Research/Metrics - Rebate redemption rate on buy one, get $1 off from Anonymous: MarketingProfs Question 28871

Question

Topic: Research/Metrics

Rebate Redemption Rate On Buy One, Get $1 Off

Posted by Anonymous on 5/12/2009 at 7:10 PM ET 25 Points

I'm about to launch an IRC promotion and am curious about potential redemption rates so I can budget accordingly. It's a buy one, get $1 off mail-in rebate. It's a snack item in the C-store channel with an average price of $1.69...so a relatively attractive offer!

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Posted by koen.h.pauwels on 5/13/2009 at 1:18 AM Accepted

I would expect a low redemption rate on your offer, despite its attractiveness in relative terms:
1) redemption rates are generally low: people incorporate the rebate in their decision making and are more likely to buy, but then forget about/loose the rebate. This applies even to the $20-$30 rebate you get on printers etc
2) $1 is very little in absolute terms: only a relatively small segment of the population would find it worthwhile to go to the trouble of collecting the rebate
Posted by Jay Hamilton-Roth on 5/13/2009 at 8:53 AM Accepted

Some articles for you to read:
https://answers.google.com/answers/threadview?id=569164
https://www.usnews.com/articles/business/your-money/2008/01/18/why-shoppers...
https://en.wikipedia.org/wiki/Rebate_(marketing)

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