A Joint Optimal Model of Pricing, Rebate Value, and Redemption Hassle

Although rebates are widely employed, redemption is not effort free, and the hassle of redemption is an important decision variable for buyers. The current research examines the impact of hassle cost on optimal rebate strategy. An analytical model is developed that simultaneously determines the supply chain's optimal price, level of rebate value, and rebate‐redemption hassle, while allowing for slippage (as consumers may forget to redeem a...