Question

Using cash gives you more bargaining
power than using credit.
a True
b False
11. Being married (or emotionally attached)
to a purchase will cause you to lose
bargaining power.
a True
b False
12. Getting the best deal on a purchase involves
doing all of the following except:
a Having patience
b Being first in line for a new product
c Negotiating
d Shopping around to find the best deal
13. Which of the following is typically not a
good place to find a deal?
a Consignment shops
b Individuals
c Mall
d Online auctions
14. Which of the following describes why using
cash is a great bargaining tool?
a Cash is visual.
b Cash has immediacy.
c Cash is emotional.
d All of the above
Short Answer
Respond in the space provided.
15. Summarize the benefits of being a
wise consumer.
16. Explain how walk-away power can be used
as a negotiating tool.

Answer 1

10. Using cash gives you more bargaining power than using credit.
a True

11. Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.
a True

12. Getting the best deal on a purchase involves doing all of the following except:
b Being first in line for a new product

13. Which of the following is typically not a good place to find a deal?
c Mall

14. Which of the following describes why using cash is a great bargaining tool?
d All of the above

Short Answer

15. Summarize the benefits of being a wise consumer.
- Save money by finding better prices and avoiding impulse buys.
- Get higher value — better quality, appropriate features, and longer-lasting goods.
- Reduce buyer’s remorse and increase satisfaction with purchases.
- Avoid scams, hidden fees, and poor warranties.
- Improve long-term financial health (more savings, less debt).
- Make more informed, sustainable choices (environmental and ethical benefits).

16. Explain how walk-away power can be used as a negotiating tool.
- Walk-away power means you’re willing to leave the negotiation if the deal isn’t acceptable. That willingness signals you aren’t desperate and gives you leverage.
- To use it: set your maximum price or terms ahead of time (your BATNA — best alternative to a negotiated agreement), communicate calmly that you have alternatives, and actually be prepared to leave if the seller won’t meet your limit.
- Sellers may make concessions (lower price, better terms, extras) rather than lose the sale. Example: in car or appliance buying, starting to stand up and say you’ll check other dealers often prompts a last-minute offer.