A Comparison of Probabilistic Prize Promotion Schemes
Chen, Rong, Huang, Jinsong, Su, Song, He, Feng, Social Behavior and Personality: an international journal
Based on the rank-dependent expected utility model (Quiggin, 1991), hypotheses are formed in this study regarding optimal prize promotion structure with reference to associated probabilistic aspects. Referencing both modeling works and related behavioral theories, we compared several design schemes. Using purchase scenarios of a low-value product (bread) and a high-value product (cell phone) we determined the optimal design among promotion schemes that differ by winning probability, prize amount, and number of prize value levels. We found that a promotion offering a combination of high-value prizes plus some low-value prizes was invariably preferred over a promotion offering only high- or …
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Publication information: Article title: A Comparison of Probabilistic Prize Promotion Schemes. Contributors: Chen, Rong - Author, Huang, Jinsong - Author, Su, Song - Author, He, Feng - Author. Journal title: Social Behavior and Personality: an international journal. Volume: 40. Issue: 7 Publication date: August 10, 2012. Page number: 1183+. © 2009 Scientific Journal Publishers, Ltd. Provided by ProQuest LLC. All Rights Reserved.
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