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Consumer Rebates: Current Issues and Research

Part 4. Advertising and Integrated Communication

  1. Tim Silk

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem04045

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Silk, T. 2010. Consumer Rebates: Current Issues and Research. Wiley International Encyclopedia of Marketing. 4.

Author Information

  1. University of British Columbia, Vancouver, British Columbia, Canada

Publication History

  1. Published Online: 15 DEC 2010

Abstract

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.

Keywords:

  • consumer rebates;
  • price promotion;
  • price discrimination;
  • consumer behavior;
  • biases in judgment;
  • decision making