Chapter 6 & 7 Review

Which of the following statements is false?

A great deal often just happens by accident

Getting the best deal on a purchase involves doing all of the following except:

Being first in line for a new product

Which of the following is not recommended if you are trying to make your money go further?

Buying only name-brand products

Which of the following describes why using cash is a great bargaining tool?

Cash is emotional, cash is visual, Cash has immediacy. All of the above

What is a safe assumption to make regarding companies and their marketing practices?

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

Which is not a ʺpower over purchaseʺ tactic?

Compare your purchase with a friendʹs

The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving:

Credit repair and debt consolidation

Which of the following is not a need?

Eating out

In certain circumstances, it is okay to stretch the truth to get a bargain.

False

Inflation has no effect on your buying power.

False

Most of the items at a pawnshop are stolen.

False

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

False

When buying things at an auction, it is important that you:

Familiarize yourself with the item you want to purchase (quality, condition, age, etc.), Don't get caught up in the excitement and end up paying more than retail price, Set a limit on the amount you are willing to pay. All of the above

Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should:

Familiarize yourself with the stores return policy prior to your purchase, Hold on to your receipt and keep the labels and price tags on the item, return the item to the store as quick as possible. All of the above

Identify which method companies are using to compete for your money: ʺ90-days-same-as-cashʺ

Financing

Which of the following is not a form of product positioning?

Financing

Which of the following is not recommended when selling something you own?

Find an uninformed buyer and charge the highest price possible.

Which of the following is not a common marketing strategy?

Making the customer do product research

Which of the following is typically not a good place to find a deal?

Mall

Identify which method companies are using to compete for your money: TV commercials

Media

What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

Opportunity Cost

Dave tells the story of a man who bought his dream car, drove it home, but then returned it the next day after some money calculations. This story is an example of:

Opportunity cost

Identify which method companies are using to compete for your money: Car salesman

Personal selling

Four common marketing tactics are:

Personal selling, financing, repetition, product positioning

Identify which method companies are using to compete for your money: Reputation for holding its value

Product positioning

The purpose of advertising is to:

Tease, Perform, Entertain the customer. All of the above

Using cash gives you more bargaining power than using credit.

True

Young single adults should find an accountability partner with whom to discuss big purchases.

True

ʺThe Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:

Use them

Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?

Walk Away

Which of the following should you consider when making a significant purchase?

Your buying motives , If you can't pay with cash, don't buy it , the opportunity cost. All of the above

Which of the following statements is false?

Your choices as a consumer have no impact on the larger social environment.

When a company places an ad and offers no interest on your purchase for three years:

The cost of the financing is built into the price of the item

Which of the following is true about the ʺIf Iʺ take-away technique?

This technique involves negotiating the lowest price possible, then throwing something else into the deal.

A good salesperson will answer a question with a question.

True

Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.

True

Excluding the United States, most countries use negotiating as a way of life.

True

Learning to be quiet is actually a powerful tool in negotiation.

True

Never buy something you do not fully understand.

True

Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.

True