During June-November 2004, 32% of consumers surveyed by NPD Group purchased a technology product that offered a rebate. A closer look at those consumers’ responses shows more than 25% of computer hardware product purchases during the six-month period included a rebate and 8.5% of respondents used a rebate to buy a consumer electronics product. Rebates also spurred consumers to buy products sooner than they expected (21%), to buy more expensive products than they would have without a rebate offer (17%) and to purchase brands they would not have without a rebate offer (9%).
While rebates are very popular, the NPD study indicates the redemption process is still a source of frustration for many consumers. The most commonly cited reason for dissatisfaction with rebate programs was “prefer instant cash” (35%). Another 25% said rebates are “too much work for the money” and 17% said they forgot to mail in or go online to redeem their rebates before the expiration deadlines. Additionally, 15% said it was difficult to know what to do to redeem rebates and 13% said they didn’t have enough time to complete and submit the forms necessary to redeem their rebates.