The justification for having a list price and offering a mail-in rebate coupon is to
A) separate the market into the less price-sensitive and the more price-sensitive.
B) discourage all consumers from filling out the rebate form.
C) make the consumer wait six months for the 50-cent cheque.
D) appeal to those consumers who enjoy corresponding with large corporations.
E) appeal to those consumers who dislike corresponding with large corporations.

Question

Quizplus · Accepted Answer

The justification for having a list price and offering a mail-in rebate coupon is to separate the market into the less price-sensitive and the more price-sensitive. The list price is for those who are willing to pay for convenience, while the rebate coupon is for those who are more price-sensitive and willing to go through the extra effort to get a discount. This way, the company can appeal to both groups of consumers and maximize their profits.

The Justification for Having a List Price and Offering a Mail-In