Crowdfunding sustainable products with the product search matrix: niche markets vs. mass markets

Abstract

AbstractThis exploratory research aims at analyzing the success factors of environmentally sustainable products in crowdfunding campaigns by considering aspects such as the customer needs to be addressed by those products, the technology of those products, and the market targeted (niche vs. mass market).Original data from creators of environmentally sustainable products in crowdfunding campaigns were collected through a questionnaire and then analyzed with regression analysis and additional descriptive statistics.Results suggest that crowdfunding platforms are not the most appropriate instrument for addressing completely new customer needs with sustainable products nor for developing completely new technologies as the success of such initiatives is quite low. Moreover, results suggest that sustainable products, developed through crowdfunding platforms, targeted at niche markets are more successful in terms of financing than mass market products. In light of the results achieved, the paper formulates managerial suggestions for project creators in terms of paying attention to selecting the appropriate financing channel in light of the product characteristics.