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Personal Financial Literacy

Chapter 3

AB
advertisinginforming consumers about products and encouraging them to buy
bait and switchillegal sales technique, advertise and then persuade consumers to buy something moire expensive
banner adsinternet ads that span the top, bottom or sides of a web page
branding strategycarrying well-known brands to attract customers who are loyal to those brands
comparison shoppingchecking prices from different sellers to get the best deal
cost-plus pricingsetting a price based on production cost plus mark-up
cost-push inflationrising prices as a result of rising production costs
cost-recovery pricingsetting an introductory price high to recover costs
customer loyalty programprogram designed to encourage repeat customers by giving incentives
deceptionfalse or misleading claims about the quality, price, or purpose of a product
deflationdecrease in the general level of prices for goods and services
demand pull inflationhigher prices resulting from consumers want to buy more than what can be supplied
direct advertisingdistribution of product information directly to consumers
discount pricingoffering the lowest everyday price possible
disinflationrising prices with the rate of increase slowing down
economizingsaving as much as possible and spending money only when necessary
emotional buyingpurchasing products based on desire rather than logic
hyperinflationrapidly rising prices that are out of control
impulse buyingpurchasing something on the spur of the moment with no planning
inflationincrease in general level of prices for gods and services


Social Studies Teacher
Blandford Academy
Petersburg, VA

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