CHAPTER 6 questions

Which of the following is the first phase in a planned decision making process ?

1 Preshopping activities 2 evaluating alternatives 3 section and purchase 4 post purchase activities

One possible _______ advantage/drawback) of leasing an automobile is the smaller upfront cash outlay (i.e security deposit)

Advantage

Which items below are used in determining the cost of an automobile lease?

Capitalized cost Money factor---the interest rate paid on the capitalized cost The monthly payments and the number of months Residual value - the projected value at the end of the lease

The common sources of information regarding products during the preshopping phase include personal________, business organizations, media, and independent testing agencies such as consumer reports.

Contracts

Product labels for appliances generally include information on operating _______ to assist you in selecting the most energy -efficient models.

Costs

An _____warrenty, usually in writing, is created by the seller or manufacture and has two forms: the full warranty and the limited warranty. Use one word per blank.

Express

Social factors that affect your buying habit include Peer pressure, culture, and the inflation.

False

A (full/limited) warranty states that a defective product or replaced during a reasonable amount of time.

Full

Which of the following are drawbacks of leasing automobile?

No ownership interest in the vehide Costs incurred for certain repairs Costs incurred for extra mileage

A wide variety of economic, social, and personal factors affect daily buying habits

True

The drawbacks of leasing an automobile include no ownership in the vehicle and costs for extra mileage, for certain repairs, and for turning the car in early.

True

Which of the following is true regarding comparison shopping for used vehicles?

Warranties offered by used car dealers are usually limited

An individual would benefit from comparison shopping when wanting to purchase which of the following types of products and/or in which I'd the following situations?

Expensive or complex products Buying items that you purchase often Shopping can be done easily, such as with ads, catalogs, or online Different sellers offer different prices and services Product quality or prices vary greatly

Which of the following is not true?

A limited warranty states that a defective product can be fixed or replaced within a certain time.

A full warranty covers only certain aspects of the products and requires the buyer to share in the cost of repairs or shipping.

False

One of the most useful sources of information regarding products during the preshopping phase is _______that provide buying and shopping suggestions.

Online reviews

The information on the label of some food products includes ________ dating that helps the consumer determine freshness or shelf life of a perishable product.

Open

Lease payments are often less that loan payments.

True

Which of the following would be included in phase 3, selection and purchase, of the decision -making process for making major buying decisions?

Negotiation activities to obtain a lower price. Payment alternatives including use of cash and various credit plans. Assessment of acquisition and installation that might be encountered