Ch. 5- Consumer Awareness Flashcards
APR
annual rate for borrowing money
Buyer’s Remorse
regretting a purchase
Caveat Emptor
buyer beware
Financing
to buy an item with credit
Finite
having a beginning and an end
Impulse Purchase
to buy an item without thinking about it
Opportunity Cost
the true cost of something in terms of what you have to give up
Rule of 78
pre-payment penalty in a financing contract
Significant Purchase
a big purchase, usually over $300
T/F: Color is a product positioning technique used to get the buyer’s attention.
true
T/F: Advertising slogans that have been around for a long time no longer work.
false
T/F: Answering a question with a question is a sign of a well-trained salesperson.
true
What are the five steps to follow before making a significant purchase?
1) wait overnight
2) consider your buying motives
3) never buy anything you don’t understand
4) consider the “opportunity cost”
5) seek wise counsel
On average, how many ads does a person see per day?
3,000-4,000
What are the 4 major ways companies sell?
- personal selling
- financing as a marketing tool
- media
- product positioning
