Title: More than a financial alternative: discovering equity crowdfunding as a tool for entrepreneurial ventures to acquire loyal customers

Authors: Carina Hoffmann; Alexandra Moritz; Peter Kenning

Addresses: Department of Business Administration, Management and Marketing, Manchot Graduate School, Heinrich-Heine-University Duesseldorf, Universitaetsstrasse 1, 40225 Duesseldorf, Germany ' Department of Management, Trier University, Universitaetsring 15, 54296 Trier, Germany ' Department of Business Administration, Management and Marketing, Heinrich-Heine-University Duesseldorf, Universitaetsstrasse 1, 40225 Duesseldorf, Germany

Abstract: Gaining new and loyal customers is a major challenge for all companies, particularly for entrepreneurial ventures. To address this challenge, we investigate the potential of transforming investors into customers in the equity crowdfunding context. In particular, we aim to understand under what circumstances crowd-investors transform into customers and whether these customers have the potential to remain loyal to the venture. Based on a survey of crowd-investors of a German equity crowdfunding platform, we show crowd-investors' potential as loyal customers and find that their trust and affective commitment towards a funded venture are the main drivers in their transformation into loyal customers. Furthermore, we find that trust and affective commitment intervene the positive effects of identity-driven precursors. Our findings highlight that equity crowdfunding has the potential to address two major challenges entrepreneurial ventures are faced with: finding investors and gaining loyal customers.

Keywords: equity crowdfunding; crowd-investor behaviour; customer acquisition; customer loyalty; commitment-trust theory; entrepreneurial ventures; investomer; structural equation modelling; social identity.

DOI: 10.1504/IJESB.2022.126350

International Journal of Entrepreneurship and Small Business, 2022 Vol.47 No.1, pp.82 - 108

Received: 12 Feb 2019
Accepted: 02 Nov 2019
Published online: 24 Oct 2022 *

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