Chapter 5 Test Q2 2025

An example of discretionary spending is (a)   .

• Utilities and food
• Transportation
• Monthly rent
• Nonessential goods and services

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

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

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

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

• 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.

• Choose a brand similar to theirs.

What does it mean to develop power over purchase?

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

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

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

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

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

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

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

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

• You can buy happiness.

It's your right as the consumer to . . .

• Pitch a fit if you don't like the product you just purchased, and demand a refund

• Buy whatever you want, as long as you don't go into debt over it

• Expect a product to live up to the quality promised to you before you purchased it

• Keep a product even if it malfunctions or has manufacturing issues

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

• Say no to an unnecessary purchase

• Use a credit card for the points without going into debt

• Set up digital wallets and mobile payment

• Discern when to open a retail store credit card and when not to

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’s easier to part ways with cash, so you’re more likely to overspend.

• It isn’t a better option. The perks of virtual payments outweigh the downsides.

• It helps the store clerk when you use cash.

Why does brand recognition help businesses?

• It makes their name and logo easily memorable for consumers.

• It helps the business recognize their own logo.

• It keeps the consumer from buying more of their product or service.

• It helps them partner with other businesses.

Why should you never buy the extended warranty?

• Retail items and products rarely break or malfunction.

• You should buy the extended warranty. It is a smart financial decision.

• Most retailers will replace or repair the product if it stops working within the first year.

• The retailers never keep their promises.