What are 2 possible reasons why monopoly sellers usually offer discount prices to buyers who are willing to mail in a rebate coupon or endure some other type of inconvenience?

Marketing Jan 12, 2021

Expert Solution

The two reasons why monopoly owners offer discount prices to buyers who are willing to mail in a rebate coupon or endure some other type of inconvenience are given below:

1) The monopoly like other firms wants to build brand loyalty and when the consumer is offered a rebate or a discount for going through any sort of inconvenience so that they are not discouraged caused due to inconveniences and the customer base is maintained.

2) Any market would adopt a strategy where the number of buyers can increase from the existing number and by offering such provisions monopolies can increase their customer base by encouraging them to purchase more and spread the word.

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