Dave Ramsey Chapter 6

How is 90 days same-as-cash a marketing tool?

88% of "90 days same-as-cash" contracts convert to payments

Term for financing as a marketing tool

90 days same-as-cash

Advertising aimed at creating consumer awareness for a product is called

Branding

Buyer beware aka ________

Caveat Emptor

What are three safe assumption to make regarding companies?

Companies use all angles to aggressively compete for your money Companies know that competition is fierce for consumer dollars Companies spend millions of dollars and do extensive research on advertising

What 5 steps should you take before making a significant purchase?

Wait overnight Consider your buying motives Avoid buying something you do not understand Consider the opportunity cost of your money Seek counsel

Why is there a direct correlation between the number of hours you watch TV and the amount of money you spend?

advertising

term for doubting a purchase

buyer's remorse

By asking yourself, "Why am I buying this product?" you are examining your:

buying motives

"90 days same as cash" is also known by what term

financing

Borrowing money and paying over time is called

financing

buying an item without thinking about it first

impulse purchase

commercials are also known as

media

What concept is best explained by the statement, "Money spent here cannot be spent there"?

opportunity cost

The true cost of something in terms of what you give up is called

opporunity cost

selling directly to the individual

personal selling

selling products directly to family and friends is an example of:

personal selling

What is not a part of product positioning

price

A product's reputation (through brand recognition, color, shelf position and packaging)

product positioning

finding the right place in the store for a product

shelf positioning

a type of purchase that causes pain when bought

significant purchase

Advertising works by using repetition, color, emotional appeals, brand recognition and financing tools. Ads use anything that appeals to the consumer and gets them to buy. t/f

true

An effective salesperson will answer a question with a question. t/f

true

Never buy something you do not fully understand. t/f

true

When considering a car purchase, when you ask a car salesman about color options, he will often respond with: "We have it in several colors. Are you looking at 48 or 60 month financing?" t/f

true

what is used in real estate to catch the eye of the consumer

color

"that's not good enough" is a part of power over purchase when making a significant purchase. t/f

false

A significant purchase is any amount of money that causes pain when you spend it. Typically, it is $500 and up. t/f

false

Advertising slogans that have been around for a long time (For example: "Melts in your mouth, not in your hands.") no longer work. t/f

false

The amount of stuff a person has is directly related to contentment and happiness. t/f

false

When a company takes out a four-page color ad in the Sunday paper and offers no interest on your purchase for three years, they are showing their appreciation to you by giving you free money. t/f

false