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Unit 5 Discussion Board for Advanced Entrepreneurship

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Submitted By suburbanmomma
Words 400
Pages 2
American InterContinental University
FINA310-1301A-02: Professor Michael James
March 12, 2013

The arguments regarding whether or not a business practice is sound is said to be related to the administrative tactics of that particular area. In terms of a cash rebate, this is both a sound and ethical business choice because it is a way of promoting a store or business and a way to create demand for that particular store or business’s products. This is normally done in a sense that customers are encouraged to collect tokens and then trade them for cash tickets. Cash rebates are in the same family as the purchase one get one free business promotion. This is also a sound business practice and an ethical one as well. The purchase one get one free arouses the customer needs because when they buy something, they get something else for free; more or less, like a thanks for purchasing our products (Mullin, 2010).
In a study completed by the United Marketing Services, it has been proven that for all consumers that took part in rebates, only twenty to forty percent were actually paid. Because these numbers were so low for people taking part again asking for around two or three refunds per year (Elridge, 2012), the industry numbers go somewhat farther to show that only forty to sixty percent of rebates are not paid (Senator Warns Consumers of Rebate Traps, 2006).
The company that I’m familiar with is Staples. Due to the fact that they operate with a fast-paced customer base, I definitely would recommend that this company should exhaust cash rebates. Even though they are not completely comprehended by several consumers, cash rebates are a great way to promote purchasing. Although this reduction in cost is not given at the time of purchase, cash rebates provide a chance to stay in contact with the consumer during a specific time period following the

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