Chapter Five Flashcards
Amygdala:
the part of your brain that helps regulate stress responses
Prefrontal Cortex:
the part of your brain that controls your impulses, thoughts, and memory.
Retail Therapy:
the shopping people do when they’re upset to uplift their mood.
The impulse purchase cycle:
your brain receives marketing signals, your amygdala enters the driver’s seat and your prefrontal cortex goes offline, you feel an adrenaline and cortisol surge, you decide to purchase, you feel a dopamine boost, your brain goes back to normal, you feel buyer’s remorse.
Impulse buying:
buying anything without planning to do so in advance
Buyer’s Remorse:
a feeling of guilt, regret, or unease after making a purchase.
Consumerism:
the belief that spending money and buying things is good for the economy
Online marketing strategies used:
retargeting, content marketing, influencer marketing, snack videos, and native advertising.
Marketing:
the process of communicating the value of a service or product to customers
Brand recognition:
the public’s ability to recall and recognize a brand by its logo, jingle, packaging, or name
Some of the top strategies companies use to get you to spend more:
item placement, personal selling, brand association, sales and promotions, and convenient paying methods.
Manufacturer’s Warranty
a promise from the manufacturer that a product will be replaced or repaired if it’s fault
Extended Warranty:
extra coverage for the repair or replacement of items purchased
Opportunity Cost:
the financial opportunity that is lost when you choose to do something else with your money
Card Fraud:
the unauthorized use of your debit or credit card number and PIN or the forging of your signature
