A Drawback To An Installment Plan Is That

Question: What helps a consumer determine the quantity of something to buy?

marginal cost

marginal error

marginal benefit

marginal comparison

Answer: Marginal cost

Question: Which of the following is an unhealthy motivation for donating money to charitable organizations?

to help build a better world

to support a cause that you care about

to do good for others

to make yourself feel important

Answer: To make yourself feel important

Question: The advertisement is promoting a soft drink.

Which statement best explains how this advertisement attempts to influence consumer spending?

It is endorsed by celebrities.

It claims to be naturally delicious.

It has a recognizable logo.

It has great public awareness.

Answer: It claims to be naturally delicious.

Question: Consumers who agree to a “no interest” installment plan should be aware of:

how much is saved by avoiding cash.

the terms outlined in the paperwork.

sales that would lower prices.

interest rates other consumers pay.

Answer: The terms outlined in the paperwork.

Question: Buying something in order to increase social status is known as ___________ consumption.

Answer: Conspicuous

Question: A drawback to an installment plan is that:

it takes longer to buy a product.

a large down payment is required.

interest rates are generally very high.

interest rates are generally very low.

Answer: Interest rates are generally very high.

Question: Consumers usually save the most money on major purchases when they:

agree to an installment plan.

save up to pay with cash.

take out a low-interest loan.

agree to rent to own.

Answer: Save up to pay with cash.

Question: Before Robert buys a new car, which questions should he ask himself? Check all that apply.

Is this something I need?

Will my friends like this?

Is advertising influencing me?

Will this help others in my family?

Will I impress my coworkers?

Am I considering my future needs?

Answer: Is this something I need?

Is advertising influencing me?

Will this help others in my family?

Am I considering my future needs?

Question: Which example could be considered a harmful spending motivation?

asking others about potential hidden costs

putting family needs first before buying a product

buying something expensive in order to feel better

comparing features of many different products

Answer: Buying something expensive in order to feel better

Question: Which best explains why companies use celebrities to endorse their products?

to develop a brand

to copy other companies

to influence consumers

to justify a quality claim

Answer: To influence consumers