Factor

Marketing Common Research:

Rebate Perceptions Presented By: Adithya Raj Gaurav Kumar Nishant Chaubisa Surbhi Agarwal Urpreet Kaur Soni Vipul Gupta

INTRODUCTION • Rebate – kind of promotional tactic to increase unit sales and discriminate among consumers • Rebates offer consumers an opportunity to receive a monetary reward for buying a promoted product, provided they expend some effort to receive the reward.

Research Problem • Gain an insight on “common rebate perceptions”. • Examine: – rebate-induced purchases – rebate redemption

Insight of Research • Problem Identification: – determine the factors underlying consumer perception of rebates.

• Scope of the Research: – Respondents were students of ABS – Age groups between 20-30

Insight of Research • Type of Research: – descriptive research

• Data Collection: – Primary Data collected through help of questionnaire – Secondary Data included Articles from internet, Business journals

Insight of Research • Sample Size: – 60 questionnaires were distributed uniformly – 50 samples units were chosen (else being incomplete)

Insight of Research • Scale used in questionnaire: – five point Likert Scale – 1 represents “STRONGLY AGREE” – 5 represents “STRONGLY DISAGREE”

Data Analysis • Why Factor Analysis: – allow us to test theories involving variables which are hard to measure directly. – help us establish that sets of questionnaire items (observed variables) are in fact all measuring the same underlying factor. – so can be combined to form a more reliable measure of that factor.

Interpreting SPSS Output

– A value of 0 indicates diffusion in the pattern of correlations (hence, factor analysis is likely to be inappropriate). – 1 indicates factor analysis should yield distinct and reliable factors. – (p < 0.001)- factor analysis is

Communalities Analysis

– Reflect common variance in data structure

– 62.3% of the variance associated with question 1 is common, or shared variance

Factor Extraction

– 3 Eigen values greater than 1. – Hence 3 factors can be obtained

Factor Loadings

– Shows percentage of variance explained (so, factor 1 explains 23.780% of total variance).

Rotated Component Matrix

– Factor 1 – • • • •

Complicated_process Could_be_easier Consumer_benefit Sincere_manufacturer

Rotated Component Matrix – Factor 2: • Pursuade_customers • Slowmoving_items • Buy_more

– Factor 3: • Consumer_demand • Consumer_welfare

CONCLUSION – Rebates are effective in • obtaining new users • brand switching • repeat purchases among current users.

– Play an important role in market transformation – Act as a catalyst to jump-start markets

RECOMMENDATIONS – Manufacturers give rebates usually on products that are less used by consumers hence they should take care to give rebates on fast moving goods. – Manufacturers should give rebates which are not only beneficial to them but also helpful to customers. – Rebates sometimes seem to be very useful but there is not as much profit as it seems so that we can consider them. – Manufacturers should offer rebate that are beneficial to consumers, they should offer differential rebates.

RECOMMENDATIONS •

Make sure that manufacturers provide quality products with rebate offers; they should not be eye washers.

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Business exists due to customers, but customers’ welfare is not the primary motive of business.

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Todays manufacturers are very shrewd in designing the rebate, they very well take into consideration the need of the consumers.