For some products, such as automobiles, increasing the amount of a rebate no longer seems to spur additional sales activity, but discontinuing or reducing the rebate level tends to have an immediate negative impact on sales.

Question

Quizplus · Accepted Answer

This statement is true. It has been observed that increasing rebates beyond a certain level does not lead to a significant increase in sales, but reducing the rebate level can negatively impact sales immediately.

For Some Products, Such as Automobiles, Increasing the Amount of a Rebate