Personal Finance Flashcards

Questions and Answers

What is branding?

A form of financing

Only about public perception

The process of identifying a product with distinct characteristics (correct)

A marketing tactic involving direct sales

What is brand recognition/awareness?

The public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.

What is buyer's remorse?

Feeling regret or concern after making a large purchase

What does 'caveat emptor' mean?

Buyer beware Signup and view all the answers

What is financing?

To buy an item with credit; paying over time Signup and view all the answers

What is marketing?

The process of communicating the value of a product or service to customers Signup and view all the answers

What is opportunity cost?

The financial opportunity cost that is given up because you choose to do something else with your money Signup and view all the answers

What is considered a significant purchase?

An amount of money you spend, usually $300, that causes some pain to part with Signup and view all the answers

Companies use every angle to aggressively compete for our __________.

money Signup and view all the answers

_________ of teens say their parents contribute more than half of their spending dollars.

55-60% Signup and view all the answers

The fashion category accounts for roughly ______ of teen budgets.

40% Signup and view all the answers

One of the techniques is _ _.

personal selling Signup and view all the answers

The second technique is _____________.

financing Signup and view all the answers

Other media like TV, radio and internet use __________ to sell products.

repetition Signup and view all the answers

What is positioning in marketing?

Using brand recognition, color, shelf positioning, and packaging Signup and view all the answers

Match the following terms with their descriptions:

Auction = A public sale in which property or items are sold to the highest bidder Consignment shop = Retail store where people sell items and the owner gets a percentage Cost-benefit analysis = The process of quantifying costs and benefits of a decision Estate sale = Type of yard sale with more items, usually entire contents of a household Signup and view all the answers

What is foreclosure?

Process by which the holder of a mortgage sells the property of a homeowner who has not made payments Signup and view all the answers

What does integrity refer to in personal finance?

Having to do with a person's honesty and moral attributes Signup and view all the answers

What is markup?

The difference between the wholesale price and retail price Signup and view all the answers

What does it mean to negotiate?

To bargain for a lower price Signup and view all the answers

What is meant by walk-away power?

The ability to walk away from a purchase when negotiating Signup and view all the answers

When negotiating, always tell the absolute ________.

truth Signup and view all the answers

Use the power of ______.

cash Signup and view all the answers

Understand and use -_ ________.

walk-away power Signup and view all the answers

don't talk too much.

Shut up Signup and view all the answers

Use _ __ technique.

that's not good enough Signup and view all the answers

Use the ___ _ __ technique.

good guy bad guy Signup and view all the answers

To throw something else in at the end of the deal is called the __

if I 'take away' technique Signup and view all the answers

What is diversification in investing?

The practice of dividing money invested between several different types of investments Signup and view all the answers

What is investing?

The process of setting money aside to increase wealth over time Signup and view all the answers

Study Notes

Branding and Marketing Concepts

Branding: Promotes products/services by associating them with distinct characteristics impacting public perception and quality.
Brand Recognition/Awareness: Public's ability to recall a brand through logos, jingles, and packaging.
Marketing: Communicates the value of a product or service to potential customers.

Consumer Behavior

Buyer's Remorse: Regret or anxiety felt after a significant purchase.
Caveat Emptor: Latin phrase meaning "buyer beware."
Significant Purchase: Typically refers to spending around $300, which may cause reluctance to part with the money.

Financial Insights

Financing: Buying items on credit to pay over time.
Opportunity Cost: Financial loss when choosing one option over others.
Money Competition: Companies aggressively compete for consumer spending dollars.

Marketing Tactics

Common Marketing Tactics:
- Personal Selling
- Financing as a marketing tool (e.g., payment plans)
- Repetition through various media for product exposure
- Positioning using brand recognition and packaging
Personal Selling: Involves trained individuals assisting customers in making purchasing decisions.

Negotiation Strategies

Walk-Away Power: Ability to refuse a purchase if terms are unsatisfactory.
Truth in Negotiation: Always maintain honesty during negotiations.
Techniques:
- "That's not good enough" to press for better terms
- "Good guy, bad guy" to create negotiation pressure
- "If I take away" to introduce additional incentives at closing

Purchasing Strategies

Power Over Purchase:
- Wait overnight before deciding
- Analyze buying motives
- Understand products fully before buying
- Consider opportunity costs
- Seek advice from knowledgeable sources

Additional Concepts

Auction: Public sale where items go to the highest bidder.
Consignment Shop: Retail outlet where individuals sell items, earning a commission for the store.
Cost-Benefit Analysis: Assessing the financial advantages and disadvantages of a decision.
Estate Sale: Large sale of items from a household, often during a move or liquidation.
Foreclosure: Process in which a lender takes possession of property due to unpaid mortgage payments.

Financial Management

Integrity: Importance of honesty and morality in financial transactions.
Markup: Difference between wholesale and retail prices, essential for understanding profit margins.
Diversification: Strategy of spreading investments across various assets to reduce risk.
Investing: Allocating money with the intention of growing wealth over time.

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Description

Test your knowledge of key personal finance concepts with these flashcards. Each card features important terms like branding, brand recognition, and buyer's remorse. Perfect for anyone looking to enhance their understanding of marketing and consumer behavior.