Question

It is that time of year where there are a lot of deals in the stores...

It is that time of year where there are a lot of deals in the stores and advertising on TV, so stores look for ways to make their prices look better than the competition. One strategy is to use the post-rebate price, is it unethical to advertise products at their post-rebate price in order to increase sales? Why or why not?

Homework Answers

Answer #1

A rebate program itself is not unethical. However, a rebate should only be offered to customers if they are guaranteed a refund when they mail in the rebate. When a company fails to be honest about a rebate offer to customers, they have acted unethical.

Most major companies advertise products at their post-rebate price to increase sales. This practice is ethical on the company’s part. Although, customers should know the full product details. For instance, the “real” price should be listed with the low price. Also, customers need to understand that the price is low due to the mail-in rebate.

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