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Archive for June, 2007

Do CPG rebates effect brand equity?
Posted by Scott from Little Rock, AR, US on June 5, 2007

I am working on a project trying to understand how/if rebates effect brand equity. I am most interested in the kind of rebates that you see in drug stores like Walgreens. Do consumers actually use these? Do they reduce the brand’s equity?

We are focussed on mail-in and online submissions, validation and reward. In that realm, yes, the rebate can have a significantly negative impact on the brand if the experience is not handled properly as, in the consumer's eyes, they are dealing directly with that brand. If they feel they've been treated unfairly, or worse - ripped off, they will likely think twice about purchasing that brand next time.

Conversely, a positive experience (eg: quick payment) will reinforce the brand and be a major influence to building brand loyalty.


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