Flashcards
Consumer Choice
Cards in this deck (46)
- 1Needthings that are necessary for survival, e.g. water and food
- 2Wantsthings that are not essential for survival, but we would like to have
- 3What is Commerce?Commerce examines how people earn their income, how they spend their money and what goods/services are produced
- 4private want? Collective want?Private: wants we desire individually
Collective: wants provided by government (roads, hospitals) - 5complementary wants? substitute wants?C: wants used together e.g. car and petrol
S: can be used to replace something else, e.g. glue and sticky tape - 6Key factors affecting consumer decisionsService
Price
Convenience
Marketing/advertising
gender, age, finance, environmental - 73 basic questions before buying a product?1. do i really want this item?
2. Can i afford it?
3. Is there something better? - 8RetailersSell directly to public
- 9department storesone type of retailer, usually large stores that sell a variety of goods, e.g. Myer and David Jones
- 10Speciality storesfocus on selling a particular type of good (JBHIFI)
- 11supermarketsspecialise in selling groceries and household goods (Coles, Aldi)
- 12convenience/general storessmaller stores that are open longer hours, and often attached to a petrol station e.g. seven eleven
- 13Advantages of internet purchasingComparison shopping, cheaper products, quick delivery times, Credit card use, purchase for overseas
- 14Disadvantages of internet purchasingdelivery charges, untrustworthy traders, risk of scams, return of faulty product/s takes time and effort
- 15advantages of mail orderrange of products often not in retail stores, convenience for consumers who are handicap or live in remote areas
- 16Disadvantages of mail orderProduct being different in reality, losing money if product is not delivered,
- 17Merchantable qualityThe product is fit for purpose, acceptable in appearance, free from defects, safe and durable
- 18What is a contract?legally enforceable agreement between two or more persons/parties
- 193 elements of a contractOffer: one of the parties offering something in value
Acceptance: offeree agrees to proposal
Consideration: required to form a valid contract - 20Bait and switch?Scam involving advertising a few products at reduced items to attract costumers. When the advertised products quickly sell out, costumers are directed to higher priced items
- 21Unsoliated goodsThis involves sending unordered goods through the mail and then demanding payment
- 22Misleading advertisingUsing words that are deceptive or claim that a product has some specific quality, when it does not. These actions convey a false impression.
- 23Pyramid scamChain letter is a common form. You are required to pay a joining fee with the opportunity to earn quick money as you recruit new members. However, most people just lose their money.
- 244 legal rights for consumers1. Safe products: directions for use provided, tested by manufacturer
2. Accurate product information and descriptions
3. Full disclosure of the terms of sale
4. Consumer guarantees and warranties are honoured: expect a refund or exchange if faulty - 25Accc?Australia competition and consumers commission is obligated to inform the public so that they are aware of their rights under the law.
- 26ASIC?Australian securities and investments commission protects consumers in areas of credit, investment, life insurance, superannuation and banking
- 27OmbudsmanSwedish word meaning 'agent'. Someone who has the task of investigating and reporting on complaints
- 28Department of fair trading NSWProvides information and assistance to consumers on areas such as issues, shopping online, home building and motor vehicle sales
- 29Advantages + disadvantages of cashA: readily accepted by shops, allows shopping to be quick
D: large amounts carried can be stolen, Bank and ATM'S not always available - 30Advantages + disadvantages of creditA: Buying now and paying later, provided by a financial institution (bank)
D: interest charges, encourage impulsive buying, have to be credit worthy - 31Advantages + disadvantages of chequesA: easy to carry, direct and good for large amounts of money
D: banks may charge a fee to operate cheque, can be forged - 32Advantages + disadvantages of direct debitA: good for charity organisations and regular payments (won't be forgotten)
D: not always trustworthy, can add up to be too expensive - 33Advantages + disadvantages of EFTPOSA: convenient system, removes problems that occur when using cash
D: experience problems if server crashes, magnetic strip on plastic card can be damaged - 34Cheque: drawee, payee and frawerDrawee: financial institution that provides cheque account facilities
Payee: person receiving money from cheque
Drawer: Person who signs and authorises the transaction - 35Impulse buyingbuying something without giving much thought as to whether you really need it
- 36Cash flowmoney coming into and going out of a business
- 37interestextra money you have to pay when borrowing money
- 38scaman illegal business practice
- 39rip-offto overcharge or swindle
- 40caveat emptora term meaning 'let the buyer beware'
- 41comparison shoppingcontracting a number of sellers to obtain the best deal
- 42Businessan organisation that produces and sells goods/services in order to make a profit
- 43Fair gobeing treated justly and honestly
- 445 decisions that people make in their lives (Apart from consumer decisions)1. Financial decisions
2. Business decisions
3. Employment decisions
4. Legal decisions
5. Environmental decisions - 45Why is advertising important to consumers?Advertising plays a major rule in influencing consumer decisions. If the marketing campaign is successful, consumers will THINK that they need the particular product
- 46Purpose of a budgetThe purpose is to not spend more than you earn. A budget balances income and expenses.
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- Revision of Topic 1 for Half- yearly exams
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- ameliajaneee
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