Chapter 5

Question 0

True or False

Advertising slogans that have been around for a long time no longer work.

Answer 0

False

Question 1

True or False

Color is not a product positioning technique used to get the buyers attention.

Answer 1

False

Question 2

True or False

Answering a question with a question is the sign of a well-trained salesperson.

Answer 2

True

Question 3

True or False

Typically, “90 days same-as-cash” contracts convert to payments with interest up to 24% APR.

Answer 3

True

Question 4

True or False

The opportunity cost of purchasing a new cell phone could be the purchase of a new prom dress.

Answer 4

True

Question 5

Want or Need

Cable television

Answer 5

want

Question 6

Want or Need

Utilities

Answer 6

need

Question 7

Want or Need

New cell phone

Answer 7

want

Question 8

Want or Need

Groceries

Answer 8

Need

Question 9

Want or Need

Housing

Answer 9

Need

Question 10

Want or Need

The latest fashion

Answer 10

Want

Question 11

Want or Need

Transportation

Answer 11

Need

Question 12

What does “Caveat Emptor” mean?

Answer 12

buyer beware

Question 13

Cost of borrowing money on an annual basis

Answer 13

APR

Question 14

Regretting a purchase soon after making

Answer 14

buyers remorse

Question 15

Consumer awareness that particular bran exist. it is part of product positioning.

Answer 15

brand recognition

Question 16

to buy an item with credit; paying over time

Answer 16

financing

Question 17

having a beginning and an end

Answer 17

finite

Question 18

to buy an item without thinking about it

Answer 18

impulse purchase

Question 19

the true cost of something in terms of what you have to give up to get the item; the benefits you would have received by taking the other action

Answer 19

opportunity cost

Question 20

the portion of a “90 days same as cash” agreement that states that the entire loan amount plus the interest accumulated over the first 90 days becomes due immediately

Answer 20

rule of 78

Question 21

an amount of money you soend, usually $300 or moew, that causes some pain to part with

Answer 21

significant purchase

Question 22

What are the five steps you should follow before making a significant purchase?

Answer 22

1. wait overnight
2. consider your buying motives
3. never buy anything you do not understand
4. consider the opportunity costs of your money
5. seek wise counsel

Question 23

Companies use every angle to aggressively compete for what?

Answer 23

your money

Question 24

The average american is exposed to about how many advertisements daily?

Answer 24

around 3,000

Question 25

What are the four major ways that companies compete for your money?

Answer 25

1. personal selling
2. advertising as a marketing tool
3. tv, radio, internet, and other media
4. product positioning

Question 26

What is the sign of a well trained salesperson?

Answer 26

They answer your question with another question.

Question 27

What are product positioning techniques used to get the attention of consumers?

Answer 27

• Brand recognition
• Color
• Shelf position
• packaging

Question 28

What percentage of “90 days same-as-cash” contracts convert to payments which are usually at 24% APR with rule 78’s prepayment penalty?

Answer 28

88%

Question 29

How much is spent online advertising directed at kids?

Answer 29

$15 billion

Question 30

True or False
According to Harvard University, for every hour of tv per week that you watch, you spend and average of $200 extra a year.

Answer 30

True

Question 31

What does the spoiled, red-faced, grocery store kid living inside of us all represent?

Answer 31

immaturity