Coupons and Rebates
This is me acting pseudointellectual. This will be fun to look back after I take more economic classes
I took AP Microeconomics in high school and that made me impressed about the science called economics. My teacher was saying once that when it comes to electronic goods and rebate prices. The reason these exist is because some people actually have a lower range they are willing to pay for a good. The real value of that good is actually closer to the discount of the coupon price but because there are some people who would spend time waiting or clipping coupons, producer are able to sell the same product at two different prices.
Can prices be used to determine the quality of goods? Sometimes. When it comes to electronic goods, more expensive goods are seens as being more higher quality. My teacher spoke once of a marketing technique of using rebates to make a good more attractive. Take for example two inkjet printer. Printer A costs $100, and printer B is $120 with a $30 rebate. Both have the same feature. If a consumer looks at the second printer, he might say something like "Hey, this might be slightly more expensive so it must be better to printer A and it comes with a mail-in rebate so it's actually cheaper!" The actual selling price of printer B is $90 and they get the best of both world. They acquire the illusion of being higher quality and at the same time cheaper than Printer A. Printer B is actually cheaper after rebate and is a bit lower quality. Nothing wrong with this though if they have the same feature but the rebate is an excellent scheme. Some consumers are not willing to wait or forget to mail in rebate so that's a loss for the consumer and a win for the producer. I cannot remember how my teacher worded this anymore. ARGH Just know this. If you want a higher quality printer, get A. If you want a better value and have time to wait, get B and don't forget the rebate. If you're stupid, get B and do nothing.
I just came up with this. If consumer were rational, researched, compared products, listened to consumer reports, marketing wouldn't be such a booming industry.
Apple, Bose, and Sony for example whore themselves out on this principle of high priced goods looking attractive. They sell overly priced goods that other producers make at a lower price but still make millions when a basic concept of economics dictates that consumer will always search for goods at the lowest price.
Where did we go wrong? Consumerism and the Me Generation? What's up with brand goods anyways? Generic and lower priced goods are seen as inferior goods but why? Generic orange juice vs. Tropicana. It tastes the same so what's up?
I took AP Microeconomics in high school and that made me impressed about the science called economics. My teacher was saying once that when it comes to electronic goods and rebate prices. The reason these exist is because some people actually have a lower range they are willing to pay for a good. The real value of that good is actually closer to the discount of the coupon price but because there are some people who would spend time waiting or clipping coupons, producer are able to sell the same product at two different prices.
Can prices be used to determine the quality of goods? Sometimes. When it comes to electronic goods, more expensive goods are seens as being more higher quality. My teacher spoke once of a marketing technique of using rebates to make a good more attractive. Take for example two inkjet printer. Printer A costs $100, and printer B is $120 with a $30 rebate. Both have the same feature. If a consumer looks at the second printer, he might say something like "Hey, this might be slightly more expensive so it must be better to printer A and it comes with a mail-in rebate so it's actually cheaper!" The actual selling price of printer B is $90 and they get the best of both world. They acquire the illusion of being higher quality and at the same time cheaper than Printer A. Printer B is actually cheaper after rebate and is a bit lower quality. Nothing wrong with this though if they have the same feature but the rebate is an excellent scheme. Some consumers are not willing to wait or forget to mail in rebate so that's a loss for the consumer and a win for the producer. I cannot remember how my teacher worded this anymore. ARGH Just know this. If you want a higher quality printer, get A. If you want a better value and have time to wait, get B and don't forget the rebate. If you're stupid, get B and do nothing.
I just came up with this. If consumer were rational, researched, compared products, listened to consumer reports, marketing wouldn't be such a booming industry.
Apple, Bose, and Sony for example whore themselves out on this principle of high priced goods looking attractive. They sell overly priced goods that other producers make at a lower price but still make millions when a basic concept of economics dictates that consumer will always search for goods at the lowest price.
Where did we go wrong? Consumerism and the Me Generation? What's up with brand goods anyways? Generic and lower priced goods are seen as inferior goods but why? Generic orange juice vs. Tropicana. It tastes the same so what's up?