The Role of Empathy in Crowdfunding Channel Platform
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Purpose: Crowdfunding can be a complementary channel in which start-ups or small companies can obtain financial help and take advantage of exploiting the online potential. To activate crowdfunding, it is necessary to consider a consumer‟s empathic responses. This article examines the role of empathy in the crowdfunding channel platform. We adopted the identification-commitment model to prove the role of empathy. Research design, data, and methodology: Participants were asked to read the charitable crowdfunding campaign. More than 300 young adults completed an online questionnaire and we analyzed it with structural equation modeling (SEM). To find out the role of empathy, we postulate several models which use empathy variable for different purposes. Results: We conclude that empathy has the role of moderator in the identification-commitment model. This means the high empathic response helped the relationship between identification and commitment. However, low empathic response can negatively influence the process of identification to commitment. Conclusions: This study found that virtual empathy is positively related to crowdfunding participation if we can elevate empathy in the crowdfunding channel platform. The findings also show that we need to consider empathic response when we want to raise funds for specific projects such as protecting the natural environment.
Abstract
Purpose: Crowdfunding can be a complementary channel in which start-ups or small companies can obtain financial help and take advantage of exploiting the online potential. To activate crowdfunding, it is necessary to consider a consumer‟s empathic responses. This article examines the role of empathy in the crowdfunding channel platform. We adopted the identification-commitment model to prove the role of empathy. Research design, data, and methodology: Participants were asked to read the charitable crowdfunding campaign. More than 300 young adults completed an online questionnaire and we analyzed it with structural equation modeling (SEM). To find out the role of empathy, we postulate several models which use empathy variable for different purposes. Results: We conclude that empathy has the role of moderator in the identification-commitment model. This means the high empathic response helped the relationship between identification and commitment. However, low empathic response can negatively influence the process of identification to commitment. Conclusions: This study found that virtual empathy is positively related to crowdfunding participation if we can elevate empathy in the crowdfunding channel platform. The findings also show that we need to consider empathic response when we want to raise funds for specific projects such as protecting the natural environment.
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