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What's in a logo? The impact of complex visual cues in equity crowdfunding
journal contribution
posted on 2023-06-10, 00:46 authored by Ammara Mahmood, Jonathan Luffarelli, Mudra MukeshVisual cues are pervasive on crowdfunding platforms. However, whether and how low validity visual cues can impact the behavior of backers remains largely unknown. In this article, we propose a disfluency-based heuristic framework for understanding the influence of low validity visual cues on equity crowdfunding platforms. Drawing on processing fluency theory and visual heuristics, we propose that backers often automatically process visual cues, and that the subjective experience of ease/difficulty with which backers perceptually process low validity visual cues serves as a heuristic and informs their perceptions of early-stage entrepreneurial ventures. We test our propositions focusing on logos (low validity visual cues that are particularly salient and ubiquitous on equity crowdfunding platforms) and logo complexity (a fundamental characteristic of logo design and established antecedent of processing disfluency). We contend that logo complexity can be interpreted by backers as a signal of venture innovativeness because more (vs. less) complex logos are more difficult to process, and thus, feel less familiar and more unique, original, and novel to backers. Since backers often value innovativeness, we further contend that logo complexity can positively impact backers' funding decisions. We find support for our framework and propositions using a multimethod approach comprising three studies: one survey, one field study, and one experiment. Theoretical contributions and managerial implications are also discussed.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of Business VenturingISSN
0883-9026Publisher
ElsevierExternal DOI
Issue
1Volume
34Page range
41-62Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2021-08-31First Open Access (FOA) Date
2021-08-31First Compliant Deposit (FCD) Date
2021-08-31Usage metrics
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