What is a consumer discount in which a portion of the purchase price is returned to the buyer called?

A consumer discount in which a portion of the purchase price is returned to the buyer is known as a rebate. A rebate is a specific type of promotion offered by manufacturers or retailers, where the buyer pays the full price at the time of purchase but can later claim a percentage of that price back after submitting a form or receipt. This incentive encourages consumers to buy items by effectively lowering the price they pay after the transaction is completed.

In contrast, discounts typically refer to a reduction in the price at the point of sale, not necessarily involving a refund after the purchase. Coupons are vouchers or codes that provide a discount to consumers when they make a purchase, often at the point of sale rather than through a rebate process. Markdowns are price reductions applied to the original selling price of merchandise, usually to stimulate sales and clear inventory. Therefore, while all these terms relate to pricing strategies, a rebate specifically captures the idea of returning a portion of the purchase price to the buyer after the transaction.