Upgrade to remove ads
Foundations in Personal Finance: Chapter 6 - Consumer Awareness
Terms in this set (44)
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
Feeling regret or concern after making a large purchase
Latin term for "buyer beware"
To buy an item with credit; paying over time
The process of communicating the value of a product or service to customers
Refers to the financial opportunity that is given up because you choose to do something else with your money
An amount of money you spend, usually $300, that causes some pain to part with
An economic system based on a free market, profit motive, open competition and private ownership of the means of production. Driven by supply and demand. Promote consumer demand by marketing.
A good salesman
has a servants heart, knows how to sell, and is professional
The economic law of supply and demand
The theory that a free market economy, prices are determined by the interaction of supply and demand; increase in supply will lower prices if not accompanies by increased demand, and an increase in demand will raise prices unless accompanied by increased supply
For every hour of tv per week, you spend an average of
$200 extra a year
Common Marketing Tactics
personal selling, financing, repetition, and product positioning
Percent of people who don't pay 90 days same as cash on time
Types of product positioning
Brand recognition, color, shelf positioning, and packaging
The average consumer mentions specific brands
90 times per week
Shelf position influences
The average US household has 52 unused item valued around
Regretting your purchase the next day
You must develop
power over purchase
Wait how long before making a purchase
People sometimes get happiness and
The true cost of something in terms of what you have to give up to get the item; the benefits you would have received by taking the other action
the persistent increase in the cost of goods and services or the persistent decline in the buying power of money
You must consider this when planning for future expenses such as retirement
inflation trends are more predictable by considering
long-term rates of inflation
Persuading people to do something by telling them that others are doing it too.
Famous people say they use a product or persuade you to use a product.
By using the names or pictures of famous people, but not their direct quotations, the ad is trying to convey that the product will help the consumer imitate the famous person in the ad.
The product name is repeated at least four times.
Words are used in the ad to evoke strong feelings about someone or something.
Creates a sentimental tone while pointing back to "the good old days."
Facts and statistics are shown.
Makes people laugh so they have a positive association with the product.
Sounds or pictures that are pleasing to the eye.
A spur-of-the-moment, unplanned decision to buy a product or service
Used by car salesman
Method used to by TV commercials to compete for your money
Methods used by companies when they use the 90-days-same-as-cash
Financial risk, pay more than item costs, prevents wealth building
Why financing is a bad idea...
money can't be spent two places, power over purchase
Consider opportunity cost because...
wait overnight, consider buying motives, understanding of product, opportunity cost, seek counsel
Steps before making significant purchase:
marketing, peer influence, brand recognition, opportunity cost, advice from others, immaturity, contentment, time
Factors that influence consumer decisions
personal selling, creative financing, repetition, product positioning
Ways companies compete for money
YOU MIGHT ALSO LIKE...
Dave Ramsey Ch. 6 - Consumer Awareness
Chapter 6 -- Consumer Awareness
Chapter 6 business -- Consumer Awareness
Dave Ramsey Ch 6: Consumer Awareness
OTHER SETS BY THIS CREATOR
Unit 2 AP Psychology Practice Test
OTHER QUIZLET SETS
personal finance CH 6
Chapter 6 test
Unit 2 Chapter 6 Financial Literacy
Civics- Finance chapters 6-8