Rebates Bite
You walk into a retail store with the intention of purchasing a desktop computer. You have compared shopped aplenty and are now ready to make a final decision. You are taken back now that you are noticing that a mail-in rebate is part of the equation for each of the computers you are interested in. Disappointed, you still decide to buy a computer from the retailer. A few weeks later, you receive a letter in the mail from the rebate center stating untrue and bogus information. You sent in copies of everything asked, UPC code and sent the information in a timely manner, but somehow there was not enough information given to the rebate center. In a frenzy, you make the round of necessary phone calls, remain on hold for the typical, hideous wait time, speak with numerous customer representatives, and unfortunately come to an unsatisfied halt. After much effort, you find out there is not any way to receive the rebate check. Instantly, you hold a grudge towards any and all rebates. The most common rebate offered would be the mail-in; this begins my explanations, statistics, and reasoning of why I am against rebates.
Why should a person have to initially pay out of their own pocket of their hard earned money to eventually receive it back much later on? The general concept of rebates, especially mail-in rebates are ridiculous. Then, to retrieve the money back, the customer has to put in effort and time to earn back the money they once had!
To define rebate in general would be a generalized amount that is offered by a retailer and / or manufacturer that may be paid to the consumer separately or to be credited to a lease agreement. Notice the key word "may." This is not what a consumer wants to see, but in truth, may truly applies in any situation. A mail-in rebate is redeemed through the mail whereas an online-rebate through the internet and in-store rebate simply means instant savings from the retailer the moment the item is purchased.
While rebates seem intriguing, the customers who have had unfortunate experiences before will not hesitate to look somewhere else. In the spirit of "may", the consumer may automatically associate rebate with scam. These advertising and marketing techniques might only work for new buyers or with consumers of relatively good luck.
The role of law reform has responded rather effectively to a certain extent in protecting the rights of consumers. This is evident in the legal responses introduced to address issues of credit, marketing innovation and technology. These law amendments has effectively increase the protection of the rights of consumers to a certain extent, however loopholes still exist. Due to the increasing range of goods and services continues to grow and the failure of existing laws, the role of law reform has been significant in protecting the rights of consumers. Consumer laws were created to prevent deceitful activities, or unfair business practices, as well as serving a protection for weaker parties who are unable to protect themselves. However, laws were later reformed to enable customers to transact with confidence and protect suppliers, consumers from inappropriate business conduct and to reflect changed community values and circumstances.
Tommy Takem owns a small appliance store in the southwest part of the state of Virginia. Tommy has built his business on targeting the poor, unsophisticated, and uneducated in the Appalachian regions of Virginia, Kentucky, Tennessee, and West Virginia. There is little competition in the region where he sells his goods; therefore, he charges 10-20% higher prices than the nearest retail competition. Furthermore, as a ruse to increase sales, Takem’s has hired a few high pressure salespeople to go door-to-door selling the appliances and electronics at a markup of 30% more than his retail location, though this information is not disclosed to the purchaser. Also, as most of Tommy’s clientele have poor credit, the financing is handled by Takem’s Appliances as well, with an additional charge of 15% plus the highest interest rate allowable by
However prior to the modern understanding of Consumer Rights there was a understanding of Caveat Emptor – Buyer Beware –this has been a fundamental premise of consumer wellbeing prior to World War ‖ , relation to transactions, principle that the buyer purchases at his own risk in the absence of an express warranty in the contract . This common law rule assumes that buyers and sellers are in an equal bargaining position. However there has been evident change in consumer rights which have contributed to the precedence of using Caveat Emptor is no longer acceptable, apparent in the case ACCC v Hewlett Packard Australia (HP), illustrated that no longer can a company ...
4. Secret Rebates – kickbacks given to powerful shippers in return for steady and assured traffic- not given to everyone. Often slashed prices on competing lines, but more often mad up the difference on noncompeting ones
Current trade deal promotions are destroying our margins, retailers take advantage of these promotions because is profitable for them. For example, every year during the 6 week “back to school season”, if we launch a trade promotion for two weeks, retailers will buy inventory that covers all 6 weeks of the seasons, and they will extend the discounts to the client to increase their volume but eroding our brand equity, they will get a 5% increase in their margin and we’ll get a 15% reduction (Exhibit A, trade promotion). In a “best case” scenario, the retailer and the client are benefitted, but more often than not, only they retailer gets the benefit as they don’t pass the savings to the consumer.
During the 113th Congress, the United States Senate voted 69-27 to pass the Marketplace Fairness Act of 2013 bill on May 6th 2013. The Marketplace Fairness Act of 2013 (MFA) is a proposed legislation that would require online vendors to collect and submit all their sales tax and use tax. The bill still needs approval from the House of Representatives before it can become a law .Supporters of the bill are large retailers like Sears and Target, who claim they are at a price disadvantage because they have to charge sales tax on every sale while online retailers do not. On the other side are e-commerce companies such as eBay and Overstock.com, as well as small online merchants, who say that complying with 45 state sales laws and more than 9,000 jurisdictions is too much complicated and costly .
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
Following a one month introductory run of BOGO, New Balance shoes will return to their normal price, but with the caveat that 20% off coupons will be sent out via e-mail and standard mail to the customers who initially took advantage of the first offer (and provided their address and information at checkout) as well as through the periodicals of sporting goods stores to attract potential new customers. This will allow the company to both demonstrate value and build loyalty, thus enticing potential customers to make repeat
When people think of predatory pricing, two main laws come to the minds of most...
In order to fulfill customer needs, companies offer a lot of shopping ways to customers like bonus point programs and membership programs. Customers can obtain the redemption products and enjoy discounts when purchasing by joining these programs, which can lead to save more.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
After this decision internet distributors and Express respectively has to be considered as strong competitor due to the price-sensitivity of the electronic industry. Therefore A/S should work on its company image to highlight their advantages compared to discounters. Therefore A/S has to point out that they are aware of being not the cheapest but nevertheless will create more benefit for the customers by offering service and competence.
Have you ever overpaid for something? I think we all have. Your money—practically wasted. Luckily, I can teach you how to put an end to the anguish and regret you feel when you find your wallet and your shopping bag practically empty. By taking advantage of promotions, shopping second-hand, and comparing prices, you can prevent yourself from making the mistake of blindly overpaying.
First of all, there are many advertising can easily grab the consumers’ attention with something like ‘price appeals’. For instance, some of the advertiser like to create a sense of urgency with limited time offers to manipulate consumers. It basically explains that people are more emotionally attached to lose out on something than gaining it because no one likes to lose out on an amazing deal that is limited time offer. If the product is not bought before the end of the limited time offer, there is no other opportunity to purchase the product for lower price. Everyone loves sale price. If the products come out with lower prices such as buy six only for 20 dollars, the consumers would not satisfy just to buy six, conversely, they would feel more comfortable and satisfy, if they buy more than six. Therefore, they all would buy more and more than they should like grabbing all the things home. That is called crazy shopping. Besides, advertising something like ‘buy one get one free’ is also known as amazing deal that can control consumers’ desire to buy even more. This promotion is way too attractive to the consumers to get into it because it is interesting and catchy if there is something free. Nobody can ...