Why Do Some Marketers Offer Rebates Instead of Price Reductions

question 83

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 have a much higher redemption rate than coupons.
• D)Rebates result in brand-loyal consumers.

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Definitions:

Raw Materials Inventory

The total cost or value of all the raw materials that are to be used in production and are currently stored in inventory.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production targets based on the designed product and manufacturing processes.

Raw Materials Cost

The expense associated with acquiring the unprocessed materials required in the manufacture of products.

Cash Collected

The total amount of money received from sales, services, or other business activities.