Cognitive Load: A Stumbling Block in Successful Crowdfunding

ABSTRACT Cognitive load, resulting from the substantial information provided in crowdfunding campaigns, is a critical yet easily overlooked factor. Creators often provide abundant product details to attract backers, but the consequence would turn out to be the opposite. Through two experimental studies simulating reward‐based crowdfunding scenarios, the results consistently show that higher cognitive load (manipulated via presentation format) negatively affects investment willingness, with emotional responses acting as a mediator. Unexpectedly, reference points have not shown a significant moderating effect in Study1. Study 2 revealed that the insignificant effect of the reference point was due to the existence of an implicit reference point. By integrating cognitive load and emotional mechanisms, we demonstrate that backers' implicit schemas could effectively buffer the negative effect of cognitive load. Practically, creators should increase the logic and clarity of presentation in order to evoke positive emotions, and achieve a higher success rate of crowdfunding.