The major reason manufacturers are using rebates more now than ever is that many consumers never bother to redeem them.Thus,when using rebates,manufacturers get the best of both worlds-they stimulate consumer purchases of rebated items without having to pay out the rebated amount because most consumers do not undertake the effort to mail in rebate forms.Hence,rebates can be thought of as a form of _____.

Question

Quizplus · Accepted Answer

Rebates can be considered phantom discounts as they are advertised as a discount, but the actual price reduction is only received if the consumer goes through the effort of redeeming the rebate offer.

The Major Reason Manufacturers Are Using Rebates More Now Than