Crowdfunding is a relatively new frontier for marketing and consumer behavior. The main feature of this type of business arrangement and its related marketing revolves around customer involvement and a sufficient number of interested backers to fund the project. The reward for involvement is the completion of the product or project. In addition, there may be benefits resulting from

• excess funds received, or

• the creation of additional features to the product to attract more funds.

However, the relationship between the developers of the product and the backers is no longer a simple case of gathering pre-sales funding to validate the demand for the product. Increasingly, backers are involved in the actual development of the product. The project developer responds to the requirements of the backers; after all, it is their funds that underpin the financial viability of the whole project. Crowdfunding certainly shortens the development cycle for new products, but it is developing far beyond the original idea of peer-topeer lending.

Research the development of crowdfunding across two or more crowdfunding platforms. How has the development and launch of products been influenced by the involvement of the customers or backers? How has the product been marketed? Has the product, once launched, featured the involvement of backers in the marketing messages? Do you think this backer involvement and influence will continue? What challenges will marketers face both during the project crowdfunding phase and the eventual launch of the product in the market?

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