Unit 5 discussion board Essay Example | Topics and Well Written Essays - 500 words

Unit 5 discussion board - Essay Example In 2002, 70% of the notebook PCs sold were offered with a rebate and the concept seems simple enough (McGinn, 2003). Buy a $1000 notebook and save $200 after filling in the required paperwork, sending it into a third party processing center, and waiting the required number of weeks for your check to arrive. This is a great deal for the manufacturer as they have sold you a PC that was on sale for $800 and then asked you to loan them $200 for a couple of months. No interest is offered, and there is a risk that you may never see your money. Manufacturers rely on human nature to misplace the paperwork, send it in incomplete, or forget it ever existed. For the people that do get the rebate, they merely break even. The sellers have increased cash flow and sold a number of their products at $200 above market value. These practices are as deceptive as a carnival shell game and could have a negative effect on a companys reputation Whether a consumer will even apply for the rebate is largely determined by the amount being offered. While cosmetics that offer $1 back may go discarded, more expensive items will naturally get a better response. However, even on high-dollar electronics the rates can be surprisingly low. Timothy Silk, a University of Florida researcher, found, "...redemption rates, even on larger-ticket purchases such as computers and televisions, are well below 50 percent" (Keen, 2004). Networking accessories manufacturer Asante Technologies sees an even lower response rate. Jim Hsia, vice president of marketing says, "the typical redemption rate for his companys products hovers between 2 and 15 percent" (Millard, 2003). Most people will never see a rebate. In new car sales, rebates can work against the automakers intentions. A consumer electronics rebate can be used to attract attention to an item and create store traffic. However, on an expensive purchase such as a new car, the customer sees the rebate as part