chapter 6 Flashcards Preview

economics > chapter 6 > Flashcards

Flashcards in chapter 6 Deck (35)
Loading flashcards...
1

The persistent increase in the cost of goods and services or the persistent decline in the buying power of money

inflation

2

To buy an item with credit; paying over time.

financing

3

Identify which method companies are using to compete for your money: TV commercials

media

4

Which is not a ʺpower over purchaseʺ tactic?

compare your purchase with a friend's

5

Feeling regret or concern after making a large purchase

buyer's remorse

6

Identify which method companies are using to compete for your money: Reputation for holding its value

product postitioning

7

Which of the following is not a need for consumer awarness

eating out

8

The process of communicating the value of a product or service to customers

marketing

9

Inflation has no effect on your buying power(t/f)

false

10

Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions(t/f)

true

11

Repetition has proven to be an ineffective marketing technique.(t/f)

false

12

The amount of stuff a person has is directly related to contentment and happiness.(t/f)

false

13

What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

opportunity cost

14

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:

opportunity cost

15

Refers to the financial opportunity that is given up because you choose to do something else with your money.

opportunity cost

16

Identify which method companies are using to compete for your money: ʺ90-days-same-as-cashʺ

financing

17

Which of the following is not a common marketing strategy?

Making the customer do product research

18

Zero percent financing is nothing more than a really good marketing tool.(t/f)

true

19

When a company places an ad and offers no interest on your purchase for three years:

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

20

What is a safe assumption to make regarding companies and their marketing practices?

all of the above

21

The promotion of a product or service by identifying it with distinct characteristics; usually associated with public perception, quality or effectiveness

branding

22

Which of the following should you consider when making a significant purchase?

all of the above

23

You should never wait overnight before making a big purchase if there is only one item left.(t/f)

false

24

Refers to the public’s ability to recall and recognize a brand by its logo, jingles, packaging, etc.

brand recognition

25

An amount of money you spend, usually $300, that causes some pain to part with

significant purchase

26

Which of the following is not a form of product positioning?

financing

27

A budget has little effect on a person’s financial success unless he or she also develops power over purchase.(t/f)

true

28

An economic system based on a free market, profit motive, open competition and private ownership of the means of production

capitalism

29

Young single adults should find an accountability partner with whom to discuss big purchases.(t/f)

true

30

The purpose of advertising is to:

all of the above