Cues that Work: Designing the Optimal Restaurant Crowdfunding Campaign in the US

Abstract

ABSTRACT This study explores how restaurant entrepreneurs incorporate various intrinsic and extrinsic cues into the design of reward-based crowdfunding campaigns to maximize their probability of success. This study aims to identify the optimal levels of each of these cues to guide entrepreneurs’ strategic behavior. Based on the cue utilization theory and the concept of optimal arousal, this study collected restaurant project data from Kickstarter. Linguistic Inquiry and Word Count (LIWC) was also used to quantify linguistic cues in the project title. Linear and quadratic terms of cues were included in the logistic regression model. An optimal campaign should have 13 pictures, 2 videos, a detailed but succinct description, and many rewards. The project title should have a neutral and conservative style instead of being extremely positive.