The advertised price has attracted many people to buy

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Unformatted text preview: company’s Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, $3,999, since customers can apply for a $1,000 mailin rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn’t provided required information. She would prefer to advertise the “real” list price, knowing that customers are not guaranteed to receive a rebate. Questions 1. Is it unethical to advertise products at their post-rebate price in order to increase sales? Why or why not? What is another sales promotion method the company could use? 2. 2. Rebate programs are commonly used by electronic manufactures because the rebates arouse consumers’ interest; yet only half of purchasers ultimately claim their rebates. Is a rebate program itself unethical if the manufacturer knows that consumers are unlikely to receive their money? Push Promotions Push Promotions • Allowances and discounts • Selling and marketing assistance • Sales-force support Allowances and Discounts Individual case bonuses Count Count and recount Volume Volume allowances Free merchandise Discount overriders Evaluation Sources • • • • • Sales force feedback Sales data Retail audits Consumer audits Redemption Public Relations and Sponsorship Public Relations Defined Public Relations is a managem...
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This document was uploaded on 03/02/2014.

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