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Auto Rebates: can they continue, effect to reputation, unethical, prices adjusted, free?

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1. Can auto companies continue to issue rebates and still be profitable?

2. Can rebates hurt a company's reputation? Why?

3. Why do people think rebates are unethical?

4. Are prices adjusted for consumers prior to rebates promotion?

5. Can rebates be viewed as getting free cash from the consumer for a period of time?

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Solution Summary

The solution gives a strong paragraph in response to each of the questions regarding auto companies rebates for a total word count of 484.

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1. Can auto companies continue to issue rebates and still be profitable?

Yes because rebates are mostly provided by manufacturers while buying brand new autos and they can encourage customers to buy new vehicles rather then purchasing cheaper and used alternatives. They increase the rebate rates on vehicles which are not sold for a long time to make them more attractive deals. Many customers can be encouraged to buy more expensive autos since they generally have higher rebates. Besides automobiles are expensive items and businesses can earn more from the interests of these rebates until the customer's cash their checks. Briefly rebates are especially profitable for automotive companies when compared to other businesses. They can really boost ...

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Umut Oltulu, MBA
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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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