Unit 2, chapter 6
Zero Percent Interest
Less than 1/3 of all consumers qualify for 0% financing. 0% Debt Almost everyone financies their car and they get transferred off the 0% interest deal but they still get the car.
What percentage of "90 days same as cash" purchase are not paid in 90 days
More than 75%
We live in the most ____ in the history of the world.
market culture
Companies use every angle to aggressively compete for your
money
Buyer's remorse
Feeling regret or concern after making a large purchase
Don't be paranoid, but
Least beware.
Four common marketing tactics are:
Personal selling, financing, repetition, product positioning
Develop
Power of purchase
When it comes to big purchases, the right way to do it is to
Save up and pay cash.
The average cost of a 30-second television advertisement during the 2013 Super Bowl was:
$2 million
Power of purchase steps
1. Wait overnight 2. Consider you buying motives. No amount of stuff equals contentment. People sometimes get happiness and fun confused. You can buy fun but NOT happiness. 3. Never buy anything you do not understand. Particularly financial products like insurance or investments. 4. Consider the "opportunity cost" of your money. The money spent HERE cannot be spent THERE. 5. Seek wise counsel. Young adults who are not yet married should find an accountability partner-someone with whom you can discuss big purchases. Once you are married, you should seek the counsel of your spouse.
When it comes to spending
Adults divisé a plan and follow it
Significant purchase
An amount of money you spend, usually $300, that causes some pain to part with
Shelf positioning
Companies pay for prime shelf position in stores. It is meant to influence impulse buying.
90 days same as cash
Often offered by retailers of high dollar items; most buyers do not pay off balances by the end of 90 days and therefore begin paying high interest rates on their remaining balances, a marketing tool.
opportunity cost
Refers to the financial opportunity that is given up because you choose to do something else with your money
Brand recognition/awareness
Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
live like no one else
So later you can live like no one else
Marketing
The process of communicating the value of a product or service to customers
Branding
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
Financing
To buy an item with credit; paying over time
Color matters
When you are doing product positioning.
Types of product positioning
brand recognition, color, shelf positioning, packaging
caveat emptor
buyer beware
Packaging
designing and producing the container or wrapper for a product. All meant to impact you.
we all have a spoiled child inside us, called _________.
immaturity
Media like TV, radio, and internet use __________ to sell products.
repetition
Buyer's remorse
when someone regrets a purchase immediately after making it