Chapter 5 Study Notes: Consumer Awareness

Amygdala

A part of the brain that triggers your stress response

Face with a threat your three responses are:

Fight, flight, or freeze

Prefrontal Cortex

Part of the brain that controls memory, impulses, and thoughts

Impulse Buying

Buying anything without planning to advance

Buyers Remorse

Feeling guilty or regret after you make a purchase

Consumerism

The theory that spending money and consuming goods is good for the economy.

Marketing

Is the communication of the value of a product or service to the customer

Brand Recognition

Being able to recall a brand by its logo, jingle, or packaging

4 P’s of Marketing

Product, Price, Place, Promotion

Smart: ‘S’

Self-awareness- Will this add value to my life

Smart: ‘M’

Motive: Am I buying this for the right reason?

Smart: ‘A’

Affordability: Is this in my budget?

Smart: ‘R’

Research: Is this the best option, retailer, and price

Smart: ‘T’

Timing; is now the time to buy it?

Manufacturer’s Warranty

Is a promise from a company that the product will be replaced or fixed if broken close to when you bought it.

Extended Warranty

Paying more for extra coverage on a warranty that was on the product you purchased

Opportunity Cost

The potential benefit, profit, or value an individual, investor, or business misses out on when choosing one alternative over another

Card Fraud

The unauthorized use of your credit or debt card

Identity Theft

Using someone’s personal information without their knowledge for your own financial benefit.

Contentment

The state of being satisfied with who you are and what you have in life.