PERSONAL FINANCE CHAPTER 6 REVIEW TEST (DAVE RAMSEY) 100% QUESTIONS AND ANSWERS, Exams of Advanced Education

Download PERSONAL FINANCE CHAPTER 6 REVIEW TEST (DAVE RAMSEY) 100% QUESTIONS AND ANSWERS and more Exams Advanced Education in PDF only on Docsity! PERSONAL FINANCE CHAPTER 6 REVIEW TEST (DAVE RAMSEY) 100% QUESTIONS AND ANSWERS 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