Just Wondering ... 1 Big vs Many Small prizes

[Xenon]

As long as we have a Business forum, I'd love to ask this question and see if some people in marketing or whatever have an answer ...

I've often wondered about the choice of doing a promo with "One Big Prize" ... vs having several small prizes.

Just to make the math easy ... let's say you have a 10K dollars for Prize money for some contest ... for example for customers who respond to feedback survey or something.

You COULD have ....
1 Grand Prize winner who gets $10K
or
10 Winners who get $1K each
or
1000 Winners who get $10 each.

I almost ALWAYS see the first option ... ONE big prize ...

So the psychology must be that the BIG prize is what draws people into the contest ... to answer the survey or enter the sweepstakes or whatever.

BUT, I have to admit, I don't really understand that ... it seems the other two options get you MORE people who now have a reason to be a loyal customer and have positive feeling about your business.

[irishmark]

As long as we have a Business forum, I'd love to ask this question and see if some people in marketing or whatever have an answer ...

I've often wondered about the choice of doing a promo with "One Big Prize" ... vs having several small prizes.

Just to make the math easy ... let's say you have a 10K dollars for Prize money for some contest ... for example for customers who respond to feedback survey or something.

You COULD have ....
1 Grand Prize winner who gets $10K
or
10 Winners who get $1K each
or
1000 Winners who get $10 each.

I almost ALWAYS see the first option ... ONE big prize ...

So the psychology must be that the BIG prize is what draws people into the contest ... to answer the survey or enter the sweepstakes or whatever.

BUT, I have to admit, I don't really understand that ... it seems the other two options get you MORE people who now have a reason to be a loyal customer and have positive feeling about your business.

We in radio do a lot of these promotions.

One big prize of 10K with qualifying prizes works best for us. We'll do a 10K giveaway and the qualifiers get a $50 gas card.

The perception to people is "I don't stand a chance to win 10K! But a $50 gas card? That I've got a chance! So give them a qualifying prize with a giant carrot!

[Domer]

We in radio do a lot of these promotions.

One big prize of 10K with qualifying prizes works best for us. We'll do a 10K giveaway and the qualifiers get a $50 gas card.

The perception to people is "I don't stand a chance to win 10K! But a $50 gas card? That I've got a chance! So give them a qualifying prize with a giant carrot!

McDonald's does that with their Monopoly game and such. You could win $1 million or you could get a free Coke or order of fries.

[irishmark]

We in radio do a lot of these promotions.

One big prize of 10K with qualifying prizes works best for us. We'll do a 10K giveaway and the qualifiers get a $50 gas card.

The perception to people is "I don't stand a chance to win 10K! But a $50 gas card? That I've got a chance! So give them a qualifying prize with a giant carrot!

McDonald's does that with their Monopoly game and such. You could win $1 million or you could get a free Coke or order of fries.

Well, there's a fine brand to copy.

[Domer]

Well, there's a fine brand to copy.

As Sheldon Cooper would say, sarcasm?

[irishmark]

Well, there's a fine brand to copy.

As Sheldon Cooper would say, sarcasm?

No.

Seriously, there is no better company to have built a solid brand than McDonalds. When most people think of fast food chains, McDonald's will come to the minds of about 60% of people.