Chapter 5 Quiz

Why do stores like 'scan and go' options, apps, and one-click purchases?

• It makes paying easier and faster, so customers are more likely to overspend.

• It's easier for the retail store clerks.

As an effective marketing strategy, companies pay a lot to...?

• Have their products strategically placed in the store

• Get you to dislike their branding

• Confuse you about their product

When someone steals and uses your debit or credit card, that's called _______

• Networking

• Borrowing

• Fraud

What does 'developing power over purchase' mean?

• You can make decisions very quickly when it comes to purchasing items.

• You are powerless.

• You are able to slow down and think through your motives before buying something.

Companies use marketing to disable your prefrontal cortex, making you vulnerable to impulse purchases.

• True

• False

Americans spend over $2,100 a year on ___________.

• Impulse purchases

• Entertainment

• Groceries and eating out

• Pizza

Before you insert your debit card at the gas pump, you should always...

• Check out the card reader to see if it looks different, loose, or worn

• Ask the store clerk if there has been a thief here lately

• Pay cash - never use a card at the gas pump

Part of being a smart consumer involves being able to...

• Refuse unnecessary purchases

• Use a credit card for the points

• Set up digital wallets and mobile payments

Why is paying for something in cash a better option than a virtual payment, even if it isn't as convenient?

• If you make spending less convenient, you're less likely to buy things you don't need.

• It helps the store clerk when you use cash.

• It is not a better option.

Creating a budget, setting clear financial goals, and taking time to think through a purchase are all practices of a ________.

• college student

• wise consumer

• free spirit