Consumer Rebates: Current Issues and Research
Part 4. Advertising and Integrated Communication
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
Silk, T. 2010. Consumer Rebates: Current Issues and Research. Wiley International Encyclopedia of Marketing. 4.
- Published Online: 15 DEC 2010
Consumer rebates have become a popular price discrimination and promotional tool among retailers and manufacturers to increase sales on a wide variety of durable and consumer goods. Rebates are attractive to consumers because they offer discounts that are larger than those of other types of price promotions. Rebates are distinct from coupons and other forms of price promotion because the effort required to receive the discount occurs after rather than before purchase. This difference has important implications for consumer behavior and rebate redemption rates. Research has shown that foregoing a rebate can be a rational choice that does not disadvantage consumers. Research has also demonstrated that biases in judgment and decision making contribute to slippage, which occurs when consumers are attracted by a rebate to make a purchase but later fail to redeem the rebate. Many manufacturers and retailers have moved toward consumer-friendly rebates in an effort to simplify the redemption process and encourage repeat patronage.
- consumer rebates;
- price promotion;
- price discrimination;
- consumer behavior;
- biases in judgment;
- decision making