Chapter 6 Flashcards
Which of these are not a need 1.Eating out 2.Housing 3.Utilities 4.Food
Eating out
What is the purpose of advertising
1.persuade the consumer 2.inform the consumer 3.tease the consumer
what are the common marketing strategies
1.providing financing options 2.repetition 3.personal selling
when a company places an ad and offers no interest on your purchase for three years
the cost of the financing is built into the price of the item
what is a safe assumption to make regarding companies and their marketing practices
1.companies spend millions of dollars and research on advertising 2.companies know that competition is fierce for consumer dollars 3.companies use all angles to aggressively compete for your money
what concept is best explained by the statement, “money spend here cannot be spent there”
opportunity cost
which method companies are using to compete for your money
financing
which method companies are using to compete for your money: reputation for holding its value
product positioning
which method companies are using to compete for your money: car salesmen
personal selling
which method companies are using to compete for your money: TV commercials
media
what are the four common marketing tactics
1.personal selling 2.financing 3.repetition 4.product positioning
dave tells the story of a man who brought his dream car, did some math, and then returned it. This is an example of
opportunity cost
what should you consider when making a significant purchase
1.the opportunity cost 2.if you cant pay with cash, dont buy it 3.your buying motives
what are the forms of product positioning
1.packaging and color 2.shelf positioning 3.brand recognition
what are the power over purchase tactic
1.seek counsel 2.wait overnight 3.consider the opportunity cost
a good salesperson will answer a question with a question
true
never buy something you do not fully understand
true
the amount of stuff a person has is directly related to contentment and happiness
false
young single adults should find an accountability partner with whom to discuss big purchases
true
inflation has no effect on your buying power
false
a budget has little effect on a person’s financial success unless he or she also develops power over purchase
true
you should never wait overnight before making a big purchase if there is only one item left
false
teens have cited “friends” as the strongest influence over their purchase decisions
true
repetition has proven to be an ineffective marketing technique
false
zero percent financing is nothing more than a really good marketing tool
true
promotion of a product or service by identifying it with distinct characteristics; public perception/quality
branding
to buy an item with credit; paying over time
financing
refers to the financial opportunity that is given up because you choose to do something else with your money
opportunity cost
an amount of money you spend, usually $300, that causes some pain to part with
significant purchase
the process of communicating the value of a product or service to consumers
marketing
refers to the public’s ability to recall and recognize a brand by its logo, jingles, packaging, etc.
brand recognition
feeling regret or concern after making a large purchase
buyer’s remorse
economic system based on a free market, profit motive, open competition and private ownership of the means of production
capitalism
the persistent increase in the cost of goods and services or the persistent decline in buying power of money
inflation
a spur-of-the-moment, unplanned decision to buy a product or service
impulse buy
