As the marketing director for Chipper's Golf Resort,you are making plans for the annual golf tournament,and trying to decide on the amount for the top three prizes.In past years,you successfully raised $25,000 through registration fees and sponsorship.You know that you could easily attract some great local talent if you make the top prize $10,000;but,can you afford to announce a $10,000 top prize at the expense of losing out on a portion of the registration fee when others decide not to participate? Using expectancy theory rationale that you learned in business class,you explain to the general manager that if you set the prize too high,several better than average golfers in the area will find their chances to be "out of their league" and will be unmotivated to participate or spend the money.Your analysis of the situation is reasonable.
According to expectancy theory,the participants will first ask themselves if it is possible to win the tournament given the other talent that will be competing.And,further,is the experience and reward worth the expense that they are paying for a round of golf?

Question

Quizplus · Accepted Answer

Expectancy theory suggests that individuals will first evaluate their chances of winning and whether the expected reward is worth the effort and expense required. Therefore, it is reasonable to consider how the prize money will attract or deter potential participants, including better than average golfers who may feel that the top prize is out of their league.

As the Marketing Director for Chipper's Golf Resort,you Are Making