Study Guide Chap. 6 & 7
Consumer Awareness & Bargain Shopping
Things to know:
Pg. 136 "Before Buying Something" you should...
· Wait overnight!
· Consider your motives for buying it/remember "it" won't make you content
· Never buy anything you don't understand
· Consider the "opportunity cost" (understand what "opportunity cost" means!)
· Seek wise counsel
Why do businesses pay for expensive color ads in the newspaper offering zero interest on purchases? What is their motive?
To get you to finance the purchase with them because buyers will usually not pay within the given agreement which allows them to charge you high interest from the beginning of the purchase agreement.
Explain the difference between an installment loan and a credit card (use terms like revolving and credit card).
installment - fixed number of payments, example: car or house loan
credit card - revolving, no fixed payments, may be used repeatedly, borrower makes payments on only the amount borrowed, plus interest
How do using catchy slogans and jingles help businesses sell their products?
People remember them and are likely to keep buying products for years to come. M&M's melt in your mouth, not in your hands...
Does buying more "stuff" and owning more "things" make your level of happiness go up? No! How does it affect your level of contentment? Level of contentment doesn't go up with more buying.
What dollar amount does Dave Ramsey consider to be a "significant" purchase? $300 How long does he suggest you wait before you make a "significant" purchase? At least overnnight
Be able to identify Needs (food, water, shelter, basic transportation) vs. Wants; example: a stereo is a WANT, water is a NEED
Four Major Ways of Selling Products (see page 67)
What is "product positioning" and how do stores use this to get you to buy their products? (see page 67)
Brand recognition, color, shelf positioning, packaging (using all these things so that customers recognize their products time after time in the stores so they will buy their products instead of other products)
What is "personal selling?" Customer service that is personal - the seller asking the customer questions like, "How may I help you?"
What's an example of using "financing" as a marketing tool? Offering "Zero percent financing for 24 months"
What "medias" are used to market products? Internet, TV, Radio
Terms to know (see page 128 in your workbook):
Financing - borrowing money and paying it back over time
Branding - creating consumer awareness for a trademark or product
Buyer's Remorse - wishing you hadn't bought something after you bought it
Impulse Purchase - seeing something and buying it without thinking it through
Marketing
Opportunity Cost
Significant Purchase
Pg. 136 "Before Buying Something" you should...
· Wait overnight!
· Consider your motives for buying it/remember "it" won't make you content
· Never buy anything you don't understand
· Consider the "opportunity cost" (understand what "opportunity cost" means!)
· Seek wise counsel
Why do businesses pay for expensive color ads in the newspaper offering zero interest on purchases? What is their motive?
To get you to finance the purchase with them because buyers will usually not pay within the given agreement which allows them to charge you high interest from the beginning of the purchase agreement.
Explain the difference between an installment loan and a credit card (use terms like revolving and credit card).
installment - fixed number of payments, example: car or house loan
credit card - revolving, no fixed payments, may be used repeatedly, borrower makes payments on only the amount borrowed, plus interest
How do using catchy slogans and jingles help businesses sell their products?
People remember them and are likely to keep buying products for years to come. M&M's melt in your mouth, not in your hands...
Does buying more "stuff" and owning more "things" make your level of happiness go up? No! How does it affect your level of contentment? Level of contentment doesn't go up with more buying.
What dollar amount does Dave Ramsey consider to be a "significant" purchase? $300 How long does he suggest you wait before you make a "significant" purchase? At least overnnight
Be able to identify Needs (food, water, shelter, basic transportation) vs. Wants; example: a stereo is a WANT, water is a NEED
Four Major Ways of Selling Products (see page 67)
What is "product positioning" and how do stores use this to get you to buy their products? (see page 67)
Brand recognition, color, shelf positioning, packaging (using all these things so that customers recognize their products time after time in the stores so they will buy their products instead of other products)
What is "personal selling?" Customer service that is personal - the seller asking the customer questions like, "How may I help you?"
What's an example of using "financing" as a marketing tool? Offering "Zero percent financing for 24 months"
What "medias" are used to market products? Internet, TV, Radio
Terms to know (see page 128 in your workbook):
Financing - borrowing money and paying it back over time
Branding - creating consumer awareness for a trademark or product
Buyer's Remorse - wishing you hadn't bought something after you bought it
Impulse Purchase - seeing something and buying it without thinking it through
Marketing
Opportunity Cost
Significant Purchase