Chapter 4- Smart Shopping, Consumer

Question 1

When buying a good or service we must think:

Answer 1

"Do I really need it?"
"Can I afford it?"
"Is it good value for money?"
"Can I get it cheaper elsewhere?"
Avoid making impulse purchases. 
Get a receipt when you buy something.

Question 2

Do I really need it?

Answer 2

Consumer needs are things we cannot do without E.G. food, clothing.
Consumer wants are things we want but are not essential E.G. toys, make-up.

Question 3

Is it value for money?

Answer 3

Cheaper doesn’t always mean better.

Buying poor quality products could be false economy (more information on that later).

Question 4

Can I get it cheaper elsewhere?

Answer 4

When buying items (particularly expensive ones), we should always shop around.
This can mean going to different shops or checking online to find the best value.

Question 5

Impulse purchase:

Answer 5

An impulse purchase occurs when we make a sudden, unplanned decision to buy something.

Question 6

Why is it so important to get a receipt?

Answer 6

It is proof of purchase- proof that you bought that item in that shop.
It helps to monitor spending.
Allows you to check that you have been charged the correct amount for the good or service.

Question 7

False economy:

Answer 7

When we purchase a cheaper product but it turns out to be more expensive in the long run because it doesn’t last as long and needs to be replaced sooner.
E.G. Cheap pair of runners that cost €20 that only last 6 months or more expensive pair for €50 that last two years.

Question 8

Budget:

Answer 8

An estimate of income and expenditure for a set period of time.

Question 9

Price per Unit:

Answer 9

The unit price is the price of a single amount of a product.
Formula:
Price divided by Quantity = Unit Price.
Helps to convert € to c.

Question 10

Special Pricing:

Answer 10

Selling an item for €9.95 instead of €10 to make a customer think the product is cheaper.

Question 11

Below-Cost Selling:

Answer 11

When a retailer sells a product at a lower pice than they paid for it - this means they make a loss but they hope a customer will buy more expensive products at the same time.

Question 12

How to be a smart online shopper:

Answer 12

Trustworthy website.
Secure payment method.
Check delivery and postal charges.
Check for extra taxes on goods coming from outside the EU.
Check how long delivery takes.
Check how to make a complaint to the company in case you need to.

Question 13

What is a consumer?

Answer 13

Someone who buys goods and services for their own use.

E.G. You going into the shop to buy a bar of chocolate to eat for your lunch.