2007-03-24 06:02:31 · 4 answers · asked by David D 1 in Business & Finance ➔ Corporations
retailers are counting on the fact that a lot of people will not cash onto those rebates. the psychology of it is that people already think they are paying less when they are not until they go that extra step.
2007-03-24 06:06:50 · answer #1 · answered by nickelle84 2 · 0⤊ 0⤋
The idea is to get people to buy a product based on a reduced price a knowing that not everyone will request the rebate.
Even with the rebate, the manufacturer and the retailers make money. If it is a retailer only rebate, they usually have a couple of reasons.
First, they want to get you into the store where you may buy other products in addition to the one with a rebate.
Second, the product may soon be replaced with a "new and improved" version and they want to sell all the old items before stocking the new ones.
2007-03-24 13:14:08 · answer #2 · answered by Rainman 5 · 0⤊ 0⤋
Price discrimination is against the law. You cannot charge one price to someone and a different one to someone else. To get around this companies use coupons and rebates. People who go through the trouble of cutting coupons or filling out rebates get one price, those who don't get another.
In economics terms, its a way of capturing more $$ under the price curve.
2007-03-24 13:26:55 · answer #3 · answered by joe s 6 · 0⤊ 0⤋
Most people don't use them so they end up making the sale.
2007-03-24 13:17:38 · answer #4 · answered by margherita 4 · 0⤊ 0⤋