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Examining purchase and non-redemptio...

Silk, Timothy Guy.

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Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming./
Author:	Silk, Timothy Guy.
Description:	97 p.
Notes:	Source: Dissertation Abstracts International, Volume: 65-06, Section: A, page: 2286.
Contained By:	Dissertation Abstracts International65-06A.
Subject:	Business Administration, Marketing. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3136997
ISBN:	0496841939

Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming.
Silk, Timothy Guy.

Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming. - 97 p.

Source: Dissertation Abstracts International, Volume: 65-06, Section: A, page: 2286.

Thesis (Ph.D.)--University of Florida, 2004.

Mail-in rebates are popular with retailers and manufacturers because they achieve attractive price points and increase sales while limiting the number of consumers that redeem the rebate to obtain the price discount. This research examines a phenomenon known as breakage, which occurs when consumers are enticed to purchase as a result of a rebate offer but subsequently fail to apply for the rebate.

ISBN: 0496841939Subjects--Topical Terms:

1017573
Business Administration, Marketing.

Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming.
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100 1 $a Silk, Timothy Guy. $3 1933608
245 1 0 $a Examining purchase and non-redemption of mail-in rebates: The impact of offer variables on consumers' subjective and objective probability of redeeming.
300 $a 97 p.
500 $a Source: Dissertation Abstracts International, Volume: 65-06, Section: A, page: 2286.
500 $a Chair: Chris Janiszewski.
502 $a Thesis (Ph.D.)--University of Florida, 2004.
520 $a Mail-in rebates are popular with retailers and manufacturers because they achieve attractive price points and increase sales while limiting the number of consumers that redeem the rebate to obtain the price discount. This research examines a phenomenon known as breakage, which occurs when consumers are enticed to purchase as a result of a rebate offer but subsequently fail to apply for the rebate.
520 $a Borrowing from research on overconfidence, procrastination and prospective forgetting, this research examines underlying psychological mechanisms that lead to breakage and how they exert influence via changes in offer characteristics. Four experiments demonstrate that breakage can be attributed to the discrepancy between consumers' subjective probability of redeeming (i.e., redemption confidence) and their objective probability of redeeming (i.e., actual redemption behavior). Increasing redemption confidence increases the likelihood of purchasing a rebate offer. However, high redemption confidence does not necessarily translate into successful redemption.
520 $a Five important effects were observed. First, increasing the rebate reward increases redemption confidence and the proportion of consumers that purchase the rebate offer, but has a weaker effect on the proportion of buyers that apply for the rebate. Second, increasing the length of the redemption period increases redemption confidence and the proportion of consumers that purchase the rebate offer, but also increases procrastination and breakage. Third, increasing the effort required to redeem the rebate results in a "backlash" effect where the redemption rate is marginally higher for consumers that experience a high-effort redemption process compared to those that experience a low-effort redemption process. Fourth, failing to redeem a rebate or experiencing a high-effort redemption process dramatically decreases the proportion of rebate buyers that purchase the offer again. Finally, structuring redemption procedures to encourage procrastination can have a greater impact on breakage than increasing the effort required to redeem the rebate.
520 $a These results have major implications for regulators and marketers in demonstrating that industry trends intended to increase breakage can decrease sales and increase redemption rates. Results also suggest that excessively effortful redemption procedures should not be viewed as a minimum requirement for breakage and that firms may be over-attributing the role of effort in creating breakage.
590 $a School code: 0070.
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650 4 $a Psychology, Experimental. $3 517106
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710 2 0 $a University of Florida. $3 718949
773 0 $t Dissertation Abstracts International $g 65-06A.
790 1 0 $a Janiszewski, Chris, $e advisor
790 $a 0070
791 $a Ph.D.
792 $a 2004
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3136997