Do you see any dangers with rebates from the manufacturer’s viewpoint? As a consumer, would you prefer a rebate to a price reduction, or does it make any difference?

A rebate is a promise by a manufacturer to return part of the purchase price directly to the purchaser. The rebate is usually given to consumers, although it can be offered to dealers instead, in the expectation that they will pass some or all of the savings along to consumers.
Obviously, the objective of a rebate is to increase sales by giving purchasers a lower price. But why not simply reduce prices? The rebate is used instead of a regular markdown or price reduction because it is perceived as being less permanent than cutting the list price. This can give more promotional push by emphasizing the savings off the regular price, but only for a limited time. Rebates can be effective in generating short-term business, but they may affect business negatively once they have been lifted.