What's in a logo? The impact of complex visual cues in equity crowdfunding

Visual cues are pervasive on crowdfunding platforms. However, whether and how low validity visual cues can impact the behavior of backers remains largely unknown. In this article, we propose a disfluency-based heuristic framework for understanding the influence of low validity visual cues on equity crowdfunding platforms. Drawing on processing fluency theory and visual heuristics, we propose that backers often automatically process visual cues, and that the subjective experience of ease/difficulty with which backers perceptually process low validity visual cues serves as a heuristic and informs their perceptions of early-stage entrepreneurial ventures. We test our propositions focusing on logos (low validity visual cues that are particularly salient and ubiquitous on equity crowdfunding platforms) and logo complexity (a fundamental characteristic of logo design and established antecedent of processing disfluency). We contend that logo complexity can be interpreted by backers as a signal of venture innovativeness because more (vs. less) complex logos are more difficult to process, and thus, feel less familiar and more unique, original, and novel to backers. Since backers often value innovativeness, we further contend that logo complexity can positively impact backers' funding decisions. We find support for our framework and propositions using a multimethod approach comprising three studies: one survey, one field study, and one experiment. Theoretical contributions and managerial implications are also discussed

Supporting Deep Tech Startups to Streamline their Financial Marketing to Different Investor Types

Deep technology (DT) startups develop physical products based on cutting-edge technologies to create entirely new markets. Consequently, they have a comparably high demand for specialized infrastructure, expert knowledge and extended development cycles which result in large capital expenditures. However, especially early-stage (pre-seed/seed) DT startups often fail to raise sufficient funding from investors due to their large capital needs, severe technical challenges often not fully understood by investors, and long time to market. Therefore, this paper analyses the underlying issues by developing a model to support early-stage DT startups by assessing their fit with different investor types (e.g., business angels, venture capital, or other investment opportunities) in order to streamline and focus their funding process. This is achieved by applying the principal-agent-framework to model the information asymmetry between different investor types and DT startups. Relevant signals between startups and investors are derived from literature, adapted to the requirements set by the signaling theory, as an approach to counteract the information asymmetry, and included into the model

The Evolution of Equity Crowdfunding: Insights from Co-investments of Angels and the Crowd

Equity crowdfunding platforms are at the center of the digital transformation of early-stage venture funding. These digital platforms were originally heralded as a democratizing force in early stage finance, due to their role in facilitating the exchange between entrepreneurs and a multitude of non-professional small investors (“the crowd”). Equity crowdfunding platforms have experienced considerable growth and now attract professional investors including business angels. The presence of angels alongside the crowd on equity crowdfunding platforms has raised questions whether these digital platforms can continue to play their role in democratizing access to capital. Using data from a leading equity crowdfunding platform, we examine the interplay between the investment decisions of angels and the crowd. We find evidence of information flows in crowdfunding platforms between angels, and from angels to the crowd. We find angels play an important role in funding of large ventures, whereas the crowd not only fill the funding gaps for such large ventures but also play a pivotal role in the funding of small ones. The complementarity between angels and crowd investors seems to increase the overall efficiency in an otherwise highly asymmetric and uncertain market, confirming that digitization can indeed bring important benefits to venture investment

Warm-Glow Giving, Hedonism, and Their Influence on Muslim User Engagement on Loan-Based Crowdfunding Platforms

This paper investigates how platform design features affect the funding motivation of Muslim users on loan-based crowdfunding platforms. Theoretically grounded in Andreoni’s warm-glow giving theory and Sober and Wilson’s model of evolutionary and psychological giving, this work has high practical relevance, given the increasing demand for Islamic financial products. Loan-based crowdfunding platforms are important to the unique context of this research since Islamic religious constraints regulate monetary transactions involving lending. We used a scenario-based survey developed on the basis of a pilot study and confirmed by our manipulation check. The results show that “hedonism” represented by monetary interest negatively affected Muslim users’ willingness to engage in a loan-based crowdfunding project. This finding challenges the commonly agreed-upon egoistic motivator for loan-based crowdfunding platforms (i.e., monetary interest), which is based on Western Christian and Chinese Confucian capitalist economic and financial paradigms. Remarkably, we also found that Muslim funders’ level of willingness to engage on the hedonistic platform had an exponentially positive effect on the amount of money that funders were willing to lend. By contrast, “warm-glow giving,” manifested as belonging to a community, had no effect on users’ engagement. Implications of these findings for theory and practice are discussed

Three paths to brand growth: new product introduction, digital advertising, and crowdfunding

This thesis uses empirical techniques of dynamic modelling to examine three major means for brands to achieve sustainable growth, including new product introduction (NPI), digital advertising, and value co-creation with consumers through digital crowdfunding. Essay 1 (Chapter 2) explores the impact of NPI on the performance volatility of the innovating and the competing brands in the CPG industry. Using a GARCH-in-VAR modelling approach, we find that NPI causes a long-term rise in sales volatility of all brands. Such volatility increase is especially significant for new brand entries, premium-priced and more innovative brands, and retailers with a larger assortment and those where private labels dominate. More importantly, NPI's impact through sales volatility on the sales level of brands is consistently positive. Findings from Essay 1 challenge marketers' conventional wisdom to curb volatility and instead highlight brands' potential to benefit from the market turbulence following an NPI. Essay 2 (Chapter 3) investigates the effect of processing disfluency on consumers' decisions to click on digital display advertisements. With consumers flooded by digital ads, it is imperative for marketers to strike a balance between capturing consumer attention and keeping them unannoyed. A series of lab experiments combined with field data modelling using the Dynamic Factor Model indicate that processing disfluency can elicit consumer interest and desire to explore, leading to a higher willingness to click. Such disfluency does not cause consumer ad annoyance and can be induced by negative ad emotional appeals such as fear and sorrow. Essay 3 (Chapter 4) studies investment dynamics between digital crowdfunding investors, who are also the future consumers of the fundraising venture. Recognizing the co-existence between more and less informed investors, our results show that large investments by informed investors are effective signals that positively influence subsequent investors' behaviours. Such an effect is strengthened by a higher level of social similarity between investors and the size of the deal. Our findings shed light on the asymmetric information flows from more to less informed investors, and the complementarity between different types of investors.Open Acces

Special Libraries, February 1980

Volume 71, Issue 2https://scholarworks.sjsu.edu/sla_sl_1980/1001/thumbnail.jp

Let the logo do the talking: the influence of logo descriptiveness on brand equity

Logos frequently include textual and/or visual design elements that are descriptive of the type of product/service that brands market. However, knowledge about how and when logo descriptiveness can influence brand equity is limited. Using a multimethod research approach across six studies, the authors demonstrate that more (vs. less) descriptive logos can positively influence brand evaluations, purchase intentions, and brand performance. They also demonstrate that these effects occur because more (vs. less) descriptive logos are easier to process and thus elicit stronger impressions of authenticity, which consumers value. Furthermore, two important moderators are identified: the positive effects of logo descriptiveness are considerably attenuated for brands that are familiar (vs. unfamiliar) to consumers and reversed (i.e., negative) for brands that market a type of product/service linked with negatively (vs. positively) valenced associations in consumers’ minds. Finally, an analysis of 597 brand logos suggests that marketing practitioners might not fully take advantage of the potential benefits of logo descriptiveness. The theoretical contributions and managerial implications of these findings are discussed

The Role of Equity Crowdfunding Campaigns in Shaping Firm Innovativeness: Evidence from Italy

Purpose This paper aims to contribute to the scientific debate concerning the impact of equity crowdfunding on the performance of crowdfunded firms after campaigning. To this aim, the purpose of this paper is to investigate the relationship between the characteristics of the campaign and the subsequent firm innovativeness. Design/methodology/approach This study adopts a quantitative research approach to evaluate if the entrepreneurial choices affecting the characteristics of the equity crowdfunding campaigns have an impact on the post-campaign firm innovativeness. Findings The results of the models show that the campaign characteristics have a direct impact on the firm innovativeness, both in terms of offering and communication and the campaign performance. Originality/value This paper presents one of the first studies to investigate the relationship between the choice of campaign characteristics and the post-campaign firm innovativeness. As such, the study contributes to both the literature concerning start-up innovation and the literature about the impact of equity crowdfunding

The “Re-Beav” Branding : An examination of the process and outcomes of the Oregon State Athletics Rebrand

The culture of brands and branding is ever-changing and evolving. Brands are becoming increasingly important in today’s society, yet they are harder to differentiate. As a result of this growing importance and competition, it is difficult to attain a strong brand presence among competitors and achieve a distinct identity with consumers. Therefore it is vital for companies and corporations to develop a brand that is strong, differentiated and competitive. The purpose of this thesis is to understand the importance of branding and rebranding within a Division-1 university athletics department and how it contributes to a national brand identity. It discusses what branding and rebranding is, and why it is important to establish a strong brand culture and identity. It utilizes Oregon State University as a case study to examine the process and outcomes of re-branding in a Division-1 university athletic department