Ch.28 Consumer Decisions

Question 1

Describe the term ‘consumer’

Answer 1

A consumer is someone who buys or uses goods and services

Question 2

What is a good? Give 1 example

Answer 2

Goods are items that are bought and sold. Eg. Food

Question 3

What is a service? Give 1 example

Answer 3

A service is work carried out by skilled people for a customer or a client. Eg. A hairdresser

Question 4

What is the difference between a good and a service

Answer 4

A good is bought and sold, a service is carried out by skilled people in their craft

Question 5

List 5 factors that influence consumers decisions

Answer 5

1. Money
2. Sustainability
3. Advertising and Marketing
4. Trends
5. Peer pressure

Question 6

Describe the 4 (1-4) steps involved in a consumer decision

Answer 6

1. Identify the problem and the goal
2. Research and collect information
3. List up possible solutions
4. Weigh up the pros and cons of each possible solution

Question 7

Describe the other 4 steps ( 5-8) influencing the consumer decision making process

Answer 7

5. Talk through solutions with others
6. Make your choice
7. Take action
8. Evaluate your action.

Question 8

Give 3 advantages of online shopping

Answer 8

1. Large choice of goods available
2. More convenient, goods can be ordered from home and delivered to your house
3. Easy to compare prices, brands and styles.

Question 9

Give 3 disadvantages of online shopping

Answer 9

1. Increased risk of impulse buying ands over spending.
2. Goods may not be as expected
3. Returning goods is inconvenient

Question 10

List the 4 methods of payment

Answer 10

1. Cash
2. Debit Cards
3. Credit Cards
4. PayPal

Question 11

Give 1 advantages and 1 disadvantage of cash

Answer 11

Advantage: Less likely to overspend and get into debt
Disadvantage: carting cash is not very secure & if it is lost or stolen, there is little chance of getting it back

Question 12

Give 1 advantages and 1 disadvantage of debit cards

Answer 12

Advantages: cards are more secure than cash
Disadvantages: easy to lose track of payments, leading to overspending.

Question 13

Give 1 advantages and 1 disadvantage of credit cards

Answer 13

Advantages: if the bill is payed in full, the consumer can buy now, pay later without being charged interest
Disadvantages: if bills are not paid in full, you can get into credit card debt ( interest 25%+), so purchases end up costing more.

Question 14

Give 1 advantages and 1 disadvantage of PayPal

Answer 14

Advantages: companies do not have access to your card details, making fraud less likely.
Disadvantages: online purchases can be made quickly, which can cause impulse buying.