chapter 6

Question 1

The persistent increase in the cost of goods and services or the persistent decline in the buying power of money

Answer 1

inflation

Question 2

To buy an item with credit; paying over time.

Answer 2

financing

Question 3

Identify which method companies are using to compete for your money: TV commercials

Answer 3

media

Question 4

Which is not a ʺpower over purchaseʺ tactic?

Answer 4

compare your purchase with a friend’s

Question 5

Feeling regret or concern after making a large purchase

Answer 5

buyer’s remorse

Question 6

Identify which method companies are using to compete for your money: Reputation for holding its value

Answer 6

product postitioning

Question 7

Which of the following is not a need for consumer awarness

Answer 7

eating out

Question 8

The process of communicating the value of a product or service to customers

Answer 8

marketing

Question 9

Inflation has no effect on your buying power(t/f)

Answer 9

false

Question 10

Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions(t/f)

Answer 10

true

Question 11

Repetition has proven to be an ineffective marketing technique.(t/f)

Answer 11

false

Question 12

The amount of stuff a person has is directly related to contentment and happiness.(t/f)

Answer 12

false

Question 13

What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

Answer 13

opportunity cost

Question 14

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:

Answer 14

opportunity cost

Question 15

Refers to the financial opportunity that is given up because you choose to do something else with your money.

Answer 15

opportunity cost

Question 16

Identify which method companies are using to compete for your money: ʺ90-days-same-as-cashʺ

Answer 16

financing

Question 17

Which of the following is not a common marketing strategy?

Answer 17

Making the customer do product research

Question 18

Zero percent financing is nothing more than a really good marketing tool.(t/f)

Answer 18

true

Question 19

When a company places an ad and offers no interest on your purchase for three years:

Answer 19

The cost of the financing is built into the price of the item

Question 20

What is a safe assumption to make regarding companies and their marketing practices?

Answer 20

all of the above

Question 21

The promotion of a product or service by identifying it with distinct characteristics; usually associated with public perception, quality or effectiveness

Answer 21

branding

Question 22

Which of the following should you consider when making a significant purchase?

Answer 22

all of the above

Question 23

You should never wait overnight before making a big purchase if there is only one item left.(t/f)

Answer 23

false

Question 24

Refers to the public’s ability to recall and recognize a brand by its logo, jingles, packaging, etc.

Answer 24

brand recognition

Question 25

An amount of money you spend, usually $300, that causes some pain to part with

Answer 25

significant purchase

Question 26

Which of the following is not a form of product positioning?

Answer 26

financing

Question 27

A budget has little effect on a person’s financial success unless he or she also develops power over purchase.(t/f)

Answer 27

true

Question 28

An economic system based on a free market, profit motive, open competition and private ownership of the means of production

Answer 28

capitalism

Question 29

Young single adults should find an accountability partner with whom to discuss big purchases.(t/f)

Answer 29

true

Question 30

The purpose of advertising is to:

Answer 30

all of the above

Question 31

Identify which method companies are using to compete for your money: Car salesman

Answer 31

personal selling

Question 32

Never buy something you do not fully understand(t/f)

Answer 32

true

Question 33

Four common marketing tactics are

Answer 33

personal selling, financing, repetition, product positioning

Question 34

A good salesperson will answer a question with a question(t/f)

Answer 34

true

Question 35

A spur-of-the-moment, unplanned decision to buy a product or service

Answer 35

impulse buy