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Our purpose in this study is rather focused. The literature on lotteries indicates that lotteries can enhance response rates. Once a lottery is adopted, the question becomes: Is it better to use multiple smaller rewards or a single larger reward?
There is some literature on the topic of variable incentives for a lottery. Deutskens, de Ruyter, Wetzels, & Oosterveld (2004) noted as an additional finding that adults in the Netherlands responded more often (and with some indications of higher quality) with more, but smaller, lottery incentives. On the other hand, Göritz (2004, p. 343) notes “…raffling a few big cash prizes or a few big gifts instead of several smaller ones keeps transaction costs lower, as fewer people need to be contacted and sent their prizes.” Finally, Porter & Whitcomb (2003) report that the magnitude of a lottery reward has virtually no impact on response rate for a student survey. It would seem that there is a lack of consensus on the effect of size and/or number of the lottery incentives.
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