The Psychology and Evolutionary Biology of Manufacturers’ Rebates
In the previous chapter, we took up the easy explanations for rebates, all grounded in economics. Rebate analysts steeped in psychology and evolutionary biology see the rebate issue as more complex than economists do. Their modes of analysis involve added concepts of subjective weighting of the costs and benefits of consumer decisions, endowment effects, the salience and vividness of product and rebate features at the time of purchase, and the time inconsistency of consumer choices, revealed in procrastination and forgetfulness. Evolutionary biology theory suggests that rebates play to certain mental tendencies that have been “hardwired” into our brains eons ago.
KeywordsDiscount Rate Purchase Price Future Cost Consumer Decision Subjective Weighting
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