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MONEY MATTERS
 

CONSUMER AWARENESS

Convincing marketing tactics can cause buyers to make impulse or unnecessary purchases. Being aware of advertising techniques is the first step to smart shopping. Test your advertising knowledge by completing the quiz below.

Match the advertising technique to the statement.

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Advertising Technique:

 

Statements:

A)

Join the gang

B)

Celebrity endorsement

C)

Dangling comparatives

D)

Independence

E)

Get rich quick

F)

Exploiting fears & misgivings

G)

Sexual appeal

H)

Negative option

I)

Credit repair

J)

Numerical claims

K)

Guarantees

L)

Bargain appeals

M)

Scientific claims

N)

Catch phrases or slogans

 

1.

Return this card today and begin receiving three CDs monthly. If at any time you don’t want a CD, just return it within 10 days

2.

If you’re the type of person who can think and act for yourself, drive one of our cars and you’ll be convinced you can’t buy better

3.

We promise your new battery will last a lifetime, or money back

4.

This detergent works better on grease and stains

5.

Three out of four dentists recommend this toothpaste

6.

Everyone else is using this product. Why aren’t you?

7.

At this price for a limited time only. Buy now, because you won’t see a value like this again

8.

After years of research by leading doctors, we’ve formulated a pill that allows you to eat anything you want without gaining weight

9.

You find yourself, without know it, singing along to a commercial

10.

If Mr. Famous athlete wears this type of underwear, shouldn’t you?

11.

Just one spray of our cologne and you’ll never spend another Saturday alone

12.

Work at home and earn up to $10,000 per week

13.

No matter how bad your credit is, for one small fee, we can help you get the car of your dreams

14.

Our complete at home course is designed to increase your chances of getting better grades regardless of the subject

Answer Grid:

A

B

C

D

E

F

G

H

I

J

K

L

M

N

Click to check answers

Common (and not-so-common) Frauds

Do you know someone who has been scammed? Be aware of these typical frauds to avoid being taken advantage of.

Telemarketing scams: You have won a free…. This may involve a letter or a phone call about a foreign investment that is “too good to be true.”

Advance –free loans: Fake loan brokers lead someone on and guarantee you credit (money) but you must pay the broker before you apply.

Automatic debit Scams: Fake telemarketers use this technique to improperly take money from your bank account. Never give bank account information over the phone unless you are familiar with the company.

Bogus Diets: Canadians spend millions of dollars a year and fake diet products such as “Lose Weight While You Sleep” or “Eat All You Want and Still Lose Weight”.

Magazine Scams: Beware of telephone sales pitches for “free” or “pre-paid” subscription offers.

Toll-free Scams: Calls to 800, 888, and 877 numbers are almost always free. However there are some exceptions. Be careful.

International Phone Scams: Scam artists confuse callers by promoting calls to “809” numbers; while these numbers may look like domestic calls, but international rates apply.

Pre-Paid Phone Scams: Selling prepaid calling cards may involve a large upfront fee.

Online and High Tech Scams: Common internet scams are pyramid schemes such as: equipment sales, business opportunities and work-at-home offers.

“900” Numbers: You pay to call these numbers, usually a flat rate (i.e. $1.99 per minute). Think twice before calling and check your phone bill for the charges.

Work-at-Home Schemes: Common schemes like envelope stuffing assembly or craft work. To avoid being a victim find out what task you will be required to perform, if you will be paid on salary or commission, who will pay you, and the cost of the program (how much you will have to pay to get the materials).

Before you Buy

Before You Decide to Spend Your Money Think

 

• Do I really want this item?
• Is it worth the time I spend making money to pay for it?
• Is there a better use for my money right now?

When You Decide to Buy Think

 

• What level of quality do I want?
• What level of quality do I need?
• How much can I afford?

• Should I wait until there is a sale?
• Should I buy a reliable brand name, even if it costs more?
• Is there a warranty or service contract?
• What do consumer reports say about this item?

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