Rebate redemption requirements – Can they discourage redeeming? |
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| Institution: | 1. Université de Bourgogne – IUT de Dijon, Boulevard Dr Petitjean, 21000 Dijon, France;2. Marketing Department, Groupe ESC Troyes, 217 Avenue Pierre Brossolette, BP 710, 10002 TROYES Cedex, France;3. Université Paris-Est Marne-la-Vallée, 5 boulevard Descartes - Champs-sur-Marne, 77454 Marne-la-Vallée Cedex2, France;1. Department of Business Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran;2. Department of Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran;1. Newcastle Business School, University of Newcastle, Australia, UONS Singapore, 355 Jalan Bukit Ho Swee, Tiong Bahru 169567, Singapore;2. QUT Business School, Queensland University of Technology, 2 George Street, PO Box 2434, Brisbane, Queensland 4001, Australia;1. Department of Management and Marketing, College of Business & Economics, Qatar University, P.O. Box 2713, Doha, Qatar;2. Faculty of Business Administration, University of Regina, 3737 Wascana Parkway, Regina, SK, Canada S4N 0A2;3. HEC Montréal, 3000 Chemin de la Côte-Sainte-Catherine, Montréal, QC, Canada H3T 2A7 |
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| Abstract: | Mail-in rebates are a popular price promotion that receive substantial negative criticism due to high consumer resentment and mistrust. There is little research examining rebate redemption requirements and it seems no attempt has been made to develop a measure of what constitutes a reasonable and, perhaps more importantly, an unreasonable set of compliance requirements. This paper reports on a study of rebate promotion redemption requirements and the differences in their perceived onerousness. Furthermore, we test the effect of rebate requirement onerousness on consumers’ intention to redeem. Results show that consumers do perceive difference in the relative onerousness of rebate requirements. Furthermore, through the use of Best-Worst Scaling it was possible to rank the onerousness of requirements and demonstrate that the most onerous were up to 50 times more likely to deter consumers from redeeming than the least onerous. These results will help marketers better understand how to promote products using rebate promotions that do not foster consumer angst. Findings offer implications for retailers, product marketers, policy makers, and regulators. |
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| Keywords: | Rebate promotion Redemption requirements |
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