Chapter 6

Unit Pricing

$8.32/64 = .13 cents an oz.

Label information

open dating

The parts for your air conditioner will be replaced during the warranty period if damaged, but you will pay for the labor

Which of the following is an example of a limited warranty?

same, 30

Lemon laws protect car owners after four attempts to get the __________ problem corrected or when the vehicle is out of service for more than _______ days within 12 months of purchase or the first 12,000 miles.

The factors that influence the price of a used car include:

number of miles; condition; demand for the model; features and options

Research-Based Buying-Phase 3

Phase 3-selection and purchase -Negotiation activities to obtain lower price or added quality -Payment alternatives including use of cash and various credit plans -Assessment of acquisition and installation that might be encountered.

Which of the following are important considerations when choosing a store at which to shop?

Selection and services available; Location and prices

Comparison shopping

A method of judging the benefits of different products by comparing several factors, such as quality, features, and cost.

Buyer's guide

A used car dealer must display a _________ ________ sticker telling whether the vehicle comes with a warranty.

Authority

Dealing with the person who has the ________ to give you a lower price is a vital factor for negotiations.

Brand Comparison

Private-label or store brands vs. national brands

Warranties

Written guarantee from manufacturer or distributor specifying the conditions under which the product can be returned, replaced, or repaired

Service Contracts

an agreement between a business and a consumer to cover the repair costs of a product

Research-Based Buying-Phase 2

Phase 2-evaluating alternatives -Attribute assessment with a comparison of product features -Price analysis including consideration of the costs at various buying locations -Comparison shopping activities to evaluate shopping locations

flat; hourly

When selecting a lawyer, questions about legal costs should focus on the way charges should be calculated , such as _________ fee, ______ rate, or contingency basis.

Customers overcharged for a service; Auto owners charged for unneeded replacement parts for their vehicles; People injured by a defective product

Which of the following are examples of groups of people who qualify for a class-action suit?

Depreciation; Insurance; Registration fees; Interest on car loans

Which of the following automobile costs are fixed ownership costs associated with an automobile?

Extended Warranties

for a fee, the terms of the original warranty are extended for a specified time period

New car warranties

-Basic parts against defects -Power train coverage -Corrosion warranty

Impulse buying

A buying decision made by customers on the spot when they see the merchandise

Full warranty

An assurance that a defective product will be repaired or replaced without charge within a reasonable time

Almost $.70 per pound $6.99/10

If a 10-pound bag of dog food sells for $6.99, what is the unit cost per pound of the dog food?

Research-Based Buying - Phase 1

Phase 1-pre-shopping activities -Problem identification to set a goal and focus your purchasing activities -Information gathering to benefit from the buying experiences of others

Research-Based Buying-Phase 4

Phase 4-post purchase activities -Proper maintenance and operation -Identification and comparison of after-sale service alternatives -Resolution of any purchase concerns that may occur.

Price comparison

Unit pricing uses a standard unit of measurements to compare the prices of packages of different sizes.

Which of the following is a negative equity situation with a car loan?

Upon selling your car you still owe the bank money on the car loan (over and above your selling price); The loan amount owed is more than the value of the car.

Rebate

a cash refund given for the purchase of a product during a specific period

Limited warranty

a warranty that excludes certain parts of the product form coverage or requires the customer to bear some of the expense for repairs resulting form defects.

Express warranty

A seller's or lessor's oral or written promise, ancillary to an underlying sales or lease agreement, as to the quality, description, or performance of the goods being sold or leased.

Implied warranty

Covers a product's intended use or other basic understandings that are not in writing.

Refund

Lemon laws require a(n) for the vehicle after the owner has made repeated unsuccessful attempts to get the car fixed by the dealer.