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Therefore, the critical question posed is: If a customer rebate is provided, should it be on the regular, upgraded, or both products? Consequently, we compare the outcomes of eight options from a manufacturer's perspective. The analysis reveals that the manufacturer's choice is not straightforward. Rebates on both products can lead to higher profit for the manufacturer if the proportion of rebate\u2010sensitive consumers is moderate. However, product quality becomes critical as the proportion of rebate\u2010sensitive consumers increases. If the quality of the regular product is too high or too low, then the manufacturer may use a rebate only on the regular product; otherwise, it should be on only an upgraded product. The rebate value on an upgraded product continuously decreases with regular product quality if a rebate is introduced only on an upgraded product, but its nature changes in other contexts. Quality improvement investment is also a critical factor that affects the manufacturer's decision. Because an analytical assessment of the effectiveness of rebate promotion under the price\u2010quality consideration is still missing in the literature, the decision to initiate a rebate promotion might be considered on an ad hoc basis. Therefore, the explicit thresholds identified in this study can help managers to make rebate decisions\u00a0comprehensively.<\/jats:p>","DOI":"10.1111\/itor.13406","type":"journal-article","created":{"date-parts":[[2023,12,1]],"date-time":"2023-12-01T05:17:25Z","timestamp":1701407845000},"page":"3008-3049","update-policy":"https:\/\/2.zoppoz.workers.dev:443\/https\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":7,"title":["Consumer rebate strategy for a manufacturer selling price\u2010quality differentiated products"],"prefix":"10.1111","volume":"32","author":[{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0001-9078-7094","authenticated-orcid":false,"given":"Sani","family":"Majumder","sequence":"first","affiliation":[{"name":"Department of Basic &amp; Applied Science National Institute of Technology Jote, Papum Pare Arunachal Pradesh 791 112 India"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Izabela","family":"Nielsen","sequence":"additional","affiliation":[{"name":"Department of Materials and Production Aalborg University Aalborg 9220 Denmark"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Susanta","family":"Maity","sequence":"additional","affiliation":[{"name":"Department of Basic &amp; 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