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The note I sent re: low Dell computer price leads to a possible question that APstat teachers and students might find interesting to pursue:
DO REBATES REALLY MAKE A DIFFERENCE?
In terms of consumer spending?
In terms of profits?
In terms of volume of sales?
In terms of consumer watching for ads in the newspapers and other outlets that HAVE rebates attached (and glossing over those that don't)?
For example, the Dell ad I sent (which had been shown in yesterday's USATODAY), showed an "outrageous deal" price of $399 AFTER a $200 rebate. Online (not in the print version) they gave an additional $50 off for ordering online.
Do these sorts of "rebate deals" really make a difference compared to what Dell's sales might have been if the actual price listed in the newspapers had been $399 or $349 directly, without having the $200 rebate attached? Or w/o having to go through the trouble of filling out a rebate form with UPC code attached and also the original sales receipt?
What sorts of data would it take to make a strong case one way or the other? What kinds of statistical analyses might be useful in this regard?
Would some experiment be possible that might shed some light on this?
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