Rebates

Rebates
Name
Institutional Affiliation

Rebates
Organizations that seek alternative marketing methods of their products utilize rebates. They provide highly attractive mechanisms to woo the clients. A significant advantage of rebates is that the partial reimbursement that the client receives is tax-free. It is more of a reduction of the price paid for a product. For instance, purchasing from HP will enable the customer to claim a refund from the company. For the manufacturer, the rebate is an ideal method for inducing the customer to try a company’s products. Through rebates, companies can increase their sales and visibility. Notably, Chen, Li, Rhee, and Simchi‐Levi (2007), also mentions that it provides a platform for the reduction of excess inventory. Thus, a firm is likely to leverage it with retailers and foster brand loyalty in the long run.
However, maintaining rebates for organizations is not as easy. Firstly, companies experience challenges of honoring the rebates especially when the demand is too high. Another challenge is that the concept of rebates does not necessarily entice all consumers. Thus, it is not a guarantee that it would be a pathway to encourage loyalty (Chen, Li, Rhee, & Simchi‐Levi, 2007). For the consumer, total dependence on rebates leads to negative shopping experiences. It may take some time or delays may occur in the course of processing the rebate.
Mail-in rebates provide a viable method for enabling the manufacturers to reac…