Bargain Shopping Flashcards
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
foreclosure
A public sale in which property or items of merchandise are sold to the highest bidder
auction
Having to do with a person’s honesty and moral attributes
integrity
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 storeʹs 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 quickly as possible
“The Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:
use them
Which of the following is true about the ʺIf Iʺ take-away technique?
- Use this technique prior to negotiating price.
- This technique involves negotiating the lowest price possible, then throwing something else into the deal.
- This technique should only be used when the ʺgood guy, bad guyʺ technique is used on you.
- This technique is meant to take advantage of the other person in the negotiation.
This technique involves negotiating the lowest price possible, then throwing something else into the deal.
Which of the following is not recommended when selling something you own?
Find an uninformed buyer and charge the highest price possible.
Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.
true
The exchange of goods or services without the use of money
barter
Excluding the United States, most countries use negotiating as a way of life.
true
The ability to walk away from a purchase when negotiating
walk-away power
Type of yard sale with more items, usually the entire contents of a household
estate sale
Which of the following is not recommended if you are trying to make your money go further?
- Buying clothing at end-of-the-season sales
- Negotiating for a lower price
- Buying only name-brand products
- Comparison shopping
Buying only name-brand products
When buying things at an auction, it is important that you:
- Familiarize yourself with the item you want to purchase (quality, condition, age, etc.),
- Donʹt 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
The difference between the wholesale price and retail price
markup
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
To bargain for a lower price
negotiate
In certain circumstances, it is okay to stretch the truth to get a bargain.
false
Which of the following describes why using cash is a great bargaining tool?
- Cash is emotional,
- Cash is visual,
- Cash has immediacy.
Which of the following statements is false?
- Negotiation involves a conversation of back-and-forth, give-and-take.
- A great deal often just happens by accident.
- If negotiation is done correctly, it will end up being a win -win deal.
- Just asking for a great deal doesn’t always mean that you’ll get one.
A great deal often just happens by accident.
If you’re trying to buy something, it’s not your job to come up with a good price. Make the seller work for your business.
true
Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.
true
Making informed choices as a consumer will usually yield savings.
true
The process of quantifying costs and benefits of a decision
cost-benefit analysis
Retail store where people sell items and the owner of the shop gets a percentage of the sale
consignment shop
Learning to be quiet is actually a powerful tool in negotiation.
true
the good guy, bad guy technique is a negotiating tool that you should be aware of.
true
Getting the best deal on a purchase involves doing all of the following except:
- Being first in line for a new product
- Having patience
- Negotiating
- Shopping around to find the best deal
Being first in line for a new product
Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?
walk away
Most of the items at a pawnshop are stolen.
false
Which of the following is typically not a good place to find a deal?
mall
Which of the following statements is false?
- Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer.
- Your choices as a consumer have no impact on the larger social environment.
- In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment.
- Being a wise consumer involves developing a variety of skills, from product research to careful comparative analysis.
Your choices as a consumer have no impact on the larger social environment.
Using cash gives you more bargaining power than using credit.
true
