A framework for understanding consumptive delay: rebate proneness and redemption

Purpose – In this paper the authors seek to develop a measure that can identify those customers who might best be described as rebate prone, and to link rebate proneness to behavioral usage of rebate offers, intentions to use rebate offers in the future, attitudes towards using rebates as a way to try new products, and finally, the tendency to complete the rebate transaction. Design/methodology – In study 1, college students enrolled in marketing classes at two large state universities were asked to complete a brief online survey regarding their attitudes towards rebates as a promotional tool as well as shopping behaviors and attitudes towards shopping. Study 2 replicated study 1 using a mall intercept approach. Findings – Confirmatory factor analyses of the measure of rebate proneness demonstrated substantial psychometric validity and yielded acceptable levels of internal consistency. In both studies, rebate proneness was significantly and positively related to behavioral, intentional and attitudinal approaches to rebate usage. Rebate prone shoppers viewed rebates as a substantive incentive for trying new products. Research limitations/implications – These results are preliminary yet provide an important foundation to explore a measurable propensity towards product and brand specific rebate usage. Originality/value – The promising theoretical framework of consumptive delay provides a managerial opportunity to segment consumers on the basis of measurable psychological and behavioral tendencies. Rebate usage is but one of a number of strategies that can create and or maintain brand loyalty. The ability to identify and provide incentives to incent rebate prone shoppers has widespread implications including the enhancement of the lifetime value of the customer.