Why do some marketers offer rebates instead of price reductions to induce short-term sales?

Question

Quizplus · Accepted Answer

Offering rebates instead of price reductions can be a way to entice consumers to make a purchase while not necessarily lowering the overall price of the product. However, many consumers never actually redeem the rebate, which means the company still benefits from the higher initial price. This can be a more effective strategy than offering a lower price that applies to everyone, as it can still result in higher profits for the company.

Why Do Some Marketers Offer Rebates Instead of Price Reductions