The Use of Incentives and Disincentives in Social Marketing: A Simulational and Experimental Study
Wandwossen, Kassaye
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Permalink
https://hdl.handle.net/2142/67322
Description
Title
The Use of Incentives and Disincentives in Social Marketing: A Simulational and Experimental Study
Author(s)
Wandwossen, Kassaye
Issue Date
1980
Department of Study
Business Administration
Discipline
Business Administration
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Business Administration, General
Language
eng
Abstract
With the major thrust that social behaviors can be effectively induced as a result of a change in the form and manner in which incentives and/or disincentives are issued, investigations were made into the effects of monetary incentives and disincentives. In particular, marketing concepts and techniques were used to elicit answers to social problems such as cigarette smoking and nonvoting behaviors, and to provide a framework for segmenting the market on the basis of the preferences and needs of the target market.
In an effort to provide a test of validity for the instruments used, and as a measure of the reliability of the findings, the study was purposefully divided into incentive-disincentive simulation, incentive simulation and experimental sets. Randomly selected six hundred and forty subjects, who were determined by screening tests to be habitual cigarette smokers (n = 320) and regular nonvoters (n = 320), were randomly assigned to the three sets. A compendium of lists was prepared further dividing the subjects based on their membership in Greek organizations.
The data were analyzed using additive and multiplicative conjoint measurement, univariate analysis of variance, analysis of variance for rank data and multivariate analysis of variance techniques.
The results from the incentive simulation, incentive-disincentive simulation and experimental sets were compared with one another in terms of direction and magnitude of value. In the incentive and incentive-disincentive simulation sets, the utilities assigned to time (immediate versus delayed), form of pay (nongraduating versus graduating), incentive (incentive versus disincentive) and recipient (group versus individual) factors were computed using additive and multiplicative conjoint measurement models.
Based on observations made by a few researchers and the theoretical justifications advanced to account for human behavior with regard to incentives and disincentives, a set of hypotheses were tested. A situation where incentives were available, compared to a situation where incentives were not available, was observed to bring about change in behavior. Incentives appeared to influence more the behaviors and attitudes of females than they influenced the behaviors and attitudes of males. It was also noted that in both the smoking and nonvoting sets incentives were preferred to disincentives. Interestingly, individuals who were not members of Greek organizations seemed to perceive disincentives as more preferable to incentives as facilitators of behavioral change among members of Greek organizations.
Even though there were inter-group differences in preferences, each group as a whole appeared to be relatively homogeneous. Looking at the intra-group differences, it was noted that individuals who were members of Greek organizations differed from those who were not members in preferences and utilities attached to form of pay, time of pay and recipient factors. Furthermore, differences in the utilities attached to the various factors differed, depending on the nature of the behavior, thus suggesting the possible danger of treating nonvoting and smoking behaviors in a continua and implementing identical marketing tools. Therefore, in order to create a successful and a responsive market segment, it appears that each social problem that is studied by marketers warrants specific investigation of that behavior.
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