Unit 1 Flashcards
Having to do with a person’s honesty and moral attributes
Integrity
Retail store where people sell items and the owner of the shop gets a percentage of the sale
Consignment shop
The ability to walk away from a purchase when negotiating
Walk-away power
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
Foreclosure
A public sale in which property or items of merchandise are sold to the highest bidder
Auction
The process of quantifying cost and benefits of a decision
Cost-benefit analysis
The difference between the wholesale price and retail price
Markup
Type of yard sale with more items, usually the entire contents of a household
Estate Sale
To bargain for a lower price
Negotiate
T or F: using cash gives you more bargaining power than using credit
True
T or F: being married (or emotionally attached) to a purchase will cause you to lose bargaining power
True
Getting the best deal on a purchase involves doing all of the following except:
A) having Patience
B) being first in line for a new product
C) negotiating
D)shopping around to find the best deal
B) being first in line for a new product
Which of the following is typically not a good place to find a deal? A) consignment shops B) individuals C) mall D) online auctions
C) mall
Which of the following describes why using cash is a great bargaining tool? A) cash is visual B) cash has immediacy C) cash is emotional D) all of the above
D) all of the above
Summarize the benefits of being a wise consumer
In addition to economic saving , wise consumers enjoy improved health and have a positive impact on the larger social and even global environment
Explain how walk-away power can be used as a negotiating tool
You must not get emotionally attached to the purchase. It’s only if you’re prepared to walk away form the purchase that you will have the ability to negotiate
What role does research play in getting good deals on purchases
Recognize that researching a products prior to purchase makes you a informed consumer. Good negotiators are always armed with information about the product
Why is honest an important component of bargaining
If you lie and end up being wrong that person won’t trust you making it hard to make a deal.
Describe the cost benefit of buying lowlights outdated products
There is a very little difference in quality and performance of slightly outdated products . However, the price difference may be significant
