Finance Cash Rebates Cash Rebates, Term Paper

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An even less ethical practice is the idea of cash rebate credit cards, where consumers are encouraged to charge in exchange for rebates on their purchases -- this surely encourages the habit of spending plastic money rather than paper money, and thus facilitates a debt culture.

Even from a company's marketing and advertising point-of-view, cash rebates can appear to be a desperate measure, as when Ford recently offered a misguided $1,000 rebate on its new line of trucks.

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(Reuters, 2003) Instead of garnering new sales and praise, this effort only drew attention to Ford's persistent reliance on high-fuel use cars, causing industry analysts to question how much profit Ford could get from its trucks given higher assembly costs and cutthroat competition in the U.S. market.

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