Information Technology Reference
In-Depth Information
Table 10.4
Elements which generate trust in Kickstarter and Indiegogo online crowdfunding
platforms
2. Trust
2.1. Conditions
Fees
K
If a project is successfully funded, 5 % of the total
amount of money. No fees if a project is not
successfully funded
IG
It permits fl exible funding. If goal is not reached,
creators keep the money collected and the platform
keeps 7 % of the amount obtained
Intellectual
property
K, IG
Authors retain the intellectual property
K US-based projects: Amazon payments. Non-US
projects: third-party payment processor. Payment
processing fees: 3-5 %. Credit card and prepaid card
IG
PayPal and credit card
Security K Transactions through secure server. Software
protocol Secure Sockets Layer Secure
IG Trusted Certifi ed Privacy and BBB Accredited
Business
2.2. Tracking income K, IG It is possible to know immediately the changes of a
project: quantity of money received, number of
donors and quantity given by each donor
Note: Abbreviations of crowdfunding platforms:
K
Kickstarter,
IG
Indiegogo
Payment
method
10.6.3
Engagement
According to Goodman (
2012
, in Paykacheva
2014
: 14), 'engagement process
mainly consists of providing customers with a memorable experience that would
encourage the consumers to spread the word of mouth about the company's prod-
ucts. Essentially, it generates a special connection between the company and its
customers, thus, providing the customers with additional value to the products'. She
describes an engagement marketing cycle as having the following phases: providing
service experience, entice to stay in touch, engaging into communication and cus-
tomer endorsement.
Thinking about crowdfunding online platforms, engagement consists on provid-
ing users with a memorable experience, which encourages them not just to support
projects, or to submit them, but to participate in comment threads and to spread the
content provided in the platforms by the creators of the projects. These are the usual
expectations of creators to raise awareness about the project.
Platforms generate engagement with the user through different elements. Firstly,
it is needed to have a usable interface design. Secondly, platforms must introduce
the use and the link to social media whereby the users can be connected and can
generate social participation. Ta Lu et al. (
2014
) carried a research intended to
analyse how the use of social media contributes to the success of a crowdfunding
