All:

The entire class in my graduate introductory marketing research course is
doing a project for Pier 1 imports related to their marketing strategy for
interior designers. We are going to do an Internet survey of designers and
are trying to figure out the best incentive structure. Lorie Poe, our main
client at Pier 1, has proposed three alternative structures (see her message
below).

I would certainly opt for scenario 2 over scenario 1, but I don't know
whether scenario 3 is likely to be worth the extra cost. That is, will it
generate a sufficiently higher response rate to justify the added cost? What
are your thoughts? Is there any relevant experience that has been published?

Thanks very much for your help.

Regards,
John

John Bassler, Ph.D.
Director, MSMR Program
The University of Texas at Arlington
(817) 272-2340 (office)
(866) 296-3256 (toll-free)
[log in to unmask]
http://www2.uta.edu/msmr

-----Original Message-----
From:   Poe, Lorie D
Sent:   Thursday, March 14, 2002 2:51 PM
To:     John Bassler (E-mail)
Subject:        Incentives

John-
I've been tossing around the incentives question and have come up with three
possible scenarios, all using the "scaled" approach to encouraging rapid
response. All use two rounds of drawings for P1 gift cards. For each
drawing, there is a grand prize and several secondary prizes. Let me know
your thoughts. I'd like to get at least 400 completes, 500 is better.
Scenario 1
                                                Grand Prize     Secondary
Prizes
Complete survey within 1 week of invitation     $500            4 - $100

Complete survey in 2nd week after invitation    $250            4 - $50

Total cost = $1,350
Scenario 2
                                                Grand Prize     Secondary
Prizes
"  1st week "                                   $500            5 - $100

" 2nd week "                                    $250            5 - $50

Total cost = $1,500
Scenario 3
                                                Grand Prize     Secondary
Prizes
"  1st week "                                   $750            4 - $200

" 2nd week "                                    $350            4 - $100

Total cost = $2,300

Lorie Poe
Pier 1 Imports
Marketing Research Analyst