Research Alert
Abstract
News — Marketers take major risks to display confidence, based on the assumption that “more is always better”, yet the extant literature lacks adequate support for this notion. The present research proposes a novel conceptualization of the relationship between the confidence expressed in crowdfunding project descriptions and success, which is predicted to take an inverted U-shape. In this regard, the research draws upon the compensation effect identified between perceived competence and warmth, such that expressing high levels of confidence could decrease perceived warmth. As a result, there will be an optimal (moderate) level of confidence that determines successful fundraising outcomes – as measured by the number of contributors and amounts contributed. This prediction is tested by analyzing more than 71,000 Kickstarter projects (Study 1) and 1.3 million Kiva projects (Study 2, preregistered). A follow-up experiment (Study 3, preregistered) then establishes causality, demonstrating the role of perceived warmth and competence as the underlying mechanism.
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