FINC Chapter 6
Service Contracts
extended warranty
Label information
open dating
express warranty (usually written)
Full warranty of Limited Warrantty
New Car Warranties
-Basic parts against defects -Power Train coverage -Corrosion warranty
Identify Strategies for Effective Consumer Buying
-Daily buying decisions involve trade offs -Wide variety of economic, social, and personal factors affect daily buying habits -Long term stability is achieved by not spending your entire current income -Overspending leads to misuse of credit
Used car warranties
-FTC required "buyers' guide sticker" -Warranty of merchantability
Implied warranty
-Warranty of Tittle -Warranty of merchantability
price comparision
-unit pricing = standard unit if measurement -coupons & rebates -More store conveniences => higher prices -Ready to-use products => higher prices -Large is not always the best buy "Sale" prices not always a savings -online sources can save time
Store selection
Location, price, selection, services
Major purchase decision making process
Phase 1: Pre-shopping Activities Phase 2: Evaluating alternatives Phase 3: Selection and Purchase Phase 4: Post - Purchase Activities
Time purchases
Price variations with the time of the year
Warranties
Written Guarantee from manufacturer or distributor specifying the conditions under which the product can be returned, replaces repaired
Brand comparision
private - label or store brands vs. national brands