When a Salesperson Visits Your Home and Asks You to Try

question 24

Multiple Choice

When a salesperson visits your home and asks you to try a free sample of a cleaning fluid,you agree. When he returns the following week and asks you to purchase an assortment of expensive cleaning products,you make the purchase. The salesperson appears to have made effective use of

• A)the fundamental attribution error.
• B)role-playing.
• C)the foot-in-the-door phenomenon.
• D)cognitive dissonance.

---

Definitions:

Annuity

An investment vehicle that provides a consistent series of payments to a person, mainly serving as a source of income for those who have retired.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Present Value

The assessed present-day value of money to be received in the future or a pattern of cash inflows, factoring in an established rate of return.

Effective Rate

is the actual interest rate that an investment earns or a loan incurs, including the effects of compounding over a given period.