Chapter 10 Flashcards
What did Bitterl and Schreier (2016) investigate?
How crowdfunding impacts the relationship between a firm or another crowdfunding initiative and its sponsors.
This research was executed through a university.
Benefits crowdfunding?
- Good way to finance products and initiatives when you cannot receive money through the original channels.
- Often free media exposure and publicity
- Often leads to a base of loyal future customers.
What are the biggest forms of “funding”?
- Lending
- Donation
- Reward
- Equity
Debt-based compensations
Share in the company, dividend, interest.
Reward-based compensation
Receiving the product they crowdfund, getting credits, gifts, etc.
Two types of crowdfund-compensations
- Reward-based compensations
- Debt-based compensations.
Crowdfunding
The practice of funding a project or venture by raising monetary contributions from a large number of people.
Today, this is often performed via internet-mediated registries, but the concept can also be executed through mail-order subscriptions, benefit events, etc.
Who are least affected by Airbnb’s presence?
Chain hotels.
Reasons:
- They are less comparable to the offerings of Airbnbs (more upscale)
- They have stronger ties with their customers (loyalty).
Who are most affected by Airbnb’s presence?
Budget hotels (that do not have a meeting space).
Reason: these hotels are more focused on targeting non-business travellers, who are more likely to use Airbnb.
Why does Airbnb have a negative impact on hotel revenue?
- Because of decreasing occupancy to compete with Airbnb
- Because of decreasing prices to compete with Airbnb offerings
What did Zervas, Proserpio, and Bayers (2016) investigate?
The impact of Airbnb on the performance of hotels in the same city, using a difference-in-differences approach
Hybrid retailer
The collaboration of both e-commerce and bricks and mortar stores.
Advantage online retailers (over physical stores)
Due to high storage costs and physical limitations, physical stores can only offer a limited amount of different products.
Online retailers have a higher reach and lower storage costs, making a profitable assortment larger, and an actual supply also larger.
Long tail (concept)
A business strategy that allows companies to realise significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling low volumes of a reduced number of popular items.
The opportunities digitalisation brought
- Crowdfunding
- Sharing platforms (e.g., Airbnb)
- Streaming services (e.g., Netflix)
