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The Great Rebate Runaround

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The Great Rebate Runaround

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    1. The Great Rebate Runaround D9801802 Bunjira Makond M9801209 Jemmy(???) M9801210 Albert(???)

    2. outline Introduction Phenomenon & Problems Improvement Q&A Conclusion

    3. Introduction

    4. Pricing strategy Group pricing Channel pricing Regional pricing Time-based differentiation Product versioning Coupons Rebate

    5. What is the Rebate The meaning of rebate an amount paid by way of reduction or return. refund on what has already been paid or contributed. It is a type of sales promotion

    7. History of Rebate Beginning : During the 19th century By : industrialist , railroad industry Rebate in U.S. & European: rebates received by the Standard Oil Company Rebate use as incentives to stimulate the need of customers

    8. phenomenon & Problems

    9. Information from market research NPD Group Nearly 1/3 of all computer gear is now sold with some form rebate More than 20% of digital cameras, camcorders, and LCD TVs

    10. Hal Stinchfield 400 million rebates are offered each year The value is $ 6 billion

    11. Peter S. Kastner Customers get redeem only 60% of all rebates Because : Fail to apply or applications are rejected Customers lazy, forgetful, or busy Customers think the rebates are not worth of money So more than $ 2 billion will transfer to be the revenue for the retailers and supplies A tax on disorganized

    12. The case about rebate Customer name: Chuck Gleason(57 years old) Supplier name: TiVO The situation: Buy a TiVo digital video recorded $300 on Nov.30. 2004 Rebate: $100 rebate will arrive 6-8 weeks if mailed in receipt with in 30 days On March 29/2005, He got redeem This is real case for rebate ,the customer who buy a digital video recorded from TIVO ,the official rebate time is 6-8weeks, on march 29th he got redeem but when he to receive his check, the waiting time more than 14 weeks after he bought the digital video recorded.This is real case for rebate ,the customer who buy a digital video recorded from TIVO ,the official rebate time is 6-8weeks, on march 29th he got redeem but when he to receive his check, the waiting time more than 14 weeks after he bought the digital video recorded.

    13. This is website for teach customer how to do rebate,. and the company list the step on it. you have to apply it before the due date. And you can print the rebate form and prepare the required material to mail. This is website for teach customer how to do rebate,. and the company list the step on it. you have to apply it before the due date. And you can print the rebate form and prepare the required material to mail.

    14. Suspect of rules' redemption Filing periods for short time Request for copies of receipts Long delay send out check

    15. terms Breakage Slippage Brand suicide Breakage consumers never file for their rebate the company can rely on it to make money Slippage rebate checks are never cashed If the company used this tactic, but their reputation was damage Breakage consumers never file for their rebate the company can rely on it to make money Slippage rebate checks are never cashed If the company used this tactic, but their reputation was damage

    16. Improvement

    17. improvement Online system To cut down the waiting time The first is online system, because customers have complain about apply the rebate. Applying program is so complicated, otherwise, mail problem is the biggest problem in this program. Maybe lose mail on the road, customers have no time to mail the rebate information. So the online system can solve this problems. Can figure out customers complain immediately.The first is online system, because customers have complain about apply the rebate. Applying program is so complicated, otherwise, mail problem is the biggest problem in this program. Maybe lose mail on the road, customers have no time to mail the rebate information. So the online system can solve this problems. Can figure out customers complain immediately.

    18. Rule legislation To negotiate with enterprise

    19. Q & A

    20. Question(1) This article describes one reason manufacturers might want to offer rebates rather than decrease wholesale price. Explain why this can be viewed as an example of customized pricing.

    21. Question(2) Even if all rebate were redeemed, why might manufacturers still want to offer rebates rather than decrease wholesale prices?

    22. Answer In customer : they have right to decision whether they should apply rebate or not. In supplier Some customers are too lazy, forgetful, or busy to apply rebate. Because the amount of money is not worth. If the manufacturer merely reduces the wholesale price, the retailer may keep If the manufacturer merely reduces the wholesale price, the retailer may keep

    23. Question(3) Why do you suppose that Best Buy, rather than one of Best Buy’s big suppliers such as Sony or Panasonic, is considering eliminating rebates?

    24. Answer Brand Increasing customer’s loyalty

    25. Conclusion The rebate is the good strategy for manufacturer, however the manufacturer should provide the convenient way for customers to apply their rebates that can make customers have loyalty for their products, otherwise they will lost the profit.

    26. Thank for listening

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