Refunds And Rebates



Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount.

Refunds and Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer.



  • Whisper

Objective: To increase product trials

After having launched it new product whisper ultra thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage has started the money back offer.

The money back offer is a very effective tool in making the consumer try the product in 2 ways, firstly because the consumer feels that the company will launch such a scheme only if it is possible for it to offer such quality and so is become confident that the product will be satisfactory.

And secondly he is more willing to try because if he does not like the product he has the option to get his money back.


  • Gillette announced a refund offer where a customer was required to buy a pack of 7 o’ clock P II for Rs. 55.50, on returning the empty pack, the customer gets Rs. 55.50 off on Gillette Sensor Excel.


  • A computer magazine, Chip, offered a refund of Rs. 350 on sending a one-year subscription, which the customer can use to purchase special issues of the magazine. 
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