Foundations in Personal Finance Ch. 6

Inflation has no effect on your buying power.

• True

• False

Which of the following is not a need?

• Housing

• Eating Out

• Utilities

• Food

The purpose of advertising is to:

• Tease the consumer

• Persuade the consumer

• Inform the consumer

• All of the above

Which of the following is not a common marketing strategy?

• Providing financial options

• Repetition

• Making the customer do product search

• Personal selling

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

• They are not interested in making a profit

• They are showing their appreciation to you by giving you free money

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

• All of the above

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

• Companies know that competition is fierce for consumer dollars

• Companies spend millions of dollars and do extensive research on advertising

• Companies use all angles to aggressively compete for your money

• All of the above

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

• Law of diminishing return

• Significant purchases

• Opportunity cost

• Delayed gratification

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

• Personal selling

• Financing

• Media

• Product positioning

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

• Personal selling

• Financing

• Media

• Product positioning

Identify which method companies are using to compete for your money: Car salesman

• Personal selling

• Financing

• Media

• Product positioning