Augmenting the Theory of Planned Behaviour and Trust in Driving the Funder's Intention to Donate: The Moderating Role of Herding Bias

The current digital trend is to source funds for commercial or non-commercial purposes using online crowdfunding. In this study, we apply the theory of planned behaviour to study its effect on the funder's intention to donate. We explore the impact of attitude, subjective norms and perceived behavioural control on a funder's donation intention. We also study the effect of trust on a funder's intention to donate moderated by herding bias. The study conducted a survey on Indian crowdfunders using a 5-point Likert Scale through a structured questionnaire. Structural equation modelling was used to analyse the results. The findings of the study reveal that all the identified constructs, namely attitude, subjective norms, perceived behavioural control and trust, significantly affect the funder's intention to donate in donation crowdfunding campaigns. Moreover, herding bias significantly and positively moderates the relationship between trust and the funder's intention to donate.