| A | B |
|---|
| A good salesperson will answer a question with a question | True |
| Never buy something you do not fully understand. | True |
| When a company takes out a four-page color ad in the Sunday paper and offers no interest on your purchase for three years, they are showing their appreciation to you by giving you free money | False |
| Advertising slogans that have been around for a long time (“Melt in your mouth, not in your hand”) no longer work. | False |
| The amount of stuff a person has is directly related to contentment and happiness. | False |
| When considering your buying motives, ask yourself if you can afford the purchase. | True |
| Caveat emptor refers to the consumer’s rights. | False |
| In the automobile world, studies show that, 88% of the time, “be backs” don’t come back to purchase the car. | True |
| You should never wait overnight before making a big purchase if there is only one item left. | False |
| Shelf positioning forces the buyer to associate a value with a product. | True |
| Answering a question with a question is the sign of a well-trained salesperson. | True |
| Color is a product positioning technique used to get the buyer’s attention. | True |
| Typically, “90 days same-as-cash” contracts convert to payments with interest up to 24% APR. | True |
| The opportunity cost of purchasing a new cell phone could be the purchase of a new prom dress | True |
| Seek wise ___________ | counsel |
| Wait __________________ before making a major purchase | overnight |
| Borrowing money and paying over time is ______________. | financing |
| Creates consumer awareness for a trademark or product is ________________. | branding |
| An amount of money spent that causes some pain considered a _________________. | significant purchase |
| Spend $60 on the latest video game, or give $60 to charity is an example of ___________ ______________. | opportunity cost |
| On average a person will view how many advertisements per day? | 3000-4000 |
| ____________ is advertising aimed at creating consumer awareness for a product. | Branding |
| The true cost of something in terms of what you give up is the __________ _______. | opportunity cost |
| _________ is a technique that is real estate to catch the consumer’s eye. | color |
| ______________ is a technique in which the business finds seeks to find the right place in the store for a product. | Product Positioning |
| A purchase that causes some pain when purchased with cash is a ___________________. | significant purchase |
| Financing options that are often used as a marketing tool. | 90 day same as cash |
| Doubting a purchase after you make it is called _______________. | buyer’s remorse |
| Buying an item without thinking about it first is an _______________. | impulse purchase |
| What % of “90 days same-as-cash” purchases are not paid in 90 days and convert to payments? | 88% |
| What is an example of financing as a marketing tool? | 90 day same as cash |
| What is that spoiled, red-faced grocery store kid living inside of us called? | immaturity |
| What happens to our bodies when we make a significant purchase? | Bodies go through physiological changes |
| For every hour of television per week you watch, you spend an average of _____ a year | $200 |
| A clerk assisting a customer is an example of | Personal selling |
| What is the most likely cause of the direct correlation between the number of hours you watch TV and the amount of money you spend? | Advertising |
| A ___________ is usually over $300, but can vary depending on the person. | Significant purchase |
| Car salesman | Personal selling |
| 90 days same-as-cash” | Financing |
| Reputation for holding its value | Product positioning |
| Commercials | Media |
| Color and packaging | Product positioning |
| You deserve a break today” | Media |
| Interest-free for two years | Financing |
| Retail salesperson | Personal selling |
| safe assumption to make regarding companies | Companies use all angles to aggressively compete for your money |
| safe assumption to make regarding companies | Companies know that competition is fierce for consumer dollars. |
| safe assumption to make regarding companies | Companies spend millions of dollars and do extensive research on advertising. |
| Money spent here cannot be spent there | Opportunity cost |
| By asking yourself, “Why am I buying this product?” you are examining your: | Buying motives |
| A good used car salesperson will respond to a question about car color with: | Yes, are you looking at 48 or 60 month financing?” |
| Dave told the story about the man who brought a Mercedes home for one night, but returned it the next day after some calculations, as an example of: | Opportunity cost |
| What you should consider when making a significant purchase | The opportunity cost |
| What you should consider when making a significant purchase | Your buying motives |
| What you should consider when making a significant purchase | If you can’t pay cash, don’t buy it |
| Placing gum next to the cash register in a store is an example of: | Shelf position |
| Which is true of most 90 days same-as-cash contracts? | Most convert to payments with an APR of 24% or higher |
| What are the 4 Major ways that a company aggressively competes for your money | 1) Personal selling 2) financing as a marketing tool 3) media 4) product positioning |
| List the 4 parts associated with product positioning. | 1) Brand recognition 2) color 3) shelf positioning 4) packaging |
| Steps to take before making a significant purchase: | 1)Wait overnight before making a purchase 2)Consider your buying motives 3)Never buy anything that you do not understand 4)Consider the opportunity cost 5) Seek wise counsel |
| How is 90 days same-as-cash a marketing tool? | 88% of “90 days same-as-cash” contracts convert to payments;The company makes a lot of money on these. In other words, the consumer is not getting free money for 90 days. In addition to payments, there are high interest rates and fees associated with these contracts. The consumer thinks he or she is getting something for nothing but the payment must be made in full before the 90 days ends. |
| What are some of the ways advertising works? | Advertising uses repetition, color, emotional appeals, brand recognition and financing tools. Ads use anything that may appeal to the consumer to get them to buy. |
| How does advertising affect your buying decisions? | Advertising uses repetition, color, emotional appeals, brand recognition and financing tools. Ads use anything that may appeal to the consumer to get them to buy. |
| Why is the theme of this chapter “Buyer Beware”? | Companies use every angle to aggressively compete for your money. Every hour that watch tv, will result in an average spending of $200. |
| How much $ is spent on online advertising directed at kids? | $15 billion |
| Persuading people to do something by telling them that others are doing it, too. “Don’t be left out.” | Bandwagon |
| Famous people say they use a product or persuade you to use a product | Testimonial |
| By using the names or pictures of famous people, but not their direct quotations, the ad is trying to convey that the product will help the consumer imitate the famous person in the ad. | Transfer/Fantasy |
| The product name is repeated at least four times | Repetition |
| Words are used in the ad to evoke strong feelings about someone or something. | Emotion |
| Creates a sentimental tone while pointing back to “the good old days.” | Nostalgia |
| Facts and statistics are shown | Statistics |
| Makes people laugh so they have a positive association with the product. | Humor |
| Sounds or pictures that are pleasing to the eye. | Sense Appeal |
| caveat emptor | buyer beware |
| happens when an item is sold to you by a salesperson as a result of one-on-one discussion | personal selling |
| “unbelievable” financing offers | Truth is: The product is already priced higher to cover the expense of the financing. But that’s not all. More than 70% of the time, purchasers do not pay it off within the stated period and end up paying much more than they anticipated. |
