Chapter 6 Test - Consumer Awareness?
Refers to the publicʹs ability to recall and recognize a brand by its logo, jingles, packaging, etc.
Brand Recognition
The promotion of a product or service by identifying it with distinct characteristics; usually associated with public perception, quality or effectiveness
Branding
Feeling regret or concern after making a large purchase
Buyerʹs Remorse
An economic system based on a free market, profit motive, open competition and private ownership of the means of production
Capitalism
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.
Which is not a ʺpower over purchaseʺ tactic?
Compare your purchase with a friendʹs
Which of the following is not a need?
Eating out
Inflation has no effect on your buying power.
False
Repetition has proven to be an ineffective marketing technique.
False
The amount of stuff a person has is directly related to contentment and happiness.
False
You should never wait overnight before making a big purchase if there is only one item left.
False
Identify which method companies are using to compete for your money:ʺ90-days-same-as-cashʺ
Financing
To buy an item with credit; paying over time
Financing
Which of the following is not a form of product positioning?
Financing
A spur-of-the-moment, unplanned decision to buy a product or service
Impulse Buy
The persistent increase in the cost of goods and services or the persistent decline in the buying power of money
Inflation
Which of the following is not a common marketing strategy?
Making the customer do product research
The process of communicating the value of a product or service to customers
Marketing
Identify which method companies are using to compete for your money: TV commercials
Media
Refers to the financial opportunity that is given up because you choose to do something else with your money
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
What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?
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
An amount of money you spend, usually $300, that causes some pain to part with
Significant Purchase
The purpose of advertising is to:
Tease the consumer Inform the consumer Persuade the consumer
Young single adults should find an accountability partner with whom to discuss big purchases.
True
Zero percent financing is nothing more than a really good marketing tool.
True
Which of the following should you consider when making a significant purchase?
Your buying motives If you canʹt pay with cash, donʹt buy it The opportunity cost
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
A budget has little effect on a personʹs financial success unless he or she also develops power over purchase.
True
A good salesperson will answer a question with a question.
True
Never buy something you do not fully understand.
True
Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions.
True