Why Do Some Marketers Offer Rebates Instead of Price Reductions

question 5

Multiple Choice

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

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

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Definitions:

Promissory Estoppel

A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.

Oral Contracts

Agreements between parties that are spoken rather than written but are still legally binding.

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing to be enforceable.