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From: wiso@ihnss.UUCP (Jack Wisowaty)
Newsgroups: net.consumers,net.flame,net.misc
Subject: Re: Coupons and Rebates-- Flame
Message-ID: <2610@ihnss.UUCP>
Date: Mon, 9-Sep-85 11:09:37 EDT
Article-I.D.: ihnss.2610
Posted: Mon Sep  9 11:09:37 1985
Date-Received: Tue, 10-Sep-85 04:22:12 EDT
References: <243@mot.UUCP>
Organization: AT&T Bell Labs, Naperville, IL
Lines: 25
Xref: watmath net.consumers:2928 net.flame:11865 net.misc:8557

By offering rebates and coupons companies provide themselves with several
marketing advantages:

	1)  Advertising can indicate the lower price (after rebate), but
	    people like you who are offended by rebates or people like me
	    who forget to mail things may not receive that lower price.
	    So they can entice you with a low price without providing the 
	    low price in some cases.

	2)  They can in essence increase the price of an item simply by
	    withdrawing the rebate.  This is supposedly less offensive to
	    consumers than a "real" price increase.  Retailers like it 
	    because they don't have to reprice items on the shelves since
	    the base price doesn't change.

	3)  By offering a limited time rebate, companies can attract buyers
	    who may not have purchased otherwise.  With a simple price lowering
	    there is no incentive to buy quickly, waiting will not cost them
	    anything and may see an even further price reduction.  But knowing
	    that the price will go up (rebate ends) after a specific date is
	    a strong incentive to buy now!
	    

Jack Wisowaty
ihnp4!ihnss!wiso