Abstract
This study investigates a unique lottery-oriented mail survey response mechanism, a single prize give away rather than cash prizes, to measure its impact on a consumer sample in terms of 1) the response rate, 2) cost effectiveness, and 3) biasing effect on their on their responses. A random sample of 6,384 customers from a commercial products sponsor's customer database and 6,384 noncustomers drawn from telephone directories from seven areas of Ohio was selected for this study. The results demonstrate that it is possible for managers to increase response rates using a lottery prize giveaway incentive and reduce the costs per completed survey. Perhaps direct marketing companies could increase their sales and lower their contact costs using a single lottery prize giveaway incentive such as this article describes. Managers using this method also do not have to suffer validity problems.
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