Latest Survey by The NPD Group Shows Nearly a Third of U.S.
Consumers Have Purchased a Product With a Rebate During the Past
Six Months
Laptop Battery PORT WASHINGTON, NEW YORK, December 27, 2004 - The use of
rebates is at an all-time high, especially when it comes to
computer and consumer electronics purchases, finds The NPD Groups
recent report, Rebates: A Consumer Perspective.
During the six months prior to the November survey, almost a third
of consumers surveyed (32 percent) purchased a technology product
that offered a rebate. A closer look at those consumers responses
shows more than 25 percent of computer hardware product purchases
during the six-month period included a rebate and 8.5 percent of
respondents used a rebate to buy a consumer electronics
product.
laptop computers is driving strong sales for notebook computers, according to the latest quarterly sales figures from the research firm IDC, which reported a 37% computer sales for the second quarter, compared with a year earlier. In the U.S., laptop sales grew 17.7%, while sales of desktop computers and servers fell 4%. The New York Times ( 10), CNET ( 10)
Thinkpad Rebates are here to stay, said Stephen Baker, director of
industry analysis for The NPD Group. Unquestionably, the successful
results of rebates on the computer side of the market have begun to
factor into the market development strategies in the emerging CE
categories. While tube TVs have a fairly low incidence of rebates
(less than 10 percent), advanced technology televisions and
products like DVD recorders and digital cameras show much higher
propensity to be sold with a rebate. Properly applied, rebates turn
out to be a pretty good deal for all involved manufacturers,
retailers and consumers.
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Microsoft The clear benefit of rebates in consumers minds is the price
reduction offered. More than half of those surveyed said rebates
made the product more affordable than expected. Rebates also
spurred consumers to buy products sooner than they expected (21
percent), to buy more expensive products than they would have
without a rebate offer (17 percent) and to purchase brands they
would not have without a rebate offer (9 percent).
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Laptop Computers 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 percent). Another 25
percent said rebates are too much work for the money and 17 percent
said they forgot to mail in or go online to redeem their rebates
before the expiration deadlines. Additionally, 15 percent said it
was difficult to know what to do to redeem rebates and 13 percent
said they didnt have enough time to complete and submit the forms
necessary to redeem their rebates.
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Laptop Computer When asked what types of changes would improve the rebate
redemption process, almost half said they would shorten the waiting
time it takes to receive rebate funds. Another 43 percent said they
would like manufacturers to cut down on the information and
materials required to complete rebate forms. A third of consumers
(33 percent) said they wish companies required purchase codes
instead receipts to redeem a rebate certificate, as often consumers
need receipts for other uses later on.
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Desktop Computer Rebates are used to spur consumers to purchase specific items
during limited- time promotions. For many manufacturers, they are
highly effective tools for encouraging purchases, Baker added. As
consumer technology markets change over the next few years and
price and technological change become even more important in the
marketplace, we expect to see a greater use of rebates.
Notebooks Methodology
Rebates: A Consumer Perspective was an online survey conducted
among members of NPD's online consumer panel. NPD invited a
nationally balanced sample of 15,000 adults (18+) to complete the
survey in November 2004. The study is based on 6,800 completed
surveys. This report examines consumers attitudes toward rebates,
what types of products are most often rebated, how rebate practices
differ by channel, and their impact on category profitability. It
also considers the practices surrounding rebates and how they may
affect technology products in the future.
Lenovo About The NPD Group, Inc.
Hard Drive Since 1967 The NPD Group has provided reliable and comprehensive
sales and marketing information for a wide range of industries. NPD
provides critical knowledge on what is selling, where, to whom and
why to help our clients make more successful, fact-based business
decisions. Today more than 1,300 manufacturers and retailers rely
on NPD to help them better understand their customers, product
categories, distribution channels and competition in order to help
guide their business and positively impact sales and revenues.
Information from The NPD Group is available for the following major
vertical sectors: apparel, appliances, automotive, beauty,
cellular, consumer electronics, food and beverage, foodservice,
footwear, home improvement, housewares, imaging, information
technology, music, software, travel, toys and video games. For more
information visit www.npd.com
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