PF chapter 8

What do some companies do to help sell their products?

Pay celeberties to give testimonials

social network marketing

way of marketing to teens that relies on peer pressure and the "beautiful people" factor

Why do Big Box bookstores usually play music?

so you will subconsciously think about buying a CD

What happens when people's pay increases?

their spending levels are likely to increase

If you pay more for a car, the higher your auto insurance premiums and upkeep are likely to be.

true

What should you do if you are in the market for a car?

compare their values in the kelly blue book

Why do cruise lines and other companies offer luxury services and goods on game shows?

appeal viewers emotional desire to jump on the bandwagon, make their product or service easy to obtain, and sell much more of their service or product to viewers than they give away to prize winners

What can you do to avoid spending beyond your means?

leave your credit card at home

what are some signs of shopping addiction?

spending $20 a week to download music, using money from your sharing fund to win online auction, buying expensive items at a garage sale every weekend

Library books would be an effective marketing tool in schools.

false

What must you think critically about besides advertisers trying to influence your buying decisions?

ads you see and hear in order to make sound choices

What do fast food do to create brand loyalty?

marketing kid's meals, toys, and sometimes playgrounds

What do advertising agencies that market products to teens know?

they have a lot of money, do not hesitate to spend their money, and buy anything that is trendy

do you buy oppurtunity cost?

no

example of oppurtunity cost

deciding between buying food and buying needed medication

What can you do instead of buying a new CD every week?

buy used ones, borrow them from the library, and decide that you do not need to see new movies right away

What does breaking the cycle of spending without thought involve?

resisting advertiser's emotional appeals, recognizing when your values would be compromised and separating wants from needs

Would buying a furnace require a short or long planning process?

long

professionals determined to convince you to spend your money on their products

advertising agency

tries to get consumers to buy their product because everyone else is

bandwagon

a guarantee that if the product breaks down or does not work properly, it will be replaced or repaired

warranty

the real price of an item is the value of what you gave up to get it, the cost of passing up the next item on your list

oppurtunity cost

methods companies use to get you to pay attention to their products

marketing tactic

graphic symbol or trademark that represents a brand

logo

statement in support of a companies product

testimonial

What does "living with your means" mean?

you have enough money to cover all expenses

What is the movie Pursuit of Happiness about?

Chris Gardner had a wife and son and he was struggling to pay bills and provide for his family. His wife left him and he couldn't sell any more scanners so he was struggling to find a home. He went broke and he was homeless with his son. He got an internship at Dean Whitter and eventually got a good job as a stockbroker.