Crowdfunding Product And Pricing Strategy

Crowdfunding is a kind of project that founder could raise fund by Internet.Apart from traditional financing projects,the channel of crowdfunding is more open – Any idea of the fund-raiser can be launched through network platform,and any interested people can participate in and support the project.In this paper,strategies of crowdfunding product pricing are being analyzed.Pricing strategies includes uniform pricing and discriminatory pricing.The study shows that the menu strategy of discriminatory pricing can attract high value type supporter and undervalued supporter simultaneously in the case that the product content remains unchangeable.This paper also studies relaxing assumptions on the underlying model.In the case of multi-participants crowdfunding,study shows that fundraiser should first consider supporters who firstly arrive.When the crowdfunding is related to art and charity issues,consideration should be given to irrational motivation of supporters,and adopting menu strategy to attract both high-value and low-value type and enhance their willingness to pay.This paper relaxes the assumptions on basic model,studies the situation when unknown number of participant,and suggests that the funder should consider the early arrivals.When the project is categories as public project,the funder should consider irrational motivation of supporters,using menu strategies to attract both high and low value supporter and improving their willingness to pay.Based on the theoretical model,and other study which research on the success factor of crowdfunding,this paper chooses explanatory variables for empirical model.This paper collects 250 crowdfunding projects,total 6265 pieces of data on Kickstarter and JD.Through the empirical study,it is found that the supporter number,public project is positively correlated with the success of the project,first creator and maximum supporting pricing level is negatively correlated with the success.So when study how to make the pricing strategy,creator should make full use of the experience of previous project,and set different pricing option and return products for different types of supporters.When setting low price,creator should consider offer more diversified return products to attract more low value products.