New Publication in the journal "Marketing Science"
Article from Asst. Prof. Daniel Blaseg, Prof. Christian Schulze and Prof. Bernd Skiera in the journal "Marketing Science"
The journal "Marketing Science" has published the article "Consumer Protection on Kickstarter" by Daniel Blaseg, Christian Schulze and Bernd Skiera.
This article investigates consumer protection on Kickstarter—a popular and
sizeable, yet largely unregulated reward-based crowdfunding platform. Specifically, the
article focuses on Kickstarter campaigns’ use of price advertising claims (PACs) and their
failure to honor the promised discounts. Analyses show that between 2009 and 2016, more
than 500,000 consumers who backed a wide variety of game or technology campaigns lost
on average $45.72 because of broken PAC promises. Whereas 75% of PAC campaigns did
not provide the promised discounts, in almost 50% of all cases backers who were promised
a discount paid more, not less, than the retail price. In contrast, backers of campaigns that
did not promise a discount received larger effective discounts. Analyzing an extensive data
set comprising 34,745 Kickstarter campaigns, complete backing histories of more than
400,000 backers, and more than 4 million consumer comments, complaints, and reviews,
we show that broken PAC promises pose a substantial problem to consumers, that the
problem is persistent across more than 6 years, and that it has not been resolved through
self-regulation by market participants thus far.
The article is also available as "open access".
We would like to congratulate the authors on this successful publication.