Personal Finance Chapter 6 Test

1.

1 point

Which of the following should you consider when making a significant purchase?

Your buying motives

If you canʹt pay with cash, donʹt buy it

The opportunity cost

All of the above

2.

1 point

Which of the following is NOT a form of product positioning?

Shelf positioning

Financing

Packaging and color

Brand recognition

3.

1 point

The purpose of advertising is to:

Tease the consumer

Inform the consumer

Persuade the consumer

All of the above

4.

1 point

Identify which method companies are using to compete for your money: "Car salesman"

Product positioning

Media

Personal selling

Financing

5.

1 point

Never buy something you do not fully understand.

True

False

6.

1 point

A good salesperson will answer a question with a question.

True

False

7.

1 point

Zero percent financing is nothing more than a really good marketing tool.

True

False

8.

1 point

Identify which method companies are using to compete for your money: "TV commercials"

Media

Financing

Product positioning

Personal selling

9.

1 point

Inflation has NO effect on your buying power.

True

False

10.

1 point

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:

ʺBe backsʺ in the car business

Buyerʹs remorse

Opportunity cost

Brand recognition

11.

1 point

The amount of stuff a person has is directly related to contentment and happiness.

True

False

12.

1 point

When a company places an ad and offers no interest on your purchase for three years:

They are expecting you not to pay for the purchase within three years

The cost of the financing is built into the price of the item

They are showing their appreciation to you by giving you free money

They are not interested in making a profit

13.

1 point

You should never wait overnight before making a big purchase if there is only one item left.

True

False

14.

1 point

Which of the following is NOT a common marketing strategy?

Providing financing options

Making the customer do product research

Personal selling

Repetition

15.

1 point

What is a safe assumption to make regarding companies and their marketing practices?

Companies know that competition is fierce for consumer dollars.

Companies spend millions of dollars and do extensive research on advertising.

Companies use all angles to aggressively compete for your money.

All of the above

16.

1 point

A budget has little effect on a personʹs financial success unless he or she also develops power over purchase.

True

False

17.

1 point

Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions.

True

False

18.

1 point

Four common marketing tactics are:

Repetition, buyerʹs remorse, product positioning, significant purchase

Branding, personal selling, opportunity cost, financing

Competition, financing, opportunity cost, personal selling

Personal selling, financing, repetition, product positioning

19.

1 point

Identify which method companies are using when choosing placement of a product in a store.

Personal selling

Media

Financing

Product positioning

20.

1 point

What concept is best explained by the statement, ʺMoney spent for one thing cannot be spent for anotherʺ?

Significant purchases

Law of diminishing return

Opportunity cost

Delayed gratification

21.

1 point

Identify which method companies are using to compete for your money: If you are being offered ʺ90-days-same-as-cashʺ

Personal selling

Product positioning

Media

Financing

22.

1 point

Young single adults should find an accountability partner with whom to discuss big purchases.

True

False

23.

1 point

Repetition has proven to be an ineffective marketing technique.

True

False

24.

1 point

Which of the following is NOT a need?

Eating out

Housing

Food

Utilities

25.

1 point

Which is NOT a ʺpower over purchaseʺ tactic?

Compare your purchase with a friendʹs

Seek counsel

Consider the opportunity cost

Wait overnight