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:

Control Series Design

An experimental design that involves comparing data from a series of observations before and after the implementation of some intervention or treatment.

Interrupted Time Series Design

A quasi-experimental design in which observations are made over time both before and after an intervention.

Quasi-experimental Design

An empirical study used to estimate the causal impact of an intervention, lacking random assignment.

Hamburgers Sold

A numerical measure representing the quantity of hamburgers sold within a specific time frame, often used in business and marketing research.