QSO 630 week 3 - 79928
Rebates target different consumer groups and are a good short-term way for companies to boost sales (Kokemuller, 2018). This is accomplished by lowering prices or offering money back. Some consumers will feel as if quality is compromised but other will feel they are getting a great deal and that the rebate is worth the effort to obtain (Kokemuller, 2018). By moving excess, companies can reduce inventory and holding costs that could be costing way more than what is required (Kokemuller, 2018). Another advantage is the rebate can increase product visibility and take customers away from competitors. This is often present when a new company starts up or a new product is released. Another example would be season end sales and rebates.