DECA Marketing Cluster Practice Exam

What is a rebate?

1. A type of promotional plan

2. A full refund on a purchase

3. A partial refund for overpayment

4. A direct marketing strategy

The correct answer is: A partial refund for overpayment

A rebate refers to a partial refund given to a buyer after the purchase of a product or service, often used as a marketing strategy to encourage customer purchases. When a consumer buys an item, they may be eligible to receive a certain amount back after the transaction has been completed, typically requiring them to submit a form or claim. This process incentivizes purchases by effectively lowering the overall price. Understanding rebates is important for businesses as they can increase sales volume and attract price-sensitive customers. The concept of a rebate also differentiates it from a full refund or other promotional strategies, emphasizing that it allows consumers to reclaim part of their money rather than receiving their entire amount back or only benefiting from a promotional offer without a financial return.