many albertans may fail to redeem ndp\'s solar panel rebates, marketing professor says
Alberta announced $36 Millions of rebate programs to encourage home and corporate rooftop solar panels But, a marketing professor who studies consumer responses to rebate offers, it is unlikely that we will actually deliver on the offer. Free LED light, low Shower nozzle? Alberta has launched a residential energy conservation program. Silk tim, marketing professor at the University of Columbia School of Business, spoke at the opening ceremony in Calgary on Thursday. The following interviews were edited and condensed. Q. What are the benefits of consumer rebates? Why do we like them so much? They represent savings, or at least an opportunity to save. So when we stand in the aisle and make a decision, we look at how much they offer on the price of the product and they look attractive. Q: Do Canadians usually use them? A: They are very popular in North America. they are as popular in Canada as in the United States. S. But when you say they will take advantage of them, the question is will they redeem it? We know they are influencing the purchase, but whether people get their money through work is another issue. Q: What is the answer? Unfortunately, we are not doing very well in this regard. You will think that we are just doing what we need, but unfortunately we can delay if we don\'t have a chance to redeem it right away, we can delay, it introduces a whole bunch of things that might interfere. While people will tell you that they have a strong incentive when they buy to redeem a rebate, the actual redemption rate is low, usually less than ten per cent. In fact, sometimes only less than a tenth of people stick to it. Q: What are the factors that usually interfere with the original intention? A: The length of the deadline is actually a big factor. Conventional wisdom would say that the longer you exchange people, the more likely they are to exchange, but what we show is actually the opposite. When you give people the most time, the redemption rate is actually the lowest. Redemption rate is actually the highest of the people you \'ve only given a day to redeem a rebate. In other words, if I don\'t allow you to delay, I force you to act quickly before the deadline, and you are actually more likely to stick to the end and get your money. Q: Is it a big ticket like a solar panel? What\'s the difference? A: we observed in the study of real and real products that the size of the rebate has A great impact on the purchase rate, so the larger the rebate, the more likely you are to buy the goods, however, the extent of this impact has not continued to redemption. Q: Did the rebate plan make good use of government funds? A: the goal or purpose of the government may be a little different from that of a retailer or manufacturer. I think the government may encourage redemption. They want to put the money in the hands of consumers who are going to buy solar panels. There are a few things to do in the process of implementing kickbacks, but we also have to recognize that this is a bit of a failure for us, a bit of a failure in human nature that we have not experienced.