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The success of a sweepstakes can differ significantly based on its reward structure. This raises the question: How does reward structure affect consumer valuation and participation? To design an effective sweepstakes, one must first understand how consumers’ valuation of sweepstakes varies based on the number of winners, the number of levels of prizes, and the difference in the awards between the levels. Large bait attracts the bite, but not everyone can afford to offer them. Some savvy firms have already learned the value of big money prizes backed by SCA:
“You’ve got to put a prize out there better than the next guy. Small prizes won’t generate any excitement – it has to be $50,000, $100,000 or $1 million. SCA helped us do that.”
A Few Partners Who Like to Win
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SCA is not an insurance company and does not issue insurance policies. SCA offers promotional event prize promotions under Texas insurance code chapter 1810.