Dave Ramsey Consumer Awareness Flashcard

Front

What is the concept that explains 'Money spent here cannot be spent there'?

Back

Opportunity cost is the value of the next best alternative that is forgone when making a decision.

Front

What method do companies use to compete for your money by emphasizing their reputation for holding value?

Back

Product Positioning is a marketing strategy that focuses on creating a specific image or identity for a product in the minds of consumers.

Front

Is zero percent financing a good marketing tool?

Back

True, zero percent financing can attract customers by reducing the cost of borrowing.

Front

What is defined as an amount of money you spend, usually $300, that causes some pain to part with?

Back

Significant Purchase refers to a transaction that requires careful consideration due to its impact on finances.

Front

Which of the following is not considered a need: Clothing, Transportation, Utilities, or Eating out?

Back

Eating out is not a need; it is a want.

Front

What is the term for the cost associated with the next best alternative when a choice is made?

Back

Opportunity Cost.

Front

What is the marketing strategy that involves creating a unique image for a product?

Back

Product Positioning.

Front

What does it mean when a company offers zero percent financing?

Back

It means that the customer can borrow money without paying any interest for a specified period.

Front

What is a significant purchase?

Back

A significant purchase is an expense that is large enough to require careful thought and consideration.

Front

What are the three basic needs of consumers?

Back

Clothing, Transportation, and Utilities.