FL3 Flashcards
Need
is needed for survival
Want
Desire to have
Priority want
Something we’re willing to invest in
Why we want what we want
Pressure, advertising
Appeal to Intellect
Logic, stats, or research
Appeal to authority
Endorsement
Appeal to emotion
Pity, fear, vanity, pleasure, desires
Impulse buying
Buying unplanned things
Advertising strategies
Appeal to intellect, appeal to authority, appeal to emotion
Scarcity
When supply is low and demand is high
What happens when a product becomes rare?
It becomes more popular.
How do financial resources affect purchases
The more we have, the more we spend.
FTC
Federal Trade Commission
BBB
Better Business Bureau
How to prevent identity theft
Review credit report, only carry what is necessary
Email scams
Nigerian prince
Phishing
Posing as a financial institution for money
Lottery scams
You’ve won, but provide info first
Talent scams
Pose as talent scout, spend money on screen test
Pyramid scheme
Pyramid schemes are called pyramids because there is a hierarchy of membership that resembles a pyramid. Once you join you are required to pay an enrollment fee to the person above you who paid the person above him or her who paid the person above him or her, and so on and so forth.
Gifting scheme
Gifting schemes are similar to pyramid schemes in that they require a “gift,” sometimes as much as $5,000 to $10,000, to be paid to one individual. The promise is that you will eventually become the individual receiving a gift of money from a large number of people. Presumably you receive a large return on your initial investment.
Ponzi scheme
Ponzi schemes are similar to pyramid schemes in that new enrollees are promised large returns on an initial investment fee. However, there is no pyramid hierarchy; Ponzi schemes usually involve one central individual who may or may not pay earlier participants with the new enrollment fees.
