Study Guide for Exam 4 To Bottom of Page
Study Guide for Exam 4


Shopping
What are the four main ways of making purchases?  Be able to give examples and list pros and cons of each.
What are the steps in the decision making process?
What are some ways of bargaining or saving money when shopping?
Where can you get information to help in comparison shopping? Be able to evaluate the strengths and weaknesses of each source.

Advertising:  Boon or Bane?
What are the advantages of advertising?
Discuss the pros and cons of advertising directed towards children.

Advertising
What are the different types of puffery ads (emotional, institutional, testimonial, etc.).
Explain what an informational ad is.
What is the purpose of advertising?
What is necessary to make an ad deceptive?
Be able to analyze an advertisement.
How do you feel about advertising to children?
What are the consequences of advertising in schools?

Negative Option Plans for Books, Records, Videos
How does a negative option plan work?
What must the seller tell you?
What things should you consider before joining a negative option plan?
What is the difference between a negative option plan and a continuity plan?

Warranties
When comparing warranties, what should you keep in mind?
What is the difference between a full and partial warranty?
What should you consider when deciding whether or not to purchase a service contract?
Who benefits most from a service contract or extended warranty?
What are the two types of implied warranties?
Explain what each of the implied warranties covers.
How can you prevent problems with a warranty?

The Role of Advertising in a Market Economy
Know whether each of the bold statements is true or false ... and why.
No matter how good an advertising campaign is, a product will fail in the marketplace it it is:

Fraud
What are the characteristics of vulnerable customers?
What are the common characteristics of deceptive schemes?
How can you avoid becoming a victim?

Telemarketers Have Got Your Number
What are the FTC regulations/rules that govern telemarketing?

Protecting Yourself from Consumer Fraud
Click on Sweepstakes
If you are told you have won a sweepstakes, what should you do?
Click on Work-at-home Schemes
What will a legitimate company do before they require you to pay money?

Buying a Home
What are some of the costs, both upfront and on-going, associated with home ownership?
What are some of the considerations associated with selecting a place to live?
What are the pros and cons of various housing options?
What are the terms associated with purchasing a home?
What are the steps in getting a mortgage?

Buying a Car
What are some of the societal issues related to car ownership and use, especially here in the U.S.?
What are some of the costs associated with car ownership?
What are the pros and cons of buying new versus used vehicles?
What are some of the issues/problems associated with leasing vehicles?
How can using the Internet help you in purchasing a vehicle?


Please note: These questions are just guides to help you recognize relevant information in the readings. It would be in your best interest to also know the answers to study questions associated with any of the above articles. Tests will cover the articles listed above and in the course schedule AND class discussions (content modules for the on-line classes).

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FCS 3400
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