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