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Unformatted text preview: A manufacturer would offer a rebate, instead of just lowering the suggested retail price, because not everyone will follow the steps to redeem the rebate. If they just lower the price, everyone will get the lowered price. If they offer a rebate, only a certain percentage of people will take the time to fill out the form, make a copy of the receipt, address the envelope and then drop it in the mail. The company stands to save money this way. Offering a rebate still draws customers, because they all intend to redeem the rebate. In the customers heads they are getting that lower price. Then most do not follow through and end up paying the regular price. The first stage of a products life cycle is introduction. During the introduction stage, the goal is to get first-time buyers to try the new product. Using PCs as an example, in the introduction stage, there wouldve been one single company producing the one single PC product. The profits would be negative, because the company is trying to recover R&D costs. Pricing is high, to help with this. At this point, the because the company is trying to recover R&D costs....
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This note was uploaded on 05/12/2011 for the course MKT 302a taught by Professor Cliffdeeds during the Spring '11 term at National.
- Spring '11