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(1)

Effects of two innovative

techniques to apply incentives in online access panels

Michael Bosnjak* & Olaf Wenzel**

* University of Mannheim, Department of Psychology II, Germany

** SKOPOS Marketing Research, Cologne, Germany

(2)

Background

• Limited effects of incentives on response rates in Web-based access panel surveys

• Lack of innovative, Internet-specific techniques to implement incentives, such as

• Prepaid-Incentives, which proved to be successful on classical self-administered surveys (Church, 1993; Bosnjak & Tuten, 2003)

• Immediate notification of prize-draw results after survey

completion (Tuten, Galesic, & Bosnjak, 2004; Tuten, Galesic, &

Bosnjak, 2005)

(3)

Theoretical Bases

• Reciprocity:

Prepaid incentives evoke the norm of reciprocity

(Gouldner, 1960) resp. activate reciprocity heuristics (Cialdini, 2002), leading to a higher probability for compliant behaviour compared to postpaid incentives.

• Immediacy Effect:

Prize draws (equal values) with immediate notification outperform prize draws with delayed notification (Tuten, Galesic, & Bosnjak, 2004) because people discount the utility of future events, which motivates them to prefer immediate over delayed

rewards (Frederick, Loewenstein & O'Donoghue, 2003).

(4)

Research Questions and Hypotheses

• Effects of a mixed prepaid/postpaid incentive in relation to postpaid and prize draws?

-> Mixed prepaid/postpaid response rates should outperform postpaid and no incentives. No specific prediction in relation to price draws.

• Effects of an immediate prize draw notification information in relation to a delayed prize draw and both the prepaid/postpaid groups?

-> Immediate should outperform delayed prize draw and postpaid bonus points. No specific prediction in relation to the mixed prepaid/postpaid strategy.

• Costs per participant comparisons for different incentive implementation variants?

• Differences for answers to substantive questions between groups?

(5)

Methods I

Subjects:

1500 SKOPOS Europanel participants initially contacted (300 per group)

Materials and procedure:

Omnibus survey on (a) Web-ads for surveys, (b) pharmaceuticals, (c) tourism; average

completion time 10 minutes; fielded for one

week; no reminders

(6)

Methods II

Experimental groups:

• Group 1: Postpaid Bonus Points

4 postpaid bonus points (= EUR 2.-).

• Group 2: Mixed Prepaid/Postpaid

2 prepaid bonus points, 2 postpaid bonus points (paid for complete participation)

• Group 3: Immediate Price Draw

Immediate notification of prize draw result after complete participation. Winning propability:

1/50, prize amount: 200 bonus points (= EUR 100.-).

• Group 4: Delayed Prize Draw

Delayed notification of prize draw result. Winning propability: 1/50, prize amount: 200 bonus points (= EUR 100.-), notification one week following partricipation.

• Group 5: Control Group (no incentives)

(7)

Methods III

Dependent Variables:

• Response rates (completion rates)

• Drop-Out Rates

• Costs for 1% increase compared to the no incentives group

• Differences in response content

(8)

Results I: Completion Rates (in %)

48,0

53,3 54,0

45,7

38,0

0 10 20 30 40 50 60 70

postpaid mixed immmediate prize

delayed prize control

(9)

Results II: Drop-Out Rates (Counts)

Counts: Completion Counts: Drop-Out

postpaid 144 13

mixed 160 9

immmediate prize 162 6

delayed prize 137 11

control 114 16

(10)

Results III: Costs Per Participant

(in Panel Points: 2 PP = 1 €)

Absolute I (relative prize costs)

Absolute II (actual prize

costs)

Per complete I

Per

complete II

postpaid 576 576 4 4

mixed 920 920 5,8 5,8

immmediate

prize 648 600 4 3,7

delayed prize 548 400 4 2,9

control 0 0 0 0

(11)

Response Differences (for Tourism Items)

Sketch of main tentative results:

Two contradictory questions were embedded:

(a) the typical visitor of destination X matches my ideal self (the person I´d like to be similar to) and

(b) the typical visitor of destination X matches my undesired self (the person I don’t want to be similar to):

Greater ”yeah” saying tendency in mixed prepaid/postpaid condition!

! Lowest self-reported price consciousness in tourism for delayed prize draw participants.

(12)

Summary, Conclusions and Implications I

• Tendency that both mixed prepaid/postpaid and

immediate prize draws outperform postpaid, delayed

prize draw, and control BUT power problem due to low initial sample sizes in this specific study.

• No significant difference between mixed

prepaid/postpaid and immediate prize draw groups.

• Lowest per complete costs for prize draw conditions.

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Summary, Conclusions and Implications II

• First evidence for systematic differences in the

substantive questions between groups, esp. ”yeah”

saying tendency for mixed prepaid/postpaid group.

Further investigations most promising.

!

!

!

! Overall: Immediate prize draw condition tends to

balance response rates, costs, and response quality

issues best.

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