Test Review - Chapter 6 - Consumer Awareness
| A | B |
| What are the five steps you should take before making a significant purchase? | 1. Wait overnight, 2. Consider your buying motives, 3. Make sure you understand what you are buying, 4. Consider the opportunity cost, and 5. seek wise counsel |
Simply so, why is it important to develop power over purchase?
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
Additionally, when considering your buying motives ask yourself if you can afford the purchase? Chapter 5- Consumer Awareness - Test Review
| A | B |
| When considering your buying motives, ask yourself if you can afford the purchase. | True |
| Caveat emptor refers to the consumer's rights. | False |
| In the automobile world, studies show that, 88% of the time, “be backs” don't come back to purchase the car. | True |
Likewise, people ask, what are some ways that companies compete for your money?
Personal selling, Money and finance as a marketing tool, Media and product positioning.
What effect does inflation have on purchasing power quizlet?
Inflation has no effect on your buying power. You should never wait overnight before making a big purchase if there is only one item left.
What are 4 common marketing tactics?
Name some common marketing strategies: Any of the following would work: Providing financial options, repetition, personal selling, bandwagon, transfer of fantasy, Emotion, Nostalgia, statistics, Humor, Sense of Appeal, Positioning, Color, packaging.What is significant purchase?
Significant Purchase. An amount of money you spend, usually $300, that causes some pain to part with. Opportunity Cost. refers to the financial opportunity that is given up because you choose to do something else with your money.What is the persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money?
You just studied 3 terms! Inflation - A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.How do companies compete with each other?
A good sales team and a solid marketing plan are excellent ways to communicate the benefits of your products and services to customers. Businesses grow by securing new customers, and effective sales and marketing strategies can help you succeed. Find out more about sales and marketing strategies for your business.Why do companies compete?
Firms will compete with each other in the same market on prices, product quality and through promotional strategies (advertisement). They does to increase the number of people/firms buying their products. More costumers = more revenue.What does caveat emptor mean quizlet?
Caveat Emptor. Latin phrase meaning "let the buyer beware." Caveat Venditor. Latin phrase that means "let the seller beware."When the price level increases the purchasing power of money?
When the price level increases the purchasing power of money: Increases by a similar amount. Stays the same since the purchasing power of money is not impacted by price levels.What effects does inflation have on purchasing power?
Inflation and Purchasing Products Price inflation decreases people's ability to pay for goods. The concept at a basic level says if an employee's wages remain steady, but the cost of goods increases, then the employee can afford less goods. As wage inflation occurs, people will be able to buy more products.What is local purchasing power?
Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more. Groceries index: Compares typical grocery prices in the country to New York City.How does the purchasing power of money relate to the price level quizlet?
The purchasing power of money is inversely related to the price level. The Board of Governors of the Federal Reserve System (the Fed) is responsible for managing the United States' money supply so that money retains its purchasing power.What factors influence consumer decisions?
The personal factors include age, occupation, lifestyle, social and economic status and the gender of the consumer. These factors can individually or collectively affect the buying decisions of the consumers.How do you interpret the inflation rate?
The inflation rate is the percentage increase or decrease in prices during a specified period, usually a month or a year. The percentage tells you how quickly prices rose during the period. For example, if the inflation rate for a gallon of gas is 2% per year, then gas prices will be 2% higher next year.What is the purpose of advertising quizlet?
What is the purpose of advertising? It is to persuade the public to buy a product or a service or to adopt a point of view. It is addressed to the public at large or to a section of the public - and not to an individual. You just studied 7 terms! 
