Chapter 6

Question 1

Which of these are not a need 1.Eating out 2.Housing 3.Utilities 4.Food

Answer 1

Eating out

Question 2

What is the purpose of advertising

Answer 2

1.persuade the consumer 2.inform the consumer 3.tease the consumer

Question 3

what are the common marketing strategies

Answer 3

1.providing financing options 2.repetition 3.personal selling

Question 4

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

Answer 4

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

Question 5

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

Answer 5

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

Question 6

what concept is best explained by the statement, “money spend here cannot be spent there”

Answer 6

opportunity cost

Question 7

which method companies are using to compete for your money

Answer 7

financing

Question 8

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

Answer 8

product positioning

Question 9

which method companies are using to compete for your money: car salesmen

Answer 9

personal selling

Question 10

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

Answer 10

media

Question 11

what are the four common marketing tactics

Answer 11

1.personal selling 2.financing 3.repetition 4.product positioning

Question 12

dave tells the story of a man who brought his dream car, did some math, and then returned it. This is an example of

Answer 12

opportunity cost

Question 13

what should you consider when making a significant purchase

Answer 13

1.the opportunity cost 2.if you cant pay with cash, dont buy it 3.your buying motives

Question 14

what are the forms of product positioning

Answer 14

1.packaging and color 2.shelf positioning 3.brand recognition

Question 15

what are the power over purchase tactic

Answer 15

1.seek counsel 2.wait overnight 3.consider the opportunity cost

Question 16

a good salesperson will answer a question with a question

Answer 16

true

Question 17

never buy something you do not fully understand

Answer 17

true

Question 18

the amount of stuff a person has is directly related to contentment and happiness

Answer 18

false

Question 19

young single adults should find an accountability partner with whom to discuss big purchases

Answer 19

true

Question 20

inflation has no effect on your buying power

Answer 20

false

Question 21

a budget has little effect on a person’s financial success unless he or she also develops power over purchase

Answer 21

true

Question 22

you should never wait overnight before making a big purchase if there is only one item left

Answer 22

false

Question 23

teens have cited “friends” as the strongest influence over their purchase decisions

Answer 23

true

Question 24

repetition has proven to be an ineffective marketing technique

Answer 24

false

Question 25

zero percent financing is nothing more than a really good marketing tool

Answer 25

true

Question 26

promotion of a product or service by identifying it with distinct characteristics; public perception/quality

Answer 26

branding

Question 27

to buy an item with credit; paying over time

Answer 27

financing

Question 28

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

Answer 28

opportunity cost

Question 29

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

Answer 29

significant purchase

Question 30

the process of communicating the value of a product or service to consumers

Answer 30

marketing

Question 31

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

Answer 31

brand recognition

Question 32

feeling regret or concern after making a large purchase

Answer 32

buyer’s remorse

Question 33

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

Answer 33

capitalism

Question 34

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

Answer 34

inflation

Question 35

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

Answer 35

impulse buy