Chapter 5 Review

An example of discretionary spending is ________.

• Nonessential goods and services

• Monthly rent

• Transportation

• Utilities and food

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

• It's easier for the retail store clerks.

• Digital pay is the way of the future, and retail stores like being ahead of the times.

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

• It’s harder for customers to pay, so they end up saving money.

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

• Choose a brand similar to theirs.

• Get you to dislike their branding.

• Leave you confused with how their product works.

• Have their products strategically placed in stores.

When someone steals and uses your debit or credit card info, that's called ____________.

• Authorized spending

• Fraud

• Borrowing

• Networking

What does it mean to develop power over purchase?

• You have power to purchase whatever you want, and you do so.

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

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

• You are powerless in the face of an impulse purchase.

To think big picture, you need to understand that . . .

• Your goals are less important than buying the latest and greatest stuff

• You can buy happiness

• The best way to be content is to have more money

• The best way to have more money is to have contentment

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

• Credit card fees

• Groceries and eating out

• Entertainment

• Impulse purchases

Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.

• False

• True

What is the digital marketing strategy that tracks users across the web?

• Content marketing

• YouTube videos

• Native ads

• Retargeting

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

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

• Make sure you have enough money in your account

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

• Pay cash—never use a card at a gas pump