Do Customers Believe in Automobile Industry Rebate Incentives?

Richard F. Beltramini
Wayne State University
Patricia S. Chapman
Maritz Marketing Research

Incentives are promotional tools (typically coupons, rebates, free trials, and so on) used strategically in various industries not only to increase brand awareness, but to encourage consumers either to try new products or enhance repeat purchases. For example, a consumer packaged goods company might utilize coupon incentives to encourage consumers to try the 'new flavored product X,' enabling them to try the new flavor at a discounted price, instead of buying the same flavor they normally do at full price. In this way, incentives may reduce consumers' perceived risk associated with either trying a new, less-familiar product for the first time, or repurchasing a product sooner than they may have originally planned (Engel, Blackwell, and Miniard, 1995).