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News AMD launches multi-core cashback programme

Discussion in 'Article Discussion' started by brumgrunt, 21 Jun 2012.

  1. XXAOSICXX

    XXAOSICXX Member

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    Yep - that's pretty much it. There's also a third and fourth reason for running a cashback scheme (though your second point is still by far the most important)..

    3) People like offers. Setting a new lower RRP doesn't scream "this is a special offer" to those who aren't in the know. They'll just see the price for what it is. People like to feel like they're "winning" somehow when they make a transaction. Buying something at the RRP doesn't feel like winning even if the price is cheap to start with.

    4) Reducing RRPs in the long term leads to devaluation of the brand. Remember Cyrix CPUs? Yes, they were a load of rubbish, but they were £20. For those who were budget conscious that's a great deal - but it also meant that Cyrix were seen as the "cheaper option" which, like many brands-you've-never-really-heard of get tagged with the "it's cheap so it must be crap" label (and many of them are, of course). Thus, it's better for AMD to be seen to be giving money away (which sounds great) rather than to concede "we're the cheap option, you won't pay much, but don't expect too much either.
     
  2. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

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    Those are very true, and there's even a fifth: reduce the RRP, and you don't know who's buying 'em. Make people send in a cashback form, and boom: name, address, bank details, date of purchase, amount paid, other items listed on the receipt... It's a marketer's dream - and you get a far better response rate saying "fill in this intrusive form and we'll give you £20" compared with "fill in this intrusive form and we'll enter you into a secretive prize draw and/or extend your warranty to a point that is still below your basic statutory rights," as seen on most product registration cards.
     
  3. XXAOSICXX

    XXAOSICXX Member

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    Indeed!
     
  4. Jedibeeftrix

    Jedibeeftrix New Member

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    sixth - they get to sit on a pile of your cash for a month or so, able to invest it for a return, before giving it back to the 'grateful' customer.
     
  5. Cthippo

    Cthippo Can't mod my way out of a paper bag

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    Frys in the US is bad for this. You have to really read the fine print sometimes to figure out if the advertised price is what you pay, or what it costs you after they mail you the rebate check in 6-8 weeks. Some even require multiple rebates to get to the quoted price. No wonder everyone is buying online!
     
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