Market Researchers are constantly being asked to do “more with less”. Doing so is both practical (budgets and timelines are tight) and smart (the more we ask respondents to do, the less engaged they will be). At TRC we use a variety of ways to accomplish this from basic (eliminate redundancies, limit grids and the use of scales) to advanced (use techniques like Conjoint, Max-Diff and our own Bracket™ to unlock how people make decisions). We are also big believers in using incentives to drive engagement and with more reliable results. That is why a recent article in the Journal of Market Research caught my eye.
The article was about promotional lotteries. The rules tend to be simple, “send in the proof of purchase and we’ll put your name in to a drawing for a brand new car!." The odds of winning are also often very remote which might make some not bother. In theory, you could increase the chances of participation by offering a bunch of consolation prizes (free or discounted product for example). In reality, the opposite is true.
One theory would be that the consolation prizes may not interest the person and thus they are less interested in the contest as a whole. While this might well be true, the authors (Dengfeng Yan and A.V.Muthukrishnan) found that there was more at work. Consolation prizes offer respondents a means to understand the odds of winning that doesn’t exist without them. Seeing, for example, that you have a one in ten million chance of winning may not really register because you are so focused on the car. But if you are told those odds and also the much better odds of winning the consolation prize you realize right away that at best chances are you will win the consolation prize. Since this prize isn’t likely to be as exciting (for example, an M&M contest might offer a free bag of candy for every 1000 participants), you have less interest in participating.
Since we rely so heavily on incentives to garner participation, it strikes me that these findings are worthy of consideration. A bigger “winner take all” prize drawing might draw in more respondents than paying each respondent a small amount. I can tell you from our own experimentation that this is the case. In some cases we employ a double lottery using our gaming technique Smart Incentives™ tool (including in our new ideation product Idea Mill™ ). In this case, the respondent can win one prize simply by participating and another based on the quality of their answer. Adding the second incentive brings in additional components of gaming (the first being “chance”) by adding a competitive element.
Regardless of this paper, we as an industry should be thinking through how we compensate respondents to maximize engagement....