CPB Ch. 6 & 7 Review – Flashcards
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Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further. TrueFalse
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True
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A good salesperson will answer a question with a question. TrueFalse
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True
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Which of the following describes why using cash is a great bargaining tool? A Cash is emotional. B Cash is visual. C Cash has immediacy. D All of the above
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D All of the above
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The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving: A Fraudulent work-at-home programs B Nonexistent foreign lotteries C Credit repair and debt consolidation D Dishonest prize promotions
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C Credit repair and debt consolidation
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Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step? A Ask about 90-days-same-as-cash B Shut up C Walk away D All of the above
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C Walk away
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Using cash gives you more bargaining power than using credit. TrueFalse
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True
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Which of the following is not recommended when selling something you own? A Find an uninformed buyer and charge the highest price possible. B Be armed with information so that you can be sure itʹs a win -win deal. C Get antiques or collectible items appraised and sell them slightly below that price. D Make it clear that, as a seller, you have walk-away power.
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A Find an uninformed buyer and charge the highest price possible.
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Which of the following is not a need? A Housing B Eating out C Utilities D Food
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B Eating out
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Four common marketing tactics are: A Repetition, buyerʹs remorse, product positioning, significant purchase B Competition, financing, opportunity cost, personal selling C Branding, personal selling, opportunity cost, financing D Personal selling, financing, repetition, product positioning
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D Personal selling, financing, repetition, product positioning
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What is a safe assumption to make regarding companies and their marketing practices? A Companies know that competition is fierce for consumer dollars. B Companies spend millions of dollars and do extensive research on advertising. C Companies use all angles to aggressively compete for your money. D All of the above
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D All of the above
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Identify which method companies are using to compete for your money: Car salesman A Personal selling B Financing C Media D Product positioning
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A Personal selling
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Which of the following should you consider when making a significant purchase? A Your buying motives B If you canʹt pay with cash, donʹt buy it C The opportunity cost D All of the above
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D All of the above
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The amount of stuff a person has is directly related to contentment and happiness. TrueFalse
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False
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Excluding the United States, most countries use negotiating as a way of life. TrueFalse
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True
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Learning to be quiet is actually a powerful tool in negotiation. TrueFalse
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True
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Identify which method companies are using to compete for your money: Reputation for holding its value A Personal selling B Financing C Media D Product positioning
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D Product positioning
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Young single adults should find an accountability partner with whom to discuss big purchases. TrueFalse
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True
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When a company places an ad and offers no interest on your purchase for three years: A They are not interested in making a profit B They are showing their appreciation to you by giving you free money C The cost of the financing is built into the price of the item D All of the above
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C The cost of the financing is built into the price of the item
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Identify which method companies are using to compete for your money: TV commercials A Personal selling B Financing C Media D Product positioning
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C Media
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Which is not a ʺpower over purchaseʺ tactic? A Compare your purchase with a friendʹs B Consider the opportunity cost C Wait overnight D Seek counsel
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A Compare your purchase with a friendʹs
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Which of the following is not a common marketing strategy? A Providing financing options B Repetition C Making the customer do product research D Personal selling
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C Making the customer do product research
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What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ? A Law of diminishing return B Opportunity cost C Significant purchases D Delayed gratification
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B Opportunity cost
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Which of the following statements is false? A Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer. B In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment. C Being a wise consumer involves developing a variety of skills, from product research to careful comparative analysis. D Your choices as a consumer have no impact on the larger social environment.
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D Your choices as a consumer have no impact on the larger social environment.
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When buying things at an auction, it is important that you: A Familiarize yourself with the item you want to purchase (quality, condition, age, etc.) B Donʹt get caught up in the excitement and end up paying more than retail price C Set a limit on the amount you are willing to pay D All of the above
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D All of the above
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Which of the following statements is false? A Negotiation involves a conversation of back-and-forth, give-and-take. B If negotiation is done correctly, it will end up being a win -win deal. C Just asking for a great deal doesnʹt always mean that youʹll get one. D A great deal often just happens by accident.
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D A great deal often just happens by accident.
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ʺThe Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you: A Use them B Visit another country C Are willing to buy the item regardless of the price D Have a lot of money
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A Use them
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Which of the following is typically not a good place to find a deal? A Online auctions B Consignment shops C Individuals D Mall
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D Mall
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Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should: A Familiarize yourself with the storeʹs return policy prior to your purchase B Hold on to your receipt and keep the labels and price tags on the item C Return the item to the store as quickly as possible D All of the above
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D All of the above
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Never buy something you do not fully understand. TrueFalse
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True
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Dave tells the story of a man who bought his dream car, drove it home, but then returned it the next day after some money calculations. This story is an example of: A Brand recognition B ʺBe backsʺ in the car business C Buyerʹs remorse D Opportunity cost
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C Buyerʹs remorse
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Getting the best deal on a purchase involves doing all of the following except: A Having patience B Negotiating C Being first in line for a new product D Shopping around to find the best deal
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C Being first in line for a new product
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The purpose of advertising is to: A Tease the consumer B Inform the consumer C Persuade the consumer D All of the above
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D All of the above
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Which of the following is not recommended if you are trying to make your money go further? A Buying clothing at end-of-the-season sales B Buying only name-brand products C Negotiating for a lower price D Comparison shopping
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B Buying only name-brand products
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Being married (or emotionally attached) to a purchase will cause you to lose bargaining power. TrueFalse
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True
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Most of the items at a pawnshop are stolen. TrueFalse
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False
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Identify which method companies are using to compete for your money: ʺ90-days-same-as-cashʺ A Personal selling B Financing C Media D Product positioning
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B Financing
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In certain circumstances, it is okay to stretch the truth to get a bargain. TrueFalse
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false
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Which of the following is not a form of product positioning? A Shelf positioning B Packaging and color C Financing D Brand recognition
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C Financing
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Which of the following is true about the ʺIf Iʺ take-away technique? A This technique involves negotiating the lowest price possible, then throwing something else into the deal. B This technique should only be used when the ʺgood guy, bad guyʺ technique is used on you. C This technique is meant to take advantage of the other person in the negotiation. D Use this technique prior to negotiating price.
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A This technique involves negotiating the lowest price possible, then throwing something else into the deal.
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Inflation has no effect on your buying power. TrueFalse
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False
