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TheRebateCompany

Rebates and Consumer Reward Management

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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?

Great question! There are many advantages of using a plastic "reward" card over a check. The most important is the ability to customized a card - which literally takes your brand message and logo right to your customer's wallet. That's pretty powerful brand reinforcement. Once deposited, the value of a check goes to the consumer's bank account - but a reward card stays in their wallet and research shows it feels more like 'fun' money, giving them permission to splurge a little, thanks to your brand.

When you personalize the card to the consumer's name, you are making a direct connection with your brand. In addition, cards that are lost or stolen can be quickly replaced, protecting your reward investment.

We frankly see no downside to using reward cards and offer a full range of cards to suit your needs and level of customization.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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