Caveat Emptor: Let the Buyer Beware! - Ramsey

What does 'Caveat Emptor' mean?

• The seller is responsible for the product

• The buyer is responsible for the purchase

• The seller must disclose all information

• The product is guaranteed

Answer explanation

The buyer is responsible for the purchase as 'Caveat Emptor' means the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase.

Match the following marketing tactics with their descriptions:

• Short-term incentives to boost sales

• Brand Association

• Featuring products in movies or TV shows

• Product Placement

• Face-to-face selling

• Personal Selling

• Creating a positive image of the brand

• Sales and Promotions

Which tactic involves placing pricier items at eye level in stores?

• Convenient Payment Methods

• Personal Selling

• Product Placement

• Brand Association

Answer explanation

Product Placement involves placing pricier items at eye level in stores to attract customers' attention and potentially increase sales. Product placement might also involve featuring a brand in a TV show or movie.

Which of these are good strategies for avoiding impulse buying? (mark all that apply)

• Have a shopping list
• Use convenient payment methods

• Always carry cash

• research options before buying

• wait a couple of days and decide if you still need it/want it.

Answer explanation

A good strategy to avoid impulse buying is to have a shopping list, which helps you stay focused on what you need and prevents unnecessary purchases.

What is the main goal of businesses according to the text?

• Customer satisfaction

• Building brand loyalty

• Providing quality products

• Making a profit

What should you do before making a purchase according to the text?

• Check if it's on sale

• Buy it immediately

• Research the product and retailer

• Ask friends for recommendations

Answer explanation

Research the product and retailer is the correct choice as it helps in making an informed decision before making a purchase.

What is the risk of using convenient payment methods?

• You might forget your passwords

• You might overspend without realizing

• You might earn rewards points

• You might get discounts

Answer explanation

The risk of using convenient payment methods is that you might overspend without realizing, leading to potential financial problems.

The suggested action if you receive marketing emails that tempt you to buy is to (a)  

• Forward them to friends
• Unsubscribe from them
• Save them for later
• Ignore them

Answer explanation

If you receive marketing emails that tempt you to buy, the suggested action is to unsubscribe from them to avoid further temptation and clutter in your inbox.

What is the first step to take control of your spending?

• Follow brand promotions

• Create a budget

• Use credit cards wisely

• Shop during sales

Answer explanation

Create a budget is the first step to take control of your spending as it helps track and manage your expenses effectively.