Most expensive sales promotion technique. Not appropriate for mature products and slow turnover products. With Sampling there is too a free lunch Discusses the pros and cons of free sampling. Submit proof of purchase and mail specific refund, usually need multiple purchase for refund. Helps promote trial use, due to the complexity of the refund, it has little impact.
Customers have a poor perception of rebate offered products.
Used extensively in the Auto and Computer industry. Used to attract competitors customers, different sizes of established products. Flintstones program last year with McDonalds. Burger King with the Lion King movie Last summer the following tie-in premium programs. Consumers compete based on their analytical or creative skills.