazon reviews for products ranging from clothing to food to electronics. They found that how the information is organised matters as much as what is said, and that different review structures are more or less helpful, depending on how highly the reviewer has rated the product.

Their results, published in the journal Scientific Reports, could help companies and third-party review platforms design their review pages to prompt the sort of reviews that will be most helpful to potential customers.

For example, a reviewer assessing a laptop might praise its performance and design while criticising its battery life, so how should such information be structured to be most useful to the reader? Should the review begin with criticism and end on a positive note, or start positively before turning to drawbacks?

“Any target of evaluation typically has both positive and negative aspects, which makes crafting evaluative messages challenging,” said co-author Dr Yeun Joon Kim from Cambridge Judge Business School. “The key question is how to structure these elements within a single message. For example, one might present criticism upfront and then move to praise, or instead integrate negative points within an otherwise positive evaluation. Yet research has paid little attention to this structural dimension.

“We wanted to understand whether certain structures are consistently more effective, or whether their effectiveness depends on the performance of the target being evaluated.”

The study was based on 195,675 reviews of 5,487 distinct products, and assessed performance and related factors, and a helpfulness score as measured by reader votes.

The researchers identified nine possible structures of online reviews ranging from Type A reviews that start positive and become more positive as they go along, to Type I reviews that start negatively and become even more negative – with lots of variance in between.

For highly-rated products, reviews that grow increasingly positive are most helpful to readers, while those that turn negative are least helpful. For average-rated products, progressively negative trajectories enhance helpfulness, whereas reviews that start negative and grow positive are least effective. For low-rated products, reviews are judged most helpful when they open constructively before introducing criticism.

“The results are nuanced but very clear,” said co-author Dr Luna Luan from the University of Queensland, who carried out the research while earning her PhD at Cambridge Judge Business School. “Looking at the overall sentiment of reviews does not fully translate into message effectiveness. It is the broader structure of sentiment – how positivity and negativity evolve throughout the review – that shapes how readers interpret online reviews.”

“Our findings have practical implications for how platforms and companies can design review pages in order to elicit the sort of reviews that will be most helpful to readers based on how highly products are rated,” said Kim. “For example, instead of simply asking ‘Write your review here’, the online review form could instead include micro-prompts that guide how reviewers structure feedback in a way recipients find most helpful.”

The researchers found the most commonly used review styles are not necessarily the most helpful to readers. In particular, for average- and low-rated products, the structures that reviewers tend to adopt often differ from those that readers find most useful.

This mismatch likely reflects different underlying motivations. Reviewers are not always writing to maximise usefulness for others, but may instead be expressing their own experiences, frustrations or emotions – especially when evaluating products of moderate or poor quality. As a result, review writing often serves both as information sharing and as a form of self-expression. This helps explain why widely used review styles do not always align with what readers perceive as most informative or helpful.

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Reversible words can lower consumer disbelief in ads

A simple word choice in marketing messages can significantly impact how confident consumers feel about believing – or not believing – a claim.

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It’s estimated that consumers experience hundreds if not thousands of marketing messages daily. While the exact number can depend, how much someone believes the message can be more important for marketing success than the number of messages they see. 

A new study reveals that a simple word choice in marketing messages can significantly impact how confident consumers feel about believing – or not believing – a claim. Researchers found that when words differ in their “reversability,” or how easily people can think of their opposites, it can trigger different mental processes when consumers evaluate marketing language. 

Imagine the messaging options for a new sunscreen designed specifically for those who like a strong scented product. The first product description reads, “The scent is prominent,” while the second notes, “The scent is intense.” The word “prominent” is uni-polar, meaning people tend to negate it by adding “not” to the original statement.

“Intense,” though, is a bi-polar word, meaning readers can easily come up with its opposite meaning and negate the statement by replacing it with its antonym. In this example, “The scent is mild,” instead of, “The scent is intense.” 

“When people encounter easily reversible words, like ‘intense’, in messages processed as negations (mild), they experience lower confidence in their judgements compared to words that are hard to reverse, like ‘prominent,’” explained Giulia Maimone, a postdoctoral scholar in marketing at the University of Florida Warrington College of Business. 

Across two experiments of more than 1,000 participants, the research demonstrated that this effect occurs because negations of bi-polar, or reversible, words engage a more elaborate cognitive process requiring additional mental effort, resulting in lower confidence of the statement’s truthfulness. 

Based on their findings, the researchers suggest that marketers take this advice when crafting language: for new products, use affirmative statements with easily reversible words, like ‘The scent is intense’ in the sunscreen example, which most consumers will judge as true with high confidence. Importantly, this language would also minimize the confidence of consumers who will be skeptical about the message, as they will process it via a more complex cognitive process that reduces confidence in those consumers’ disbelief. 

“This simple lexical choice could help companies maximize confidence in their desired messaging and minimize confidence among the doubters,” Maimone explained. 

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If you’re a perfectionist at work, your boss’ expectations may matter more than your own, research finds

Help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.

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If you’re among the 93% of people who struggle with perfectionism at work, new research suggests that your experience may depend less on your own high standards and more on whether those standards meet your supervisor’s expectations. 

Researchers from the University of Florida Warrington College of Business found that whether perfectionism helps or harms employees depends largely on whether employees’ personal standards align with their supervisors’ expectations. 

Specifically, they looked at the connection between employees’ self-oriented perfectionism, or the expectations of flawlessness they set for themselves, and supervisors’ other-oriented perfectionism, which reflects the extent to which they set excessively high standards for and critically evaluate their employees’ performance. 

Using data from more than 350 employees and about 100 supervisors, the researchers found that perfectionism’s impact depends on whether employees’ standards align with what their supervisors expect and how clearly those expectations are understood. 

When employees’ personal standards are aligned with their supervisors’ expectations, they tend to experience less role ambiguity, meaning they have less uncertainty about the expectations and standards for their role, why those standards matter and the consequences of not meeting them. This clarity in their work is linked to better performance, lower burnout and higher job satisfaction. 

“Problems between employees and their supervisors are more likely to arise when these expectations don’t match,” explained Brian Swider, Beth Ayers McCague Family Professor.

The most difficult situation occurs, Swider and his colleagues found, is when supervisors expect higher levels of perfectionism than employees expect from themselves. In these cases, employees reported greater uncertainty about their roles, along with worse work outcomes including higher burnout and lower job satisfaction.

“If you’re an employee who struggles with perfectionism at work, our findings suggest that understanding your supervisor’s expectations may be just as important as managing your own tendencies towards perfectionism,” Swider said. “Talking to your supervisor about priorities, standards and how your performance will be evaluated can help reduce uncertainty and ensure you both share a clear understanding of what success looks like.”

The researchers have similar recommendations for employers: help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.

The researchers also recommend that organizations should consider how employees and supervisors are paired, as mismatched expectations can increase stress, reduce job satisfaction and ultimately impact performance. 

The research, “The influence of employee-supervisor perfectionism (in)congruence on employees: a configurational approach,” is published in Organizational Behavior and Human Decision Processes

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