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From: btb@mtuxo.UUCP (Bruce Burger)
Newsgroups: net.consumers,net.flame,net.misc
Subject: Re: Coupons and Rebates-- Flame
Message-ID: <940@mtuxo.UUCP>
Date: Mon, 9-Sep-85 20:29:38 EDT
Article-I.D.: mtuxo.940
Posted: Mon Sep  9 20:29:38 1985
Date-Received: Tue, 10-Sep-85 05:25:28 EDT
References: <243@mot.UUCP>
Organization: AT&T Information Systems Labs, Holmdel NJ
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Xref: watmath net.consumers:2932 net.flame:11869 net.misc:8561

> Can anyone explain to me the marketing purpose behind coupons and
> rebates?

Potential customers who are most price-sensitive tend to be the
types who use coupons.  Meanwhile, those who don't care, pay the
regular price.  This brings the seller closer to the ideal
situation, where each sale is for <<1 cent less than the maximum
the particular customer is willing to pay.  (By contrast, the ideal
situation for the customer is where each sale is for <<1 cent more
than the minimum the particular seller is willing to accept.)

--Bruce Burger     AT&T Information Systems     Freehold, NJ
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