THE EFFECTS OF REWARD TYPE ON EVALUATIONS OF AN ONLINE LUCKY DRAW

Author: 

Ming-Yi Chen

Abstract: 

This study proposes to fill a research gap by testing the moderating effect that two factors (type of effortrequirement and belief in personal good luck) can have on the relationships between reward type and evaluations ofan online lucky draw. The study design is a 3 (the type of reward: hedonic vs. utilitarian vs. mystery) × 2 (the typeof effort requirement: interesting vs. boring) × 2 (belief in personal good luck: high vs. low) between-subjects design,where belief in personal good luck is a measured chronic personality trait. Evaluation of an online lucky drawcampaign is regarded as a dependent variable. The results show that when respondents comply with a boringrequirement or have a lesser belief in personal good luck, the provision of hedonic rewards will lead to a more positiveevaluation of an online lucky draw than will the provision of utilitarian or mystery rewards. In contrast, whenrespondents comply with an interesting requirement or have a higher belief in personal good luck, the provision of amystery reward will lead to a more positive evaluation of an online lucky draw than would be the case for knownrewards (i.e., hedonic and utilitarian). With an understanding of how online shoppers evaluate their participation inan online lucky draw campaign, marketers in e-commerce can better understand not only when to use this promotionaltactic more effectively, but also how to better allocate their budget for online sales promotions.

Key Word: 

Published Date: 

May, 2016

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