How can a company place an ad and offers no interest on your purchase for three years?
They build in the cost of financing into the price of the item/product
.
When a company places an ad and offers no interest on your purchase for three years group of answer choices?
| A B | Never buy something you do not fully understand. True | When a company takes out a four-page color ad in the Sunday paper and offers no interest on your purchase for three years, they are showing their appreciation to you by giving you free money False |
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When a company places an ad and offers no interest on your purchase?
| Question Answer | When a company places an ad and offers no interest on your purchase for 3 years the cost of financing is built into the price of the item. | Identify which method companies are using to compete for your money: Car salesman personal selling |
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What is a safe assumption to make regarding companies in the marketing practices?
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.
Why financing a purchase is a bad idea?
Explain why financing a purchase is a bad idea. Going into debt for any reason is a bad idea
because it puts you at financial risk, causes you to pay more than the cost of the item
, and prevents you from building wealth. … Considering opportunity cost is just one of the steps needed to have power over purchase.
What qualifies as a 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. Buyer’s Remorse.
How does advertising affect your buying decisions?
How does advertising affect your buying decisions?
It makes you see your wants as needs & appeals to your emotions
. Repetition puts the product in your mind. Financing is used as a marketing tool to make you think you are getting a great deal.
Which of the following is a good place to negotiate?
| A B | When negotiating, what kind of deal should you set up? A win-win | Where are good places to negotiate? Flea Markets , Consignment Shops, Pawn Shops, Thrift Stores, Garage Sales, Estate Sales | What are the characteristics of cash? Visual, emotional, immediacy |
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Why is it important to develop power over purchase?
Purchasing power is the value of a currency expressed in terms of the number of goods or services that one unit of money can buy. Purchasing power is important because,
all else being equal, inflation decreases the number of goods or services you would be able to purchase
.
Why do you plan for retirement instead?
Why?
It reduces the amount of taxes you owe on the income for each year you invest in it
. It allows you to defer or even avoid the taxes you owe on the earnings that accrue on your investments. It produces earnings on earnings, creating a compounding effect not available in a regular savings account.
What are 4 common marketing tactics?
| A B | Identify which method companies are using to compete for your money: TV commercials Media | What are four common marketing tactics? Personal selling, financing, repetition, product positioning |
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What is a power over purchase tactic?
“Power over purchase” tactics.
Wait overnight, Consider the opportunity cost, Seek counsel
.
The purpose of advertising
.
Persuade the consumer
, Tease the consumer, Inform the consumer.
How do companies compete for your money?
What are the four major ways companies compete?
Personal selling, Money and finance as a marketing tool, Media and product positioning
.
Why you should never pay cash for a car?
If you tell them you’re paying cash, they
will automatically calculate a lower profit
and thus will be less likely to negotiate a lower price for you. If they think you’re going to be financing, they figure they’ll make a few hundred dollars in extra profit and therefore be more flexible with the price of the car.
Is it better to make payments on a car or pay in full?
Paying cash
for your car may be your best option if the interest rate you earn on your savings is lower than the after-tax cost of borrowing. However, keep in mind that while you do free up your monthly budget by eliminating a car payment, you may also have depleted your emergency savings to do so.
Is it better to finance or pay cash for furniture?
Cash is a great way to pay for a large purchase
like furniture because it gives you bargaining power. Sellers like to offer financing to convince people to spend more than they can truly afford. However, when they offer to finance a large purchase, they spread out the income from the sale over a large period.
