Minnesota State Lottery Opti-Mix Study

Transcription

1 Minnesota State Lottery Opti-Mix Study inal Report June 2009 June 2009 Nobody s Unpredictable

2 genda ackground & Objectives Methodology Lottery Participation Second hance rawings and Prizing Options Opti-mix Results Minnesota State Lottery Opti-Mix Study

3 ackground & Objectives Two-phase research study to test a variety of different Scratch concepts onventional Scratch tickets and alternative concepts. irst phase of the research was conducted via the Internet using Scratch Opti-Mix. Main research objective: etermine the relative appeal of different Scratch tickets among Scratch players in Minnesota. Secondary objectives: What is the appeal of different Scratch concepts among the Lottery s scratch segments? What types of prizes are appealing to Scratch players in a lottery game? What is the awareness of Second hance drawings? Minnesota State Lottery Opti-Mix Study

4 Methodology The survey was conducted online. Respondents belong to consumer Internet panels and were invited to join the survey via We use a discrete choice spending exercise called Opti-Mix to test 30 different Scratch concepts. Included in the mix was a combination of new tickets and benchmark tickets to aid in comparability. ata was collected between pril 23 rd and May 1 st, 2009 In total, we surveyed 1000 Scratch players in the State of Minnesota. Respondents were screened for the following: ge mployment Must have spent money on Scratch tickets in past year Respondents were also classified by the Lottery s scratch segments. Minnesota State Lottery Opti-Mix Study

5 Methodology Survey was administered on the Internet. The basic flow of the survey was as follows: INTROUTION & SRNING PRTIIPTION, Had to be resident SPNING, of Minnesota, & RQUNY 18 years or older Not SRTH Participation employed GM by and the spending PLY lottery, a on gambling lottery games organization, the media requency or other similar establishments Played OPTI-MIX Price of play Scratch points SPNING tickets played in (played XRIS the past most year often) ntry into second chance drawings SRTH 10 screens TIKT of 12 different VLUTIONS concepts (randomized) ppeal of different prizes llocate up to $100 per screen Holiday-themed SRTH Likes and SGMNTTION islikes ticket purchase Price points included $1, $2, $3, $5, $10, and $20 Likelihood Tickets MOGRPHIS Scratch of included segmentation Purchase new tickets, input benchmark questions tickets and requency of Purchase licensed property ducation tickets Income Zip ode Telephone rea ode Minnesota State Lottery Opti-Mix Study

6 Scratch Segment Size & Share of Spending 13% isengaged abblers 8% 18% 38% Hurried Opportunists 38% 25% Methodical Specialists 75% 49% 24% edicated Generalists 37% Segment Size Share of Past Year Spending on Scratch Minnesota State Lottery Opti-Mix Study

7 Lottery Participation

8 Past Year Participation & Spending Scratch Tickets 100% Mean Spend $82 Powerball 81% $74 Gopher 5 30% $42 Hot Lotto 19% $50 Northstar ash 17% $64 aily 3 16% $36 Print-N-Play Games 10% $35 Mega Millions 5% ** **ase size too small to report 5. Over the past year, which of the following Minnesota State Lottery games have you played or spent money on? Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents (n=1000) 9

9 Past Year Participation mong Scratch Segments edicated Generalists Methodical Specialists Hurried Opportunists isengaged abblers Total ase: ll respondents (n=1000) (n=241) (n=252) (n=378) (n=130) Scratch Tickets 100% 100% 100% 100% 100% Powerball 81% 87% 82% 80% 72% Gopher 5 30% 40% 28% 26% 27% Hot Lotto 19% 23% 20% 16% 20% Northstar ash 17% 24% 16% 11% 21% aily 3 16% 25% 15% 12% 12% Print-N-Play Games 10% 14% 14% 4% 10% Mega Millions 5% 7% 4% 3% 5% 5. Over the past year, which of the following Minnesota State Lottery games have you played or spent money on? Minnesota State Lottery Opti-Mix Study

10 Past Month Participation & Spending ny Game (Net) 80% Mean Spend $26 Scratch Tickets Powerball 56% 63% $18 $10 Gopher 5 Hot Lotto Northstar ash aily 3 Print-N-Play Games Mega Millions None 14% 10% 9% 5% 4% 2% 20% $8 $9* $13* $10* ** ** *aution: Small base **ase size too small to report 1. In the past month, which of the following Minnesota State Lottery games have you played or spent money on? Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents (n=1000) 11

11 Past Month Participation mong Scratch Segments Total edicated Generalists Methodical Specialists Hurried Opportunists isengaged abblers ase: ll respondents (n=1000) (n=241) (n=252) (n=378) (n=130) ny Game (Net) 80% 86% 90% 71% 76% Scratch Tickets 63% 77% 82% 44% 52% Powerball 56% 63% 59% 51% 52% Gopher 5 14% 20% 12% 11% 15% Hot Lotto 10% 13% 9% 9% 8% Northstar ash 9% 13% 8% 6% 11% aily 3 5% 8% 4% 4% 3% Print-N-Play Games 4% 7% 5% 1% 4% Mega Millions 2% 5% 1% 1% 2% None 20% 14% 10% 29% 24% 1. In the past month, which of the following Minnesota State Lottery games have you played or spent money on? Minnesota State Lottery Opti-Mix Study

12 requency of Scratch Play aily 1% Several times a week 7% Once a week 12% 2-3 times a month 17% Once a month 14% Less than once a month 13% Once every 3 months 12% Less than every 3 months 25% 3. We would like to know how frequently you play different lottery games. On average, how often would you say you play...? Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents (n=1000) 13

13 requency of Scratch Play mong Segments 20% Weekly (Net) 29% 36% 7% 8% 30% Monthly (Net) 18% 25% 38% 43% Total (n=1000) edicated Generalists (n=241) Methodical Specialists (n=252) Hurried Opportunists (n=378) isengaged abblers (n=130) 50% Less than monthly (Net) 25% 28% 75% 66% 3. We would like to know how frequently you play different lottery games. On average, how often would you say you play...? Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents 14

14 Price Points Played Most Often ase: ll respondents Total edicated Generalists Methodical Specialists Hurried Opportunists isengaged abblers (n=1000) (n=241) (n=252) (n=378) (n=130) $1 tickets 61% 54% 38% 76% 77% $2 tickets 15% 14% 18% 14% 11% $3 tickets 11% 11% 30% 2% 2% $5 tickets 11% 18% 12% 7% 7% $10 tickets 1% 2% 2% 0% 2% $20 tickets 1% 1% 1% 0% 0% 5. Of the prices of Scratch Tickets that you currently play, which do you play most often? Minnesota State Lottery Opti-Mix Study

15 Second hance rawings and Prizing

16 ntry Into Second hance rawings Yes, I've entered these drawings more than five times 10% Yes, I've entered three or four times 6% Yes, I've entered once or twice 16% I've heard of these drawings, but I've never entered them 40% I've never heard of these drawings 28% 6. rom time to time the Minnesota State Lottery offers the chance to enter non-winning tickets into a second chance drawing for a variety of prizes. Have you ever entered any of these second chance drawings? Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents 21

17 How to Increase Interest in Second hance rawings etter chances of winning 69% more convenient way to enter 42% More appealing prizes 31% More reminders about the drawings 20% Other 3% Nothing 8% 6a. What would make you interested in entering more often? Minnesota State Lottery Opti-Mix Study 2009 ase: Have entered a second chance drawing (n=215) 23

18 Reasons or Not ntering Second hance rawings I don't play very often 61% My chances of winning are too poor 60% ntering the drawing is inconvenient 53% I forget to enter 53% I don't know which games offer a chance to enter the drawing 51% I don't know how to enter 31% The games I have to purchase in order to enter the drawing do not appeal to me The prizes don't interest me 18% 14% 6b. Here are some possible reasons why you may not have entered these drawings. Using a scale of 1 to 7, where 1 is 'strongly disagree' and 7 is 'strongly agree', please indicate your level of agreement with the following statements. Minnesota State Lottery Opti-Mix Study 2009 ase: ware of second chance drawings and never entered them (n=404) 24

19 ppeal of ifferent Prizes % ppealing ash 97% pre-paid Visa card voucher that can be redeemed for the vacation of your choice gas/ electric hybrid car such as a Toyota Prius 73% 71% 85% Las Vegas vacation package home theater system 64% 63% boat from a company like Lund or restliner lectronic games like WII or Xbox oncert tickets to an artist or band of your choice 4-wheel all-terrain vehicle Lottery tickets snowmobile from a company like rctic at or Polaris Movie tickets trip to an event like the Grammy wards 56% 54% 52% 51% 47% 40% 39% 33% ree music downloads 22% 7. The following list includes items that some people have suggested might be an appealing prize in a lottery game or drawing. Using a scale of 1 to 7 where 1 means 'not at all appealing' and 7 means 'very appealing' please indicate how appealing you think each of the following prizes are. Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents (n=1000) 25

20 Recall & Purchase of Holiday-Themed Tickets % Recall % Purchase No 21% No 32% Yes 79% Yes 68% ase: ll respondents (n=1000) ase: ware of holiday-themed tickets (n=786) 8. o you recall ever seeing a Scratch ticket that had a seasonal or holiday theme such as hristmas or Thanksgiving? 9. id you purchase this ticket? Minnesota State Lottery Opti-Mix Study

21 Reasons for Not Purchasing a Holiday-Themed Ticket Not interested 30% Prefer other kinds idn't feel like buying tickets at the time on't buy/ play tickets very often ould not afford to play Received the ticket as a gift on't like wasting money on games Saving money for holiday gifts id not have cash with me id not like the prizes offered Other None on't know 13% 11% 9% 7% 5% 2% 2% 2% 1% 9% 3% 10% 9a. Why not? Minnesota State Lottery Opti-Mix Study 2009 ase: id not purchase this ticket (n=253) 27

22 Opti-Mix Results

23 escription of the Opti-Mix xercise Ipsos designed the Scratch Opti-Mix discrete choice exercise as a countertop approach to more closely simulate what players encounter at a retailer location. Respondents were shown 10 different screens of 12 ticket graphics representing various price points. Price points included were $1, $2, $3, $5, $10 and $20. The tickets were shown in a mix that was similar to what a respondent might see in real-life Minnesota State Lottery Opti-Mix Study

24 escription of the Opti-Mix xercise Respondents were given a maximum of $100 to spend per screen ach screen represented a new buying experience Respondents did not have to spend all $100 Respondents were asked to be as realistic as possible when deciding which tickets to purchase total of 30 tickets were included in the exercise This included 6 Lottery benchmarks (one per price point) Minnesota State Lottery Opti-Mix Study

25 Sample Spending xercise Page Minnesota State Lottery Opti-Mix Study

26 $1 and $2 Tickets Minnesota State Lottery Opti-Mix Study

27 $3 and $5 Tickets Minnesota State Lottery Opti-Mix Study

28 $10 and $20 Tickets Minnesota State Lottery Opti-Mix Study

29 Understanding the Results The output from this model shows relative utility scores for each ticket. Tickets near the top of the vertical line have the most appeal while tickets closer to the bottom indicate a lesser appeal The distance between the tickets reveals the magnitude of difference (of appeal) between each ticket Tickets clustering together have similar appeal to each other Note: The Opti-Mix exercise was run based on the overall spending on tickets as opposed to the number of tickets bought by the respondents. s a result, the higher priced tickets ($5) may appear to fare better in the exercise by indicating a higher appeal. This method mimics the marketplace, where the purchase of a single $10 ticket generates similar revenue to five $2 tickets. Minnesota State Lottery Opti-Mix Study

30 How to Interpret the Results Total Sample (n=625) Subgroup #1 (n=xxx) Subgroup #2 (n=xxx) Subgroups are shown across the top Most ppealing 1 Ticket Gaps between tickets indicate the degree of appeal (Ticket appealed more to Subgroup #1 than to Subgroup #2) Ticket Most appealing tickets for that group are at the top of the line 1 enchmark tickets appear on dotted lines 2 2 Least ppealing Tickets in clusters all have relatively similar appeal Least appealing tickets for that group are at the bottom of the line Minnesota State Lottery Opti-Mix Study

31 Overall Results by Total Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets G H G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: ll respondents 37

32 edicated Generalists Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets H G G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: edicated Generalists 38

33 Methodical Specialists Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets H G G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: Methodical Specialists 39

34 Hurried Opportunists Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets G H G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: Hurried Opportunists 40

35 isengaged abblers Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets G H G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: isengaged abblers 41

36 Overall Results by Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets H G G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: yr olds 42

37 Overall Results by Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets G H G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: yr olds 43

38 Overall Results by 55+ Most ppealing Least ppealing $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets G H G H $1 Tickets Luck for a uck M Super 7s ee Lucky Wham $2 Tickets Win for Life Super Lucky Slug Winter scape etty oop M $3 Tickets onus ingo Lucky Symbol rossword M ouble Triple Lucky Lines MI $5 Tickets Minnesota Twins Royal 7s ig ucks M World Poker Tour 5 times the ash Special dition rossword Red Hot 5s Vegas Luck $10 Tickets Monopoly iamond azzler Red, White and lue ash xtravaganza Players lub M Hot Hands $20 Tickets abulous ortune ash raze M Mega ucks Jackpot 24 Karet Gold Minnesota State Lottery Opti-Mix Study 2009 ase: 55+ yr olds 44

39 Likelihood of Purchase % efinitely/probably Would Not % Might or Might Not % efinitely/probably Would 22% 25% 14% $2 Win for Life - 23% $5 Minnesota Twins - 17% $1 ee Lucky - 16% 64% 61% 59% 23% $5 Royal 7s - 32% 44% 27% $2 Super Lucky Slug - 29% 44% 34% $1 Super 7s - 22% 44% 25% $10 Monopoly - 32% 43% 36% $5 Special dition rossword - 23% 41% 27% 34% 33% 35% $5 5 times the ash - 32% $3 ouble Triple Lucky Lines - 25% $3 onus ingo - 27% $5 Vegas Luck - 28% 41% 41% 40% 37% $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets continued 2. Which statement best describes how you feel about buying these Scratch tickets if they were available in Minnesota? Minnesota State Lottery Opti-Mix Study 2009 ase: Respondents shown each ticket 45

40 Likelihood of Purchase continued % efinitely/probably Would Not % Might or Might Not % efinitely/probably Would 38% $1 Wham - 27% 36% 40% $5 World Poker Tour - 25% 35% 40% $2 Winter scape - 27% 34% 36% $5 Red Hot 5s - 31% 33% 47% $20 24 Karet Gold - 22% 32% 42% $10 iamond azzler - 26% 32% 48% $10 Red, White and lue - 24% 29% 46% $20 Mega ucks Jackpot - 28% 27% 44% 40% 48% 48% $3 MI - 32% $10 ash xtravaganza - 36% $20 abulous ortune - 29% $10 Hot Hands - 30% 24% 23% 22% 22% $1 Tickets $2 Tickets $3 Tickets $5 Tickets $10 Tickets $20 Tickets 2. Which statement best describes how you feel about buying these Scratch tickets if they were available in Minnesota? Minnesota State Lottery Opti-Mix Study 2009 ase: Respondents shown each ticket 46

41 Key indings $2 and $5 tickets generally performed well compared to other price points. Not only were these tickets more appealing, but that they were purchased more frequently as this exercise was analyzed according to total money spent. With the exception of $10 Monopoly, $10 and $20 concepts did not perform as well as other price points. mong the non-benchmark games, $5 Minnesota Twins was overwhelmingly the most appealing ticket followed by $10 Monopoly. Seasonality and favorability towards Minnesota-themed tickets may also play a role in the success of the Minnesota Twins ticket onsistently top performing tickets included $2 Win for Life, $3 onus ingo and $5 Royal 7s Minnesota State Lottery Opti-Mix Study

42 Key indings Some licensed theme tickets performed exceptionally well, others did not. Most appealing: $5 Minnesota Twins, $10 Monopoly Less appealing: $3 MI, $5 World Poker Tour mong the segments, edicated Generalists are more likely to play higher price points while Methodical Specialists are more likely to play well-known extended play games such as $3 onus ingo and $5 Special dition rossword. The variation among the segments (and age groups) is in terms of degree of appeal rather than order of ticket preference. Minnesota State Lottery Opti-Mix Study