Why Do Some Marketers Offer Rebates Instead of Price Reductions

question 6

Multiple Choice

Why do some marketers offer rebates instead of price reductions to induce short-term sales?

• A) Rebates are especially good at enticing purchases,but most consumers never bother to redeem them.
• B) A price reduction of this type would likely be an example of price discrimination.
• C) Rebates offer a more immediate reward than price reductions.
• D) Rebates have a much higher redemption rate than coupons.
• E) Rebates result in brand-loyal consumers.

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Definitions:

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