Dave Ramsey Chapter 6
How is 90 days same-as-cash a marketing tool?
88% of "90 days same-as-cash" contracts convert to payments
Term for financing as a marketing tool
90 days same-as-cash
Advertising aimed at creating consumer awareness for a product is called
Branding
Buyer beware aka ________
Caveat Emptor
What are three safe assumption to make regarding companies?
Companies use all angles to aggressively compete for your money Companies know that competition is fierce for consumer dollars Companies spend millions of dollars and do extensive research on advertising
What 5 steps should you take before making a significant purchase?
Wait overnight Consider your buying motives Avoid buying something you do not understand Consider the opportunity cost of your money Seek counsel
Why is there a direct correlation between the number of hours you watch TV and the amount of money you spend?
advertising
term for doubting a purchase
buyer's remorse
By asking yourself, "Why am I buying this product?" you are examining your:
buying motives
"90 days same as cash" is also known by what term
financing
Borrowing money and paying over time is called
financing
buying an item without thinking about it first
impulse purchase
commercials are also known as
media
What concept is best explained by the statement, "Money spent here cannot be spent there"?
opportunity cost
The true cost of something in terms of what you give up is called
opporunity cost
selling directly to the individual
personal selling
selling products directly to family and friends is an example of:
personal selling
What is not a part of product positioning
price
A product's reputation (through brand recognition, color, shelf position and packaging)
product positioning
finding the right place in the store for a product
shelf positioning
a type of purchase that causes pain when bought
significant purchase
Advertising works by using repetition, color, emotional appeals, brand recognition and financing tools. Ads use anything that appeals to the consumer and gets them to buy. t/f
true
An effective salesperson will answer a question with a question. t/f
true
Never buy something you do not fully understand. t/f
true
When considering a car purchase, when you ask a car salesman about color options, he will often respond with: "We have it in several colors. Are you looking at 48 or 60 month financing?" t/f
true
what is used in real estate to catch the eye of the consumer
color
"that's not good enough" is a part of power over purchase when making a significant purchase. t/f
false
A significant purchase is any amount of money that causes pain when you spend it. Typically, it is $500 and up. t/f
false
Advertising slogans that have been around for a long time (For example: "Melts in your mouth, not in your hands.") no longer work. t/f
false
The amount of stuff a person has is directly related to contentment and happiness. t/f
false
When a company takes out a four-page color ad in the Sunday paper and offers no interest on your purchase for three years, they are showing their appreciation to you by giving you free money. t/f
false
