MODULE 3 - CHP 8-9 SMARTBOOK
Which of the following are personal factors that could affect your daily buying
habits?
Multiple select question.
inflation
tax rates
occupation
product safety
gender
education
age
occupation
gender
education
age
Which of the following are important considerations when choosing a store at which
to shop?
Multiple select question.
product selection and services
location and prices
the fact that you do not use credit cards
product selection and services
location and
Brand name products are usually Blank______ expensive than nonbrand items, but
offer ______ quality.
less; higher
more; higher
more; lower
less; lower
more; higher
Product label on appliances includes information on operating __________, to assist
you in selecting the most energy-efficient models.
Costs
The information on the label of some food products includes ________ dating that
helps the consumer determine freshness. This is a one-word answer.
expiration
Lifestyle, interests, hobbies, and peer group are all _______ factors that affect your
buying decisions.
social
Which of the following items are timing strategies for purchases that could save you
money?
Multiple select question.
Buying winter clothes in the fall
Buying summer clothes in late summer
Buying summer clothes in the spring
Buying holiday decorations in late December and early January
Buying holiday decorations three or four weeks prior to the holiday
Buying winter clothes in late winter
Buying summer clothes in late summer
Buying holiday decorations in late December and early January
Buying winter clothes in late winter
Which of the following would be considered wise buying techniques?
Multiple select question.
buying based on price rather than nutritional value
reading and evaluating label information
using coupons to try new products
comparing brands to determine which is best for your purpose
basing your buying decision on one source of information
reading and evaluating label information
using coupons to try new products
comparing brands to determine which is best for your purpose
The unit price of chocolates in a box is found by dividing the price of the box of
chocolates by the number of chocolates in the box. Assume all the chocolates have
the same price per unit.
True false
True
Brand names are usually:
but they are manufactured by superior-quality manufacturers so are likely to be
higher quality.
made by older companies so they are better.
produced by younger companies so they are better.
more expensive, and sometimes the private-label products are manufactured by the
same companies that produce the brand-name products.
more expensive, and sometimes the private-label products are manufactured by the
same companies that produce the brand-name products.
An express warranty is usually in writing, is created by the __________ or
manufacturer, and has two forms: __________ warranty and limited warranty.
seller/manufacturer
full
An ____________ warranty of merchantability covers a product's intended use or
other basic understandings that are not in writing.
implied
If a 10 pound bag of dog food sells for $6.99, what is the per unit cost of the dog
food?
$6.99 per bag
about $0.40 per ounce
about $10.00 per pound
about $0.70 cents per pound
about $0.70 cents per pound
($6.99 divided by 10)
A used-car dealer must place a _______ guide sticker in the window of cars for sale.
buyer's
In which step of the wise online buying activities would the consumer compare
brands and features?
Conduct online research.
Compare stores.
Plan for future purchases.
Make purchase.
Conduct online research.
One of the best sources of information about the product you are considering
buying is:
the Consumer Financial Protection Bureau.
independent testing organizations.
what the neighbors own.
what the sales person says.
independent testing organizations.
A limited warranty covers only certain aspects of the product and requires the buyer
to pay part of the costs for:
contact and shipping.
shipping or repairs.
upgrades or repairs.
shipping or upgrades.
shipping or upgrades.
Which of the following are questions you should ask yourself when you are
considering a major purchase?
Multiple select question.
How should I pay for it?
Which brands should I consider?
Do the neighbors have one?
Can I delay the purchase?
How should I pay for it?
Which brands should I consider?
Can I delay the purchase?
Comparison shopping can be beneficial when:
most sellers are offering the same price on the product.
product quality or prices vary greatly.
there are a lot of advertisements about the product.
quality is about the same between products.
product quality or prices vary greatly.
An implied warranty of ______ indicates that the seller has a right to sell the product.
merchantability
express
limited
title
title
A possible advantage of ________ an automobile is the smaller upfront cash outlay.
leasing
True or false:
When a used car is sold "as is," the seller assumes responsibility for any necessary
repairs in the first 30 days.
False
Which of the following is not a drawback of leasing an automobile?
small cash outflow
costs incurred for certain repairs
no ownership interest in the vehicle
cost incurred for extra mileage
small cash outflow
The common sources of information regarding products during the preshopping
phase include personal __________ media, and independent testing agencies such as
Consumer Reports.
contacts, preference, research, recommendation, networks, preferences,
recommendations, or network
True or false:
Other than price, the product attributes to be considered when evaluating brand
alternatives are performance, design, and warranty.
True
Which items below affect the cost of an automobile lease?
Multiple select question.
capitalized cost
the monthly payments and the number of months
manufacturer rebates
money factor—the interest rate paid on the capitalized cost
interest rates on a new car loan from both the bank and the dealer
residual value—the projected value at the end of the lease
capitalized cost
the monthly payments and the number of months
money factor—the interest rate paid on the capitalized cost
residual value—the projected value at the end of the lease
An individual would benefit from comparison shopping when wanting to purchase
which of the following types of products and/or in which of the following situations?
Multiple select question.
expensive or complex products
products where quality differs greatly among sellers
simple products that are seldom purchased
low-cost products
products that are sold by many different sellers at various prices
expensive or complex products
products where quality differs greatly among sellers
products that are sold by many different sellers at various prices
You are considering a car with no down payment and monthly payments of $550 for
48 months and an estimated value at the end of the loan term of $8,000. A
comparable model can be leased for $550 a month for 36 months with end-of-lease
costs of $1,800. Which arrangement should you choose?
the lease because the cost is lower
the loan and purchase because its cost is lower
the loan and purchase because its cost is lower
$550×48−8,000 = 18,400
$550×36 + 1,800 = 21,600
Monthly car lease payments are often less than monthly car financing payments.
True false
True
True or false:
The drawbacks of leasing an automobile include no ownership interest in the vehicle
and costs for extra mileage, for certain repairs, and for turning the car in early.
True
True or false:
A lease trap can happen when you negotiate the monthly payment on a lease and
ignore the capitalized cost of the vehicle.
True
Dealing with the person who has the __________ to give you a lower price is a vital
factor of negotiations.
authority
Which of the following items is not a variable in the cost of a lease?
capitalized cost
monthly payments and number of months
residual value
sticker price
sticker price
True or false:
Two important sources of used car prices are Edmund's Used Car Prices and the
Kelley Blue Book.
True
You are considering a car with no down payment and monthly payments of $350 for
48 months and an estimated value at the end of the loan term of $4,000. A
comparable model can be leased for $325 a month for 36 months with end-of-lease
costs of $1,400. Which arrangement should you choose?
the lease because the cost is lower
the loan and purchase because its cost is lower.
the loan and purchase because its cost is lower.
The factors that influence the price of a used car include ______.
Multiple select question.
demand for the model
sticker price
condition
capitalized cost
features and options
number of miles
demand for the model
condition
features and options
number of miles
A possible advantage of _________ an automobile is the smaller upfront cash outlay.
leasing
The range of negotiation is determined with a new car by knowing the ________ price
and the _______ cost.
sticker
dealer's
The difference between the sticker price and the dealer's cost is usually the range
available for ______.
luxury cars
financing
negotiation
rebate
negotiation
True or false:
A lease trap will usually not happen if you ignore the total cost of the lease
agreement and focus only on the monthly payment.
False
true or false:
When attempting to trade in a current car for a new car, it is best not to mention a
trade-in vehicle until the cost of the new car has been settled.
True
Products such as real estate or automobiles may be purchased using ______
negotiation
price
