Personal Finance chapter 6 Review test (Dave Ramsey)

Which of the following is not a need? Eating food
The purpose of advertising is to: All of the above
Which of the following is not a common marketing strategy? Making the customer do product research
Which is not a ʺpower over purchaseʺ tactic? Compare your purchase with a friendʹs
Which of the following is not a form of product positioning? Financing
Which of the following should you consider when making a significant purchase? All of the above
Dave tells the story of a man who bought his dream car, drove it home, but then returned it the next day after some money calculations. This story is an example of: Buyers Remorse
Four common marketing tactics are: Personal selling, financing, repetition, product positioning
Identify which method companies are using to compete for your money: TV commercials Media
Identify which method companies are using to compete for your money: Car salesman Personal selling
Identify which method companies are using to compete for your money: Reputation for holding its value Product positioning
Identify which method companies are using to compete for your money: ʺ 90-days-same-as-cash ʺ Financing
What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ? Opportunity cost
What is a safe assumption to make regarding companies and their marketing practices? All of the above
When a company places an ad and offers no interest on your purchase for three years: The cost of the financing is built into the price of the item
Zero percent financing is nothing more than a really good marketing tool. True
Repetition has proven to be an ineffective marketing technique. False
Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions. True
You should never wait overnight before making a big purchase if there is only one item left. False
A budget has little effect on a personʹs financial success unless he or she also develops power over purchase. True
Inflation has no effect on your buying power. False
Young single adults should find an accountability partner with whom to discuss big purchases. True
The amount of stuff a person has is directly related to contentment and happiness. False
Never buy something you do not fully understand. True
A good salesperson will answer a question with a question. True
The promotion of a product or service by identifying it with distinct characteristics; usually associated with public perception, quality or effectiveness Branding
To buy an item with credit; paying over time Financing
Refers to the financial opportunity that is given up because you choose to do something else with your money Opportunity cost
An amount of money you spend, usually $300, that causes some pain to part with Significant purchase
The process of communicating the value of a product or service to customers Marketing
Refers to the publicʹs ability to recall and recognize a brand by its logo, jingles, packaging, Etc. Brand recognition
Feeling regret or concern after making a large purchase Buyers remorse
An economic system based on a free market, profit motive, open competition and private ownership of the means of production Capitalism
The persistent increase in the cost of goods and services or the persistent decline in the buying power of money Inflation
A spur-of-the-moment, unplanned decision to buy a product or service Impulse buy

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