CPB Ch. 6 & 7 Review

question

Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further. TrueFalse
answer

True
question

A good salesperson will answer a question with a question. TrueFalse
answer

True
question

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
answer

D All of the above
question

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
answer

C Credit repair and debt consolidation
question

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
answer

C Walk away
question

Using cash gives you more bargaining power than using credit. TrueFalse
answer

True
question

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 it使s 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.
answer

A Find an uninformed buyer and charge the highest price possible.
question

Which of the following is not a need? A Housing B Eating out C Utilities D Food
answer

B Eating out
question

Four common marketing tactics are: A Repetition, buyer使s 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
answer

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
answer

D All of the above
question

Identify which method companies are using to compete for your money: Car salesman A Personal selling B Financing C Media D Product positioning
answer

A Personal selling
question

Which of the following should you consider when making a significant purchase? A Your buying motives B If you can使t pay with cash, don使t buy it C The opportunity cost D All of the above
answer

D All of the above
question

The amount of stuff a person has is directly related to contentment and happiness. TrueFalse
answer

False
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Excluding the United States, most countries use negotiating as a way of life. TrueFalse
answer

True
question

Learning to be quiet is actually a powerful tool in negotiation. TrueFalse
answer

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
answer

D Product positioning
question

Young single adults should find an accountability partner with whom to discuss big purchases. TrueFalse
answer

True
question

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
answer

C The cost of the financing is built into the price of the item
question

Identify which method companies are using to compete for your money: TV commercials A Personal selling B Financing C Media D Product positioning
answer

C Media
question

Which is not a 屎power over purchase屎 tactic? A Compare your purchase with a friend使s B Consider the opportunity cost C Wait overnight D Seek counsel
answer

A Compare your purchase with a friend使s
question

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
answer

C Making the customer do product research
question

What concept is best explained by the statement, 屎Money spent here cannot be spent there屎? A Law of diminishing return B Opportunity cost C Significant purchases D Delayed gratification
answer

B Opportunity cost
question

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.
answer

D Your choices as a consumer have no impact on the larger social environment.
question

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 Don使t 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
answer

D All of the above
question

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 doesn使t always mean that you使ll get one. D A great deal often just happens by accident.
answer

D A great deal often just happens by accident.
question

屎The Lucky Seven屎 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
answer

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
answer

D Mall
question

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 store使s 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
answer

D All of the above
question

Never buy something you do not fully understand. TrueFalse
answer

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 屎Be backs屎 in the car business C Buyer使s remorse D Opportunity cost
answer

C Buyer使s remorse
question

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
answer

C Being first in line for a new product
question

The purpose of advertising is to: A Tease the consumer B Inform the consumer C Persuade the consumer D All of the above
answer

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
answer

B Buying only name-brand products
question

Being married (or emotionally attached) to a purchase will cause you to lose bargaining power. TrueFalse
answer

True
question

Most of the items at a pawnshop are stolen. TrueFalse
answer

False
question

Identify which method companies are using to compete for your money: 屎90-days-same-as-cash屎 A Personal selling B Financing C Media D Product positioning
answer

B Financing
question

In certain circumstances, it is okay to stretch the truth to get a bargain. TrueFalse
answer

false
question

Which of the following is not a form of product positioning? A Shelf positioning B Packaging and color C Financing D Brand recognition
answer

C Financing
question

Which of the following is true about the 屎If I屎 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 屎good guy, bad guy屎 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.
answer

A This technique involves negotiating the lowest price possible, then throwing something else into the deal.
question

Inflation has no effect on your buying power. TrueFalse
answer

False

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