Chapter 5 Money In Review Flashcards
(22 cards)
The cost of borrowing money on an annual basis
APR
Regretting a purchase soon after making it
Buyers remorse
Recognizing a brand
Brand recognition
Caveat emptor
Buyer beware
Borrowing money and paying overtime
Financing
Having a beginning and an end
Finite
To buy an item without thinking about it
Impulse purchase
The cost that you will be losing and receiving from a purchase
Opportunity costs
Rule of 78
90 days same as cash
And amount of money spent that causes some pain
Significant purchase
Seek wise____
Counsel
Wait _____ before making a major purchase
Overnight
Number of advertisements a person views daily
3000
Spend $60 on the latest video game or a gift $60 to charity
Opportunity costs
Creates consumer awareness for a trademark or product
Branding
Color is a product positioning technique used to get the buyers attention
T/F
T
Advertising slogan that have been around for a long time no longer work
T/F
F
Answering a question with a question is the sign of a well trained sales person
T/F
True
Typically 90 days same as cash contracts convert to payments with interest up to 24% APR
T/F
T
The opportunity cost of purchasing a new cell phone could be the purchase of a new prom dress
T/F
T
Describe the five steps to follow before making a significant purchase
1) Wait overnight
2) Consider you’re buying motives
3) Never buy anything you don’t understand
4) Consider the opportunity costs
5) Seek wise counsel
Why do so many people fall for financing as a marketing tool
They think they’re getting free money
