Chapter 6 - The Household Consumer Flashcards
Define consumer.
Anyone who buys goods or services for their own use.
Define brand.
The identity of a particular product. It usually refers to the manufacture of the product e.g. Kelloggs.
Define false economy.
A situation where we buy something that costs less than other brands or seems to be better value but turns out to be more expensive in the long run (e.g. buying a cheap battery that costs 50c and only lasts for 3 hours instead of a better brand of battery that costs €1 and lasts for 10 hours).
Define caveat emptor.
A Latin phrase meaning “Let the buyer beware”.
Define guarantee.
A promise from a manufacturer to offer a refund or a replacement to customers who have purchased faulty goods.
Define warranty.
An additional promise by a manufacturer or seller to repair damaged goods within a stated period of time.
Define credit note.
A document (voucher) given by the retailer to the consumer for the value of the goods returned. It allows the consumer to purchase other goods from that shop equal in value to the goods returned.
Define receipt.
Written proof to the consumer that they have purchased and paid for a good or service.
Define the term “below cost selling/loss leaders”.
When a shop sells popular products very cheaply i.e. below their cost price, in order to attract people into their shop. The retailer hopes that once the shopper comes into the store, they will make other purchases there are too.
Define a bar code.
A small rectangle containing black and white lines and figures found on the packaging of most products. The bar code contains information such as product name, price weight, origin, etc.
Name three qualities of the informed consumer.
- Checks for value/quality - makes enquiries, shops around, checks prices to get value for money.
- Keeps receipts, keeps the guarantee.
- Does not buy impulsively - prepares a budget and sticks to it.
List four considerations when choosing a brand.
- The price of each brand of product.
- The quality of each brand of product.
- Special offers available from certain manufacturers. For example, when buying a car you may be able to get one year’s free insurance if you purchase one brand instead of another.
Under the Sale of Goods and Supply of Services Act 1980, what is required of goods?
- Be of merchantable quality
- Be fit for purpose
- Confirm to sample
- Be as described by the shop
Under the Sale of Goods and Supply of Services Act 1980, what is required of services?
- Be provided by skilled persons
- Use materials fit for the purpose and of merchantable quality
- Be provided with proper care and diligence
When are complaints NOT valid with a good?
- You damaged the goods through misuse or accident
- You change your mind
- It was purchased second hand ‘seconds’ (except cars)
- It was bought from a private individual or friend
