The Impact of Consumer Perceptions of, and Attitudes Toward Mail-in Rebates on Effectiveness of Rebates

Abstract

Rebates remain a popular promotional tool ($6 billion annually) despite many consumer complaints. Approximately 40% of rebates go unredeemed each year. Manufacturers and/or retailers can count on this low redemption rate to help reduce their promotional costs. Earlier studies on rebates tend to focus on factors impacting rebate redemption. We chose to examine the factors that influence mail-in rebate effectiveness. We found rebate amount, perceived price of item with the rebate offer, and the wait time for rebate checks have strong impact on the effectiveness of a rebate campaign. Managerial implications of these findings were discussed.