Final Exam Study Guide Chapters 6, 7, 8, 9, & 10 Real Estate Sales Chapter 6 • Two major elements of the marketing mix • Three primary expectations of buyers • Three steps of total product • Total product • Primary reason why commissions are paid at the end of the sales cycle • Price fluctuations are caused by what? • Packaging • Defining Value • Barter System • Price Elasticity The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change

Price Elasticity of Demand (PEoD)

Measures the rate of response of quantity demanded due to a price change, calculated as (% Change in Quantity Demanded)/(% Change in Price).

Barter System

A method of exchange where goods or services are directly traded for other goods or services without using currency.

Total Product

The complete set of benefits or values that a buyer receives from a product, including core benefits, actual product, and augmented product.

Price Niche

The specific market segment that a property is aimed at based on its pricing strategy and perceived value.

Personal Selling

A direct form of communication between a sales agent and a potential customer, aimed at persuading the customer to make a purchase.

Advertising

An indirect form of communication designed to promote products or services through various media channels.

Expertise in Real Estate

The specialized knowledge and skills that enhance a real estate agent's ability to sell properties effectively.

Tangible Attributes of Quality

Four measurable aspects of service quality that can affect a buyer's decision in real estate.

Civil Rights Act of 1866

A federal law that prohibits discrimination in housing based on race.

Americans with Disabilities Act of 1992

A law that prohibits discrimination based on disability and mandates accessibility standards.

Misrepresentation

Providing false or misleading information about a property.

Fraud

An intentional deception made for personal gain.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person.

Quality Brand Development

The process of establishing a strong, positive perception of a real estate agent or agency in the marketplace.

Emotional Connection in Sales

The establishment of a personal bond between a sales agent and a customer, often enhancing trust and loyalty.

Competence Questioning Factors

Elements that lead potential clients to doubt the abilities of a sales agent even before the initial meeting.