What does a firm do to gain a consumer 's attention? They give consumers coupons and offer rebates. The marginal benefits of coupons are good for consumers who want to waste time looking through, and then cutting out coupons. However, it can be considered price discrimination. The implicit cost for many consumers is too great. Many people don’t have the time to go through hundreds of coupons, cut them out, carry them around, and then give them all to the cashier. Coupons can be both a hassle and a benefit to many.
Firms typically use coupons to introduce a new product, as an attempt to “buy” a customer’s loyalty, or to get a consumer to return to buy their products at a later time (Fontinelle). Companies are using coupons to reach millions, but what about those who don’t have the time to cut them all out? They end up paying a higher price than those who have the extra time to clip and save. Paying this higher price is unfair to consumers who are faithful buyers, but coupon clipping is not their style. Two buyers go to buy a box of cereal. One pays $5 for a box, and the other only has to pay $3 for the same thing. Getting the cereal $2 cheaper was due to the consumer cutting out a coupon for that cereal. This is price discrimination to the consumer who, either didn’t see a coupon for this …show more content…
I have had several times, especially when buying a smartphone when there are rebates attached. Why in the world do I need to spend my time, filling out a paper, putting it in an envelope with the receipt of purchase, sending it out, to get $50 back? Why not just give me $50 off at the time of purchase? I have sent rebates in before, but often they end up sitting on the counter and never get sent in. I have already opted to buy a cheaper product just because I didn’t want the hassle of sending in a rebate. They make no sense to me, if a company wants to give me money back for buying their product, just give it to me at the time of
Firms typically use coupons to introduce a new product, as an attempt to “buy” a customer’s loyalty, or to get a consumer to return to buy their products at a later time (Fontinelle). Companies are using coupons to reach millions, but what about those who don’t have the time to cut them all out? They end up paying a higher price than those who have the extra time to clip and save. Paying this higher price is unfair to consumers who are faithful buyers, but coupon clipping is not their style. Two buyers go to buy a box of cereal. One pays $5 for a box, and the other only has to pay $3 for the same thing. Getting the cereal $2 cheaper was due to the consumer cutting out a coupon for that cereal. This is price discrimination to the consumer who, either didn’t see a coupon for this …show more content…
I have had several times, especially when buying a smartphone when there are rebates attached. Why in the world do I need to spend my time, filling out a paper, putting it in an envelope with the receipt of purchase, sending it out, to get $50 back? Why not just give me $50 off at the time of purchase? I have sent rebates in before, but often they end up sitting on the counter and never get sent in. I have already opted to buy a cheaper product just because I didn’t want the hassle of sending in a rebate. They make no sense to me, if a company wants to give me money back for buying their product, just give it to me at the time of