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Direct email involves sending an email solely to communicate a promotional message (for example, a special offer or a product catalog). Companies usually collect a list of customer or prospect email addresses to send direct promotional messages to, or they rent a list of email addresses from service companies. [5]
For example, an item might be advertised as "$39 after rebate" with the item costing $79 out-the-door with a $40 rebate that the customer would need to redeem. Sometimes discounts are given at the point of sale rather than the manufacturer providing rebates, eliminating the need for coupons or mail-in rebates.
For example, a sales company may offer their consumers a bonus pack in which they can receive two products for the price of one. In these scenarios, this bonus pack is framed as a gain because buyers believe that they are obtaining a free product. [2] The purchase of a bonus pack, however, is not always beneficial for the consumer.
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The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
For example, a pharmacist might offer a discount for over-the-counter drugs to physicians who are purchasing them for dispensing to the physicians' own patients. [7] A seller supplying both trade or resellers, and the general public will have a general list price for anybody, and will offer a trade discount to bona-fide trade customers.
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