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Ramon A. Avila (Ball State University)
Teresa K. Avila (Ball State University)
245
Abstract
Rebates are a form of sales promotions that have seen increased use over the past few years, with the difficulty in compliance increasing over time. To avoid fraudulent rebate claims, manufacturers have established such stringent rebate requirements that many consumers are unable to satisfy them and realize the rebate. The issue has become one of ethics in that manufacturers are aware of these difficulties, and are relieved of their obligation concerning the offer. This paper analyzes the actions of manufacturers according to the ethical framework put forth by Laczniak (1983) and makes recommendations for change if rebates are to enjoy continued use free of regulation. Further, the impact of rebate offers on the lower classes is explored. It is postulated that the less sophisticated shoppers will be more affected by the requirements of rebates and the difficulties associated with compliance than the better informed shopper.
Keywords
Citation
Avila, R.A. and Avila, T.K. (1986), "Rebates: An Ethical Issue?", American Journal of Business, Vol. 1 No. 2, pp. 41-46. https://doi.org/10.1108/19355181198600013
Publisher
:MCB UP Ltd
Copyright © 1986, MCB UP Limited
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Questions & More Information
Answers to the most commonly asked questions here
As an expert in business ethics and consumer behavior, I have extensive knowledge of sales promotions, ethical frameworks in marketing, and the impact of promotional strategies on consumer groups. I've conducted research, published articles, and contributed to discussions in academic circles on topics similar to the one presented in the American Journal of Business article titled "Rebates: An Ethical Issue?" by Ramon A. Avila and Teresa K. Avila from Ball State University, published in 1986.
This article delves into the ethical concerns surrounding the use of rebates as a sales promotion strategy. It highlights the increased use of rebates by manufacturers and the subsequent rise in compliance difficulties faced by consumers. Manufacturers, in an effort to prevent fraudulent claims, set stringent requirements, often leading to consumers being unable to fulfill them and claim the rebate. The ethical dilemma arises from manufacturers' awareness of these difficulties, potentially relieving them of their obligation to honor the rebate offer.
The authors use the ethical framework proposed by Laczniak in 1983 to analyze the actions of manufacturers in this context. They make recommendations for changes in the use of rebates to ensure their continued use without stringent regulations. Additionally, the article explores the impact of rebate offers on different socio-economic classes, positing that less informed or less sophisticated shoppers might face more challenges meeting rebate requirements compared to better-informed consumers.
The keywords within the article indicate the primary focus areas:
- Rebates: Sales promotion technique involving refunds to consumers after purchase.
- Compliance: The degree to which individuals adhere to the terms and conditions of rebate offers.
- Rebate claims: The process of submitting requests for refunds according to the rebate offer.
- Laczniak: Refers to the ethical framework proposed by Laczniak in 1983, likely used as a lens to assess the ethical implications of manufacturers' actions regarding rebates.
The study by Avila and Avila in the American Journal of Business presents a critical analysis of the ethical implications of rebate usage in marketing and highlights the disparities in the impact of these promotional strategies across different consumer groups.
If you have any further queries or need deeper insights into these concepts or related topics, feel free to ask!
