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Why would a manufacturer offer a rebate?

1. Why would a manufacturer offer a rebate instead of just lowering the suggested retail price?
2. Can price effect perceived quality? Why or why not?

Solution Summary

This solution addressees the two marketing questions in approximately 600 words. Many manufacture rebates are offered to ensure that customers realize the true "value proposition" of the product. This relates to the second question: yes, price does impact perceived quality.