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Incentive Definition

The payment to participants for coming to a focus group. The amount varies dramatically, based on the difficulty of recruiting the participants. Also called honorarium or co-op payment.

An incentive in marketing research refers to a reward or compensation offered to participants in exchange for their time, feedback or participation in a study. Incentives can be monetary or non-monetary and are used to encourage engagement and increase response rates.

What are the key aspects of incentives in marketing research?

• Incentives can be cash, gift cards, products, discounts or entries into prize drawings.
• Tailored based on study length, target audience or difficulty of recruitment.
• Ethical considerations and transparency are essential.
• Helps reduce participant no-shows and dropout rates.
• Must be budgeted for and disclosed clearly.

Why are incentives important in market research?

Incentives help attract and retain quality participants, especially for longer or more involved studies. They also demonstrate respect for participants' time and effort, contributing to better data quality and more reliable insights.

Who relies on incentives in marketing research?

• Market research firms.
• Corporate insights departments.
• Academic researchers.
• UX and usability testing teams.
• Panel providers and recruitment agencies.

How do market researchers use incentives?

Market researchers offer incentives during recruitment to motivate participation and encourage thoughtful responses. They select appropriate incentive types and amounts based on audience expectations, industry standards and project budgets, and often deliver incentives digitally or in person after participation.