Ch 4- Smart Shopping Flashcards
Chapter 4- Personal Finance
What are consumer needs?
Things that we cannot live without e.g. clothes, food, accommodation
What are consumer wants?
Things that we would like to have, but aren’t essential
What is a budget?
a plan of how much money you are prepared to spend
What is false economy?
When we purchase a cheaper product, but it turns out to be more expensive in the long term.
e.g. buying cheap batteries that go flat within 2 hours instead of buying slightly more expensive batteries that last for 20 hours.
What is unit price?
the price of a single amount of something
What is the calculation for unit price?
price divided by quantity
What is a brand?
the distinctive name and logo that producers put on their products, services or businesses
What should you do before buying an expensive product?
Shop around to ensure we get this product at the best price
What is conspicuous consumption?
spending in an extravagant way with the deliberate intention of trying to impress others
What are impulse choices?
sudden unplanned decisions to buy something
What will retailers do to tempt you to buy their items?
- Special pricing e.g. 9.95 instead of 10
- Below-cost selling
What is below-cost selling?
When retailers dell a product at a lower price than they paid for it. That means they are selling at a loss.
What is a loss leader?
A product sold at below cost price with the intention of attracting customers into a shop
What should a receipt include?
- name of the seller
- date the item was sold
- name or description of the item purchased
- price paid by consumer
Give examples of 5 Irish brands
- Tayto
- Guinness
- Kerrygold butter
- Barry’s tea
- Bailey’s Irish Cream
Why is it a good idea to ask for a receipt?
- As a proof of purchase
- To monitor spending
- To check bills for accuracy
What is a gaurantee?
A promise from the manufacturer or seller to offer a REFUND or REPLACEMENT to anyone who purchases faulty goods within a specific period of time
What is a warranty?
An additional promise from a manufacturer or seller to REPAIR any faulty goods within a specific period of time.
What does informative advertising do?
Gives you information about a product e.g. size, colour, availability
What does persuasive advertisement do?
tries to convince you that you ‘need’ a product.
What does AIDA stand for?
Attention
Interest
Desire
Action
What is AIDA used for?
It is used to help design persuasive advertising
How can we pay for a product using our own money?
- Cash
- Debit cards
- Gift cards
How can we pay for a product using borrowed money?
- Loans
- Hire purchase
- Credit cards
What are the benefits of using cash?
- You know how much you have available to spend and how much you have left over.
- You can’t get into debt as you can only spend what you have
What does legal tender mean?
that the notes and coins must be accepted as payment by retailers if offered by a customer.
Name 3 ways you know a banknote is real
- A holographic panel is embedded in the note
- the note should be pure cotton with a protective coating.
- A watermark image can be seen if the note is held against a light
- The main image on the front of the note uses raised printing
- A security thread is embedded in the note, if held against a light
- Under ultraviolet light, the fibres embedded in the paper will make the images glow red, blue or green.
What are the benefits of using a debit card?
- They are a convenient and safe way to pay for goods without using cash.
- You cannot buy on credit, therefore you cannot get into debt.
What is a deposit?
A small part of the cost of the product which will reserve the product for you until you return and pay the rest of the money owed.
How can you be a smart consumer online?
- Use trustworthy websites
- Use secure payments
- Check postage charges
- Be aware of taxes
- Keep in mind of delivery time
- Think it can be more difficult to make complaints
What is EFT and what does it stand for?
Electronic Funds Transfer allows money to be transferred from one bank account into another account
What is EFTPOS and what does it stand for?
Electronic Fund Transfer at the Point of Sale refers to all the systems that allow customers to pay money electronically in shops.
