Get Coupons And Rebates Version 1 Answers Pdf

Rebates are distinct from coupons and other forms of discounting in that they reimburse a customer for part of the purchase price following, rather than at the time of, the sale. By offering consumers cash back on the purchase price, rebates provide an incentive to buy a particular product.

Whereas coupons offer deals up front, with the purchase of the product, rebates can be redeemed only after purchase. When consumers experience uncertain redemption costs, this difference translates to a difference in when uncertainty is resolved.

Whereas coupons offer deals up front, with the purchase of the product, rebates can be redeemed only after purchase. When consumers experience uncertain redemption costs, this difference translates to a difference in when uncertainty is resolved.

For example, a rebate agreement states if a customer purchases 1,000 units of product, then they can claim a 5% rebate. Each unit is $100, so if the buyer purchases 1,000 units, the buyer can claim a rebate reward of $5,000. This would be a volume incentive rebate.

In sales, a rebate is when a portion of the sales cost is returned to the customer. It is a type of sales incentive that can encourage customer loyalty. A rebate works differently to a discount as it is applied once the sale has been completed, not at the point of sale.

Price-sensitive consumers have a higher willingness to pay when there are perceived discounts. Another potential disadvantage to receiving a rebate is that the rebate does not refund any of the sales tax charged at the time of purchase.