Short answer
When developing sustainable products, prioritize niche market targeting and leverage existing technologies to maximize crowdfunding campaign success.
- Field
- Innovation & Markets
- Source
- Electronic Commerce Research (2023)
- Method
- Quantitative analysis of original data from creators of environmentally sustainable products in crowdfunding campaigns.
- Evidence
- Moderate effect
Crowdfunding platforms are more effective for financing sustainable products targeting niche markets than mass markets, especially when addressing existing customer needs with established technologies. This innovation & markets research insight is drawn from a 2023 study published in Electronic Commerce Research. Using Quantitative analysis of original data from creators of environmentally sustainable products in crowdfunding campaigns., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing sustainable products, prioritize niche market targeting and leverage existing technologies to maximize crowdfunding campaign success.
Sustainable products find crowdfunding success in niche markets, not mass markets.
Crowdfunding platforms are more effective for financing sustainable products targeting niche markets than mass markets, especially when addressing existing customer needs with established technologies.
Electronic Commerce Research · 2023
Key Findings
- 01Crowdfunding platforms have low success rates for sustainable products addressing entirely new customer needs or developing entirely new technologies.
- 02Sustainable products targeting niche markets are more successful in crowdfunding campaigns than those targeting mass markets.
Application
Design takeaway
When developing sustainable products, prioritize niche market targeting and leverage existing technologies to maximize crowdfunding campaign success.
How to apply
Before launching a crowdfunding campaign for a sustainable product, conduct thorough market research to identify a viable niche and assess the product's technological readiness.
Project actions
- 01When proposing a crowdfunding campaign for a sustainable product, clearly define the target niche market and justify why it's a suitable segment.
- 02Analyze the technological readiness of your sustainable product and consider how it addresses existing customer needs to strengthen your crowdfunding pitch.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes original data from product creators.
- +Employs statistical analysis (regression) for robust findings.
Limitations
The study's findings might not apply to all types of sustainable products or all crowdfunding platforms.
Reliability & validity
The use of regression analysis suggests a degree of statistical rigor, but the exploratory nature and potential for varied interpretations of 'niche' and 'mass' markets could impact external validity.
Think critically
To what extent do the findings about niche markets and technology apply to different types of sustainable products (e.g., fashion, energy, food)?
Design Principles
"Match product innovation strategy with appropriate market and funding channels."
Understanding market targeting is crucial for the commercial viability of sustainable product innovations. Designers and entrepreneurs can leverage this insight to select appropriate funding channels, increasing the likelihood of successful product launches and resource allocation.
What This Means for Your Design
If you're trying to get money for a green product using crowdfunding, it's better to aim for a small group of people who really need it, rather than trying to sell to everyone. It's also harder to get funding if your product is totally new or uses brand new tech.
How to use in your project
- 1.Use this research to justify the choice of a niche market for your sustainable product and to explain why crowdfunding is an appropriate funding method for your specific design project.
Add to My Project
Quick Cite
Paragraph starter
This research indicates that crowdfunding platforms are more effective for sustainable products targeting niche markets (Corsini & Frey, 2023). Therefore, for this design project, a focused approach on addressing specific needs within a defined niche will be prioritized to enhance the likelihood of securing funding and achieving market penetration.
Source
Electronic Commerce Research
Crowdfunding sustainable products with the product search matrix: niche markets vs. mass markets
journal · 2023
View sourceQuestions About This Research
- What does the research say about sustainable products find crowdfunding success in niche markets, not mass markets?
- When developing sustainable products, prioritize niche market targeting and leverage existing technologies to maximize crowdfunding campaign success. Evidence: Electronic Commerce Research (2023).
- Why does "Sustainable products find crowdfunding success in niche markets, not mass markets." matter for design?
- Understanding market targeting is crucial for the commercial viability of sustainable product innovations. Designers and entrepreneurs can leverage this insight to select appropriate funding channels, increasing the likelihood of successful product launches and resource allocation.
- How can designers apply this research?
- When developing sustainable products, prioritize niche market targeting and leverage existing technologies to maximize crowdfunding campaign success.
- What were the main findings?
- Crowdfunding platforms have low success rates for sustainable products addressing entirely new customer needs or developing entirely new technologies.. Sustainable products targeting niche markets are more successful in crowdfunding campaigns than those targeting mass markets.
- What research method was used?
- Quantitative analysis of original data from creators of environmentally sustainable products in crowdfunding campaigns..
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2023 journal from Electronic Commerce Research.
- What should I do differently in my next project?
- Before launching a crowdfunding campaign for a sustainable product, conduct thorough market research to identify a viable niche and assess the product's technological readiness.
- What are the limitations?
- The study is exploratory and may not capture all nuances of crowdfunding success for sustainable products.